People have said that video games have a 24-hour cycle. Yet others have said that you shouldn’t play the same game for more than two weeks. Both are true, but we’re not here to talk about the games industry at large: we’re here to talk about microtransactions and how they’re changing (or not) the gaming landscape for us consumers.
The percentage of players who spend money on microtransactions has grown from negligible in 2010 to 45% in 2019 (source). It’s important to note that this isn’t necessarily an indicator of how much players pay overall; however, it can be used as one metric against which microtransactions can compare other metrics. To understand better whether or not microtransactions are becoming more pronounced within our favorite games across platforms (desktop computers, mobile apps).
A lot of these numbers come from research done by Superdata on behalf of its clients; however, some come directly from third-party developers’ statistics. In any event, I’ll take what I can get!
The gaming industry has been a 100-billion-dollar business for several years now. Name almost any game, and it generates massive amounts of revenue, but that doesn’t mean they’re always profit-positive.
Games like Fortnite have become so popular that they’ve even spawned their cultural catchphrase: “Fortnite Battle Royale,” which refers to the free-to-play battle royale mode in this title played by millions of people around the world. But despite its popularity and appeal across all age groups, Fortnite hasn’t been able to make enough money from microtransactions alone—perhaps not only because it lacks traditional DLC content packs (though there are some).
So what does this mean for other games? Suppose you’re trying to maximize profits on your project or franchise. You should keep two things in mind: first, how much money can be made from microtransactions based on an average player spending time with your product/service; second, whether or not those players will stick around long enough before moving onto another title altogether.
Microtransactions are not always bad, but they do have a few limitations. If you’re playing a free-to-play game with microtransactions, then it’s important to remember that some games will reward players who spend more money with better weapons or armor. This can be fine if the game is fair and has no pay-to-win elements (such as League of Legends).
However, if your game allows players who spend more money to get ahead faster than those who don’t pay any money, especially if those who spend more are getting an advantage over those who don’t—that’s not cool! Make sure your game isn’t unfair in this way so everyone can enjoy themselves equally; otherwise, I wouldn’t recommend buying any microtransactions at all!
There should be no pay-to-win in games.
Pay-to-win games are a terrible idea. They’re not fun and don’t make the player feel like they’re getting their money’s worth. If you’re buying a game and your character has access to something other players don’t have access to, then you might as well buy another copy of the same game and give yourself an unfair advantage over everyone else!
It’s also essential for competitive gaming and any competitive play: no pay-to-win at all! This includes microtransactions like loot boxes or cosmetic items; if items can unlock these things by spending money on them (or even just waiting), then there’s no point in ever buying them because then everyone will get their content from somewhere else anyway, so why bother?
Loot boxes can be bad for gamers, but there’s a fine line to be walked with them.
Loot boxes can be addictive and a way to make money, but the line between gambling and microtransactions is thin.
We’ve all heard stories about how video games keep players hooked by dangling loot boxes in front of them. These items are randomly dropped from an imaginary box that could contain anything from a new skin for your character to a weapon or piece of equipment that lets you experience something entirely new in the game world. Some games have strict rules against using them (like Overwatch). In contrast, others are laxer with their policies on acquiring these items via loot boxes—but either way, many people see them as nothing more than a way to get free stuff without paying money for it directly: “I got this gun because I bought 1% of its value,” they might say when describing what they did not pay real-world money for but instead purchased through their participation in such programs like Fortnite Battle Royale’s Battle Passes or Warframe’s Tenno Wars loyalty program.”
Thousands of dollars are spent on in-game purchases.
In the last few years, money spent on in-game purchases has grown dramatically. SuperData research shows players globally spent more than $100 billion on microtransactions in 2018 alone. Loot boxes have become so popular that they’re now considered an entire category of their own—and you can be sure that spending your hard-earned cash on them will be at least partially derived from gambling.
According to a report by PwC and Kantar TNS released last year, around 30% of video game consumers between 18 and 50 gambled on games in 2017—and that number climbed to 40% during Q2 2018 alone! Meanwhile, another study found that half a million people had spent over $10 million each month playing titles like Fortnite or PUBG (PlayerUnknown’s Battlegrounds). These statistics are likely just the tip of the iceberg when it comes time for us all collectively decide how much something like this costs us as a society over time.
There’s a lot of controversy surrounding the practice of paying for loot boxes. Some people argue that they’re just part of gaming, but others feel they’re gambling and should be regulated by law.
Loot boxes can be dangerous for children who may not know what they’re getting into when they start spending money on these items, or it could also lead to addiction if someone gets too obsessed with getting new things in their favorite game (which isn’t always good).
Microtransactions have many dangers, but the most dangerous is that they can be addictive. The addictive nature can lead to spending too much money on these games and then being unable to stop once you start. It’s also possible that you’ll spend money on virtual items or upgrades in your game that aren’t needed or necessary.
There are lots of issues with gambling as well:
The risk of losing all your money if something goes wrong (e.g., if someone cheats)
The chance of getting into debt because of gambling addiction
Conclusion
So much of our lives are consumed by the endless pursuit of money. We work long hours, and even when we’re not at work, we’re thinking about money. But what we’re doing is chasing after something that doesn’t exist: happiness. Microtransactions, while providing a small amount of dopamine, only create a fleeting feeling of joy. I don’t think enough regulations are going into what can and can’t be included in loot boxes. The current self-regulation these multi-billion corporations are implementing isn’t enough. I hope we can get some basic regulations like providing the odds. It’s pretty sad to see this hobby I’m passionate about turn into a glorified slot machine.
