1. DIVERSIFICATION OF ITS GAME OFFERINGS
The company began in 1997 and since then the company has focused on adding new elements and updated when it first launched Lineage in 1998. The company has focused emphasis on the games as a work of art which was completed over several sessions of trimming and molding done through many hands. The main motive of NCsoft was not just to invest its capital in the business and generate a required rate of return on that investment, but the company always wanted to and had examined it's all new games to identify what areas were falling short of the highest standard of quality.
Since the beginning, the company has always been criticized for its dependence on the success of Lineage alone. Looking at its simple product portfolio, the goal of the company of becoming a global company in the game industry it does not match. Therefore, later NCsoft had diversified and had increased, a new product to its simple product portfolio. The name of this product was play NC. This product provided a number of games, but its performance was not good. But still NCsoft has been focusing on developing new products through most of its subsidiaries. Garret brothers have given NCsoft the title of becoming the next-generation online game. NCsoft needs to focus on diversifying its portfolio further. It needs to identify niche markets and penetrate its products in those markets. This would not only increase the market share of the company, but it would also give the company opportunity to become the most leading players in the game industry.
The CEO of the company, T. J. Kim himself enjoyed playing games and he had also spent sleepless nights playing these games just like his own customers. This was all due to the hard work of developers of NCsoft. They always tried to put their complete efforts and souls into the development of the games which always was a NCsoft's advantage. The company needs to use these elements and the element of aiming for perfection to leave its competitors behind and diversify into new overseas markets.
NCsoft needs to now look further than just generating revenues. It should search for new avenues to diversify its games in order to cut the completion and better monetize its products throughout the world. NCsoft needs to formulate a monetization strategy to create a new strategic advantage. It needs to create games that are more addictive. People should feel that the games have been developed keeping in mind their personal lives. The unpredictability of the gaming industry is the only reason why diversification should be on high on the game developer’s side.
The company on the other hand needs to also search areas where its business has grown to the maximum potential. These are the areas from where the company can think of further diversification into different areas. Diversifying into new areas does not simply mean increasing the revenue for the whole business. It also means reducing costs by achieving economies of scale in the business. NCsoft can acquire new subsidiaries in different parts of the world where it wants to promote its most successful games. This could be done for all online games or internet based games.
The company has a very good opportunity to diversify into the area of casual games. Casual games are basically a type of video games which could be played by a huge audience at the same time. The rules required to play these games are simple and are different from one another which distinguish these games from one another. These are simple games and not so much tough like the other hardcore games. These types of games normally play on the personal computers that have internet on them. But now these types of games are becoming popular on mobile phones and game consoles as well.
2. GLOBALIZATION OF NCSOFT’S PRODUCTS
If we look at the gaming industry in Korea, it is always seen that active marketing of the online games in overseas country has always contributed to the development of the online game industry. This was also proved by the fact that a forecast showed that the export market share of online games would exceed 82% among all other export games that are sold overseas. This online game industry was further expected to develop in the areas of various profit models and diversification and accounting methods. These online games were then beginning to be exported to Japan. These online games occupied 80% of Korean game exports.......................................
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