Microtransactions aren’t going away in video games any time soon. Well over half of Activision Blizzard’s revenue last year came from people buying cosmetic items, loot boxes, and DLC packs, with less than 40% earned through sales of the games themselves.
This news comes through Activision Blizzard’s fourth-quarter earnings report, a quarter in which the company earned $2.16 billion. It looks like Microsoft won’t have to wait too long to see a return on its $68 billion purchase of the company.
Throughout 2021, Activision Blizzard earned $5.1 billion for net in-game sales. This includes World of Warcraft subscriptions, as well as skins, loot boxes, and items in Warzone and Overwatch. This figure is a $250 million increase from 2020.
The news comes in the wake of a series of controversies surrounding the company. QA workers on Call of Duty have attempted to get a union officially recognized and have subsequently gone on strike when the request was denied. Workers across the firm also staged a walkout in response to allegations of abuse against the company CEO, Bobby Kotick.
When Microsoft’s purchase of Activision Blizzard completes in 2023, it’s looking like Kotick will finally step down from his role.
Written by Kirk McKeand on behalf of GLHF.
