Below-Expectations Performance in Early Release
PC Bang Market Share at 0.2%... Stock Price Also Declining
First Co-CEO System Since Founding, Accelerating Management Reform
NCSoft's new release, Throne and Liberty (hereafter TL), is receiving evaluations of being 'below expectations' in its early stages. Despite an investment of approximately 50 billion KRW over five years, the long-term success of the new title remains uncertain. With the stock price heading towards the bottom, NCSoft's pace of management reform is expected to accelerate.
At the 'G-STAR 2023' event, Kim Taek-jin, CEO of NCSoft, is explaining the new title 'Throne and Liberty'. (Photo by NCSoft)
TL's Performance Below Expectations
NCSoft launched the new TL on the 7th of this month. It was first released domestically and is scheduled to be introduced next year in the North American and European markets on PC and console platforms. Early domestic reactions are mixed with both praise and criticism. Unlike the existing Lineage series, TL has been praised for not having a 'pay-to-win (P2W)' business model, signaling a change in NCSoft.
However, criticism continues regarding the gameplay. Many evaluations point out that it is difficult to find enjoyment in the character growth process. The main quest story is somewhat weak, making it insufficient to establish TL's own intellectual property (IP). Additionally, there are many complaints about side quests that can only be completed during rain or at specific in-game times. PC bang (internet cafe) usage is also low. According to the PC bang game statistics service 'The Log' as of the 14th, TL's share was 0.2%, ranking 32nd. This is even lower than the 0.65% share of 'Lineage,' which NCSoft released in 1998.
In the securities industry, considering that most servers operated smoothly even over the weekend, the concurrent user count was estimated to be below 100,000. Based on this, TL's revenue forecast for next year was revised down from 250 billion KRW to 100 billion KRW. The stock price is also on a downward trend. On the 13th, NCSoft's stock closed at 224,500 KRW, marking the lowest record this month. Compared to the TL release date (7th), it dropped by 37,000 KRW in just five days.
In response, PD An Jong-ok, who is in charge of TL's development, promised to alleviate growth process stress, improve the low visibility user interface (UI), and reorganize event schedules through 'Producer's Letter No. 6' to users on the 12th. PD An said, "We sincerely apologize for the inconvenience caused by several emergency maintenance sessions, server downtime, and various errors in less than a week." He added, "We will always listen carefully to play trends and voices and continue to make improvements."
Accelerating Speed of Management Reform
As the situation worsens, the dominant analysis is that NCSoft will undertake high-intensity management reform. For the first time since its founding, NCSoft has transitioned to a co-CEO system. Park Byung-moo, CEO of VIG Partners and an expert in mergers and acquisitions (M&A), has been appointed as co-CEO. Although an external figure, he has been an outside and inside director at NCSoft for 15 years and is well-versed in internal affairs.
In October, NCSoft demonstrated its commitment to organizational improvement by launching the Change Management Committee. Led by Chief Operating Officer (COO) Koo Hyun-beom, the committee was established to reorganize the organizational and decision-making systems, reduce costs, and strengthen new growth capabilities and competitiveness.
The gaming industry views NCSoft's transition to a co-CEO system as having aligned all the buttons for management reform. Recently, the company has also taken steps to improve its structure, such as reducing 20% of its North American staff. An NCSoft official explained, "We are reviewing a company-wide organizational restructuring to smoothly carry out the new system."
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