Good morning and good evening. Thank you all for joining this conference call. Now we will begin the conference of the fiscal year 2022 fourth quarter earnings results by NCSOFT. This conference will start with a presentation, followed by a divisional Q&A session. If you have a question, please press star one, that is star and one on your phone during the Q&A. Now we shall commence the presentation by NCSOFT.
Good morning. This is Jason Lee, Head of IR at NCSOFT. Excuse me. Thank you for participating in this conference call for the fourth quarter of 2022. Let me begin my presentation with the earnings highlights for the full year of 2022. For the full year 2022, sales totaled KRW 2,571.8 billion, representing an increase of 11% year-over-year as the results of Lineage W's global success was captured in full. Operating profit posted KRW 559 billion, up by 49% year-over-year, driven by top line growth and more efficient marketing. Pre-tax income was KRW 624 billion, an increase of 27% year-over-year. Net income was KRW 452.6 billion, up by 14% YoY.
In the case of Q4 sales, it moderated to KRW 547.9 billion, showing a decline of 28% YoY and 9% QoQ as the sales of key mobile games soften. Operating profit was KRW 47.4 billion, a decrease of 57% YoY and 67% QoQ. Q4 pre-tax profit and net income both turned into the red due to an increase in non-operating expenses stemming from a stronger won. Next, let me go over the full year 2022 sales of each game. Mobile sales, mobile game sales reached KRW 1,934.3 billion, representing growth of 20% year, Y- over- Y. This is the highest sales we have had since we started the mobile game business.
The sales of the five PC online games combined was KRW 390.4 billion, a decrease of 8% YoY. The company continues to expand the life cycle of our PC online games by leveraging our unique live service operational capabilities. In particular, Guild Wars 2, though it is in its 11th year since launch, still was able to achieve a strong growth of 29% YoY.
Royalty totaled KRW 157 billion, a decrease of 9% YoY.
To look at the Q4 performance by game, Lineage W came in at KRW 176.9 billion, a decline of 10% QoQ. In the fourth quarter, we successfully completed a large scale update to celebrate the first anniversary of the game. We were able to confirm more enthusiastic and active participation of global users in battles.
Going forward, we will focus on maintaining stable performance by providing a wide variety of play contents. Lineage M posted KRW 112.8 billion, a decrease of 23% QoQ due to some moderation in the intensity of business activities. Lineage M to this day still enjoys solid user traffic levels that are difficult to believe for a game in its seventh year. In the future, we will continue to ensure that this momentum is continued by releasing continuous and also high quality updates.
Lineage 2M은 전 분기 대비 사 퍼센트 감소한 팔백이십삼억 원을 기록했습니다. 이번 분기에는 삼주년 업데이트 및 신서버 출시가 있었으며, 이를 통해 많은 신규 유저와 복귀 유저들을 확보할 수 있었습니다. 보다 탄탄해진 트래픽을 바탕으로 향후에도 안정적인 성과를 달성하도록 하겠습니다.
Lineage 2M recorded sales of KRW 82.3 billion, a decline of 4% QoQ. In the fourth quarter, there was the third anniversary update and new server openings, which attracted a lot of new users and the return of dormant users. Based on this more user traffic, we will exert efforts to continue stable performance in the future.
온라인 PC 게임 매출은 전년 동기 대비 17%, 전분기 대비 7% 증가한 1,044억 원을 기록했습니다. 리니지 II, 아이온, 블레이드 앤 소울은 다양한 신규 콘텐츠 출시와 함께 전분기 대비 매출이 동시에 성장했습니다.
The sales of the five PC online games together was KRW 104.4 billion, an increase of 17% YoY, and 7% QoQ. As new contents were released, Lineage 1, Lineage II, Aion, and Blade & Soul all achieved quarter-over-quarter growth.
길드워2 매출은 전년 동기 대비 이 퍼센트 증가, 전분기 대비 구 퍼센트 감소한 이백이십칠억 원입니다. 길드워2는 출시 십년이 지난 지금까지도 웰메이드 MMORPG로서의 높은 인지도와 로열티 높은 사용자층을 보유하고 있으며, 최근에는 중국 시장의 경제 환경 변화에 따라서 중국에서 매출과 트래픽이 크게 증가하는 모습을 보이고 있습니다.
