Ever wondered why publishers include microtransactions in their games? A breakdown of Sony’s latest financial report, spanning the period April 2020 through June 2020, reveals that a whopping 41 per cent of its revenue was generated by DLC, microtransactions, and other in-game purchases. That’s an eye-watering $2.29 billion.
To put things into perspective, packaged software accounted for just $350 million, which represents 6 per cent of the organisation’s overall income. Hardware represented a similarly small proportion, at just $520 million. As previously reported, digital PlayStation Store software sales are on the rise, and represented 24 per cent of the firm’s total revenue, pulling in $1.37 billion.
But that DLC and microtransaction category is far and away the biggest money-spinner for Sony. Remember, it pockets 30 per cent of the overall transaction whenever someone pods out for GTA Online currency or card packs in FIFA Ultimate Team. So while you may not particularly like it, this practice is not going away any time soon.
[source twitter.com]
Comments 49
People need to keep their money in their pockets with these Microtransactions. I’m sorry, but people are stupid with that stuff. I get different hobbies and all of that, but there’s a point where a fool and his money is true.
Yet another telling example of just how small the hardcore gaming community is.
There's a reason why Sony went out and made a point of GTAV coming to PS5.
Wow. That is crazy.
So add on content made more for Sony (Nearly 2X) than all of Xbox last quarter. Wow.
Edited for clarity.
Edit 2: this isn’t accurate. 1.3bn was their increase not total revenue. Their total was 3.2bn which means Sony made 1bn less than all of Xbox in last quarter off add ons alone which is still impressive.
Took the 1.3bn as accurate when it wasn’t, my bad.
@ShogunRok that is an excellent point about the cash cow that is gta online.
I never bought a microtransactions.so thats crazy that people needs a little boost in theyre games etc.word up son
Are they saying they are making profit of their games dlc or other games dlc by it being in their store?
If it’s Sony games, which games?
It kind of amazing sony and nintendo not putting microtransactions in their 1st party games, games like ghost of tsushima, god of war, and mario odyssey is perfect for mtx and they can say "it's only cosmetics so it's fine".
Microsoft 1st party games in the other hand... 😕
I do think some people are a little harsh on microtransactions in general. While I'm also not a fan of the practice, you've got to consider how some games are constantly evolving on a weekly basis.
It costs money to do these constant updates that you see in games like GTA Online, so while the microtransactions are certainly cash cows, that game wouldn't be anywhere near as big as it is without the recurring revenue.
Just something at least worth thinking about.
@OmegaStriver They take 30% of everything sold through PS Store, including microtransactions in games like Fortnite, FIFA, and GTA Online.
@wiiware To be fair, Sony doesn't need to put microtransactions in its games because it's raking in cash from all the publishers using their storefront.
They don't have to do anything to profit from GTA Online et al other than keep the servers online. In a way, they can almost afford to lose money on first-party stuff if it keeps players in their overall ecosystem.
@get2sammyb Mtx in online portion of games are okay as long as it's not lootbox, it's never okay in single player games like assassin creed for example.
Yeah, the 1st party games didn't need mtx since they're made to sells the console.
@get2sammyb Freaking A man. Dang.
It would be interesting to know how much of that DLC is discrete purchases like adding additional characters to a fighting game. As opposed to packs of cards were the same thing can be bought repeatedly. I would suspect the majority is the things that can be bought repeatedly.
@wiiware Yeah, I really don't like the stuff they have in Assassin's Creed, particularly the XP boosters and stuff. Just balance the game properly.
It makes you wonder if Sony actually do have leeway to make online free now cos there's way more revenue streams to make up the potential shortfall.
Maybe Sony can afford to make online free again then? If they improved PS+ people would have a reason to stay subscribed aside from online access. Holding multiplayer modes hostage behind paywalls is a great way to stifle accessibility, split up your playerbase and lose customers to steam/epic (and soon the xbox too). Sony's greed might just lose them the generation, I really hope not, but arrogant Sony may be back
@AdamNovice There's still almost $1 billion from subs and services, though, which is a LOT of cash for one quarter.
@Netbean A bit drastic I think.
This is always so strange to me-obviously, there is nothing wrong with adults spending their money how they want. It is just so different from my outlook on games that it is hard for me to process that so many buy the base game plus other things.
Gaming has been a main hobby of mine since Atari. Sine the era of DLC began, I have bought that extra content for a game exactly once-the Leviathan DLC for Mass Effect 2 (I love Mass Effect). It has never even crossed my mind to engage in a micro transaction.
Rarely I will buy a game of the year edition with DLC, but only if it is on a huge sale that means it is cheaper than what I can currently play the base game for. If the base game costs one cent less, I will buy the base game instead. Or, sometimes I will gladly accept cool DLC on PS Plus (like the amazing Left Behind Last of Us DLC). But, usually, after the base game is done, I am done. And I never pay any money for any of the extras.
Again, this is not a criticism of DLC or any “extra content”. I just find it fascinating that gaming has been such a big hobby for me, but that there is a huge part of it that I have completely opted out of.
