Wednesday, November 8th 2017
Ubisoft's Microtransactions Surpass Digital Games Sales in Earnings
Ubisoft has announced on its latest Q2 financials that earnings from microtransactions have exceeded proceeds from digital game sales. Digital revenue increased by a very respectable 69%, but Ubisoft says that Player Recurring Investment (PRI), or the sale of in-game items, DLC, season passes, and subscriptions, increased by a staggering 83% year-over-year, being responsible for €175 million (~$202.6 million) earned during the first two quarters of the year. This amounts to a cool 51% of total digital income, which means that actual digital games sales earned less than DLCs and microtransactions.
Total sales across both Q1 and Q2 came in at €466.2 million (~$539.9 million), up 60% year-over-year, but that's hardly the key point to this story. The key point here is that while a company that heavily focuses on linear, story-driven, single player games has just announced a 25% reduction in its workforce, Ubisoft has just announced tremendous games seemingly on the back of microtransactions and DLC, or, as the company puts it, Player Recurring Investment. We can say what we will regarding the chronicle of an announced death for story-driven single player games, but one fact remains: players love microtransactions, even as there's a universal understanding of loathing towards them.
Total sales across both Q1 and Q2 came in at €466.2 million (~$539.9 million), up 60% year-over-year, but that's hardly the key point to this story. The key point here is that while a company that heavily focuses on linear, story-driven, single player games has just announced a 25% reduction in its workforce, Ubisoft has just announced tremendous games seemingly on the back of microtransactions and DLC, or, as the company puts it, Player Recurring Investment. We can say what we will regarding the chronicle of an announced death for story-driven single player games, but one fact remains: players love microtransactions, even as there's a universal understanding of loathing towards them.