Thursday April 20, 2017

Video Game Companies Are Making $5B a Year off DLC and Add-Ons

Everyone knows why game companies are obsessed about DLC, as it is clearly a lucrative business decision, but some of you may find it amusing that they are literally making billions on this fluff alone. Big, bad EA is allegedly the add-on king, making a $1B annually. Noted is the supposed detrimental effect on franchises, as DLCآ—good ones, at leastآ—compel players to keep at a title rather than play the sequel or the competition’s games. But with attention spans getting shorter and marketing overcoming gamers’ senses, I say that publishers are purely winning and just pumping out half-games at a steadier rate.

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The typical price tag for a full-fledged console or PC video game is around $60, but rare is the game that doesn’t also include an array of add-ons آ— everything from additional game content to new characters to outfits to in-game currency. It’s become such a popular practice that this "extra" stuff is now larger than some entire industries. According to the Wall Street Journal, video game makers are bringing in billions of dollars a year in these post-purchase add-ons, with at least one major distributor raking in more than $1 billion annually on its own.