Wednesday, May 10th 2017

You Love Microtransactions: EA Earns $1.297 billion in FY 2017

EA has reported its FY 2017 results (from April 1st 2016 through March 31st 2017), and the results are astonishing: for all the outcry from the gaming community, it would seem that users really like microtransactions, season passes, and the "games as a service" conundrum. Some might be amazed at how a company makes more money from services, DLC and microtransactions associated with their games than through the sale of games themselves, but alas, that is the world we live in. This year alone the company pulled in $1.297 billion solely via digital content (excluding full game downloads) for their PC and console platforms.

EA has been known for their studios' season passes and DLCs - one of the biggest offenders when it comes to DLC was Dragon Age: Inquisition, as well as most recent Bioware games, while the verdict is still on the table regarding Mass Effect: Andromeda's DLC efforts. These and other microtransactions, such as "packs" and other shenanigans in FIFA and other IPs, have helped bring in the bulk of the money. Truth be told, EA isn't the only publisher that's aggressively pushing for micro-transactions in its games (Microsoft and Ubisoft come to mind), though an argument can be made in how these microtransactions based on packs and other cosmetic elements can be an attractive prospect when coupled with free game updates and additional, free content. Some users will rush in and acquire these, in turn putting the proverbial coal on developer's coffers to pump out additional content which everyone can enjoy. But for all the people saying "No" to DLC and microtransactions, I'd say wallets speak louder than words.
Source: EA
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29 Comments on You Love Microtransactions: EA Earns $1.297 billion in FY 2017

#1
64K
Gamers shed tears on forums about DLC and microtransactions but in reality the majority seem to be gobbling up the DLC and microtransactions or there wouldn't be so much of it.

Different Publisher, 2K Games, had Gearbox churn out 47 DLCs for Borderlands 2.

Riot Games reported 1.4 billion dollars in microtransactions for League of Legends in 2016 and 1.6 billion dollars in microtransactions in 2015. One game is generating billions of dollars of revenue in microtransactions for them.
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#2
RejZoR
Everyone making games for consoles and using PC as a milking cow. What really surprises me is how can people be so monumentally dumb to spend hundreds of dollars on pointless, useless hats and really butt ugly weapon skins (just ugly ass texture, not even a full model which you can get for free from PS Banana and they look trillion times better). It's just crazy.

So far I've only bought base games from EA, because the "Premium" ones were like 15€ more and all you got was some stupid badge, an extra nothing special skin and/or some extra in-game credits. And people just gobble it up like there is no tomorrow. It's just mind blowing how dumb people are.
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#3
TheMailMan78
Big Member
"Raevenlord said:
EA has reported its FY 2017 results (from April 1st 2016 through March 31st 2017), and the results are astonishing: for all the outcry from the gaming community, it would seem that users really like microtransactions, season passes, and the "games as a service" conundrum. Some might be amazed at how a company makes more money from services, DLC and microtransactions associated with their games than through the sale of games themselves, but alas, that is the world we live in. This year alone the company pulled in $1.297 billion solely via digital content (excluding full game downloads) for their PC and console platforms.

EA has been known for their studios' season passes and DLCs - one of the biggest offenders when it comes to DLC was Dragon Age: Inquisition, as well as most recent Bioware games, while the verdict is still on the table regarding Mass Effect: Andromeda's DLC efforts. These and other microtransactions, such as "packs" and other shenanigans in FIFA and other IPs, have helped bring in the bulk of the money. Truth be told, EA isn't the only publisher that's aggressively pushing for micro-transactions in its games (Microsoft and Ubisoft come to mind), though an argument can be made in how these microtransactions based on packs and other cosmetic elements can be an attractive prospect when coupled with free game updates and additional, free content. Some users will rush in and acquire these, in turn putting the proverbial coal on developer's coffers to pump out additional content which everyone can enjoy. But for all the people saying "No" to DLC and microtransactions, I'd say wallets speak louder than words.



Source: EA
There are a few things missing from this statement from EA. 1. What do they define as "micro-transaction"? 2. When you by a "premium" game does this account as a micro-transaction as its DLC over a period of months? 3. I would like to see this broken down into region. South east Asia loves micro-transaction games. Lets see these numbers where and how they are broke down before we go out and say "You love micro-transaction". To me EAs statement sounds like a positioning for shareholders.

