Layoffs beat down NCsoft profits
Newsbrief: South Korean publisher NCsoft has posted its first losses since 2006, due to hefty one-off labor costs that came as a result of the company's restructing efforts during the quarter.
The company's labor costs surged by 27 percent quarter-over-quarter thanks to layoffs as it was left to pay huge severance packages. NCsoft also reported weak in-game item sales for a number of its titles, including 2009 MMORPG Aion.
For the quarter ended June 30, 2012, NCsoft posted revenues of 146.8 billion South Korean won ($129.8 million), down 12 percent compared to 166.8 billion South Korean won ($147.5 million) year-over-year, and losses of 7.3 billion South Korean won ($6.4 million), compared to profits of 41.4 billion South Korean won ($36.6 million) year-over-year.