Holiday video game sales aren’t as important as you think

Money handover

According to a recent report by DFC Intelligence more and more gamers are buying games all-year round as opposed to just during the holiday season.

As a result, publishers are making more of their money through recurring sales.

“As for recurring revenue, in the console market close to 40% is likely to be from online revenue streams in 2016 with the biggest one being add-on content that releases after a game’s initial launch.”

“Even a company like Take-Two Interactive is reporting that nearly 40% of revenue is now from ‘recurrent consumer spending.’ Activision Blizzard of course has the Blizzard and King division that is all about recurrent spending products.”

“The Q4 holiday rush is still important; it is just not make or break for most of these companies. The downside for a Call of Duty or Titanfall 2 is fewer initial sales mean less recurrent revenue but we think it is still possible to add consumers after a product launches.

“A slowdown in CoD or other products simply means Activision needs to work harder promoting the product after the initial blast.”

This may not account for all of the poor sales this holiday season, but it does point to a possible shift in how gamers are buying.


Now read: Why big budget games are dying in 2016

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Holiday video game sales aren’t as important as you think

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