"RejZoR said:
Everyone making games for consoles and using PC as a milking cow. What really surprises me is how can people be so monumentally dumb to spend hundreds of dollars on pointless, useless hats and really butt ugly weapon skins (just ugly ass texture, not even a full model which you can get for free from PS Banana and they look trillion times better). It's just crazy.

So far I've only bought base games from EA, because the "Premium" ones were like 15€ more and all you got was some stupid badge, an extra nothing special skin and/or some extra in-game credits. And people just gobble it up like there is no tomorrow. It's just mind blowing how dumb people are.
None of the guys I play with do this on TPU. I really wonder how much of this statement is legit from EA.
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#4
NC37
"64K said:
Gamers shed tears on forums about DLC and microtransactions but in reality the majority seem to be gobbling up the DLC and microtransactions or there wouldn't be so much of it.

Different Publisher, 2K Games, had Gearbox churn out 47 DLCs for Borderlands 2.

Riot Games reported 1.4 billion dollars in microtransactions for League of Legends in 2016 and 1.6 billion dollars in microtransactions in 2015. One game is generating billions of dollars of revenue in microtransactions for them.
That's because the majority are idiots who are coming from social media gaming where this concept is popularized. When you've got a generation of gamers that aren't really gamers, who think this is the norm and won't talk or post to companies ever, you've got a recipe for idiocy.
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#5
Steevo
Not a dollar or dime of mine.
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#6
DRDNA
WOW :confused:
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#7
HopelesslyFaithful
This is why i own basically no EA/Ubisoft/MS games. DRM, DLC, micro transaction bs.

Also not owning a game but only have a license with strings attached is another reason why i will not pay more than 5 dollars for any game let alone add ons....unless it is GOG of course. I have no problem paying a fair price for a game i want there since i basically own the game. 0 DRM involved.

Only time i have bought DLC as far as i recall is in the Game of the Year editions where i get the 40 DLC for 5 bucks like Tropico or Saints Row and the like.

I rarely buy new news and if i do it is on GOG vs steam for obvious reasons. I dont mind waiting 6 years and getting it on a 90% sale lol.
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#8
FordGT90Concept
"I go fast!1!11!1!"
"Steevo said:
Not a dollar or dime of mine.
Ditto. On top of that, I buy so few EA games anymore (pretty much only Bioware and even then maybe once every 3 years).
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#9
Raevenlord
News Editor
"TheMailMan78 said:
There are a few things missing from this statement from EA. 1. What do they define as "micro-transaction"? 2. When you by a "premium" game does this account as a micro-transaction as its DLC over a period of months? 3. I would like to see this broken down into region. South east Asia loves micro-transaction games. Lets see these numbers where and how they are broke down before we go out and say "You love micro-transaction". To me EAs statement sounds like a positioning for shareholders.


None of the guys I play with do this on TPU. I really wonder how much of this statement is legit from EA.
There's certainly much posturing, as there always is in these reports. However, with the recent increase in news regarding microtransaction values and the amount of money they bring in - and considering the amount of games that are including them in some form or another - these clearly pay off.

Updated the image, had inadvertently cut the legend for the image. That should shed some more light on this. For what it's worth, I'd count premium or deluxe versions in the "Extra content" category, but only by their premium over standard editions. EA knows fully well the difference.
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#10
CAPSLOCKSTUCK
Spaced Out Lunar Tick
Rockstar arent far behind with Shark cards in GTAV
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#11
TheMailMan78
Big Member
"Raevenlord said:
There's certainly much posturing, as there always is in these reports. However, with the recent increase in news regarding microtransaction values and the amount of money they bring in - and considering the amount of games that are including them in some form or another - these clearly pay off.

Updated the image, had inadvertently cut the legend for the image. That should shed some more light on this. For what it's worth, I'd count premium or deluxe versions in the "Extra content" category, but only by their premium over standard editions. EA knows fully well the difference.
Thanks for the legend. I see how they skewed it. When you call everything a micro-transaction. Everything is a micro-transaction.
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#12
Therion_I
This is why we can't have nice things included in our full priced purchase.
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#13
HopelesslyFaithful
"CAPSLOCKSTUCK said:
Rockstar arent far behind with Shark cards in GTAV
which is why i dont own any GTA games anymore. GTA4 is broken due to DRM...got a refund.

GTA5 is DRM and micro transaction plagued.
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#14
TheinsanegamerN
"HopelesslyFaithful said:
This is why i own basically no EA/Ubisoft/MS games. DRM, DLC, micro transaction bs.

