NCsoft Responds to Anonymous Source on CoH Profitability

Was City of Heroes profitable? An anonymous source reveals details about the financial status of the game and NCsoft responds.

It’s been a hotly debated topic since NCsoft announced that it would be shutting down Paragon Studios and sunsetting City of Heroes (CoH) back in August. But this week an anonymous source reached out to MMORPG to talk about the studio’s closure and claims that the game was profitable.

The source told MMORPG that the operating cost for Paragon Studios was around $4 million yearly and that the studio grossed $12 million. They also revealed that the studio had begun work on a second project that wasn’t City of Heroes 2, but rather a Minecraft meets Lost style of game. Additionally, the source also discussed NCsoft’s efforts to sell CoH and efforts to buy out the studio with a Kickstarter effort were even considered.

Lincoln Davis, NCsoft’s director of corporate communications, responded to MMORPG's inquiry with a rather poignant response first taking a jab at the news and then offering a rebuttal that recapped the Q2 2012 Earnings Report, how CoH wasn’t profitable enough for the needs of the studio, and NCsoft’s previous statements on efforts to sell the game.

"While we looked to sell the franchise multiple times, we were unsuccessful in finding a suitable partner that we thought would support City of Heroes’ fans in a manner they were accustomed to for years to come. Closing a studio and sun setting a beloved franchise is never an easy thing to do for the publisher, the developer or the fans. This was not an easy decision to make. The Heroes and Villains have taken to the skies of City of Heroes for the last time, but the game and community will remain in our memories”.

All the same, the closure is still an unfortunate story and a reminder that in the end our games are simply a business, and we are all at the mercy of our publisher overlords when it comes to how long they remain in operation.

Source: MMORPG

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