Ask any gamer what their thoughts on microtransactions in gaming are and odds are the response will be negative. For years now players have been struggling with games locking powerful items behind paywalls and creating pay to win scenarios, restricting the coolest cosmetics to those willing to shell out some real life money. Despite this system being almost universally hated, it seems to be very popular as well, as Activision-Blizzard‘s newest financial report reveals.
Activision is notorious for including microtransactions in its games, and for championing things like loot boxes, so the fact that they comprise a large part of its earning doesn’t come as much of a surprise. That said, few would have anticipated that the publisher would make $1.2 billion from microtransactions in just three months.
The report also shows that the total earnings for Activision during this period were $1.9 billion, meaning revenue from microtransactions accounts for over half of the company’s revenue as a whole. More money is made from players purchasing COD points and other in game items than from those same players actually purchasing the games itself.
The unfortunate thing about this news is that it proves that the model works. Those fans that were praying that microtransactions would go away most certainly won’t see that happen until this number becomes so small that it isn’t worth the public outrage anymore. In order for that to happen, players would have to actually stop spending money on microtransactions, something which some seem to be incapable of. This leads into discussions that certain types of microtransactions are actually forms of gambling.
Not surprisingly, Call of Duty: Modern Warfare and Warzone were the stars of the show when it comes to microtransactions, bringing in four times as much revenue than it did last year in microtransactions. This unprecedented number represents a 69% increase in total microtransaction revenue when compared to the same period last year. It’s possible that the increase in players staying home and gaming could have something to do with this, as with most activities closed down, some gamers might have more spending money. On the other hand, the economic impact of COVID-19 could theoretically be making it more difficult for gamers to afford spending money on games.
Overall, fan reaction to the news is mostly negative. If players don’t like something, it’s up to them to choose not to support it monetarily. Unfortunately, to really make a difference would require a joint effort from a majority of players, something that would be difficult. Along a similar vein, fans are upset with Genshin Impact‘s gacha system, but it was the highest grossing mobile app of October because of it.
Activision made $1.2 billion in microtransactions alone in the last three months.
Source: GameSpot
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