The industry is going through a very tough situation, as you well know. Studio closures, project cancellations, and layoffs are a daily occurrence, and not even having a successful game guarantees staying afloat. This is precisely what is happening to NCSoft, as the South Korean developers of Throne and Liberty and Guild Wars have announced a significant restructuring in response to several quarters of financial losses, resulting in up to four canceled games and several layoffs.
In a recent interview with Yonhap, co-CEOs Taek-Jin Kim and Byung-Moo Park stated that these drastic measures are necessary to prevent the company from becoming “a company with chronic deficits.” As part of the restructuring plan, the company has decided to lay off an unspecified number of employees and promote voluntary retirements. This difficult decision is due to the fact that the continuous losses have begun to “damage the creativity and the spirit of achievement that NC originally had.” The company is committed to implementing a “large-scale plan” to ensure the “survival and future” of NCSoft.
Among the most impactful decisions is the cancellation of several projects in development. An NCSoft representative has confirmed that four titles have been canceled despite being actively developed for years: Project M, an interactive thriller presented in 2022; Battle Crush; Miniverse; and Doguri Adventure. These cancellations add to the company’s efforts to reduce costs and focus on projects that promise a more solid return on investment.
Up to four internal studios separate from NCSoft
In addition to the layoffs and cancellations, NCSoft has announced the separation of four internal studios that, while receiving support from the parent company, will operate independently. NC AI will focus on developing artificial intelligence-related technology, while Studio X, Studio Y, and Studio Z will work on their respective intellectual properties: Throne and Liberty, the MMO shooter Project LLL, and the real-time strategy game Tactan.
To formalize this restructuring, an extraordinary shareholders’ meeting will be held on November 28, where the separation of the studios is expected to be confirmed, which should be completed by February 1, 2025. With these measures, NCSoft hopes to reverse its financial situation and regain its place in the competitive video game market.
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