Activision Blizzard already relied almost entirely on microtransactions before Microsoft

In 2022, most of the revenue did not come from selling games.

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Before Microsoft closed the acquisition of Activision Blizzard, the company’s numbers already made it clear where their business model was headed. In 2022, 78% of total revenue came from in-game purchases, subscriptions, and services, while only 22% came from direct video game sales.

This data is reflected in the official 2022 annual report of Activision Blizzard, the last full fiscal year prior to the Microsoft acquisition, and dispels the idea that the company’s business was primarily focused on traditional releases.

Microtransactions, services, and subscriptions: the real driving force behind the business

According to the company’s published financial data, most revenue was generated through:

• In-game purchases, especially in franchises like Call of Duty, Candy Crush, and World of Warcraft

• Recurring services, season passes, and additional content

• Subscriptions, with World of Warcraft being one of the historical pillars

The sale of complete games, despite still being relevant in terms of visibility and brand, accounted for less than a quarter of the total business. This explains why many of Activision Blizzard’s strategic decisions in recent years focused on strengthening continuous monetization models rather than relying solely on one-time releases.

This approach was not new, but by 2022, it had become fully consolidated, with a decreasing weight of the traditional format compared to recurring revenue.

A context to understand Microsoft’s acquisition

This revenue breakdown is particularly significant for understanding Microsoft’s acquisition. When Xbox integrates Activision Blizzard into its structure, it’s not just acquiring studios and franchises, but an ecosystem already oriented towards services, constant monetization, and long-term active communities.

It also helps to contextualize subsequent decisions, such as the importance of Call of Duty within Xbox Game Pass, the expansion of online services, or the interest in keeping games alive as platforms for years to come.

The data comes directly from the 2022 Annual Report of Activision Blizzard, available in the company’s official investor documentation, and shows that the shift in business model did not start with Microsoft, but had been the central pillar of the business for years.