NCSoft is optimistic about recovering its royalty revenue to 200 billion won, driven by the launch of Lineage 2M in the Chinese market. Following a low point in 2023, the recovery of royalty revenue is expected to be bolstered by the performance of the Lineage intellectual property (IP) in China, along with potential expansions into other IPs like Aion Mobile.
According to industry sources, NCSoft will begin local services for the MMORPG Lineage 2M on June 24, with the game being published in China under the name 'Heavenly Realm 2: Pact' by Tencent Games.
The game has already generated significant buzz, with over 4.95 million pre-registrations in China. Prior to the official launch, NCSoft conducted a closed beta test (CBT) with about 50,000 participants to refine the game's localization.
NCSoft's royalty revenue peaked at 218 billion won in 2020 but fell to 144 billion won in 2023. However, it rebounded to the 170 billion won range last year, largely due to the global launch of 'Throne and Liberty' (TL).
TL is being serviced in North America and Europe through Amazon Games, and this global publishing structure has contributed to an increase in royalty revenue. The share of royalty revenue in total sales rose from around 7% to 12% last year.
The success of Lineage 2M in China is seen as a key driver for continuing the recovery of NCSoft's royalty revenue. By partnering with a publisher for local services, NCSoft can expand its overseas revenue base without incurring the costs associated with direct service operations.
Industry analysts note that the success of Lineage 2M will depend on local user preferences and operational capabilities, making early user metrics and initial revenue trends critical for NCSoft's performance rebound.
In addition to Lineage 2M, NCSoft is also preparing to launch a mobile game based on the Aion IP, in collaboration with local publisher Seigi Cheonsung (Success Games).
An NCSoft representative stated, "The rebound in royalty revenue last year was influenced by the global launch of Throne and Liberty. Currently, we are working with local publishers on major titles, including Lineage 2M and Aion Mobile, and we expect significant changes in royalty revenue based on their performance in the future."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.