Guild Wars 2 sales was 2012, 22.7 billion KRW, which was up 2% YoY but down 9% QoQ. Despite being a title with more than 10 years of service, Guild Wars 2 still enjoys a strong recognition and also highly loyal user base as a well-made MMORPG. With the recent changes in the competitive landscape in China, both sales and user traffic in China have grown significantly.
로열티 매출은 전년 동기 및 전분기 대비 10% 감소한 KRW 38.9 billion입니다.
Royalty totaled KRW 38.9 billion, a decline of 10% both QoQ and YoY.
지역별로 2022년 연간 성과를 살펴보면 한국 매출액은 KRW 1,624.6 billion, 아시아 KRW 625.2 billion, 북미 유럽 KRW 165 billion, 로열티 매출 KRW 157 billion입니다. 이 중 아시아와 북미 유럽 매출이 YoY 각각 40%, 44% 성장한 것이 눈에 띄는 성과입니다.
To break down full year 2022 performance by region, Korea sales was KRW 1,624.6 billion, Asia KRW 625.2 billion, North America and Europe KRW 165 billion, and royalty KRW 157 billion. Of these numbers, the growth of 40% YoY in Asia and 44% YoY in North America and Europe stands out the most.
2022년에 해외 및 로열티 매출은 전년 대비 29% 성장한 KRW 947.2 billion이며, 이 역시 창사 이래 최고 기록입니다. 해외 및 로열티 매출 비중은 매년 상승세인데, 2022년에는 전체의 약 37%를 차지하였으며, 앞으로도 글로벌 신작 출시를 통해 지속적으로 확대될 예정입니다.
For your information, overseas and royalty 2022 sales totaled KRW 947.2 billion, an increase of 29% YoY, which is the highest level in the history of the company. The contribution from overseas and royalty sales to total sales continues to grow year after year. In 2022, it accounted for approximately 37%, and we plan to increase this percentage with new global game releases.
다음은 사분기 영업 비용에 대해서 말씀드리겠습니다. 사분기 영업 비용은 전년 동기 대비 23% 감소, 전분기 대비 9% 증가한 KRW 50.5 billion으로 집계되었습니다.
Next, let me discuss Q4 operating expenses. Q4 operating expenses totaled KRW 500.5 billion, which is a decrease of 23% YoY, but increase of 9% QoQ.
항목별로 살펴보면 인건비는 전년 동기 대비 9% 감소, 전분기 대비 23% 증가한 KRW 232.6 billion입니다. Lineage W 흥행에 따른 인센티브 및 전사 특별 격려금 지급의 영향입니다.
To break it down by line item, labor cost was KRW 232.6 billion, down by 9% YoY, but an increase of 23% QoQ, which was driven by special bonuses given to all employees and incentives related to the success of Lineage W.
마케팅비는 전년 동기 대비 59% 감소했으나 모바일 게임들의 사업 활동이 강화되며 전분기 대비로는 24% 증가한 KRW 48.1 billion을 기록했습니다.
Marketing expenses decreased 59% YoY, as marketing for mobile games increased, it was up 24% QoQ to KRW 48.1 billion.
감가상각비는 YoY 1% 증가, QOQ 3% 감소한 KRW 26 billion입니다. 매출 변동비 및 기타 비용은 모바일 게임 매출 감소에 따른 유통 수수료 감소로 YoY 22%, QoQ 5% 감소한 KRW 193.8 billion입니다.
Depreciation was KRW 26 billion, which is an increase of 1% YoY and decrease of 3% QoQ. Variable cost and other expenses totaled KRW 193.8 billion, showing a 22% decline YoY and 5% drop QoQ as distribution fees decreased with less mobile game sales.
이천이십이년은 불확실한 경영 환경 속에서도 Lineage W가 출시 후 누적 매출 일조 삼천이백, 삼천이백억 원을 돌파하고 Lineage M이 국내 모바일 게임 시장 정상의 자리를 굳건히 지키는 등 당사의 안정적인 라이브 서비스 운영 노하우가 재조명된 한 해였습니다.
Despite the uncertain business environment in 2022, the company was once again able to highlight our solid live service operational capabilities with Lineage W hitting KRW 1.32 trillion in total sales since launch and Lineage M firmly maintaining its top position in the Korean mobile game market.
In 2023, we are planning to launch a wide variety of new games that are based on this key competitiveness into the global market. First, for TL, which is one of the most anticipated games in 2023, we will run its final test from February 21st, after which we will engage in full marketing activities leading up to the first half launch and as scheduled. We ask for your interest and support.
