SEOUL — NCSOFT Corp., the renowned South Korean video game developer, has declared its decision to form two new entities by splitting off its internal units, aiming to boost organizational efficiency and address its current management challenges.
According to Yonhap News Agency, the decision to establish NC QA and NC IDS as independent companies was made during an extraordinary general shareholders' meeting held Wednesday. Both new entities, focusing on quality assurance and software development respectively, are scheduled to commence operations in October. NCSOFT’s move to separate these units is a strategic effort to decentralize functions and improve responsiveness in a competitive market. "The new companies will focus on business-to-business operations, leveraging their expertise on technology support," stated co-CEO Park Byung-moo during the meeting. This restructuring is part of broader efforts led by Park, who was appointed in March under a new dual leadership structure to revitalize the company following a significant downturn in its performance.
NCSOFT has faced a stark decline in earnings, attributed to the underperformance of its new game titles. Last year, its operating profit dropped to 137.3 billion won (US$100.9 million), a sharp decrease from the figure in 2020, with the trend continuing into the current fiscal year due to sluggish sales.