Ubisoft and Take-Two Interactive have revealed some potentially concerning details in regards to both companies’ sources of revenue.

In a report presenting Ubisoft’s finances for the second quarter it was revealed that digital game sales have been out-earned for the first time in the company’s history. The new reigning source of income is now comes from microtransactions. Ubisoft credits the raised sales to in-game items, DLC, and season passes which were responsible for $202.6 million during both financial quarters, making up 51 per cent of Ubisoft’s digital income.

Similarly, Take-Two Interactive also released their financial earnings for the latest quarter. While the company is currently at a loss, Take-Two has raised their revenue projections for the fiscal year. The source of this optimism is likely due to the company’s 66 per cent year-over-year increase, mainly from microtransactions and DLC.

“Grand Theft Auto Online delivered its best quarter yet, Net Bookings from Grand Theft Auto V grew year-over-year,” shared Take-Two chief Strauss Zelnick in the earnings release.

As dire as this might sound, the situation might not be all that bleak yet. While microtransactions performed the greatest for Ubisoft this quarter, digital game sales did see an overall increase in comparison to last year. Two big contributions to the increased sales numbers stem from the releases of South Park: The Fractured But Whole and the recently released entry in the Assassin’s Creed Series, Assassin’s Creed Origins.

Take Two expects to earn a net income of $63 – $91 billion and net revenues of $1.74 – $1.84 billion during its 2018 fiscal year which ends in March. Ubisoft’s current digital revenue has totalled $396.6 million for its first two quarters. The company is expected to release another financial report in six months so we’ll have to wait and see if the trend of microtransactions continues to grow in that time.

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