The use of microtransactions (MTX), subscriptions, and downloadable content (DLC) became the new industry standard, so it should come as no surprise to learn that the majority of video game revenue comes from these practices. According to Mat Piscatella of The NPD Group, DLC and MTX make up almost 60% of video game spending in the US during 2021.
Yesterday we reported that 2021 was the best year for Activision Blizzard in its history, as it recorded record profits of which 61% correspond to microtransactions and DLC. Thanks to data from The NPD Group we can confirm that this is not an isolated case, but the new norm in the video game industry.
Related: The Nintendo Switch was the best-selling console of 2021; tied with PS5 in December.
The new CEO of Platinum Games hinted that his new focus was games as a service, as the company had to adapt to market changes they anticipate for the next five years. According to Mat Piscatella, in 2016 microtransactions and DLC barely accounted for half of the profits they represent now, so in just five years they went from being 30% of the profits to the majority, with 60% currently.
Although the profits thanks to the microtransactions have increased year after year, Mat says that this does not mean that premium games are having a bad performance, since some franchises have reported record sales with its latest deliveries, such as Pokémon Brilliant Diamond and Shining Pearl, which sold almost 14 million units in just over a month.
Read more: Nintendo Switch breaks sales record in Europe thanks to Mario Kart 8: Deluxe.
Just last week Pokémon Legends: Arceus became the most successful release in the series, so it’s clear there’s still a huge market for the individual games. Still, there is no doubt that the microtransactions and the content model through DLC is here to stay, and just as Platinum Games is going to change its way of working, we will see other companies adapt to new industry trends with its microtransactions and subscription services.