Microtransactions in Gaming

Courtesy of Reuters

Gaming has been a pivotal force in the last two decades. A majority of people have been exposed to it—whether it’d be on mobile, PC, or console. As technology and gaming become more accessible and inclusive, it was only a matter of time before it could be exploited. This surge in popularity poses a complex challenge for the whole market, as producers try to rush out content to ride along this growing trend and consumers of all ages join this industry every day. Ultimately, one thing is clear: there are multiple opportunities to make insurmountable profits and consumers have, perhaps unknowingly, been supporting these practices. Welcome to the world of microtransactions (MTX), one of the main sources of revenue in gaming.

Courtesy of League of Legends Forums

MTXs were released around the mid-2000s when game developers created the notion of Downloadable Content (DLCs) for purchase. DLCs were usually fairly cheap but by the early 2010s, many companies tried to push the boundaries by adding more expensive options. A prime example is League of Legends (LoL), which enabled users to buy in-game currency to purchase skins. Other games started to adopt this practice quickly, as they all saw the consumers’ willingness to spend money on MTXs. Some games, such as mobile hit Clash of Clans, let you progress faster in the game by spending money. Other games delved deep into human psychology and tried to exploit consumers by adopting gambling-like strategies through the use of loot boxes, which guarantee the player an item, while also containing a slim chance of getting a super-rare item.

Courtesy of Steam Community Forums

In Moor’s perspective, gaming has already reached the “power stage” and as a society, we can already observe many of its implications. Borrowing his terms, gaming can be classified as a technological revolution, and like many of these “they do not arrive fully mature”. This poses a threat to society as organizations cannot keep up with the speed at which content is being created. Thus, regulations don't arise until the damage has already been done. This has been the case with MTXs, where some countries have already imposed regulations on their use. However, this might not be quite enough, as consumers still fall to aggressive business practices. Sadly enough, only time will tell what should and should not be regulated.