September 20, 2006

NCsoft Records Brisk Sales Growth in Japan

Company sets new monthly record for sales after entering Japanese market five years ago; Sales continue to outpace average online game market growth in Japan

NCsoft® Corporation, the world’s leading developer and publisher of online computer games, today announced that it set a new record in monthly sales in Japan five years after establishing a local office there. In August, NC Japan recorded monthly revenues of approximately 430 million yen (about 3.5 billion Korean Won), nearly 10 times the average monthly revenue of 2002 when the company first began commercial services of Lineage®.

NC Japan’s upward sales movement is attracting attention because it is outpacing the average growth rate of the local online game sector. Along with mobile games, the online game sector is showing the most rapid expansion in Japan. NC Japan expects to easily reach its sales target of 4.4 billion yen for the year, representing 40% growth over last year and 1000% growth over 2002.

Katsuya Ishii, vice president of strategic planning at NC Japan, said, “Lineage II, which marked two years of service in Japan early this summer, has been showing a steady increase in the number of concurrent users despite the fact that its monthly charge is double that of other similar games. The game’s positioning as a premium MMO game has greatly contributed to our growth in sales.”

Multiple factors led to Lineage II’s success in Japan. The game’s early entry into the Japanese market came at a time when there were no significant 3D MMORPGs. Also Lineage II’s realistic and impressive graphics were well received by Japanese gamers accustomed to the high visual standards found in console games. In addition, NC Japan partnered with multiple computer hardware companies to showcase PCs specially made for Lineage II players. The promotions were a boost to the Japanese PC market and expanded the online computer games market.

Tokyo-based NC Japan is a joint venture responsible for providing services and marketing for NCsoft games while the wholly owned development studio NCsoft Japan is in Osaka. Japan accounts for approximately 20% of total overseas sales for NCsoft Corp.

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