April 20, 2024

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[THE INVESTOR] South Korean game company NCSoft has received the green light from local regulators to introduce an in-game item trading system to its recently-launched hit mobile role-playing game “Lineage M,” boosting its profit outlook.

Korea’s Game Rating and Administration Committee on July 5 gave NCSoft approval to introduce a new version of the game with an in-game item trading system.

With the change, the Seoul-based game firm will now offer “Lineage M” in two versions -- the “Lineage M” app fitted with the trading system for players aged 18 and up, and the “Lineage M (12)” app that excludes the trading system for players aged 12 and over.

The addition of the trading system helps retain players and encourage them to make item purchases, allowing the firm to make steady profits in the long run, analysts said on July 6.

“The new trading system is an integral part of forming an active market within the game. It will act as a positive establishment that encourages players to continue playing the game in the long term,” said Hwang Sung-jin, an analyst at Hyundai Motor Investment & Securities.

“NCSoft is expected to reap heightened revenue as more players purchase ‘diamonds’ to buy the items they want,” said Lee Mun-jong at Shinhan Investment. “Once prices are stabilized, a player-to-player trading system will be opened, setting up a stable marketplace.”

Following the regulatory approval, shares of NCSoft on July 6 surged to 405,000 won ($350) up 4.25 percent from the previous day.

“Lineage M” is a mobile remake of NCSoft’s flagship PC online role-playing game “Lineage,” which was launched in 1998.

As of July 2, 12 days after its launch, “Lineage M” had accumulated more than 7 million users and raised an average of 9 billion won ($7.8 million) in daily revenue, according to NCSoft.

By Sohn Ji-young/The Korea Herlad (jys@heraldcorp.com)