The Controversy Behind Microtransactions

Online gaming is one of the biggest growing industries out there at the moment. With so many different games out there to choose from, there is something out there for everyone. Microtransactions are implemented into gaming to create another access point to a game for players.

However, one type of game that is causing a bit of a stir in the industry is a game that uses microtransactions. They’re in the hot seat and we’re going to be looking at why that is.

What is a microtransaction?

A microtransaction is when a user can purchase virtual items during gameplay. This might be coins or some other kind of currency that only works for the person inside of the game. These are typically not transferable to real money.

These microtransactions will often appear in games that start off being free to play. And even though you don’t have to pay to download these games, there are certain levels or added extras that you’re unable to gain access to without depositing some kind of money. These added extras are things players feel they need to get further in a game.

Should microtransactions be considered gambling?

This is a tricky question that lawmakers are struggling to decide on. Despite these transactions being small and not necessary to play the game, some might argue that the way the new games are structured means that it’s nearly impossible for people not to get sucked into depositing even a small amount of money to play them.

Another issue that arises is that these games are often marketed to younger audiences. They might not have a lot of knowledge about money and its value of it. They are also more susceptible to depositing more money than they anticipated as they get more into the game.

There is a debate that microtransactions are a form of gambling due to their nature. Regulations differ around the world, for example, there are currently no loot box specific regulations or proposed legislation in Canada, this is likely due to the fact that the stakes are very small. Despite this, gambling regulation is taken extremely seriously in Canada.

The majority of online casinos are fully regulated, but the sheer scale of the industry makes it tough to fully monitor. Players are recommended to check out review sites before picking an operator, sites like Casino.ca compare all top online casino bonuses while also only listing trusted providers. In Canada, regulated gambling providers have to jump through plenty of hoops to have any sort of chance of success.

Belgium, Japan, Netherlands & Austria are just a handful of countries to ban loot boxes due to them being seen as gambling, while the UK banned minors from opening them. In the Netherlands, EA was fined €10 million for selling loot boxes in FIFA Ultimate Team. Although, EA appealed the decision and won in 2022.

That being said, a lot of these games are targeted at young people and are also linked to their social media accounts. The combination of being told they can’t reach certain levels without spending money and the fact that they might be able to see what their friends are doing and getting through the social media site means it’s very difficult for the youngsters to resist.

This could be seen as the gaming companies trying unorthodox ways to get people to spend money, despite providing free games. The free versions of these games are also riddled with adverts that can cause annoyance to those who play regularly. Even though these adverts are a necessity for the game makers in order to gain some revenue, the number of ads makes it almost impossible to even play the game. This could be seen as a tactic of gaming companies using incessant ads in order to get people to pay for the ad-free version.

These microtransactions could be seen as a necessity for game makers to make some money off their game without going down the advert route. But a lot of people see this as just another underhand tactic to ensure that people are parting with their money in order to play these games.

Types of microtransactions to look out for

Small purchases

These microtransactions are where players can purchase items they need to use in the game or things that bring advantages to their gameplay for a small fee. An example of this would be being able to purchase extra lives to continue playing without having to wait for these lives to come back around on their own. These purchases don’t cost a lot which makes them accessible to people playing.

Loot boxes

Loot boxes are the most common microtransactions that will appear in a game. These will range from common to rare items, making it more of a gamble. This is the one in-game purchase that is causing more of a stir due to the element of surprise. People are buying something, but they don’t know what it is exactly. 

These are often bought with in-game currency, but the currency has to be paid for with real money outside of the game.

Expansion packs

Expansion packs are the most common and have been around for years. This is when big content updates or expansions that are released after the game’s initial launch become available to purchase. These packs often introduce new characters and plotlines and even locations and features. It’s almost like getting a brand-new game which is why they’re so popular with gamers.

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Bonus purchases

Bonus purchases or limited-edition packs are another popular microtransactions. These often lead to rewards or limited editions that are only available for a short time. All of these mean that they’re more attractive to players and will typically lead to them making a microtransaction.

There are a lot of microtransactions out there to keep an eye out for, but only time will tell whether the regulations around them will tighten or not. What do you think about microtransactions?