NCSoft to establish four new subsidiaries developing games and researching AI
- NCSoft plans to form four new subsidiary studios next February
- Restructuring for the new studios will mean a “voluntary retirement programme” for some employees
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Lineage publisher NCSoft is planning to form four new wholly-owned subsidiary studios via a corporate split-off.
The move was approved during a board meeting on the basis that the initiative will “maximise creativity and innovation”, but full establishment of these new companies awaits approval from shareholders on November 28th.
This restructuring would also mean downsizing or closing certain projects, reassigning staff, and implementing a “voluntary retirement programme,” ultimately leading to further layoffs.
Tentative new studios
Among the newly established companies, three will work in games development – tentatively named Studio X, Studio Y and Studio Z.
Studio X, led by captain Moonyoung Choi, will be at the forefront of developing guild-focused MMORPG Throne and Liberty (TL) – which released worldwide on October 1st.
Studio Y will manage shooter game Project LLL and Studio Z will head 4X strategy title Tactan.
Meanwhile, the fourth newly formed company, named NC AI, will focus on artificial intelligence. This is a spinoff from NC Research, which has already been studying the tech.
NCSoft hopes to apply NC AI’s discoveries to future game development.
“An extraordinary general meeting of shareholders is scheduled for November 28th to confirm the split-off and the creation of the new subsidiaries. The four new entities will officially be established on February 1st, 2025,” said NCSoft.
“This strategic realignment also includes broader internal reorganisation. As part of NCSoft’s focus and prioritisation strategy for efficient resource allocation, certain development projects and support functions will be downsised or closed.”
Commenting on Studio X specifically, NCSoft co-CEOs Taekjin Kim and Byungmoo Park told Amazon Games in a letter: “We expect the new development studio will foster a more creative and dynamic environment, enabling us to further enhance the quality of TL. With our strong partnership with Amazon Games, we aim to transform this new entity into an innovative global game studio.”
NCSoft generated $268.3 million in revenue in Q2 2024, with profits up to $51.7 million.
