Activision Blizzard Announces Highest Ever Microtransaction Revenue

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In all likelihood, Microsoft is about to be the proud new owner of a small game studio called Activision Blizzard – you might have heard of it. Microsoft has agreed to drop $68.7 billion to get its hands on the company. Sure, locking down future exclusives is a big motivator in the era of The Great Gaming Consolidation, but Activision Blizzard is also making a lot of money. The company’s financial results for 2021 are in, and it has brought in more money than ever. More than that, it earned a record $5.1 billion from microtransactions alone, TweakTown reports. That’s a lot of horse armor.

The ongoing COVID-19 pandemic has kept interest in games high, so it’s no surprise that revenue is on the rise. Activision Blizzard raked in a total of $8.8 billion with $3.6 billion in profit. However, you might be surprised at how integral microtransactions are to the bottom line. The proportion of this revenue coming from so-called “in-game bookings” is $5.1 billion. Yes, most of Activision Blizzard’s revenue does not come from the sale of games but from the sale of items. in Games. The in-game business income covers all sorts of add-on purchases. There are subscriptions like World of Warcraft and season passes for games like Call of Duty. Additionally, many Activision Blizzard titles include stores where you can purchase cosmetics and other items.

The publisher’s in-game revenue has been on an upward trend and just reached its highest level yet.

With a robust selection of additional content, games can print money for months or years after release, and Activision’s revenue from those deals only increases. Last year it made $4.85 billion from in-game content, and the year before it was $4.2 billion. The overall income was “only” the second highest ever, but the in-game income was the highest ever. If you ever wonder why game publishers insist on stuffing games full of paid updates, here’s why. We really do it to ourselves.

When you see numbers like this, Microsoft’s huge takeover offer starts to make more sense. Added to Microsoft’s existing gaming revenue, Activision Blizzard will put it within striking distance of Sony, which currently earns nearly twice as much revenue from its gaming properties. The deal is being reviewed by the Federal Trade Commission, but most entertainment mergers are allowed. Once done, the deal would leave Electronic Arts as by far the largest independent games publisher in the west, but certainly not so big that Sony or Microsoft couldn’t grab it. China also has several major game studios, but these are likely immune to console consolidation.

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