At this point and time, you can create a controversial game or mediocre title filled with MTX (microtransactions) or GaaS (games as a service) and make a killing from those two systems with little effort put into them like the drought that Star Wars Battlefront 2 faced early this year which still turned Electronic Arts a profit. Well, EA and Activision are bathing in billions thanks to their MTX and GaaS setup as highlighted in a new report.
The new report by dfcint.com that gamesindustry.biz picked up reveals Electronic Arts and Activision have grown by almost $80 billion combined since bolstering their cash grab efforts via MTX and GaaS practices.
The report shows that back in 2012, EA’s value has grown from $4 billion to $33 billion. Activision (also known in the business world as Activision Blizzard) has seen its market value rise from $10 billion to over $60 billion in the same time frame as the former company.
It goes to show you that more games in the future, as well as companies, will switch their efforts to full-on MTX and GaaS setups to capitalize on the system. And yes, cut-content deemed as “DLC” and other re-used assets found in a game and billed as “paid DLC” is GaaS, too, much like Battlefield 1’s Apocalypse DLC.
Furthermore, Activision’s growth is “partly attributed to live titles” such as Destiny and Overwatch and the purchase of King for around $6 billion back in 2015 — the developers over Candy Crush.
In addition to the above, the DFC relays that Activision’s digital profits almost doubled in the year following the acquisition of King.
Looking over to EA, its annual sports franchises like FIFA, Madden, NHL, and NBA feature live service mechanics that double-dip with Ultimate Team modes nestled-in that help the company out significantly.
According to gamesindustry.biz, the website notes:
“DFC actually estimates EA currently has 12 titles and storefronts that serve as live service platforms. In addition to the sports titles above, there’s EA Origin, Origin Access, the Battlefield Premium Pass, The Sims 4, casual games website pogo and a double helping of Star Wars (Battlefront and The Old Republic).”
Lastly, In fiscal year 2018, EA accrued $2 billion from its live service games alone. The DFC also makes mention that during the same period, the publisher’s digital revenue increased by 31%, while physical game sales dropped by 17%. In other words, people were less inclined to buy physical copies of EA games and opted to spend more on EA titles they already owned or digitally via MTX.