Not too far future, we will have a separate event during which we will be able to share more detailed information about TL, so please wait for that event.
In addition, the preparation for the four mobile games aiming for a 2023 launch are also going smoothly. All four games are of a non-MMO genre, but we are applying some of our MMORPG development know-how in areas it fits to provide different and unique gameplay. More details about these games will be released during this first quarter.
Finally, with top priority on enhancing shareholder value, the company has maintained a long-standing policy of providing cash dividends equal to 30% of net income to shareholders. This year, again, we have decided on cash dividends of 30%.
Moving forward, we will continue to diversify our portfolio to represent a wider genre of games and continue to achieve higher growth in the global market to ensure we can further strengthen shareholder value. Again, we look forward to your interest and support in our endeavors. Thank you.
Q&A session will begin. Please press star one, that is star and one, if you have any questions. Questions will be taken according to the order you have pressed the number star one. For cancellation, please press star two, that is star and two on your phone. The first question will be provided by Eric Cha from Goldman Sachs. Please go ahead with your question.
Thank you for the opportunity to ask questions. There are two questions that I would like to ask you. First is with regards to your key mobile games, if we were to ask for some guidance about the direction of performance for the first quarter, what would that actually look like? In particular, for Lineage W, now we are in its sixth quarter, should we deem that this game has entered its stabilization phase? The second question that I would like to ask you is about during your presentation, you did mention somewhat about the pipeline going forward, is there more details that you were able to provide? For example, for Project G, is it still valid that it will be opened within the first quarter?
In addition to that, I do believe that previously there was some mention about some IP collaboration that may be a possibility working with other companies. Is that still something that you have planned and would that still stand valid?
Thank you for your question. Maybe to first talk about Lineage W. If you look at the numbers for and crank them in, I do think that when you compare this game to the likes of Lineage M or Lineage 2M, you can see that the decline rate up into the fourth or fifth quarter, somewhat is in line with our previous games. We do believe that going into the first quarter, that for this game, it would be safe to deem that it's almost close to the stabilization period. Of course, you know, whether it will be at the same rate of decline that we have seen for the previous games or whether it will actually soften a bit more is something that we will have to wait and see when it actually happens.
I do think that it would be that the game is now entered into the stabilization phase, and that would stand valid. Taking this as the overall base, what our overall objectives would be for this game is that until the end of 2023, as we have done with Lineage M and Lineage 2M, we want to make sure that this is the level that we will continue to maintain and continue to support. In terms of the daily rate numbers, I do think that this is something that you will have an opportunity to be able to confirm soon. However, in terms of whether it's reaching a stable level, I do think, again, that it's safe to say yes.
I do believe that you may have had the opportunity to see the overall video that came out for PUZZUP. It was released a couple of days ago, and if you look at the number of views, we believe it's very encouraging. In addition, during the first quarter, of course, one by one, we will have different opportunities to actually introduce our new mobile games. I think that in terms of the overall sequence, it will go from Project R to Project G and then maybe to Blade & Soul S. Maybe taking them in reverse order. For Blade & Soul S, this is a collectible RPG that will be launched within the, you know, group 1 areas of regions.
In addition to that, for Project R, this is a mobile game in which, again, the launch area would be Tier 1. For PUZZUP, we're looking at a global type of market situation. For Project C, I don't believe that we have specifically said that we would open this game in the first quarter. I think that, you know, it is that we want to introduce the game during the first quarter. But in terms of the actual genre, this is something that we haven't disclosed as of yet, and I do think that there will be other events through which we will be able to provide you with more information.
질문하신 내용 중에 타 회사 IP 협업 가능성인데 그거는 뭐 저희가 지난 실적 발표 때도 말씀드렸다시피 저희 회사는 이걸 계속 열어 놓고 진행을 하고 있는 거고요. 뭐 아까 이장욱 전문의께서 모두의 말씀드린 것처럼 저희가 아마 곧 아주 곧 저희 따로 그 말씀 드릴 기회가 있을 거라고 생각합니다. 아까 말씀드린 것처럼 메탈 커뮤니케이션 기조가 직접 개발과 런치하는 캠프에서 직접 저희 유저분들과 커뮤니케이션하는 형식을 따를 것 같습니다.
