Activision Blizzard has announced record-breaking revenue for 2017, with net revenue of just over $7 billion. Crucially though, more than $4 billion of this came through in-game microtransactions.
"This was a record quarter to cap off a record year for Activision Blizzard," said Bobby Kotick, CEO of 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."
Activision defines ‘net bookings’ as a metric that covers all products and services sold, both digitally and physically. Total digital sales were $5.43 billion, while Activision Blizzard successfully delivered a fourth consecutive quarter of over $1 billion in in-game purchases, totaling an annual record of $4 billion.
If you’re still harbouring any faint hopes that microtransactions are a fad, or that people aren’t willing to pay for them, think again. A quick glance at Activision Blizzard’s output will tell you all need to know about how and why microtransactions have taken off in such a big way for the publisher. Overwatch, Call of Duty: WWII and Destiny 2 are absolutely littered with them, while Activision’s acquisition of Candy Crush developer King for $5.9B looks an increasingly shrewd proposition.
I had an inkling that microtransactions would be a decent earner for Activision Blizzard, but it’s staggering that it accounts for 57% of their entire revenue. Until there’s any considerable blowback it seems assured that MTX aren’t going anyway, in Activision Blizzard’s games at least.
Have you bought microtransactions in any Activision Blizzard games during the past year? Let us know what you think the results!