Kotaku - Sources: Mass Effect: Andromeda Will Not Get Single-Player DLC

In my view, the #1 reason EA/BioWare don't announce DLC is because from a revenue recognition perspective, when they do they have to accrue the revenue and that has market and tax implications. As long as they say nothing, the profit accruals don't have to go on the books.







Reading around (particularly a poster called suibhne on RPGwatch),

if EA/BioWare sell a game (MEA) without reference to there being DLC, (which they did) then they can recognize all the revenue from game sales up front (i.e. within Financial Year 2016/17).

If however a DLC is advertised, without knowing of course how it will sell, that creates an ongoing performance obligation for which companies are obliged to withhold a portion of revenue for later recognition once the DLC has been delivered. I think this is why they don't have a Season Pass, which presumably sets the same obligations.

This is not necessarily about cash in the bank (people pay for the games up front) but it could impact how a company recognizes profit (and how much of it) which could affect investor and market valuations.

If DLC is announced shortly before launch then there is a shortest possible period between the revenue having to be recognized and the actual cash arriving.

TL;DR

Not saying anything about DLC is likely a financial obligation, not because they don't want to.

I am not an accountant, just trying to get my head around it, happy to take corrections from accountants.