We’re about to hit a point where we stop calling them “games as a service” and just call them “games,” because it’s rapidly become clear that long-term engagement and monetization is a core piece of the business of AAA gaming. Today, Activision Blizzard’s earnings report showed a massive piece of their profits were driven by in-game purchases.
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Activision Blizzard hit a record $7.16 billion in revenue this year, with over $4 billion of that coming from in-game purchases. That covers DLC, microtransactions, and loot boxes across both sides of the company’s lineup.
The company’s mobile division, King - best known as the Candy Crush people - accounted for $2 billion of that total, but the traditional game market is rapidly catching up to mobile in terms of profits from in-game purchases.