Activision made $4.8 billion from mTX in 2020, 57% of revenues

Activision-Blizzard earns a whopping $4.8 billion in non-GAAP microtransactions & DLC thanks to huge Call of Duty/WoW surges.

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Activision earned 57% of its total-year revenues from microtransactions, DLC, and other in-game purchases.

Activision made $4.8 billion from mTX in 2020, 57% of revenues 4

While scouting Activision's total-year 2020 earnings, I noticed something interesting: The company made 57% of its revenues from mTX throughout the year. In 2020, Activision-Blizzard made more money than it ever has before, breaking over $8 billion in revenues. A good chunk of that was from in-game spending.

The financials show Activision earned $4.852 billion from microtransactions throughout 2020, mostly driven by Call of Duty mtX, which was up a mighty 70% year-over-year in Q4. It's also worth noting the company earned 82% of its revenues from digital, which is par for the course.

Remember that Activision-Blizzard doesn't keep all the money it earns. Far from it. The company spent 75% of its earned revenue (a massive $5.3 billion) on expenses, which include marketing, distribution, upkeep/live servers, game development, and everything else. That leaves roughly $2.1 billion in net income earned on the back of over $8 billion in total revenues.

These figures aren't GAAP revenues, though. That means they're not the standardized earnings that Activision reported to investors.

Here's how the company explains non-GAAP figures: "Activision Blizzard's non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles. These non-GAAP measures have limitations in that they do not reflect all of the items associated with the company's results of operations as determined in accordance with GAAP."

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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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