Additional digital content is a big part of business for many a publisher these days. For more niche titles, for example, premium DLC offerings are a good way to rack up some extra dosh, while blockbusters often use DLC packs and season passes to find more success after launch. Okay, so that's a pretty simplistic way of looking at things - but the point is that the digital side of our favourite industry is making big bucks.
This is especially true for EA, which is making an absolute killing from additional content and in-game purchases. Speaking at a recent investor conference, EA CFO Blake Jorgensen was quite open about the publisher's success in the digital market. "We've been a leader in driving digital extra content for games, which really drives the profitability of this business," he states.
Jorgensen then goes into detail, talking about the cold hard numbers - and they're mighty impressive, to say the least. "The extra content business is a billion-three [$1.3 billion] a year," he claims - but that colossal figure isn't necessarily the big deal here. Jorgensen continues: "Half of that is roughly our Ultimate Team business."
In other words, the Ultimate Team modes in games like FIFA and Madden generate around $650 million in annual revenue. With numbers like that, you begin to realise why so many companies are keen to squeeze microtransactions into their titles.
So, have you ever spent money in Ultimate Team? Do these figures surprise you? Talk big business in the comments section below.
[source gamesindustry.biz]
Comments 25
This hurts especially after the news of Konami putting expiry dates on it's micro-transaction currency in MGS V. Every extreme piece of news seems to normalise the already unacceptable business model. Soon, the new demographic will enter the market and this will be all they know...
This is an insane amount of money when you consider that's an extra 1.3 billion a year before all of this DLC business was the norm. Fair play to them. I don't care for Fifa personally but when you're making that much money, you'd be mad to stop.
this is just sad
Can't blame EA especially when the players don't mind buying their DLCs. Fair play to them.
Are we using "micro-transactions" for all DLC now? I thought that meant purchases under 25 cents or something really tiny like that. This sounds more like season passes and expansion packs.
OK, obviously I have no idea what Ultimate Team mode is, even after reading 3 google articles on it. Think I'm going to keep it that way.
Just hope this doens't mean I'll have to pay extra to get Ratchet's wrench in the new game. Though I would buy a little toy Ratchet or Clank to unlock magnet mode from the beginning. I hate running around collecting bolts, but I can't not do it either.
You can buy PvZ coin's already in the store, EA wasteing no time with that game Not buying any AAA game's this year I don't think, saving my penny's for something that will get me outta this console rat race.
The developers need to make money where they can. The model for the sale of games needs changing for Playstation. Microsft tried to change things but failed. Until you kill off the 2nd hand game market companies will always need to make extra money.
@rjejr $650 million from Ultimate Team alone - and Ultimate Team makes money from microtransactions. Basically, you can spend real money to buy in-game currency that you can then spend on randomised packs of players. It's just insane how much it actually makes.
@rjejr ratchet and clank amiibo.
'but the kids love us', to quote a bit of Venkman.
My 8 year old nephew is mad on that Ultimate Team bo##cks.
Of course these are profitable. Its basically all profit! I must admit I do buy some DLC but rarely buy micro-transactions or things that I could get in-game (eventually). I certainly have NO intention of supporting a 'practice' that I totally disagree with 100%. Fortunately I don't play Fifa or other 'sports' games so this doesn't even crop up for me.
Games that sell 'cosmetic' items - like camos, emotes etc will also NEVER get bought. I would rather look 'drab' and 'boring' with basic in-game items than pay extra to look 'different'. It doesn't affect my enjoyment, skill level, playability etc.
I wish everyone would stop buying micro-transactions so that the developers/publishers start losing money - even if they go bankrupt and jobs are lost - not that I want people specifically to lose their jobs - but thats how much I detest this practice!
I don't mind DLC. Few new tracks, bikes, tour events and trophies on Driveclub for £2.99 isn't so bad.
Of course where I don't perceive value, I don't buy it.
Ultimate Team is the Panini sticker album of gaming- and apparently as addictive to today's generation as completing the Italia '90 collection was when I were a lad. Toto Schillaci!
@rjejr I would happily pay microtransactions in R&C if I can get my own Mr Zurkon
I don't think Microtransactions are a bad thing necessarily, it's when they end up been shoved down your throat or are pretty much needed to get anywhere in a already payed product that I have a problem with.
@Bad-MuthaAdebisi I'd be inclined to agree with you there, but for several years it just seems to grow, so I dunno if it ever will die off.. I'd like to hope so but.....
I'm not even sure who's the greediest company anymore, EA or Activision? Also didn't EA say they weren't trying to "nickel and dime" us with microtransactions, yet they're stilling including microtransactions in most of their games. PvZ GW2 now has in-game currency that you can obtain with real money. SW: Battlefront doesn't have microtransactions mainly because they rushed the game. Battlefield will always have microtransactions. I'm pretty sure all their Sports games have microtransactions too. So tell me EA, are you just giving us a bunch of horse**** thinking we will feel better buying your DLCs? I'm starting to think that's their plan. Lie even more to their customers.
Yeesh.
I never understood the rage with Ultimate Team in sports games. The amount of moolah that made alone makes me cringe.
So in summary if everyone that buys ultimate team packs clubbed together they could actually buy the ultimate football team for reals
@ShogunRok Thanks for the help, but it seems like one of those things I'm not going to get without actually seeing it in front of me. And even if I did understand how it worked, I not sure I would "get" why people do it and don't tell EA to get lost. Though who really understands soccer fans anyway?
@Bad-MuthaAdebisi "randomised ultimate team player packs is a form of gambling"
You mean like every pack of trading cards ever sold? Baseball, Pokemon, Wacky Packages (that last one is an old school American thing)
Though if you want to argue the online auction house should be illegal, well that I could get behind, sounds really shady. but blind packs just suck, they arne't really gambling.
@ApostateMage +2 points for the Ghostbusters reference.
@andrew20 Well not "Amiibo", but yeah, I don't know what to call them either. I've always collected Skylanders, and always just called them Skyaldners. And we have a few amiibo. And he have a couple of Lego Dimensions sets we just call Legos (in part b/c we don't actually own the game). I told my wife yesterday about the Disney Infinity Baloo figure yesterday (see avatar) but I didn't know what to call it. "Disney Infinity figure" is just way too many syllables. "NFC toy" isn't much better. "DLC collectible" has a nice poetry and truthiness to it, but also no. Some day, as I don't think these things are going away, just beginning in fact. All those POP! toys will have chips at some point.
@adf86 You're in luck, Mr Zurko is in the new game. I think. A Mr Zurkon NFC toy would like nice on the shelf though. Maybe a talking one.
I wish I was smart enough to be able to be this stupid with my money, I gotta be cheap cause I just don't got the dollars.
I guess that's because Ultimate Team
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