Lastly, for the question that you asked about the possibility of IP collaborations, with other companies that have IPs, I do think that as we had mentioned in the previous call, this is always an area in which we leave open and are, you know, open to, in terms of opportunities. In addition to that, as Jason mentioned during the opening remarks, I do think that in the very soon future, not too far future, that there will be opportunities in which we will be able to convey, you know, more information.
In addition to that, again, you know, the same thing that I said before about our communication stance being that the development teams and launch teams that are responsible for the different projects would be, you know, responsible or in the lead for more direct user communication also is applicable, you know, to this situation.
지금도 혹시라도 오해가 있으실까 봐 지금 저희가 말씀드린 콜라보레이션은 IP 콜라보레이션에만 한정이 된 게 아니고 전반적인 저희의 글로벌 사업 전략 관련된 콜라보레이션이라는 점을 다시 한 번 말씀드립니다.
Just so that there's no misunderstandings, when we talk about possible collaboration, it's not just limited to IPs. Of course, when we look at possibilities of working with other companies, it would be on a global basis for a wide variety of different types of business strategies.
The following question will be presented by Jingu Kim from Kiwoom Securities. Please go ahead with your question.
질문 감사합니다. 한 가지 질문을 드리도록 하겠고요. 길드워트 중국 사업의 매출과 트래픽 보조, 그리고 경쟁 환경의 변화를 언급을 해주셨는데요. 이 경쟁 환경 변화라는 키워드에 대한 구체적인 설명을 해주시면 감사하겠고, 현재 길도어2의 전체 매출과 트래픽에서 중국이 차지하는 비중과 향후 업사이드 포텐셜을 얼마나 보실 수 있는지 너무 강조하시고자 하는 포인트가 있으시면 말씀해 주시면 감사하겠습니다.
Thank you. I just have one question that I would like to ask you. During your presentation, you did mention that for Guild Wars 2 in China, that you have been able to see a significant growth on the top line and also in terms of the traffic levels. In addition to that you see that there is a change in evolution taking place within the competitive landscape. If you could elaborate a bit more about what changes you're actually noticing within the Chinese market, that would be appreciated. In addition to that, for Guild Wars 2 specifically, if you could share out of the top line and also in terms of traffic, how much China actually contributes to this game. In addition to that, what type of upside you would see to those numbers going forward.
I think that, anything that you would like to highlight with regards, to this game would be appreciated.
개별 게임들의 매출이랑 트래픽은 사실 공개를 못하는데, 뭐 길드워트도 마찬가지입니다. 그런데 이제 다만 외부에서 이미 확인하셨던 것처럼 와우가 지금 서비스 중지가 됐잖아요. 그래서 이후에 길드워트 MA와 매출이 큰 폭으로 증가하고 있는 것은 사실이에요. 그런데 정확한 매출이나 규모를 말씀드릴 수는 없을 것 같고, 단지 사실 이게 함유하는 것은 물론 와우가 되게 큰 프랜차이즈고 그리고 전세적으로 트랙디즈니스, 와우나, 파이널판테 정도가 언급이 되고 있는데 이 주요 고객층이 언제나 원하는 콘텐츠는 딱 정해져 있어요. 그런데 이걸 풀필할 수 있는 프로덕트 라인은 굉장히 제한적이고 거기에 있어서 저희들이 약간 캡틀라이즈 할 수 있는 부분이 있을 것 같고 단지 사실 중국뿐만 아니라 지금 이게 함유하는 것은 다른 지역들도 이 프로덕트에 대한 수요가 언제나 딱 고정층은 이미 너무너무 고정층은 확정이 되어 있고 이런 부분들이 중국뿐만 아니라 다른 데 똑같다는 것, 그거 하나 언급드리고 싶습니다.
On your question, as you are already aware, in terms of an individual game basis, in terms of top line and also traffic numbers, this is something that unfortunately we are not able to share with you. And that would also be the same story for Guild Wars 2. However, as you have been already able to see, in China, World of Warcraft has suspended its services. As a result of that, if you look at the overall MAU numbers and top line numbers for Guild Wars 2, although we would not be able to share specific numbers with you, we have seen a strong increase in those numbers.
I think that what this actually means to us is that, if you look at, well, of course, this is a game with a very, you know, strong and well-known franchise. You know, if you look at it in size, I think WoW would be on par to maybe the likes of Final Fantasy. That would be about it. What this actually means is, I think that from a user level is that, users have very specific needs, that they want to have satisfied. If you are able to come up with a product that meets that, level and meets that demand, that there is an opportunity that you can actually capitalize upon.
