In the early games of videogames, when they were nowhere near as popular as they are today, most companies made their as you would expect, through game sales. But as the companies have developed, so has their marketing strategies. Now most of the money that companies make are through microtransactions and DLC.
Now you're probably wondering what those words mean. In games there are instances were you can make purchases that will help to improve the gameplay. For example, in Call of Duty you can be crates that will unlock different weapon skins or character customization options that won't necessarily make you better at the game, but could make the game more fun. As these visual parts of a character have become a more important part of the gaming community, companies have realized that they could use this as a way to make additional profit. These instances would be considered microtransactions.
Now DLC is a bit different. DLC is an acronym that stands for downloadable content. What this means is that a company will release additional content to the game that either extends the games story or adds additional multiplayer options. For example, again using Call of Duty, they will release the base (called vanilla) version of the game and then will sell four additional multiplayer maps as DLC for $20. They will normally do this four times a year, or give you the option to buy the season pass where you will get all of the DLC for $50. Companies have made an absurd amount of money off of this strategy and at this rate will continue to do so.
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