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 the system's negative perception among many, it seems to be very popular as well, as Activision-Blizzard's newest financial report reveals.
Activision frequently includes microtransactions in its games, including some 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 game itself.
The news 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. That, or until discussions that certain types of microtransactions are actually forms of gambling lead to legislative changes.
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 to spend money on games.
Overall, fan reaction to the news seems mostly negative. If players don't like something, it's up to them to choose not to support it monetarily. To really make a difference would require a joint effort from a majority of players or government officials, however. Along a similar vein, some fans are upset with Genshin Impact's gacha system, but it was the highest-grossing mobile app of October because of the monetization system.
Activision made $1.2 billion in microtransactions alone in the last three months.
Source: GameSpot