I think that this applies to this situation, and this is true not only for China, but I do believe for other markets also. There is a demand that would be, you know, a very stable level that is available within the market as an addressable demand. If you're able to come up with a product that satisfy that, you know, then that does provide you with a very good opportunity. I think that that applies for other markets and also of course China.
The following question will be presented by Donghwan Oh from Samsung Securities. Please go ahead with your question.
Yes, thank you. The questions that I would like to ask is related to your expenses. If you look at Q4, I think that the level of incentives that were paid out were larger than we had expected. The question that I would like to ask is that for 2023, in terms of your hiring plans and also in terms of the plans or the budget that you have for incentives, if you compare that to 2022 on a YoY basis, what would that increase actually represent? In addition to that, in 2023, you do have a full lineup of new games that you are going to launch. If we talk about the marketing activity related to that, maybe as a percentage of revenue or in terms of absolute numbers, what do you believe that that would represent?
Thank you for your question. If we look at the first quarter, first in terms of the labor cost, I do think that what we can say that as a trend, that the first quarter would represent a lower level in labor cost versus the fourth quarter. On a QoQ basis, because there will be less incentives that would be paid. If we look at 2023 as a full year, I think that the overall stance that we have, it would be, as we have mentioned during previous calls, to maintain cost efficiencies.
As a result of that, in terms of the number of headcount, we don't foresee a large increase from the current levels. If you look at our past trends in terms of how much hiring has actually taken place and how much the headcount has grown, in 2020 there was around 13% growth, in 2021 around 9%, and in 2022 around 2%. For this year again, we don't think it will be very different from what we have seen previously. In terms of the more specific numbers, I do think that this is something that we will be able to provide as the year passes and as we are able to provide you with more updates.
However, that have been said, of course, as you are aware, there are many IPs that we are planning to launch at a global scale. With that success, I do think that there will be various performance-based incentives that would be paid out. Of course, we think that this is good because it means that because we are able to enjoy a higher top line, that the incentives related to that would also increase. We think that this is a very positive scenario, and we also hope that it is something that will come true.
마케팅비 관련해서 말씀드리면 작년에 계속 저희가 비용 효율화 노력을 전사적으로 기울여서 22년 마케팅비는 총 줄에 7% 수준으로 전년 대비 감소하고 있습니다 절대 금액은 전년 대비해서 33% 정도 감소했으니까 많은 회사에서 ONEC를 가지고 집중하고 있는 분야는 우회전 말씀을 드리면 저희 글로벌 케임들이 올해 출시가 많이 되기 때문에 마케팅 비용이 당연히 저희가 또 마케팅 집행을 해야 되기 때문에 증가할 전망이지만 전사 전략에 따라서 전체 매출액 대비 저희가 조심스럽게 10%를 절대 넘기지 않는 방향에서 회사에서 노력을 기울이고 있습니다.
For the marketing side, again, because of the various cost efficiency efforts that we have put in this year. If you look at marketing as a percentage of revenue, it has been. For 2022 rather not this year, but for 2022 it has standard at 7%. If you look at it on a YoY basis in terms of the absolute level of marketing spend, it has come down significantly by 33%. We do think that this is due to the awareness that we have increased about marketing. This year again, we will have again a lot of global games that will be launched and released.
As a result of that, of course, that means that there needs to be marketing activities, and we do think that there will continue to be so. As a result, we do think that marketing will trend a bit higher. What we are aiming to do, and this is to be very cautious in trying to make this happen. We want to ensure that we can keep our marketing spend within 10% of our overall top line.
Currently there are no participants with questions. Please press star one, star and one to give your question. The following question will be presented by Seyon Park from Morgan Stanley. Please go ahead with your question.
Thank you for the opportunity to ask questions. There are two questions that I would like to ask you. First is that for TL, I do understand that this is a game that will be published by a global publisher. If that is the situation, then wouldn't it be that the marketing spend for that launch would be mostly, you know, taken by the publisher that you are working with, or shared with that? If that is not the situation... The reason why I'm asking that is if that is the situation, then regardless of that situation, do you mean that marketing will continue to rise even if that plays out in that manner?
