Activision made $3.36 billion from microtransactions in 2019

Activision made over $3.3 billion in microtransactions in 2019, representing over half of its total yearly revenues.

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Activision's latest earnings show a steep $800 million drop in microtransaction earnings, but it still made over $3.3 billion from in-game spending.

Activision made $3.36 billion from microtransactions in 2019 4355

Photographer: Troy Harvey/Bloomberg

Activision-Blizzard is a titan of monetization but it's game is slipping a bit, at least when compared to its 2018 highs. The publisher earned $3.366 billion from in-game microtransactions in 2019, down a whopping $837 million from last year. This represents a sizable 20% drop from 2018's mTX earnings.

To the surprise of no one, the company earned roughly 53% of its total net yearly revenues from microtransactions. In 2019, Activision-Blizzard generated $6.388 billion in total earnings, with $4.93 billion gleaned from digital (roughly 77% of yearly revenues).

Microtransaction revenue was mostly driven by the new Call of Duty reboot, which saw a double-digital percentage spike in mTX and overall sales over Black Ops 4, as well as the successful launch of Call of Duty mobile.

As far as spending, Activison-Blizzard spent $4.882 billion on costs of goods and services--R&D, personnel, infrastructure, marketing, shipments, etc.--and made net income of $1.5 billion after all costs.

2019 was the first year under the company's new business model, which sees a stronger emphasis on engagement, live services, mobile adaptation, and new initiatives like cross-play. In the earnings call, Activision CEO Bobby Kotick remarked that cross-play drove huge numbers for Call of Duty. We should expect all major frontline games from the publisher to further embrace cross-play to boost engagement and thereby boost monetization potential.

Activision made $3.36 billion from microtransactions in 2019 235
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Derek joined the TweakTown team in 2015 and has since reviewed and played 1000s of hours of new games. Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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