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Activision Blizzard made over $4 billion on microtransactions in 2017

Published: 17:11, 09 February 2018
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Activision Blizzard's revenue from "in-game net bookings" reached $4 (£2.90) billion for 2017. Half of the money came from Candy Crush operator, King, and the other half came via their PC and console titles. EA reported $787 million in what it calls "live services" for the latest quarter.

Activision Blizzard said in their earnings report today that their revenue from "in-game net bookings" reached $4 (£2.90) billion for 2017. This includes stuff like DLC sales, loot boxes, and in-app purchases on mobile games.

In-game net bookings brought Activision Blizzard over $1 (£0.72)billion during the fourth quarter alone. Analyst Daniel Ahmad explained on Twitter, around $2 (£1.45) billion of Activision Blizzard's annual revenue from in-game net bookings came from the company's mobile subsidiary, King, which operates Candy Crush. The other $2 billion came from Activision Blizzard's console and PC titles, along with Activision Blizzard's efforts on mobile such as Hearthstone.

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Overwatch offers the option of paying real world money for loot boxes that contain sprays, skins, voice lines and other cosmetic items. World of Warcraft has a significant in-game economy as well, letting people purchase items like mounts and pets.

Even though $4 billion is not a small amount of anything, really, Activision Blizzard is not alone. Electronic Arts recently stumbled into some hot water with the release of Star Wars: Battlefront and the game's use of . EA reported $787 million in what it calls "live services" for the latest quarter.

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Take-Two Interactive earlier this week that GTA Online and NBA 2K18 recently set records for what the company calls "recurrent consumer spending."

Activision Blizzard, EA, and Take-Two all reported year-over-year gains for microtransaction revenue. This practice might not be very new but the more aggressive strategies of implementing it have caught the attention of many governments and their .

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