NCSoft stock down 36.6% since January, with further dip after lacklustre pre-reg | Pocket Gamer.biz

Mobile Games, Other

A Decline in NCSoft’s Stock Signals Concern for Investors

According to Chinese gaming news outlet GameLook, investors’ expectations for NCSoft have been dwindling due to a continued drop in the company’s stock and lackluster pre-orders for Blade & Soul 2. Despite remaining one of the top 10 most-purchased stocks on the Korea Exchange, NCSoft has experienced a steady decline of 36.6% since January. Mobile gaming accounts for 75% of the company’s revenue, but sales have fallen by 28% year-on-year, as reported in their latest financials.

This downward trend has been ongoing since the stock price reached a high of over one million KRW (Korean Won) in 2021. However, the reopening of China and subsequent challenges elsewhere have had a significant impact on NCSoft’s performance.

A Need for Restructuring and Reflection

NCSoft has long been a dominant force in Korean mobile gaming. Yet, the recent decline in stock price and the underwhelming response to pre-registration for Blade & Soul 2 indicate that the company may be entering a period of restructuring and reflection. The end of the Covid pandemic has brought about changes for developers and publishers who were accustomed to a captive audience eagerly engaging with games, particularly mobile games.

While GameLook acknowledges that three of NCSoft’s games still rank among the top 10 best-sellers in Korea on Google Play, they also note that the company’s primary advantage in the MMO genre, with titles like Guild Wars and Guild Wars 2, is facing competition. Upstart company Kakao Games achieved great success with Odin: Rebellion, topping the best-sellers list for three months in 2021. Additionally, Amazon is set to release Lost Ark, another major MMORPG developed by Smile Gate, in Korea. These factors indicate that NCSoft is slipping behind in the race. To regain momentum, the company needs a major success, and Blade & Soul 2, despite lackluster reservations, may hold the potential to be that winner.

Note: NCSoft was included in our list of the top 50 mobile game makers of 2022.