As a gamer, the word ‘microtransaction’ always leaves behind a bitter taste. What once was a way to make a game more interesting for casual players has turned into a multi-billion cash-grab for the companies behind it. But why do games even use microtransactions in the first place? And how are they so successful even though players loathe them? Let me answer those questions for you. This blog is going to give you a deeper insight on the existence of microtransactions and why they are such a double-edged sword.
A Deep Dive Into Microtransactions
Microtransactions are basically small bursts of real-world currency spent to unlock some sort of virtual goodies. They can be purely cosmetic, like exciting new outfits or weapon skins or they can be some sort of power-ups, or in-game currency that give you an edge against other players. Some microtransactions even go as far as to let you unlock entirely new levels, characters, or even story content.
Before we start diving into the hows and whys of microtransactions, we need to first understand what’s the difference between them and why they exist in the first place.
In-Game Currencies
One of the most popular and common types of microtransactions is in-game currency. Here you can use your real money to buy a special virtual currency like V-Bucks in Fortnite or Riot Points in League of Legends.
Those currencies allow you to either buy exclusive content using that virtual money or to speed up your in-game process to spare you the grind.
In-Game Items & Features
In-game items like weapons, armor, or clothing can also be purchased as microtransactions in various games. Like most microtransactions, they can be purely cosmetic or provide you with advantages over other players. They can reach from skins, to mounts, storage expansions, experience boosters and more depending on the game you’re playing. Some items you buy can be timely limited and expire after a while others stay permanently.
Some games even let you buy additional features like extra levels, special areas or other features. If the content gets too large for microtransactions studios usually turn them into whole DLCs or various expansions.
Random Chance Purchases
While in-game currencies are very straightforward and transparent, random chance purchases add an element of uncertainty and excitement. Games with loot boxes, characters or item banners use this as their main income.
Each time you purchase one of them, you draw a piece out of a random pool of random items of various rarities. Some are more valuable than others which is why this type of microtransaction is especially controversial.
Limited Offers
Time-limited offers either have special deals that offer you more for less money or rare items you’d otherwise not get. This creates a sense of urgency and scarcity which drives the players to make the purchase before the opportunity disappears. They can include everything from in-game currencies to items, skins and more. A lot of games, especially in the mobile market, tend to completely overdo it with those limited offers… Which is why some countries already started to regulate them in order to protect their customers.
Season Or Battle Passes
So-called season or battle passes grant you access to exclusive rewards and challenges over a set period of time. They often include cosmetic items and functional bonuses like experience boosts or additional in-game currency.
Different Motivations Behind Microtransactions
Microtransactions have a rather bad reputation nowadays. A lot of studios simply use it as a strategy to maximize their profits without caring about the impact on their game. So, what once was a means to support the studio and its players has turned into a rather questionable method to squeeze more money out of people. But not all microtransactions are bad in the first place.
Free To Play
Microtransactions are a great way to provide people with a free game and still be able to generate income. Riot is one of the best examples when it comes to microtransactions like that. They have over 100 million active players monthly and only a fraction of them buy skins or in-game currencies. This is more than enough to keep them afloat.
Free-to-play games often offer a variety of different microtransactions ranging from cosmetics to more practical items. While they also need to make a living off of their products… Some games really overdo it with their microtransactions which can create a huge imbalance within the game.
Pay To Win
The line between a free-to-play and a pay-to-win title can be rather thin… Thich is why adding microtransactions can be so dangerous. Some games offer experience boosters, defense amulets or other things that enhance your stats to help casual. At first they were implemented to help casual players to enjoy their time in a hard game as well. But more often than not at some point in the game this almost feels like a necessity to be even able to play or to be taken serious. Which means without investing any money… you get stuck because of a paywall.
Especially in PvP-focused games those things can become very frustrating if people only win because they have more money to spend than others. Games are about the challenge and showing off your skills, not to simply pay for your victory.
Expansions, Upgrades & Skips
There are a lot of games out there that charge you for the base game but also offer additional microtransactions to enhance your gameplay. One game that does that pretty well is Final Fantasy 14. While you have to pay for the base game and then the monthly subscription to be able to continuously play the MMO… They also offer a variety of microtransactions but their strategy is very unique.
Most of the items like cosmetics, emotes and mounts are things from past events that were timely limited. So, if you are a new player or missed out on an event… You just have to wait a year and you’ll find the content in the shop for very little money. Of course, there are also shop-exclusive things but most of them are simple cosmetics or mounts and don’t really influence your playstyle… But there are also some exceptions.
For example, FF14 has a rather unique storage system called a retainer. They keep your inventory empty, can sell stuff on the market for you and even farm some items for you if you check on them regularly. Every player has 2 of them which is more than enough for most but if you play a lot or focus more on crafting, FF14 gives you the option to buy more via the shop. The reason for the restrictions is resources and not to simply force the player to buy them and earn some extra cash.
You also have the option to buy level skips for other classes but only if you’ve already had another class on the same level or higher. In FF14 you usually only play with one character but you can switch between different classes as you see fit. So, if a player doesn’t feel like grinding for a class because of time or motivation, they offer you a simple shortcut so you don’t have to run dungeons over and over again.
Loot Boxes & Gacha Mechanic
One of the most controversial things nowadays is loot boxes and gacha games where you invest money or in-game currencies to roll for random loot in hope of hitting the jackpot. Loot Boxes give you rare items or skins you can even sell for real money which is rather similar to gambling which is why companies like EA have already faced multiple lawsuits.
Gacha games are rather similar and one of the most famous examples is Genjin Impact. They offer monthly banner events for players where they can draw various characters and items using in-game currency. The normal currency is rather easy to farm but the special currency you need for the rare banners is rather hard to get by. So, even if you play daily and farm yourself to death, people might not get the character they want in time which is often the reason people invest their hard-earned money for some extra pulls in the hope of getting the character they wanted so badly.
Seeing that there are many reasons for games to have microtransactions, it’s hard to get rid of them completely. So, my advice to all people who invest their money in microtransactions is to make sure that whatever you buy is valuable to you and worth the cost. If you feel like a game has you buy stuff in order to be able to progress, don’t support it. On the other hand, if there is a game you have fun playing a game and you feel like it’s a good investment to make your character look prettier or to upgrade your storage space… Go for it. Especially if the game in question is for free and you also want to support the studio behind it a little.
If you’re wondering why studios use microtransactions in their games, you might also be curious about why they create special editions as well:
Collector Edition Or Base Game: Why Can’t They Just Make One?
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