Paper Example on Ethics of Micro-Transactions in Video Games

Introduction

Throughout the twentieth century, the entertainment industry recorded a steady revenue growth which increasingly influenced the creation of a new segment known as the video game industry, at the beginning of the 80s. Besides, the development and the spread of diverse online technologies has led to the creation of innovative online consumption patterns, business types, as well as markets. With the advancements in the video game industry, various transaction models for the video games, among them, the micro-transactions model, have also evolved. According to diverse modern-day literature, micro-transactions are currently among the most popular ways to monetize video games, especially the free to play ones. This being said, the core intent of this paper is to discuss the various types of micro-transactions within the video game industry and also discuss the ethical concerns associated with the industry.

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With reference to the evolution of the video gaming industry, various modern day sources contend that the gaming industry has rapidly evolved over the past century. Although the overall gaming industry has grown over time, the most significant transformation in the industry was identified with the mobile revolution. For instance, games such as snake, which was created in 1997 set the most renowned precedence for mobile gaming in cellular as well as smartphone specifications. Bailey and West (2013) contend that early mobile games such as "Snake" in the Nokia mobile, allowed users to acclimate to the overly small interfaces provided by mobile phones.

Particularly, micro-transaction as a business model is considered a critical element in the video game industry since it is essentially used by users to purchase various virtual goods via micropayments. In particular, micro-transactions are used in the free-to-play games as one of the primary sources of revenue for the video game developers. In a similar regard, micro-transactions denote payments for purchasing applications for the mobile phones or payments for purchasing as well as additional content for video games. Despite the fact that mobile gaming takes less than 50% of the Google Play store's and Apple App Store's applications, the mobile games industry is responsible for approximately 90% of the overall mobile application revenue (Tassi, 2014).

Why Micro-Transactions

Just like the player to player trading games, games within the micro-transactions model are usually free to download and play, but by buying digital currency, the players can enhance their experience. The idea behind video games within this business model is often to offer extra content that doesn't in a major way affect how the game is played. Instead, the digital artifacts being bought have their value strictly within the social atmosphere of the game. For instance, a player can buy a fun hat or a new costume for her in-game character strictly for the amusement of wearing a helmet in-game. This concept may sound strange, but analysts suggest the global market for 2009 to be worth more than 500 million dollars (Bailey & West, 2013).

Owing to the fact that micro-transactions are based on the possibility of game users buying extra content and features in a game, most of the modern day games come out as free to play since funds that are made through micro-transactions support them. In the same vein, (Ekre, 2015) contends that some other games platforms make use of the advertising model to offer an advertisement free experience for a premium. Notably, according to Tomic (2017), three games are worth mentioning as the first of its genre with regard to micro-transactions. These games are such as Hattrick, Colony 7, and Creatures 3. Although these were machine games that were first introduced about a decade ago, they utilized the concept of purchasing different weapon upgrades through micro-transactions. Despite the fact that the micro-transaction model was not as prevalent during those days as it is today, this idea gave those players who were willing to pay, an advantage over the ones who did not pay. Scholars contend that the exclusive use of micro-transactions became extremely prevalent in the 200s. Despite the fact that micro-transactions is a model that exists almost exclusively in PC games, social games, and most importantly, mobile games, most studies substantiate that XBOX 360's marketplace became one of the key factors that launched its popularity, through charging small fees from the gamers in exchange for small cosmetic updates such as unlocking new levels or new characters to the appearance of their avatars (GiantBomb, 2015).

Types of Micro-Transactions

As long as online video games continue to generate money, publishers and game developers continue to implement features that essentially capitalize on one's desire for virtual items. This being the case, there are different types of micro-transactions in online gaming. These include;

Paying for Cosmetic Upgrades

Cosmetic upgrades are one of the most common micro-transactions that are considered the most relatively harmless type. In particular, this micro-transaction presents the opportunity for gamers to use their cash in the hopes of earning a legendary aesthetic perk. Despite the fact that paying for cosmetic upgrades does not offer any tactical advantage to the gamer, purchasing new weapon skins gives the gamer's gear a certain sleek appearance that they may possibly have been after. Based on this concept, Tassi (2014) claims that owing to the fact that cosmetic upgrades do not bear any tactical impact on gameplay, they are considered one of the most harmless and less impactful micro-transactions.

