Lineage W Success... NCSoft Reclaims Past Glory

[Asia Economy Reporter Kang Nahum] NCSoft is regaining its reputation as a leading game company in Korea. With rising expectations for improved performance due to the success of Lineage W, its brand reputation is also recovering its past glory.

According to the brand reputation rankings for 33 listed game companies released by the Korea Corporate Reputation Research Institute on the 23rd, NCSoft took first place in brand reputation this month. Krafton ranked second, followed by Netmarble in third. This marks the first time in five months since August last year that NCSoft has reclaimed the top spot.

Before the release of Lineage W, NCSoft faced crises such as declining brand value and stock prices, as well as user attrition. The 'Lineage brothers'?Lineage M and Lineage 2M?which had held the top one or two spots in sales rankings for years, lost their leading positions to 'Odin: Valhalla Rising,' serviced by Kakao Games. Additionally, public sentiment toward the Lineage brothers turned cold due to controversies over loot box mechanics, resulting in an earnings shock.

NCSoft found a turning point with the release of Lineage W. The game tells a story set 150 years after the original Lineage. It combines newly created 3D graphics with the original's 'cell and grid-based combat.' The business model, which had been criticized for excessive monetization, was innovated, and the in-game fatigue system called the 'Einhasad system' was removed, allowing players to enjoy the game widely without heavy spending.

Loyal users, nicknamed 'Linjeossi' (Lineage + ajeossi, meaning middle-aged men), who had rapidly left, have started to return. According to big data analytics firm Mobile Index, Lineage W has maintained the number one spot in integrated sales rankings on domestic app markets (Google Play and App Store) for 11 consecutive weeks since its launch.

NCSoft's fourth-quarter performance is also expected to improve significantly compared to the previous quarter. According to securities firms, NCSoft's fourth-quarter sales are projected to reach 749.8 billion KRW, with an operating profit of 170.4 billion KRW. Although these figures fall short of market expectations due to labor and marketing costs, they represent increases of 50% and 77%, respectively, compared to the previous quarter.

NCSoft plans to announce its new game lineup through a showcase in the first quarter. The industry is particularly paying attention to NCSoft's entry into the Play to Earn (P2E) market. Since last year, NCSoft has formed an internal task force team to develop P2E games. All technical preparations related to P2E have been completed, and the company is reportedly entering the stage of concretizing the application of the P2E model. An NCSoft representative stated, "This year, we will reveal plans for services incorporating blockchain and non-fungible token (NFT) technologies."