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Activision Blizzard makes more money from microtransactions than game sales

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Earlier today, I reported that Activision confirmed Treyarch as the developer for Call of Duty 2018, which basically means Black Ops 4. That was some great news to share from the publisher’s fourth quarter financial conference call, but for those who hate loot boxes and microtransactions, this news might be a bit of a downer.

Activision Blizzard’s financial results report revealed something quite disturbing for anyone who doesn’t like the idea of microtransactions. In short, Activision made more money from microtransactions than from selling games. How much you ask? Well, the publisher revealed that it was over $4 billion in 2017, as revealed with the following statement in the report:

Activision Blizzard delivered a fourth-quarter record of over $1 billion of in-game net bookings and an annual record of over $4 billion of in-game net bookings.

Activision boasted a record fourth quarter and their annual GAAP Net Revenues was a whopping $7 billion, which means that their biggest source of income was from microtransactions in games.

Activision’s CEO, Bobby Kotick, talked about the publisher’s performance in the fourth quarter, stating that:  

This was a record quarter to cap off a record year for Activision Blizzard. In 2017, our community reached new milestones for engagement, our business delivered record revenues and cash flows, and we made important progress in building future growth opportunities such as the Overwatch League. We couldn’t be more excited for the opportunities ahead in 2018 to continue serving our players and fans.

The financial report also included some other interesting information, with the monthly active users standing out for me as the most impressive:

Activision Blizzard had 385 million Monthly Active Users (MAUs) in the quarter, up from 384 million last quarter.

That’s a whole lot of users, but remember that Activision also owns King, the developer of Candy Crush, so that might have something to do with all of this. Whatever the case may be, it is clear that although we all love to hate microtransactions, there is a mind-blowing amount of money being spent by gamers on those microtransactions and it is no wonder why publishers keep on implementing loot boxes and other microtransactions in their games.

What do you think about Activision Blizzard's earnings from microtransactions are what is your stance on microtransactions in video games? Let us know in the comment section below

Source: Activision Financial Results

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