75% Of Annual Spending On Games Comes From Microtransactions And DLCs, Says Analyst

Expert Verified By

Games And Subscription Services Only Account For One Quarter Of The Annual Revenue.

Story Highlight
  • Microtransactions were responsible for 75% of annual spending on video game software.
  • Of the $195 billion consumers spent on software, games and subscription services only accounted for 25% of the revenue.
  • The spending on MTX has also increased when compared to figures from two years ago.

Despite all the doom and gloom around gaming, the industry is setting new records every year. In 2026, analysts predict that the gaming market will hit $213 billion thanks to the spending spree sponsored by GTA 6 in the latter part of the year.

However, it would be ignorant to forget about the problems currently plaguing the industry, including but not limited to the massive console price hikes we have witnessed in the past year. As it turns out, consumer spending itself might be an issue hurting the wider gaming market.

Why it matters: With a majority of gamers spending money on microtransactions, it’s impossible to see a future where gaming companies wind down this business model without external interference.

microtransactions
Source: X

According to analyst Daniel Ahmad on X, microtransactions and DLCs account for 75% of the annual spend on video game software. Of the $195 billion grossed by the sector every year, new games and subscription services only make up 25% of the overall revenue.

As per data from 2024, microtransactions accounted for a sizeable amount of PC revenue, but the 58% share was still lower than the latest numbers. Hence, spending on microtransactions has shown no signs of slowing down in the past few years. 

Just this year alone, Assassin’s Creed Black Flag Resynced generated $1 million from in-game MTX, while the franchise itself crossed $100 million in gross revenue from microtransactions. Hence, with Ubisoft making a hefty amount of profit from the business model, it has every incentive to market in-game purchases as fun.

Ubisoft Microtransactions
Ubisoft has started justifying its incessant MTX push by saying that the mechanic makes games fun.

For sure, 90% of developers are against the concept of microtransactions, with creatives behind many popular games opposing the idea. However, if 82% of American gamers are still falling for the microtransaction trap every year, the business model will only become more prevalent in the industry’s future.

Do you think microtransactions are predatory and akin to gambling? Should regulators do a better job of rooting them out of gaming and protecting consumers? Tell us in the comments below or head to the Tech4Gamers forum for discussion.

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