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==Controversies== ===Stolen source code=== On April 27, 2007, [[Seoul]] Metropolitan Police said that seven former employees of NCSoft are suspected of selling the ''Lineage III'' [[source code]] to a major Japanese game company.<ref>{{cite magazine|url=https://www.wired.com/2007/04/former-ncsoft-e/|title=Former NCSoft Employees Suspected of Stealing Lineage III Code|date=30 April 2007|magazine=WIRED|access-date= 1 May 2022}}</ref> According to NCSoft, the potential damages may exceed {{US$|1 billion|link=yes}}.<ref>{{cite web|url=http://english.chosun.com/w21data/html/news/200704/200704260026.html |title=Chosun Ilbo article |date=April 26, 2007 |url-status=dead |archive-url=https://web.archive.org/web/20080918100712/http://english.chosun.com/w21data/html/news/200704/200704260026.html |archive-date=September 18, 2008 }}</ref> ===Worlds.com patent lawsuit=== [[Worlds chat|Worlds.com]] CEO Thom Kidrin claimed the idea of a "scalable virtual world with thousands of users" is patented by his organization<ref name="one">{{Cite web|url=https://www.businessinsider.com/worldscom-ceo-were-absolutely-going-to-sue-second-life-and-world-of-warcraft-2009-3|title=Worlds.com CEO: We're 'Absolutely' Going To Sue Second Life And World Of Warcraft|website=Business Insider|access-date=2019-01-17|archive-date=2018-09-17|archive-url=https://web.archive.org/web/20180917141433/https://www.businessinsider.com/worldscom-ceo-were-absolutely-going-to-sue-second-life-and-world-of-warcraft-2009-3|url-status=live}}</ref> and targeted NCSoft for [[patent infringement]] in 2008,<ref>{{cite magazine|url=https://www.wired.com/2008/12/ncsoft-faces-pa/|title=NCsoft Faces Patent Infringement Suit|date=29 December 2008|magazine=WIRED|access-date=1 May 2022}}</ref> in what he says will be the first of many lawsuits against MMO developers.<ref name="one"/> On April 23, 2010, the Worlds.com case settled, but the terms of the settlement were kept confidential.<ref>{{Cite web |last=Takahashi |first=Dean |date=2009-03-12 |title=Worlds.com: We've patented the world |url=https://venturebeat.com/games/worldscom-weve-patented-the-world/ |access-date=2024-11-16 |website=VentureBeat |language=en-US}}</ref> On July 22, 2010, Worlds.com requested the case be reopened.<ref>{{Cite web |last=Krangel |first=Eric |title=$50,000 Reward Offered For Proof Worlds.Com Patent Lawsuit Is Bogus |url=https://www.businessinsider.com/2009/1/50000-reward-offered-for-proof-worldscom-patent-lawsuit-is-bogus |access-date=2024-11-17 |website=Business Insider |language=en-US}}</ref> ===Richard Garriott termination=== [[Richard Garriott]], lead developer of the failed MMORPG ''[[Tabula Rasa (video game)|Tabula Rasa]]'', sued NCSoft for {{US$|24 million}} in damages concerning his termination from the company. Garriott asserted in his suit that he was forced out of the company and was made to sell his 400,000 shares in NCSoft's stock, costing him millions of dollars. In addition, he claimed that the company was guilty of fraud by [[Forgery|forging]] his resignation announcement.<ref>{{cite web |last1=Voecks |first1=K. |title=Richard Garriott blasts NCsoft with $24 million lawsuit |url=https://www.engadget.com/2009-05-06-richard-garriott-blasts-ncsoft-with-24-million-lawsuit.html |website=Engadget |access-date=1 May 2022 |date=6 May 2009 |archive-date=23 December 2021 |archive-url=https://web.archive.org/web/20211223003713/https://www.engadget.com/2009-05-06-richard-garriott-blasts-ncsoft-with-24-million-lawsuit.html |url-status=live }}</ref> On July 30, 2010, a jury in a [[Texas]] federal court awarded him {{US$|28 million}} in damages. NCSoft described Garriott as someone "who keeps finding different ways to turn the company into his personal ATM," and that "Garriott left the company voluntarily to catch his ride to the International Space Station." Citing his questionable work ethic and the failure of his video game project despite an $84.4 million investment, NCSoft pulled the plug on the game after which Garriott announced he would be leaving the company. This came after he boarded a much-publicized news on his boarding of a Russian aircraft, which cost $30 million.