"Games need to cost more"
@get2sammyb it definitely depends on the type of game but from my perspective GTAV is exactly the same today as it was on the PS3 as I couldn't care less about online, luckily it has no microtransactions in that area to effect the game. As long as they are kept to these live services and out of single player games then I'm happy. Then again you have the other side where the likes of Anthem and Fallout 76 release very poor games for full price, yet still milk microtransactions to fix the garbage they put out in the first place
What I find interesting, and worrying, is the difference between digital and packaged software. Wow
@get2sammyb As long as they sell €100 of fake cash too whales i see it as a crime. Or the COD MW packs €20 for a costumepack with some cheap paintjob on weapons, spray, finisher, voice sample. I dont mind microtransactions but their is nothing micro about them and the big isnt so special if you cant buy half of the physical. DLC as a expansion or the MHW smaller stuff. But even with MHW they nickle and dime everything. Unlocking stuff too put in your house was stuff we could unlock in the past now everything is put behind a paywall.
Such sad news that makes me realise I'm a dying breed as a gamer. I get that there's piles of cash to be made from microtransactions, but the one thing I wish was always an option is to turn off all monetary microtransactions and shops in games so you don't even see them if you don't want to. It annoys me to see menus with content locked unless you pay up, especially if I've already paid for a game.
There should always be an option for a confined version of each game that doesn't try to force extra paid for gubbins down your throat.
I also think there should be a legal limit to how much money can be spent on any one release. For instance, once a player spends £100 on a game it should instantly unlock all of the content.
@carlos82 Come on i see €100 fake cash bundles its shocking.
@Flaming_Kaiser oh it is shocking and if people are stupid enough to pay it then more fool them, personally I don't buy any games anymore where their presence is going to affect the gameplay. The problem is that whilst we have the stupid minority who are more than willing to spend £100's to play the same game over and over again nothing is ever going to change
How much of that 41% is made up of children's pocket money?
@get2sammyb
Oh, indeed. GTA Online, a game which has sold over 130 million copies and counting and is the most profitable entertainment product ever made would surely NEVER be able to afford updates if it weren't for microtransactions.
Friends don't let friends buy microtransactions.
Never really made no microtransaction but a lot of digital sale purchases.
Pardon me, I just puked up my intestines and 6 litres of blood.
This honestly gives me no hope for the future of gaming. Even if physical games still exist, there is so much crap polluting it such as microtransactions and subscriptions, and the worse part is that there is no incentive for companies to ever change.
And in short, video games shouldn't increase in price...
But games need to be $70 🤔🧐
@Arugula It’s not buying a MT that I’m talking about, it’s spending a lot of money (more the game itself cost) because a game is designed to get you to empty your wallet. People often have money troubles and they can spend their money in dumb ways. MT or otherwise and I’m just saying MTs at a point is most likely one of those ways.
How far we've come from $2.00 horse armor in Oblivion.
I buy story DLC for RPG games if it looks good, and I'm happy to do so if it expands and fills out the game for a second playthrough. But I've never bought anything cosmetic, and never would. I'm still of the mind that those things should all be unlockable through enough gameplay.
@JJ2 Exactly. As a collector of quite some physical copies, it's tough to accept that next gen will probably be the last line of consoles having discs still be a thing.
Not surprising at all really. The biggest games out right now make all of their money from add-on content.
@Westernwolf4 much of it isn't from purchasing a base game. I wouldn't be surprised if a majority of these numbers are from games like fortnite. Skins are huge for the younger generation of gamers.
If the only way to buy dlc is digitally (cards for fifa coins in stores aside) what else is supposed to happen?
Shame on all that kind of people that buys micro transactions, no wonder why the gaming industry is going down hill with tons of half baked games that require a year of patches and more
@wiiware Uncharted 4 and TLOU Remastered comes to mind
Fortunately this generation when we straddled the cliff edge of bare bones games with hefty microtransactions, we managed to stay on the mountain.
Everything's crossed that we get another few years of first class single player games before consoles become engulfed in service games and finally throw us off into the sea.
In my opinion, it is ok for a game to have microtransactions as its source of income, and the game is free, or have a small buy fee.
What i don’t understand is games BOTH charging full $60 dolalrs (soon to be 70) AND having Mtx as its main cash cow. As this were still not enough, we have games like FIFA who does this, on an yearly basis , with none to mediocre improvements over their last iteration.
I don't understand why people hate it when it so easy to say no thanks. I don't even buy DLC, but have been very tempted.
I guess this explains why they put so much emphasis on GTAV, a PS3 game, on their PS5 presentation, not to mention Fortnite. These games basically hold Sony on their pockets.
@Nepp67 I'm okay with mtx on multiplayer portion of the games as long as it's not lootbox.
@BalsBigBrother Normally I would agree with you, but when you support bad practices like DLC and micro transactions it affects the rest of the people that knows that those things are cut content just so they can sell it again to you, but you are right I’ll never understand why people like to waste their money to be happy
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