According to unconfirmed reports about planned restructuring and layoffs at NCSoft (Guild Wars 2, Throne and Liberty), the large MMORPG studio is now providing a possible reason for these drastic measures.
What is that reason? The officials at NCSoft have released the financial report for the 3rd quarter of 2024, and it unfortunately does not read very positively:
- The operating loss for the quarter is expected to be around 14.3 billion South Korean Won (approximately 9.5 million Euros).
- While there was an increase in revenue from mobile games (up 16 percent, largely attributed to Lineage M), PC game revenues fell by 6 percent compared to the previous quarter.
- Only Lineage showed growth compared to Q2 2024. The other listed games (Lineage 2, Aion, Blade & Soul and Guild Wars 2) are making progressively less revenue. This is particularly disappointing in light of the expansion Janthir Wilds for Guild Wars 2 that was launched in August 2024.
- Another reason for the losses: The increased expenses of 16 percent, which are largely due to significantly higher marketing costs that NCSoft incurred to promote new expansions and games.
With Janthir Wilds, the revenues from Guild Wars 2 were supposed to increase… here is the launch trailer for the current expansion:
MMORPG Companies in Crisis
What is happening with Throne and Liberty? As in the previous quarters, the NCSoft officials did not reveal any figures for the MMORPG Throne and Liberty, which launched in Korea in December 2023, in the current report.
However, the official release on October 1, 2024, would not have had any impact on the recently released business report.
It is strange that NCSoft is leaving the hottest asset from their game development so neglected. Perhaps we will find out in the next report in early 2025 whether T&L is successful globally or not.
What is currently happening at NCSoft? If the reports from October 2024 are to be believed, Throne and Liberty does not seem to be generating enough revenue to maintain the status quo. Comprehensive restructuring is being discussed. A significant number of employees from game development are expected to lose their jobs. However, there are still no officially confirmed details about this.
It is also unclear whether current MMO projects will be affected by these measures. These include:
- Aion 2, which is still planned for the year 2025.
- A new MMORPG based on a world-renowned IP, set to release in 2026 and to use Unreal Engine 5.
- Guild Wars 3, which ArenaNet is working on.
The MMORPG in Unreal Engine 5 and with a new IP could potentially also be developed by ArenaNet. At least, a report from September 2024 indicates this: ArenaNet is looking for reinforcement for “unannounced project” – What about Guild Wars 3?
