NCSOFT held a conference to present its Q2 2025 financial results and outline its mid- to long‑term strategy. The meeting featured Co-CEO Park Byung-moo, CFO Hong Won-joon, and Head of Investor Relations Lee Chang-wook.
For the quarter, the company reported revenue of KRW 382.4 billion and operating profit of KRW 15.1 billion, despite ending with a net loss of KRW 36.0 billion. Management highlighted that higher revenue and tighter cost control drove a significant improvement in operating profitability versus prior periods.
NCSOFT’s strategy continues to focus on strengthening its long‑standing IPs that still deliver steady income. Recent milestones include international launches of Lineage 2M and AION Classic in new regions, along with plans to bring Lineage M and Lineage 2M to China and Lineage W to Southeast Asia.
The headline announcement was the official start of the marketing campaign for AION 2, slated to launch in South Korea in the fourth quarter of 2025. The company also outlined an ambitious roadmap for 2026, targeting the release of seven new games, including Breakers: Unlock The World, Time Takers, LLL, and four spin‑offs—one per quarter.
NCSOFT also reaffirmed its push into the casual mobile segment, cost optimization, and a workforce reduction of 200–300 employees in the second half of the year to ensure a leaner structure moving forward.
AION 2 as a Catalyst for Change
Park Byung-moo compared the potential of AION 2 to the impact of Squid Game on Netflix, noting that if the MMORPG wins over players, it could strongly boost upcoming releases and help attract new talent. He added that tests conducted so far show promising results and that the business model is being designed not to harm the gameplay experience.
New Development Approach and Quality Control
Since late 2024, teams have been given greater autonomy while maintaining a centralized evaluation system. A Playability Review Committee decides—after multiple tests—whether a game continues or is canceled, while a second committee ensures there are no technical issues.
All projects now have clear development plans and undergo regular company‑level reviews, which has raised overall quality and improved schedule adherence.
Release Schedule and Recent Changes
There are no major changes to the key launches, except Breakers moving to Q1 2026 and LLL to mid‑2026. Time Takers remains planned for Q2. According to Park, the adjustments aim to enhance quality and avoid clashes with other major releases, such as the highly anticipated GTA 6.
In addition, NCSOFT is working on two unannounced projects that could debut in 2026, along with four spin‑offs planned for quarterly releases.
TACTAN Cancellation and Spin‑off Adjustments
Regarding the cancellation of TACTAN: Knights of the Gods, Park said the title did not meet the required playability standards, and the core team will start a new project from scratch, leveraging their prior experience. The spin‑off initially expected for late 2025 was pushed back one quarter to polish quality and coordinate publication.
Multi‑Studio Model and Faster Production
The new multi‑studio model—implemented even without independent subsidiaries—is already paying off. Teams are working more steadily and with stronger ownership, and incentives tied to direct revenue have accelerated development, paving the way for an unprecedented release volume in 2026.
AION 2 Monetization
Regarding monetization, Park said a dedicated livestream in September will outline the business model. For now, he confirmed that AION 2 will focus on PvE rather than immediate PvP like Lineage, and that monetization will rely mainly on battle passes, customization, and cosmetic skins, with limited gacha mechanics and minimal “pay‑to‑win” elements.
Balancing Profitability and Player Experience
The company aims to avoid sharp revenue spikes followed by steep declines, opting instead for sustained growth with a broad player base. This means dialing back aggressive monetization practices seen in some earlier titles.
Focus on the Casual Mobile Market
NCSOFT has formed a development cluster dedicated to casual mobile games, led by Annel Cheman, an expert in building ecosystems in this segment. The company will focus on generating continuous positive feedback and leveraging data and AI to enhance the experience.
CFO Hong Won-joon closed by emphasizing that Cheman’s experience will be key to positioning NCSOFT as a strong player in this highly competitive market.