Also not owning a game but only have a license with strings attached is another reason why i will not pay more than 5 dollars for any game let alone add ons....unless it is GOG of course. I have no problem paying a fair price for a game i want there since i basically own the game. 0 DRM involved.

Only time i have bought DLC as far as i recall is in the Game of the Year editions where i get the 40 DLC for 5 bucks like Tropico or Saints Row and the like.

I rarely buy new news and if i do it is on GOG vs steam for obvious reasons. I dont mind waiting 6 years and getting it on a 90% sale lol.
Not to mention, the old GoG games were made with more love for gaming then modern commercialized generic garbage.
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#15
alucasa
Nowadays, they release games unfinished and let players beta-test it. And then charge them for the fixes they deserve for free in name of DLC.

But it works and people love beta of anything.
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#16
Darmok N Jalad
I'm still hoping for a better PGA game on the current generation of consoles. EA has only released one, and it lacks many features found in the older versions. Seems like a great place for micro transactions, since they can keep adding courses.
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#17
Arctucas
"A foole and his money be soone at debate: which after with sorow repents him too late."

-Thomas Tusser
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#18
TheGuruStud
"64K said:
Gamers shed tears on forums about DLC and microtransactions but in reality the majority seem to be gobbling up the DLC and microtransactions or there wouldn't be so much of it.

Different Publisher, 2K Games, had Gearbox churn out 47 DLCs for Borderlands 2.

Riot Games reported 1.4 billion dollars in microtransactions for League of Legends in 2016 and 1.6 billion dollars in microtransactions in 2015. One game is generating billions of dollars of revenue in microtransactions for them.
Kids are dumb (especially nowadays) and have easy access to mommy's CC. How else are so many squeakers on every online game?
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#19
Rockarola
I'm pushing 44 and I'm somewhat puzzled about all this "gaming was better before"
I've run (more or less) every major CPU/OS, including Spectrum 86 and OS/2, and I'll claim that gamers are more spoiled for choices, more pampered...and more demanding than ever.
I could go in to a full "gaming on the C64 meant you had to work for it... in the snow" rant, but I'm raiding with people from 3 continents in five minutes.
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#20
HopelesslyFaithful
"TheGuruStud said:
Kids are dumb (especially nowadays) and have easy access to mommy's CC. How else are so many squeakers on every online game?
humans have been consistently retarded since forever...its just they have less of an excuse now for being ignorant since we have libraries and the internet.
"Rockarola said:
I'm pushing 44 and I'm somewhat puzzled about all this "gaming was better before"
I've run (more or less) every major CPU/OS, including Spectrum 86 and OS/2, and I'll claim that gamers are more spoiled for choices, more pampered...and more demanding than ever.
I could go in to a full "gaming on the C64 meant you had to work for it... in the snow" rant, but I'm raiding with people from 3 continents in five minutes.
I can see both arguments. Gaming, TV, and Anime and everything else has gotten too cookie cutter and has failed to stay original but granted...everything has been tried but there is an inherent lack of effort with trying to be original and putting good effort forward.

Overall games have gotten better across the board in quality but the effort to be unique and memorable has died for the 2 reasons about. Everything has been done and cookie cutter.
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#21
Frick
Fishfaced Nincompoop
As long as it's not pay-to-win, I'm fine with this, and even then I'm probably fine. And you people talk about people being retarded, yey you spend an awful lot of money and time on things I consider retarded. And since I'm better and wiser than the lot of you (except Mailman) and obviously more right ... you're all retarded.
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#22
TheDeeGee
Last game i bought from EA was Bad Company 2.

Downloaded BF3 for the Single Player and that was it really.
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#23
Fx
I don't play much from EA, but Dragon Age, Crysis and Dead Space are all great series.
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#24
Prima.Vera
Wasn't EA voted as The Worst Company ever a couple of years in a row??
The games are getting crappier and shittier by year, while the Companies are milking Billions out of idiots pockets...
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#25
SkullFox
Seriously??? Users LIKE DLCs and Microtransactions????


They have no other f*****g alternative. if you want to have a full game you need to buy all the shitty DLCs EA makes.... This is one of the reasons I do not buy games from EA anymore and why I wait one year for a steam game to become game of the year edition and, on sale, include all the DLCs for half the price of launch day.
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