How DLC boosts engagement for PC and console games

Jun, 2023 May 2023

Copyright & Redistribution Notice

• Introduction & key takeaways
• Methodology & terminology
• Overview of monetization streams in US
• DLC’s impact on game engagement
• Case studies
• About Newzoo
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© Newzoo 2023
1. In 2022, DLC sales accounted for of PC revenue and of console revenue in the US.
2. Overall, DLC boosted by across PC and console.
(250K -2M MAU in DLC -launch month) benefitted the most from expansion
packs, with an average month -on -month
games experienced the highest MAU growth from DLC, followed by and
on PC and console.
5. By releasing
, EA achieved the most successful expansion pack launch week in the game’s history.
6. On average, of Dead Cells’ MAU in the DLC -release month were .
Game developers and publishers have long been
using DLC, or downloadable content, to enhance
the gameplay experience and provide additional
content for their players .DLC helps attract (new)
players and keeps them engaged with their
favorite game franchises .
With the rise of live -service games, releasing a
constant stream of new content has become
increasingly important for developers and
publishers alike .Successful DLC extends agame’s
longevity and allows game companies to generate
additional revenue after the initial game release .
In this report, we analyze over 1,600 DLC releases
on PC and console from April 2020 to April 2023
and zoom in on how DLC boosts engagement for
games across various sizes (by player base) and
genres .The report also features case studies on
The Sims 4 and Dead Cells to show how free -to –
play and premium games utilize DLC .
–Sr. Market Analyst
–Sr. Market Analyst
–Sr. Market Analyst
–Jr. Market Analyst
–Sr. Writer & Editor
–Lead Visual Designer
4 Source: ©Newzoo | Newzoo Game Performance Monitor | 37 markets included (AE, AR, AT, AU, BE, BR, CA, CH, CL, CO, CZ, DE, DK, ES, FI, FR, GB, HU, ID, IE, IL, IT, JP, KR, MX, NL, NO, NZ, PL, PT, RU, SA, SE, TH, TR, US, ZA)

© Newzoo 2023 5
Newzoo’s Game Performance Monitor contains insight into the various contextual events surrounding games, such as
DLC and updates, and what the effect of these events is on engagement and viewership metrics .
All contextual events are added to our platform daily for 2,000 +games, with, on average, 5,000 +monthly events .
This DLC and items analysis contains 239 unique titles and 1,668 unique content releases from April 2020 to April
2023 .
We analyzed the month -on -month growth of monthly active users (MAU) from the month before the release to the
release month .
The time for gamers to pick this up was too short, and
the uptake in engagement usually came acouple of days after launch .
We excluded DLC launches that launched simultaneously with the main game and DLC that was launched in
November 2020 alongside the latest consoles .DLC and item packages only containing any form of in-game
currencies were removed .Titles that are or have been included on asubscription service like PS+ or Game Pass were
omitted due to their different behavior and potential uptake .
To guarantee the quality of our analysis, games with DLC having 50 ,000 or fewer MAU were excluded as those
contained many outliers .
• :Players
that opened the title at least once in
the selected calendar month .
• :Players
that opened the title at least once in
the selected calendar week .
• :Players that
opened the title at least once on the
selected calendar day .
• :Monthly unique players
that played the title for the first time in
the selected calendar month .
• : Monthly unique
players that played the title and have
also played the title before the selected
calendar month .
• :Total unique players
that have ever played a title until the
selected calendar month . Note : This
does not include players on PlayStation
3,Xbox 360 ,or anything prior .New
and lifetime players are determined by
platform (e .g., PlayStation), not by
device (e .g.,PlayStation 5).

© Newzoo 2023 6 Source: ©Newzoo | Newzoo Game Performance Monitor | PC, PlayStation, Xbox
Full game download Microtransaction
Downloadable content Subscription
Full game download Microtransaction
Downloadable content Subscription
In 2022 ,
.
Across the three in-game revenue streams,
.PC payers spent as
much on DLC in 2022 as console payers .
As the top -performing titles continue to
double down on new ways to monetize and
leverage the games -as -a-service model, we
expect
for both PC and console in the future .
DLC generated almost twice as much revenue on PC than on console

© Newzoo 2023 7 Source: ©Newzoo | Newzoo Game Performance Monitor | 37 markets included (AE, AR, AT, AU, BE, BR, CA, CH, CL, CO, CZ, DE, DK, ES, FI, FR, GB, HU, ID, IE, IL, IT, JP, KR, MX, NL, NO, NZ, PL, PT, RU, SA, SE, TH, TR, US, ZA)
Small Medium Large X-large Average
Pre-launch DLC launch month Post-launch
PC & console | 37 major markets | April 2020 –April 2023
Small: games between 50K and 250K MAU in DLC launch month; Medium: 250K -2M; Large: 2M -5M, X -large: >5M.
In 2022 , DLC releases boosted MAU by an
average of 11% across the 37 major PC and
console markets .
DLC also proved to be the most effective for
. These games saw an
average month -on -month MAU growth of .
Interestingly, it is worth noting that there was a
slight decline in MAU across all game sizes
following the initial release month .This may
indicate that players, after experiencing the
fresh content, may have shifted their attention
to other games or alternative forms of
entertainment until new content was introduced .

