Essay on Microtransactions: Advantages & Disadvantages in Video Games

Microtransactions are business methods where it allows users to purchase virtual goods through the use of micropayments. They are vital in using the free-to-play games that generate revenue for the people who developed it. They are highly found on mobile applications and on personal computer software like console gaming. It is a game that allows users to have an adequate advantage in winning over others, especially if the items sold are not free. This paper analyses the microtransaction on video games.

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The main goal of the free-to-play video activities is that it consists of many players playing the game through creating desirable features that they can be bought if the users do not sufficient skills and enough time to create cash flow through playing the games. The technique of the game is that it is designed for long term objective and the revenue generated out of this are higher for micro-transaction than for one-time purchase video games.

The microtransactions models that are growing in video games are the loot boxes as it allows players to assess various assortment items. The loot boxes create an advantage for the users in that they can play more things with a specific price, and multiple games can be bought rather than buying a one-time play game.

It is underage gambling as individuals buy multiple games to play through the micro-transaction model. The features available in the microtransactions concepts can be functional or cosmetic as they can be found through the use of local means, and others have extended items for purchasing only through the microtransaction.

The main reason why children and other users play microtransaction video games is to the aspect of human psychology (Tomic, 2018). It has a lot of impacts, especially on kids who play.

Microtransaction video games are provided through a custom store interface that is found in the applications that makes the games to be sold. Research has shown that children tend to get addicted to these video games and affect them naturally. The games on free-to-play have generated higher revenues than the premium that is created through traditional means.

It is among the best dominant games in the mobile application industry that allows people to spend a lot according to the mechanics and the quality. The main video games in the microtransaction are like candy crush saga that has a large number of users and generating higher revenues for the developers.

The microtransaction video games can be used in response to piracy, where developers force users to switch their games to free when there is a higher rate of piracy. Many people have ventured into video game microtransactions as a way of creating more profit through this product. As per the 2010 analysis, many individuals have become cautious about how the microtransaction games are played and operate (Tan, 2019).

However, the criticism in the microtransactions is the loot box rewards are recognized by using random chances and have an impact on the items they choose. Moreover, the games cost too much than it is worth it. They also enhance gambling behaviors and influence a lot of people affecting their mental perspective. It has effects in which people are prone to spend too much on these games.

Games like FIFA have an aspect of pay-to-win and involve paying a certain amount of money to acquire the in-game currency in buying items and pay for higher opportunities. Microtransaction games exhibit that users are spending too much than they can afford to gain experience and playing a whole set.

These microtransactions games have been banned from various countries from the way they influence people. Video games have to remove microtransactions to be allowed in other countries. The Belgium government regulates these games because of the sets of chance where winning is no guaranteed for individuals, and they have to pay a lot to start the game. Various individuals have also questioned the morality and ethics of microtransactions.

Under psychology, the theory behind microtransactions is that individuals play without realizing they have played a certain amount of money. It influences the users to play for a long time and buying the microtransactions, and this is referred to as loss aversion. When a player, however, keeps losing, they tend to have a positive feeling that they can win in the long run (Tan, 2019). The players will tend to spend a lot to win, and this will result in investing more to keep the cycle going.

In the past years, children have ventured into video games to avoid boredom. However, statistics show that children between the age of ten and sixteen have a higher rate of spending on microtransactions to play video games (Tan, 2019). They are addicted to online games, and it has affected them financially and socially. On the overall timeline of the microtransaction on video games is that many people spend a lot of time and finances on these games for them to win and move to the next level. Microtransactions have affected many people since many organizations know how to influence the users, and they keep them as a priority in the industry.

Video games have led to many children and people to spend a lot because of its designs and mechanics and its influence in the environment. In progress in the games, then users have to pay, and if they find the game interesting, later they will pay to maximize fun and leisure time. Games like FIFA one has to pay to get the best players to play for them to progress.

In this circumstance, children will pay enough to achieve this and move to the next cycle. The spending act of the user on video games has devastated many people and created negative feelings in the process. Many youths have paid for microtransactions packages through college fees and savings. With the advancement in microtransactions on video games, it tends to shape the future by involving a lot of people. However, it is destroying the social life of the users and their mental capacity. Moreover, many spend a lot of time trying to win, therefore finding little time to pursue other tasks.

