NCSOFT has provided an escape route from the sluggish performance that has continued since last year with a 'surprise performance' in the second quarter. The consolidated revenue for the second quarter of 2025, announced on the 12th, was 382.4 billion won, with an operating profit of 15.1 billion won and a net loss of 36 billion won. Although the operating profit showed an improvement, increasing by 71% year over year and 189% quarter over quarter, the net loss continued due to unfavorable foreign exchange gains and losses resulting from currency fluctuations.
This performance is primarily attributed to the expansion effects of existing core intellectual properties (IPs) such as 'Lineage'. However, the deficits in net profit and the lack of sales from new titles still pose burdens. Analysts note that the performance in the second half of the year depends on the early results of 'Aion 2', the entry of Lineage M into the Chinese market, and the quality of the new title lineup.
According to NCSOFT, this quarter saw existing IPs support revenue despite the absence of new releases. The PC version of 'Aion' recorded 13 billion won due to the launch of a new server, a 53% increase compared to the previous quarter, while the mobile version 'Lineage 2M' achieved 48 billion won, marking a 27% increase due to the expansion of service regions in Southeast Asia. Mobile game revenue was 219 billion won (up 6% from the previous quarter), while PC online game revenue was 91.7 billion won (up 10% from the previous quarter).
Revenue by region was 244.8 billion won from Korea, 69.1 billion won from Asia, 26.2 billion won from North America and Europe, and 42.3 billion won in royalties, with overseas and royalties accounting for 36% of the total. Marketing expenses increased by 75% from the previous quarter to 23.4 billion won due to the impacts of large-scale updates, service region expansions, and the marketing launch of Aion 2.
Hong Won-jun, Chief Financial Officer (CFO) of NCSOFT, noted during the second quarter earnings conference call that "we are establishing an expense structure capable of maintaining profitable trends with only legacy IPs," and added that "in the second half, we will continue to improve personnel efficiency, including the consolidation of overlapping functions." He explained, "We conducted efficiency improvements involving about 100 people centered on our overseas corporations in the first half, and we expect to implement additional efficiency improvements of 200 to 300 people in the second half," and noted that "this process may temporarily shake operating profits in the third and fourth quarters."
The key to a rebound in the second half lies in the upcoming launch of the next-generation MMORPG (massively multiplayer online role-playing game) Aion 2 in the fourth quarter. Park Byeong-moo, co-CEO of NCSOFT, explained during the conference call that "Aion 2 differs from 'Lineage-like' structures with its PvE (player versus environment) and dungeon-centric setup," stating, "We have excluded excessive 'gacha' items and applied a revenue model focusing on battle passes, customization, and skins." He further added, "Elements of pay-to-win will be reflected only in a limited manner, and the specific business model will be revealed during a live broadcast in September, along with details when the launch schedule is confirmed."
Co-CEO Park also emphasized, "If Aion 2 succeeds, it will have a positive impact on new titles scheduled for release next year and talent acquisition," noting that "we are enhancing quality based on the results of the FGT (Focused Group Test) and designing it to not negatively affect the business model."
A strategy for the global expansion of legacy IPs is also underway. Co-CEO Park stated, "We will solidify the revenue base of legacy IPs through the entry of Lineage M and Lineage 2M into China and Lineage W into Southeast Asia," adding that "Lineage M, which obtained a publishing license in China in June, will enter the market by strengthening localized content and operational strategies."
The roadmap for new titles has been adjusted for staggered releases in 2026. Co-CEO Park stated, "'Breakers: Unlock the World' is targeted for release in the first quarter of 2026, 'Time Takers' in the second quarter, and 'LLL' in the third quarter," and added that "spinoff titles will be released one per quarter, while the release of two unpublished new titles will be decided after testing by the end of this year." He continued, "We determined that it would be better for the core development team to shift to developing new titles in the same genre rather than releasing 'Takten' as it is currently."
Organizational operations will focus on improving development speed through a multi-studio system and strengthening data-driven decision-making. Co-CEO Park mentioned, "We operate game quality and technical evaluation committees, applying production plans and regular progress management to all projects, thereby simultaneously enhancing completion and schedule adherence."
Efforts to expand into new genres are also underway. CFO Hong noted, "We are also developing large-scale MMO capabilities and building a shooting and subculture genre cluster," predicting that "if the expansion of legacy IP regions and new title revenues come together, achieving sales of 2 to 2.5 trillion won in 2026 will be possible."
Co-CEO Park stated, "We established a 'mobile casual center' to build a scientific user acquisition and live operation system based on data and AI," adding that "we are focusing on building an ecosystem utilizing data and AI rather than on specific sub-genres and are exploring related investment and M&A opportunities." He concluded, "We will concentrate on establishing a foundation for mid-to-long-term success rather than short-term results."