[Asia Economy Reporter Buaeri] NCSoft is experiencing unprecedented hardships. Public anger over loot boxes, coupled with the underwhelming performance of the new release 'Blade & Soul 2 (B&S2)', has even shaken NCSoft's stock price. Recently, voices from academia have called for NCSoft CEO Kim Taek-jin to be summoned as a witness at the National Assembly's audit.
Ongoing Criticism... Calls for Summoning at the National Assembly Audit
The Korea Game Society issued a statement on the 23rd, asserting that "The National Assembly must thoroughly investigate the issue of loot boxes during this audit."
The society pointed out, "As seen in the B&S2 incident involving NCSoft, gamers' backlash and fatigue toward loot boxes have reached a peak," adding, "The revenue generated from loot box microtransactions, which can yield massive profits in a short period, has already exceeded acceptable limits."
Regarding the necessity of summoning CEO Kim as a witness, the society stated, "NCSoft is both the biggest beneficiary and the main party involved in the loot box controversy," and emphasized, "Through this audit, it should be made clear whether NCSoft's attitude and stance have changed and what alternatives they propose."
While it is common for the National Assembly to summon business leaders one after another, it is unusual for academia to voice such demands directly. The society explained that their stance aims to "promote change and innovation among major game companies, including NCSoft."
However, CEO Kim was not included in the list of witnesses and reference persons approved by the Culture, Sports and Tourism Committee on the 23rd. A committee official commented, "There are still witness and reference person selections remaining for the audits on the 14th and 21st," and added, "We are considering whether to summon CEO Kim."
Taek-jin Hyung Foresees Change
Public opinion toward CEO Kim, affectionately nicknamed 'Taek-jin Hyung' by users and once associated with a positive image, has turned cold. Perhaps aware of this, CEO Kim announced a major transformation at NCSoft on the 17th. In an internal email, he stated, "We will conduct a cold, objective reassessment," and "We will accurately identify problems and devise solutions." He further expressed his determination to address public sentiment by saying, "For the sake of challenge and change, we will change what needs to be changed immediately, even if it feels unfamiliar and uncomfortable."
After recording poor results in the first and second quarters of this year, NCSoft is seeking a turnaround by launching the global new title 'Lineage W.' CEO Kim has promoted this ambitious project as the "last Lineage." NCSoft will hold the second showcase for Lineage W on the 30th. The game is also set to appear at the 'Tokyo Game Show' on the 3rd of next month. Lineage W is a new title aimed at expanding NCSoft's business from primarily domestic operations to a global scale.
However, attention remains focused on the business model (BM) despite NCSoft's efforts to promote Lineage W. NCSoft has faced criticism for generating enormous revenue through loot boxes in Lineage M and 2M. The key question is whether Lineage W can soothe domestic users' concerns and attract global users who are less inclined toward loot boxes by introducing a new BM.
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