Microtransaction aspect has become common in almost all video games, therefore, generating higher revenue for the users. Many firms are using micro-transaction since it is a significant business model that produces a lot of income in a short time. Organizations have created many smartphone games and are taking the business aspect by offering games for free and focusing on microtransactions to generate revenue.

On an ethical background, it has been legalized in various countries. However, companies can behave in unethical practices through selling data of the users on how they spend and their preferences to show they are making profits and understanding the behavior of the consumer. It creates awareness and a lack of trust when a user identifies that a company is using their information for their gains.

The main issues in the microtransaction on video games are how users spend a lot on playing the games, effects it has on the social and psychological live, and the ethical practices implemented by the organizations (Marr et al., 2017). The games like clash for lanes and games for war are among the top leading methods that generate higher revenues for the firm. The public involved in this case is mostly the children and the youths. For spending time and avoiding boredom, these individuals venture into these activities to maximize their time. The teenagers and children, however, have developed mental problems and financial constraints though spending a lot to win the games.

The games are very addictive, and it requires people playing responsibly. Most firms create new features frequently to entertain and engage the user in the game by creating fun and consistency in these games. The research objectives conducted by various scholars on the effects of microtransactions on video games is extensive and on-going. Researchers aim to examine how these companies influence people and why individuals keep spending more, yet they rarely win.

Moreover, its goal is to identify the rate of profits generated by the companies and the future implications of the games on the youths and children in the economy. Through the higher revenues generated by these companies, the research aims to outline how the profitability aspect will introduce new companies in the market and how they will survive with higher competition rates. Many users believe that the microtransactions on video games aim at squeezing their money, while others believe that spending money makes the games fascinating and fun. The online video games in children are a rip-off as the models of the business influence on a greater extent.

There is a significant gap in the experiences obtained by the players who pay for the games and those who do not. Many children feel excited n playing the loot boxes and get new items through microtransactions as it is a very addictive concept. Children want to gain more experience in the video game industry through microtransactions and lot boxes through creating hype (Hendrix et al., 2012). Through this, it makes the aspect of paying for micro-transaction a tremendous and positive experience. There is also a concept of influence where kids see other children with better items in their video games, and they tend to spend a lot to purchase the items for themselves.

The fact that children spend a lot of time on the media playing games it affects their social life and their spending behavior. Through the advancement in technology in the contemporary environment, microtransactions on video games stem from influencing children and changing their welfare and surrounding.

The evaluations of video games and the microtransactions show that it is going to take over in the next few years. The rate in which people are minimizing their social life for these activities explains how it affects human beings. The reason why video game microtransactions are not going anywhere by other scholars is because of consumer spending habits and the digital spending aspect Hendrix et al., 2012). When individuals tend to connect the two elements, the video games microtransactions will be minimized, therefore lowering their profits level.

The concept of microtransactions and the original standalone games is that it is creating an incomplete gap by default. It makes people spend the amount of money they have to play a particular game. These practices, it has affected consumer confidence and altered the games in general. Microtransactions will never go away in video games despite the legalization aspects. It is a higher generating revenue concept, and it can only reduce the number of users but not their payment rates. Microtransaction business models create a lot of revenue every year to across 3.6 billion dollars as per the 2016 statistics (Hendrix et al., 2012)

The impacts of microtransactions on video games in the economy have been significant. The industries are revolving because of the online connectivity and download content created by the instrumental concept in gaming. The video game industry has become a state of change, and microtransactions have become an influence. The introduction of microtransactions into video games integrated the world by increasing popularity and created a reputation among various users. Through games like Fortnite, many users earn through virtual currency and purchasing real cash.

Conclusion

The reactions on the microtransactions on video games are how it has significantly influenced children and the youth. It affected their social life and acted in an unethical background by selling the consumer's data. Video games are a leisure activity that engages individuals in spending their time. However, with the use of microtransactions,...