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Call Of Duty Microtransactions Helped Boost Activision's Profits By $536 Million

Warzone may be free-to-play, but it's helped make Activision a lot of money.

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Activision Blizzard's latest quarterly revenue report has been released, enabling us to put a dollar figure on the success of Call of Duty: Modern Warfare and its free-to-play battle royale spinoff, Warzone. The number is unsurprisingly huge--including a growth of $536 million in year-on-year in-game spending driven mostly by Modern Warfare.

Overall Activision Blizzard saw an increase in in-game spending of $596 million when comparing the three months leading up to June 30 with the equivalent period last year. The large majority of that ($536 million) comes from Activision, while Blizzard saw a $19 million increase primarily driven by World of Warcraft, and King increased by $41 million thanks to the Candy Crush franchise.

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Now Playing: Call Of Duty: Modern Warfare & Warzone - Official Season Four Trailer

The report attributes the huge increase in spending to Call of Duty: Modern Warfare, which was released in October 2019, compared to October 2018's Call of Duty: Black Ops 4. It also includes Warzone in that--the free-to-play battle royale spinoff launched in March this year. While Call of Duty: Mobile released in the same period as Modern Warfare, the report indicates that the latter did most of the heavy lifting when it comes to microtransactions.

Of course, the quarter in question also covers a period where many people worldwide were stuck in lockdown, which resulted in increased spending on games across the board.

An earlier earnings report showed Modern Warfare easily overtaking its predecessor Black Ops 4, well before Warzone had even been announced. Modern Warfare looks to be a gaming behemoth--in more than just the amount of space it'll take up on your hard drive.

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Just1MoHr

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Well, they didn't get a penny from me out of principle! And I bought the game disc only on Ebay for $20 at a time it was going for $35. Love the campaign & was worth every penny!

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deactivated-67e6993e92427

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Time for a round of layoffs.

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frostee-uk

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Doesn't make any sense when you look at very recent reports of their staff at Blizzard who are struggling to pay rent, skipping meals and talking about maybe never having kids because the wages are just too low. Talk about exploitation

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Goldenageplayer

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@frostee-uk: Good point. When I see micro transaction fan boys defending these practices they often say "But the company needs to make money!"

And I'm just like... Blizzard is rich as heck. So is EA. So is ubisoft. So are mannny companies. Do they REALLY need the money? And considering where they often like to put that money... In the hands of the owners and NOT so much in the hands of the workers... Well that's ALSO a problem then too isn't it?

Sigh... Please don't support mirco transaction systems if you can help it folks. Crap is pretty evil honestly...

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jenovaschilld

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You know micro-transactions are good and really bad. They have helped to keep game prices lower by creating alternate forms of profits. Game price have not really raised in 20 yrs. And just by the number above you can tell that some people really like this content, or at least desire it for some reason, and it can add value to a game if the content extends the hours played per its cost.

But we all know the downside of micro-transactions.... I will not bother listing them, constant complaints all around. I mean at some point us gamers are also part of the problem. I cannot help think of the 'stop hitting yourself, stop hitting yourself', because some of these MT are stupid stuff like skins, loot crates, face mask, pay to win items, boosts, the last 1/3 of the game. I would say try to teach your kids, is the $2 here or $5 there really worth it.

500 hundred million..... sigh.

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Goldenageplayer

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@jenovaschilld: Doesn't it depend though? Nintendos squid ink game or whatever it's called... Doesn't it have some micro transaction crap? Don't see switch games dropping in price wildly...

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jenovaschilld

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@goldenageplayer: I am only commenting on the last 20 years. As 1.50 then is only worth $1 now. https://www.usinflationcalculator.com/ And general games combined.

But I am certainly not in support of MT, as I would much rather pay more for games then deal with how content is pieced out now. SEE the 2nd part of my comment above.

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Groudon199

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@jenovaschilld said:

You know micro-transactions are good and really bad. They have helped to keep game prices lower by creating alternate forms of profits. Game price have not really raised in 20 yrs. And just by the number above you can tell that some people really like this content, or at least desire it for some reason, and it can add value to a game if the content extends the hours played per its cost.