Paying for Limited Access Items

Unlike the cosmetic upgrade, this type of micro-transaction allows gamers to purchase the limited usage items, those features that wear after usage or those that have a limited time duration attached to them. Gamers point out that this is one of the most frustrating micro-transaction types particularly if the item or feature purchased is one that the gamer expects to be part of their gaming inventory. Mickey (2016) points out that the controversy associated with micro-transactions surrounds this micro-transaction type since, despite the fact that you can still play and enjoy the game without these items, gamers perceive the idea of purchasing an item with unlimited usage as boring or never fun at all.

Paying to Progress the Plot

Although almost all micro-transaction types are considered to merit great ethical controversies. Paying to progress the plot is the most unethical type, reason being, this type has essentially watered down the idea of rewarding a gamer due to their hard work and commitment. Instead, the narrative surrounding this micro-transaction type has brought to an end, chapter progression unless the gamer is willing to pay large sums of money to enable plot progress. An excellent example of a game utilizing this strategy is a game such as Asura's Wrath. Based on the concept behind games like these, game's ending has been held ransom and for this reason, this micro-transaction type, in most cases, comes across as outright money grabbing. In a nutshell, in this kind of micro-transaction, gamers ought to understand that success or victory in a particular online video game is always a purchase away.

Pay to Unlock

A couple of decades ago, when a gamer purchased a full priced game, they expected to get their money's worth in the form of a complete game package. Nonetheless, in the modern day today, and with the prevalence of micro-transactions, video game developers have put certain in-game items and features, characters and some crucial gaming content behind paywalls. Unlike the cosmetic upgrades micro-transactions, which is considered a payment for extra content, paying to unlock includes purchasing unlocks which release dormant content that is in most cases, is obviously core to the base game. This micro-transaction is excellently employed in the game "Capcom's release of Street Fighter X Tekken." In this game, for instance, there is a roster of characters on offer, but Capcom has locked 12 of these characters behind a levy of $20 for each. Although unlocking characters may not seem as crucial for gameplay advancement, for games that are centered around the characters, these additional 12 provide significantly more choice, as well as opportunities to experiment with and diversify new tactics for the game (Mickey, 2016).

With reference to the ethical concerns associated with micro-transactions, a variety of modern-day literature substantiate that the topic merits great concerns as different people hold controversial opinions about the morality of micro-transactions. For instance, D'Argenio, (2017) questions whether it is right or wrong to charge gamers for gaming features within a game that they have already purchased or downloaded for free. Despite the fact that there is valid view on either side of the debate, those who support micro-transactions contend that the player has the free will to choose whether to buy them or not to and in cases where minors are involved, parents should be responsible of what they spend on these games. On the other hand, those against it say that it is ethically wrong since it is manipulative not only for children who play the games but also for the impulsive adults. Nonetheless, Ekre, (2015) contends that regardless of whichever side one takes on the ethics of charging for in-game features, the primary ethical concern about micro-transactions lie in the fact that micro-transactions have significant effects on the game quality.

In particular, some decades ago, before online games became popular among gamers, the primary access to game features of games that are played on various consoles such as PlayStation or the Xbox console occurred only in just one of a few ways. For instance, the most common way to access certain game features was through advancing in the game since this was designed to unlock special features, hidden characters or even new accessories. Similarly, gamers would make use of in-game cheat codes that could be found online to access various in-game features. Nonetheless, during the early days of the evolution of online gaming, there was only one way that included a transaction, through the purchase of an external device which was commonly known as the GameShark. Despite the fact that this external device costs about the same price as the video game, a majority of modern day gamers argue that it was much genuine as compared to modern day micro-transactions since it only required a one-time purchase.

Today, however, depending on the game, micro-transactions which have become common to the point of being advertised within gameplay, have changed the morality relating to winning through hard work. For instance, contends that the fact that specific features can only be accessed by purchasing them, the genuine feel of the game is compromised. In this regard, gamers point out that the hardcore and commitment of the gamers are taken for granted as committed gamers are no longer awarded for their long hours of gameplay. Instead, with the introduction of micro-transactions, victory that comes with making progress in a particular game has been watered down since only the gamers who have the most disposable cash can purchase features that can get them to the highest levels. Therefore, drawing from this conceptual base, the ethical concerns associated with micro-transactions have been attributed to the fact that winning through features that would have been earned through hard work, decades ago, has become overly commercialized.

Projecting into the future, studies that are centered on the ethical concerns of micro-transactions substantia...