In gaming, microtransactions come in the form of in-game purchases, which are simple add-on features that game developers have been using for years to monetize games and increase revenue. They are strategically placed in the gameplay to motivate players to level up, to get more game coins or powers, or to unlock certain privileged features. Overall, it is a win-win for both players and developers. Today, these add-ons have become an integral part of game development. Some game critics, however, argue that it is unethical and express concern over what the future of gaming will become if these microtransactions are not checked.
The Rise of Microtransactions
These in-game purchases were originally only exclusive to free games, particularly mobile games such as Candy Crush and FarmVille. The popularity of these games pushed the widespread acceptance of in-game purchases among players. Although the purchases were optional and affordable (often less than $5), players often opted for them since they enhanced the gaming experience. For the developers, this small offering translated to billions in revenue annually. As you can imagine, soon many developers joined the ‘freemium’ model.
This model which combines free games with optional purchases has since become the standard in mobile gaming and beyond. Today, you can find many online games and even video games offering in-game purchases. Although critics have argued that this model is a form of exploitation and deceit, its optional nature makes it acceptable to many players who don’t mind paying a small fee to improve their gaming experience.
The Emergence of Crypto Gaming Sites
More online gaming sites have warmed up to crypto. Crypto Poker Sites, for example, have embraced blockchain technology by allowing online poker players from anywhere around the world to make deposits and withdrawals in crypto. This payment option is near-instant, reliable, secure, and also transparent. This is the kind of user experience players look forward to whether it is in video games or online gaming sites.
The Controversy Around Loot Boxes
While crypto gaming sites are becoming trendy, traditional in-game features like loot boxes have sparked heated debates surrounding ethics. The concept of loot boxes has been around since medieval times when conquerors looted treasure boxes of territories they defeated. These boxes typically contained gold pieces of jewelry and other valuables. In gaming, they have been adopted by developers to offer players rewards that come in various forms including gaming coins, added lives or health, rare trophies, or even game progression. Coming across loot boxes, however, is more about luck and time (or money) spent on the game than skill. The more a player explores the game (or spends on in-game purchases), the higher their chances of coming across a loot box. Popular games like Fifa Ultimate Team which placed heavy emphasis on loot boxes have been praised and also criticized.
In countries like Belgium, loot boxes have been banned in both video games and online gaming platforms saying it violates the country’s gambling laws. Failure to comply may lead to fines as high as €800,000 ($823,000) and up to five years in prison for violators. The country’s Minister of Justice at the time, Koen Geens, even stated that the mix of gaming and gambling is “dangerous for mental health”. While this may sound extreme to most, many critics feel loot boxes should be banned in games. The challenge now lies with game developers to address this concern of balancing profitability with player welfare.
Subscriptions and Battle Passes
One of the ways that developers have come up with solutions to address those concerns is through the introduction of subscriptions and battle passes. Subscription-based models have proven to be highly profitable and effective in bringing revenue. It also has little resistance from critics as many online services already use this model so everyone is already familiar with it. For example, streaming service Netflix has been using this model for decades, and yet it continues to grow. This model also brings about predictability for both players and developers. For players, they know exactly when their access period elapses so they can play as much as they want within that timeframe. And for developers, they know exactly how much revenue to expect and can make better-informed forecasts for growth.
Similarly, battle passes, another form of subscription, improve the gameplay experience as they grant access to exclusive libraries. Popular games like Call of Duty made battle passes popular. These microtransactions are typically affordable and transparent. PlayStation Plus, for example, offers such passes for a fixed monthly fee.
Cryptocurrencies and Blockchain Gaming
Crypto’s popularity far extends beyond financial services. It is being adopted in various industries including the gaming sector. Today, players can buy or sell in-game assets in the form of non-fungible tokens (NFTs). This kind of transaction is powered by blockchain technology, which by extension, creates a decentralized gaming economy. This is the future of gaming. And just like loot boxes, crypto mining raises some environmental concerns among critics who believe it is bad for the climate.
The Future of In-Game Purchases
The future of not just gaming but almost every other tech-driven industry will most likely be shaped by Artificial Intelligence (AI), Virtual Reality (VR), and Augmented Reality (AR). For gaming in particular, AR/VR will have the most impact because the more realism developers can provide, the better the gaming experience is, and the more they’re likely to spend on in-game purchases. And these future transactions will most likely be driven by blockchain technology. An AR/VR plus crypto/NFT combo is the best of both worlds, giving players and developers a win-win situation—exciting games for players, and more revenue for developers.
Conclusion
The evolution of in-game purchases has been an interesting journey. From microtransactions to crypto gaming sites, every step has taken the gaming industry forward, making it one of the most beloved and lucrative in the world. For players, every innovation brings exciting new features that improve the gameplay experience. For developers, every innovation comes with challenges that must be skillfully overcome, with huge returns on investment waiting on the other end once successfully navigated.