It certainly didn't keep NBA 2K21's next-gen price lower.

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jenovaschilld

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@Groudon199: I am only commenting on the last 20 years. As 1.50 then is only worth $1 now. https://www.usinflationcalculator.com/ But I am certainly not in support of MT, as I would much rather pay more for games then deal with how content is pieced out now. SEE the snd part of my comment above.

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deactivated-64efdf49333c4

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@jenovaschilld: Actually, they've tried to increase the price of games on numerous occasions, it's just there is always someone who charges less and it never sticks. So, MT's have nothing to do with it. Competition does.

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jenovaschilld

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@Barighm: It is not competition alone, take FFR - a 97' game that cost an estimated 40 million and was the most expensive game of its time, https://en.wikipedia.org/wiki/Final_Fantasy_VII#Development, the remake cost and estimated 240 million not counting promoting. Same with other AAA, including sports, FPS, adventure. Competition is super important but here on https://www.gamesindustry.biz/development there are some articles that show ancillary profits, like MT, metadata collection, subscriptions, now account for 20-30% of a game total profits beyond sales.

More then competition, the three largest factors is -just more consoles so just more sales. LArger middles class world wide, EU, Africa, SA, Au, and India consume more games. then you have digital sales, cutting out middle men, brick and mortar, taxes, transportation, etc. And then ancillary.

Competition- would mean, that costs would go down, profits would be less, projects would be smaller, and people would be paid less. ..... Well none of that has happened the gaming industry has grown 8% year over year despite WW recession, wars, and pandemics. People are paid more now then before, gaming publishers are more profitable, and there are more developers, and studios now then ever before.

But $1.50 in 2000 is nowt worth around 1$ according to the last inflation and dollar. https://www.usinflationcalculator.com/ I love competition, it really pushes quality more then anything, innovation, and of course lowers costs. But it cannot do it all.

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Acheron18

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While I think the inclusion of MTX is a scummy business practice, I just don't get people spending all that money on them. Maybe I'm just too old. If I can't buy a game and play it without feeling the need to spend more I'm just not interested.

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deactivated-67e6993e92427

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@Acheron18: Why are non-predatory, non-P2W microtransactions scummy?

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Acheron18

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@Cikatriz_ESP: Because you shouldn't have to pay money to unlock things in a $60 game. Even if it's not P2W and just cosmetic it's still predatory. They prey on people's poor impulse control, especially children's.

I'm not saying that every one who buys MTX have poor impulse control but many do. And even if you don't, you still shouldn't have to pay for what already exists in a game you paid full price for.

The only DLC I think is worth spending money on are real expansions done after the game was released. Good examples are the expansions for The Witcher 3, which are amazing and really add value.

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Goldenageplayer

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@Acheron18: Same... But I also feel as though it's not just us being "old" lol. It's a simple fact that we used to play great games from the golden age of gaming. Around 90 - 2010 basically. During this time the extra cost stuff was largely not a thing or not that bad. Fast forward to today and yeah lol... It's pretty bad.

Once upon a time you would have to git gud at a game to unlock the extra costumes, levels, etc etc... Today you pull out a credit card...

Sure there are some grey areas but that's basically how it is.

I prefer the golden age which is why I'm mostly retro when it comes to gaming. If I get new games it's usually when they really aint new anymore and I can get a deal on em lol.

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Acheron18

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@goldenageplayer: I agree even though I think there are still great games being made. You just have to find them and be really careful about what you purchase.

The only game I have pre-ordered or paid full price for in years is Cyberpunk 2077. I have faith in CDProject Red and hope they won't let me down.

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Goldenageplayer

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All hail micro transaction wallet robbing. The future of gaming.

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deactivated-67e6993e92427

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@goldenageplayer: The future of gaming is free games supported by donations from stupid people? Sounds like paradise to me.

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Acheron18

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@Cikatriz_ESP: Except they aren't free. The future is looking more like $70 games that you have to spend an additional $120 on unless you want the really bare-bones experience. No thanks.

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