© Newzoo 2023 8 Source: ©Newzoo | Newzoo Game Performance Monitor | 37 markets included (AE, AR, AT, AU, BE, BR, CA, CH, CL, CO, CZ, DE, DK, ES, FI, FR, GB, HU, ID, IE, IL, IT, JP, KR, MX, NL, NO, NZ, PL, PT, RU, SA, SE, TH, TR, US, ZA)
PC & console | 37 major markets | April 2020 –April 2023 | Average MoM growth
On average,
the month
after the release .W ith many live -service games active in
the market, holding on to your audience longer is vital .
This can eventually lead
to further spending .
Paradox Interactive is an example of astrategy publisher
getting alot out of its content releases .
.The Europa Universalis IV expansion, Lions of the
North, with the accompanying free content update, was
among the best -performing DLCs by MAU increase within
its genre .
On average, attracting over +20 % more MAU per
release shows the importance and success of DLCs within
this genre .Two best -performing releases were Elder
Scrolls Online :High Isle and Warframe’s The New War .
With nearly 200 items in our sample, the
.The Horizon Forbidden West :Burning Shores
DLC saw the most considerable month -on -month growth .
Critics and gamers alike responded positively to the
update, which featured a new region and romantic
storyline .
Launching meaningful and frequent DLC updates keeps your audience engaged longer

© Newzoo 2023 9
In March 2023 , Two
days later, the company released the paid “Growing Together”
expansion pack . The free content update introduced
,while the paid expansion provided additional in-
game items and features .This strategic update boosted
,drawing players’ attention to the DLC that was just days away
without churning players with aprice tag .
“Growing Together” is the first DLC since the game went free -to -play .
W hen it became free -to -play, the game saw a
before settling at a after the peak .The free -to –
play model allowed “Growing Together” to reach amassive audience
of new players when it launched .
Went F2P
Cottage Living
Source: ©Newzoo | Newzoo Game Performance Monitor | 37 markets included (AE, AR, AT, AU, BE, BR, CA, CH, CL, CO, CZ, DE, DK, ES, FI, FR, GB, HU, ID, IE, IL, IT, JP, KR, MX, NL, NO, NZ, PL, PT, RU, SA, SE, TH, TR, US, ZA)
High School Years
F2P announcement
Release month July 2021 July 2022 March 2023
WAU growth after content release
# of days the DAU exceeded the average pre – release DAU
reached a broader audience by introducing a free content
update before the paid expansion
PC & console | 37 major markets | January 2021 –April 2023
Infant Update
Growing Together Pack

© Newzoo 2023
0%
10%
20%
30%
40%
50%
The DLC brought in new MAUs, but a significant majority of
players didn’t (and may not) return
Source: ©Newzoo | Newzoo Game Performance Monitor | 37 markets included (AE, AR, AT, AU, BE, BR, CA, CH, CL, CO, CZ, DE, DK, ES, FI, FR, GB, HU, ID, IE, IL, IT, JP, KR, MX, NL, NO, NZ, PL, PT, RU, SA, SE, TH, TR, US, ZA)
MAU declined -12.3% on
average in the months
with no content updates .
Percentage of MAUs new
to the game over the
three DLC releases.
PC & console | 37 major markets | January 2021 –April 2023
Since the beginning of 2021 ,Motion Twin has released 12
content updates for Dead Cells .
In comparison, general
content updates saw a+47 % increase in MAU .
While MAU increases seem impressive, it’s important to note
that, on average, 87 % of players didn’t return to play Dead
Cells DLCs .For general content updates, that percentage
jumped up to 93 %,while only 5% of players are active on non –
update months .
In June 2022 ,the “Breaking Barriers” update
,leading to arise in new players without a
large spike in overall MAUs .
Fatal Falls
DLC (Paid)
Queen of the
Sea DLC (Paid) Return to
Castlevania
DLC (Paid)
Total MAU New player share
10

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