If so, why would be the reason, why would your marketing spend increase versus the previous year? Secondly, I would like to ask you about China. Recently China has been providing more licenses to the operators, and as a result, I would like to ask for NC if you see any change in your Chinese strategy. For example, whether it be for new game launches or for the existing IPs that you have, do you have any plans, or what are your thoughts about maybe launching into the Chinese market?
Seyon Park, Analyst, 질문 감사드리고요. 말씀하신 지적이 일반적인 관행이 맞으니까 당연히 저희가 글로벌 퍼블리셔하고 일을 하게 된다면 당연히 그런 부분에서 마케팅 비용은 당연히 줍니다. 그건 맞는 말씀입니다. 저희가 왜 마케팅 비용이 늘어난다고 아까 드린 말씀은 아니고요. 기존의 저희가 기존 게임, 그니까 라이브 게임들에 대한 마케팅은 효율화를 굉장히 저희 사업부 쪽에서도 굉장히 여러 가지 진지한 awareness를 가지고 접근하고 계시기 때문에 그 부분에서의 합리적인 비용 집행은 저희가 전사적으로 지금 신경을 쓰고 있는 거고요. 이제 마케팅 비용이라고 하면 저희가 오늘 이번에 TL 관련해서도 런칭이 있지만 또 모바일 4종이 뭔가 예정대로 출시가 될 경우에는 이제 글로벌 출시에 대해서 어떤 그런 마케팅 비용의 집행을 말씀드린 거고, 그거 그런 마케팅 집행의 집행도 저희가 올해부터는 굉장히 마케팅 채널별로의 어떤 효율성, 그다음에 효과, 이런 거를 정밀하게 저희가 모니터링을 하면서 집행을 할 거기 때문에 뭐라 그럴까요?
그니까 어떤 마케팅 비용이 늘어난다는 말씀은 아니고요. 이제 제가 볼 때는 저희가 더 revenue를 더 일으키기 위해서 그런 점에서 꼭 필요한 효율적인 마케팅 집행이 이루어질 수 있다, 이제 그런 말씀으로 이해를 해주시면 좋을 것 같습니다.
Thank you for your question. I do think that the point that you have taken is something that would be a general practice within the market. If we do work with a global publisher, then of course that would mean that on the marketing spend, the marketing burden would be less. I was not trying to say that marketing in general would be increasing, but rather for the existing games that we have and on the marketing there, of course, as we mentioned before, we do try to make it more efficient. There is a very, you know, strong awareness of the necessity of this within the company.
As a result of that, I do think that everyone is being very mindful to be disciplined, in terms of how marketing is being executed. However, that have been said, of course, for marketing with regards to the TL launch and also, in addition to that, we also have four additional mobile games that we're planning to release this year. Necessarily, of course, there will be global marketing that would be related to that. In addition to that, I think that in terms of how we spend the marketing, we are trying to monitor more closely, what the efficiencies are per marketing channel and what type of results we're actually able to reap as a result of the marketing activities that we have engaged upon.
Again, I was not trying to emphasize that we believe that marketing will increase going forward because that's not the situation. Rather that, you know, there are areas in which we are going to spend marketing. As a result of that, we are going to ensure that we will make sure that that marketing is as efficient as possible.
마지막으로 그, 중국 진출 계획 말씀을 드리면 저희도 그, 중국 게임 시장 진출에 대해서 내부적으로 계속 준비를 하고 있고요. 그, 음, 지난번에 그, first wave 발표가 있었습니다마는 저희도 희망하기로는 두 번째 또 second wave가 있지 않을까 기대를 하고 있고요. 어, 그래서 그, 적절한 시점에 저희가 발표가 되면 그 시점에 맞춰서 발표를 드릴 수 있기를 희망을 하고요. 한 가지 말씀드리고 싶은 거는 뭐, 저희가 구체적으로 어떤 뭐, IP를 중국 시장을 준비한다고 말씀을 드리기는 어, 좀 어, 뭐, 그럴 수 없는 입장입니다마는 과거를 봤을 때 저희가 그, PC, 어, ENS가 중국 그, 픽 매출이 국내에 비해서 한 네 배 육박할 정도로 중국에서의 IP가 굉장히 영향력이 있다고 저희는 판단하고 있습니다. 그래서 이런 측면에서 어, 좀 봐주시면 좋지 않을까 생각을 하고 있습니다. 이-이상입니다.