<ref>{{cite news|title=Garriott wins $28 mil. in NCsoft lawsuit|url=https://www.koreatimes.co.kr/www/news/biz/2010/07/123_70538.html|last=Kim|first=Tong-hyung|date=July 30, 2010|access-date=August 1, 2010|archive-date=September 28, 2012|archive-url=https://web.archive.org/web/20120928102016/http://www.koreatimes.co.kr/www/news/biz/2010/07/123_70538.html|url-status=live}}</ref> Garriott again prevailed on appeal and NCSoft was required to pay an additional {{US$|4 million}}, bringing the total damages awarded to Garriott to {{US$|32 million}}.<ref>{{cite web|title=Garriott wins appeal in NCsoft case|url=https://caselaw.findlaw.com/us-5th-circuit/1583315.html|work=RICHARD GARRIOTT v. NCSoft CORPORATION|access-date=October 30, 2012|archive-date=October 26, 2012|archive-url=https://web.archive.org/web/20121026055022/http://caselaw.findlaw.com/us-5th-circuit/1583315.html|url-status=live}}</ref> ===Closure of Paragon Studios and ''City of Heroes''=== On August 31, 2012, NCSoft [[liquidated]] Paragon Studios and announced the closure of ''City of Heroes''. Over 21,000 players signed an online petition contesting the shut-down<ref>{{cite web|url=https://www.engadget.com/2012/09/27/save-coh-movement-sends-letters-to-ncsoft-executives-petition-p/|title=Save CoH movement invites NCsoft execs to play, petition passes 20,000 signatures|website=Engadget|date=September 27, 2012|access-date=November 10, 2012|archive-date=January 7, 2016|archive-url=https://web.archive.org/web/20160107042443/http://www.engadget.com/2012/09/27/save-coh-movement-sends-letters-to-ncsoft-executives-petition-p/|url-status=live}}</ref> and many used social media to promote their criticisms. === Major Company Reconstruction in South Korea === In 2024, NCSoft underwent significant restructuring in South Korea to tackle its financial challenges. The process began with the closure of its subsidiary, [[Ntreev Soft]], leading to the layoff of 70 employees in January 2024 after enduring an 11-year deficit. Consequently, the development and service of ''Trickster M'', ''Pro Baseball H2'', and ''Pro Baseball H3'' were terminated.<ref>{{cite web|title=Game publishers cancel titles, cut employees as economy struggles|url=https://koreajoongangdaily.joins.com/news/2024-01-18/business/industry/Game-publishers-cancel-titles-cut-employees-as-economy-struggles/1961701|last1=Lee|first1=Jae-lim|website=Korea JoongAng Daily|access-date=November 17, 2024}}</ref> On October 21, 2024, NCSoft declared the main branch's overhaul, which includes the formation of new teams into four business divisions, scheduled to be established as official subsidiaries on February 1, 2025. * ''NC AI'' will oversee all AI development for games and applications, consolidating NCSoft's AI and NLP teams into a single unit, led by the head of NCSoft's NLP research, Lee Yeon-soo. * ''FirstSpark Games'' or ''Studio X'' will inherit the project ''[[Throne and Liberty]]'' from TL Heroes and continue its IP development, under the leadership of Choi Moonyoung, one of NCSoft's three chief business officers. * ''BigFire Games'' or ''Studio Y'' will advance the development of '''Project LLL'', guided by Bae Jae-hyun, NCSoft's vice president of game development. * ''Ludius Games'' or ''Studio Z'' will undertake the development of NCSoft's new project ''TACTAN'', currently in the design phase, led by Seo Min-seok. In the wake of its restructuring, NCSoft will disband the remaining teams that have not been restructured and halt their projects. This includes the cancellation of the single-player action-adventure RPG ''Project M'' and the cessation of the newly released game ''Battle Crush''. Additionally, the company will conduct staff layoffs and introduce a voluntary retirement program for its employees.<ref>{{cite web|title=NCSoft suffers layoffs and cancels projects, including ultra-realistic thriller Project M|url=https://www.eurogamer.net/ncsoft-suffers-layoffs-and-cancels-projects-including-ultra-realistic-thriller-project-m|last1=Kennedy|first1=Victory |website=Eurogamer|access-date=November 17, 2024}}</ref>
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