'Lineage 2M' That Was Thriving Faces Bitterness in Japan [Buaeri's Game Dictionary]

[Asia Economy Reporter Bu Aeri] NCSoft's mobile massively multiplayer online role-playing game (MMORPG) Lineage 2M, ambitiously launched overseas this year, is experiencing mixed fortunes. It has succeeded in Taiwan, where users show similar tendencies to those in Korea, but has faced difficulties in Japan.

According to mobile app analytics site Gevolution on the 10th, Lineage 2M ranks 2nd on Google Play and 3rd on the Apple App Store in Taiwan based on revenue (as of the 9th). In contrast, in Japan, Lineage 2M ranks 15th on Google Play and 38th on the App Store, showing somewhat sluggish performance.

NCSoft launched the game under the service name 'Tiantang 2M' in Taiwan and 'Lineage 2M' in Japan on the 24th of last month. Lineage 2M offers the same level of graphics and interface in Taiwan and Japan as in Korea, and featured popular actor Geum Seong-mu as its advertising model. Although pre-registrations reached 3.5 million in Taiwan and 2.2 million in Japan, the results diverged after the official release.

The sluggish performance of Lineage 2M in the Japanese market is largely attributed to the characteristics of Japanese users. Professor Wi Jeong-hyun of Chung-Ang University, president of the Korea Game Society, analyzed, "Japanese users do not like games that pursue power through spending money or games with probability-based items. Moreover, since the PC game Lineage did not succeed in Japan, the foundation for Lineage 2M to enter the market is weak."

NCSoft is also limited by its high dependence on domestic sales and minimal global influence. Last year, NCSoft recorded its highest-ever performance with sales of 2.4162 trillion KRW and operating profit of 824.8 billion KRW. However, looking at sales by country, Korean sales alone amounted to 2.013 trillion KRW. North America and Europe generated 94.4 billion KRW, Japan 54.8 billion KRW, and Taiwan 35.9 billion KRW in sales. Royalty revenue was 218 billion KRW.

The securities industry also expressed disappointment. Due to poor performance in Japan, the securities sector forecasts that NCSoft's first-quarter results will decline compared to the previous year. NCSoft's first-quarter results are expected to be sales of 528.8 billion KRW and operating profit of 111.7 billion KRW, representing decreases of 27% and 53% year-on-year, respectively. Lee Seung-hoon, a researcher at IBK Investment & Securities, explained, "Because Lineage 2M is underperforming in Japan, not only will this year's earnings estimates be revised downward, but expectations for the overseas success of NCSoft's games have also diminished."

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