To address your second question about China and our plans for China, of course, you know, we continue to monitor the Chinese game market very closely and the developments that are taking place. Internally try to prepare for situations that may arise. That have been said, there was the first wave of license announcements coming from China that we have seen. We do hope that, you know, there will be additional announcements in the future also, maybe a second wave. Accordingly, one of the hopes that we would have for the future is that, you know, when the time is appropriate, that we would have more, you know, exciting news to share with you at the appropriate time.
That having been said, I think that for China in general, you know, there's nothing specifically to talk about in terms of IP as of now. What we can say is that if you look at our past history, when we were talking about Blade & Soul as a PC online game, and if you look at the peak revenues that we were able to enjoy from Blade & Soul in China versus that of Korea, China did represent, you know, four times that of Korea. I do think that this means that Blade & Soul as an IP in China, is a very powerful IP.
As a result of that, you know, I do think, that is just something that we would like, to see what happens going forward with, and, that would be the situation there.
The following question will be presented by Junhyun Kim from HSBC. Please go ahead with your question.
저는 TL 관련해서 파이널 테스트가 해외 유저들 대상으로도 진행될 계획이 있는지 해외 유저 확보를 위해서 저희 전략이 파트너서 선정 이후에 저희만의 어떤 전략이 있는지 이런 부분이 궁금하고요. 그리고 두 번째로는 최근에 AI 이런 쪽 많이 부각되고 있는데 저희도 투자도 많이 하고 진행하는 걸로 알고 있는데 여기 관련해서 저희의 게임 적용이라든지 아니면 상용화 계획이 있으신지 공유 부탁드리겠습니다.
Thank you for the opportunity to ask questions. I do have two questions that I would like to ask you. First is about TL. You did mention that TL right now would be running some final tests, if that is the situation in those final tests, are the overseas users also going to be included in this test? How are you going to play this out so that you can attract more overseas users into this game? I do understand that you're working or that you may work with an overseas publisher and select a publisher to work with you, what would be our NC strategy on this point? The second question that I would like to ask you is about AI.
AI is receiving a lot of attention recently, and I do understand also that NC is investing into AI and that you have various projects ongoing. With regards to, you know, an update on that point, are there any areas in which you would be able to apply AI to your games or maybe commercialize AI? What would be anything that's happening there?
For TL, for the final tests, that we're running this time, it would be for only Korea users. As we have mentioned during our opening remarks, if and when we do select a partner to work with for TL, then I do think that then we might run some global tests and also have some marketing, that activity that we would engage upon.
For the details of that, I think again, you know, this is something that you would have to be a bit patient for. We will make sure to come out with something in the not too far future. I think that the second question that you are asking would be related to ChatGPT. For this, of course, within our R&D organization, we do have people that are looking at this topic and are inserting a lot of efforts into the research of that. As a result of that, we're in the process of looking at models which we are internally developing. Last year, we did complete our overall testing with a mid-size model.
The overall objective under which we are trying to develop something is to be able to use this GPT model for our game production and also in terms of developing various game contents. As a language model, we do think it has the potential to be expanded into story creation, also character creation, and also increasing the interactiveness of our games. Going one step further, we also have existing three-D character production technology and massive multiplayer, you know, access tech, game operation technology that we would able to combine ChatGPT with so that we would be able to create more immersive experiences for our users. Internally, at the end of the day, we also believe that there's potential to take this down the road to also various human digital products.
This is something that we are putting research efforts behind. I think that, you know, in future opportunities, again, the research team may have chances through which they would able to communicate more about this with you.
Maybe, you know, in closing the and ending the conference call, there is just, you know, one thing that I would like to really point out, and that is that, you know, this year we do think that it would be a new year of trying out new things. That have been said for the first quarter in itself, maybe not the full quarter, but towards the beginning of the year and for the time being.
From the existing game lineups that we have, we do think that the overall performance of that will moderate out a bit. However, the focus that we currently have is for the future, so for the growth momentum that we want to build up and also the strategy for that. We want to ensure that we can build something over, that will last over a mid to long term period. Our efforts are being exerted in those areas. Of course, for our day-to-day communication, you do have the IR team available to you, and they're very accessible. We do understand the challenges that we are faced with, and we are trying to build the best strategies to deal with those challenges.
To this end, we do look forward to your continuous interest and support.
With that, maybe we can end today's call. Once again, thank you for your attention.