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Activision Blizzard Reports Huge Microtransaction Revenue

February 8, 2022 by Carley Garcia

Less than 40% of earnings came from game sales.

Activision Blizzard

Activision Blizzard saw a major blow to its reputation in 2021, with a number of scandals coming to the forefront of news cycles around the globe. In January, Microsoft revealed its intentions to acquire the company in the game industry’s most costly acquisition to date–a move not popular with everyone. The Call of Duty and World of Warcraft publisher has disclosed its recent quarterly earnings report, and despite the waves of bad press and loss of player trust, people have continued to spend plenty of money on Activision Blizzard titles.

In 2021, the company reportedly earned a massive $5.1 billion through microtransactions and DLC purchases. This includes World of Warcraft subscriptions, skins, loot boxes, and items in Warzone and Overwatch. This is up from $4.85 billion in 2020. Although this is a new record for the company, Activision Blizzard technically saw total profits fall slightly during the year, from $8.41 billion in 2020 to $8.35 billion in 2021.

Call of Duty net bookings declined in the fourth quarter compared to previous years–not a surprise, given Vanguard‘s poor sales and lower engagement in Warzone. Last week, it was announced that Infinity Ward would be leading the development of Call of Duty 2022, with more details set to be released soon.

Looking at the company’s library of games, it’s easy to see how microtransaction spending is so high. Games like Call of Duty: Warzone depend heavily on Battle Pass, while the MMO World of Warcraft requires a monthly subscription. Although social media is often ablaze with gamers criticizing the implementation of microtransactions in nearly every recent title, the numbers don’t lie–and that’s why companies continue to keep sticking them in every release.

The new quarterly earnings report also mentioned what Activision Blizzard is planning on doing in 2022. “Substantial new content” is planned for the Warcraft universe, including a new mobile title and additional content for World of Warcraft and Hearthstone.

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Category: UpdatesTag: Activision, Activision Blizzard, Call of Duty, Microtransactions, Overwatch, World of Warcraft

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