NCSoft Reports First Annual Loss Due to Sales Slump... Operating Loss of 109.2 Billion Won

NCSoft recorded an annual operating loss for the first time due to a decline in sales of the Lineage series.

NCSoft announced on the 11th that its consolidated operating loss for last year was tentatively estimated at 109.2 billion KRW, turning to a deficit compared to the previous year.

Sales amounted to 1.5781 trillion KRW, down 11.3% year-on-year, and net profit for the period decreased by 56% to 94.1 billion KRW.

The operating loss for the fourth quarter was 129.5 billion KRW, turning to a deficit compared to the same period last year. Sales and net loss for the quarter were 409.4 billion KRW and 7.6 billion KRW, respectively. Previously, NCSoft recorded a quarterly operating loss for the first time in 12 years in the third quarter.

The deterioration in NCSoft's performance is attributed to a decrease in sales of the Lineage mobile game series and the poor performance of recently released new titles. In response, NCSoft established six subsidiaries last year by separating new game development teams and AI, QA (Quality Assurance), and SI (System Integration) divisions. The company has also carried out large-scale organizational restructuring, including voluntary retirement programs.