NCSOFT is expanding its mobile casual gaming business, diversifying its revenue structure that has heavily relied on major intellectual properties (IP) and the success of new MMORPG titles. With mobile casual games now accounting for over 20% of its revenue, analysts are recognizing the company’s efforts to secure a stable revenue base.
According to NCSOFT, its mobile casual game revenue for the second quarter reached 169.7 billion won, representing 22% of total sales. This growth follows the integration of results from Lihuhu and Springcom in the first quarter, along with contributions from Just Play starting in the second quarter.
Analysts are focusing on the increased share of mobile casual games in NCSOFT's business portfolio rather than just revenue growth. Historically, the company has experienced significant revenue volatility based on the performance of core IPs like Lineage and new MMORPG releases. By expanding its mobile casual gaming segment, NCSOFT aims to reduce revenue gaps between existing titles and major new releases, thereby lowering overall performance volatility.
Jung Ho-yoon, a researcher at Hanwha Investment & Securities, highlighted the structural changes within NCSOFT. He noted, “Unlike in the past, where revenue volatility was heavily influenced by a single game, the diversification of the lineup, particularly with the increasing revenue share from casual games, is noteworthy.”
Kim Dong-woo, a researcher at Kyobo Securities, assessed that NCSOFT's growth strategy has been validated by its second-quarter results. He anticipates that the casual gaming segment will reduce reliance on the success of major new titles while generating synergy with its casual studio and driving additional growth through the publishing of external casual game lineups.
Choi Ji-woon, a researcher at Yuanta Securities, also remarked, “As the revenue base from existing titles strengthens, the additional growth from global new releases and mobile casual games has increased revenue visibility compared to before.”
Looking ahead, the significance of the mobile casual gaming segment is expected to grow further. Kyobo Securities projects that NCSOFT's mobile casual game revenue will rise from 571.4 billion won in 2026 to 790.9 billion won in 2027, with its share of total revenue exceeding 25%.
* This article has been translated by AI.
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