Microtransaction (sometimes abbreviated to MTX ) is a business model where users can purchase virtual goods via micropayment. Micro deals are often used in free games to play to provide a source of revenue for developers. While microtransactions are a staple of the mobile app market, they are also available on traditional computer platforms such as Steam Valve platforms as well as game consoles.
Free games to play that include the microtransaction model are sometimes referred to as "freemium". Another term, "pay-to-win," is sometimes used deviantly to refer to games where purchasing in-game items can benefit players over others, especially if items can not be obtained by free means. The goal with the free-to-play microtransaction model is to engage more players in the game by providing the desired item or feature players can buy if they do not have the skills or time available to get them through play-games. Also, perhaps a game developer's marketing strategy is that in the long run, the advantages of a microtransmission system will outweigh the advantages of a one-time purchase game.
The loot boxes are an increasingly evolving form of micro-deals. Through the purchase of loot boxes, players get a variety of items that seem random. Loot box is widely used in PC and console games. The concept behind the booty box is that, although getting more items at a certain price, players may not want those items, and may end up buying the same item multiple times. Instead of a one-time purchase for the desired item, the user may have to purchase several boxes. This method is also referred to as a form of underage gambling.
The items and features available with microtransaction can range from cosmetics (such as decorative character clothing) to functional (like weapons and items). Some games allow players to purchase items that can be obtained by normal means, but some games include items that can only be obtained via microtransaction. Some developers ensure that only cosmetic items are available in this way to keep the game fair and balanced.
Micro transactions are most often provided through a dedicated store interface placed inside an app whose items are for sale. Apple Inc. provides a framework dubbed "in-app purchase" to start and process transactions. The Google framework for the same usage is referred to as "in-app billing", more named from the developer's perspective. Apple and Google both take 30% of all revenue generated by micro transactions sold through in-app purchases in their respective app stores. Steam offers support for in-game micro transactions on its platform via the Steamworks SDK.
Video Microtransaction
Impact
Mobile web analytics company Flurry reported on July 7, 2011, based on research, revenue from free games to play has surpassed the revenue from premium games earning revenue through traditional ways in the Apple App Store, for the top 100 best-selling games when comparing results for January and June 2011. It uses data that is analyzed through 90,000 applications that install enterprise software to roughly determine the amount of revenue generated by other popular apps. They found that free games represent 39% of total revenue from January, and that number jumped to 65% in June, partly helped by the fact that more than 75% of the top 100 gaming apps are games. This makes the single most dominant business model in the mobile app industry free. They also learned that the number of people spending money on in-game items in free-to-play games ranges from 0.5% to 6%, depending on the quality and mechanics of the game. Although this means that a large number of people will never spend money in the game, it also means that people who spend money can be quite large because the game is given away for free.
The next study found that more than 92% of revenue generated on Android and iOS in 2013 comes from free games to play like Crush Candy .
Electronic Arts Corporate Vice-President Peter Moore speculated in June 2012 that in 5 to 10 years, all games will be diverted to the microtransaction model. Tommy Palm of King ( Candy Crush Saga ) states in 2014 his belief that all games will eventually be free to play. According to developer Ex-BioWare Manveer Heir in a 2017 interview, microtransactions have been a factor in what type of game is planned for production.
Free-to-play/microtransaction can be used in response to piracy; mobile game developer Dead Trigger redirects the game to the free-to-play model due to the high level of piracy. While microtransactions are considered more powerful and difficult to circumnavigate than digital rights management, in some cases they are inevitable: Russian developers create servers for fake authentication for in-app purchases of iOS, allowing users to obtain micro transcription features for free.
Many consumers call micro video game transactions as a means of 'milking' their products to get more profit. "Companies take the content they've developed for their game and put it behind the paywall, asking $ 20- $ 30 to access the 'season pass'."
Consumer organizations have criticized that some video games do not adequately illustrate that these purchases are made with real money rather than virtual currency. Also, some platforms do not require a password to use credit cards to complete micro transactions. This results in customers getting unexpected high bills (known as billing shocks).
By the end of 2017 some organizations, such as the Belgian Gaming Commission, have called for banning loot boxes, claiming that they are a form of gambling.
Maps Microtransaction
Data
Micro deals have become increasingly common in many types of video games. Smartphones, consoles, and PC games have all been compatible with the use of micro transactions due to their high profitability. Many companies and games, especially smartphone games, have taken business models that offer their games for free and then rely solely on the success of micro transactions to make a profit.
SuperData
SuperData is a company that conducts Qualitative and Quantitative research on video game market and consumer spending habits. SuperData collaborates and is basically employed by various companies, from banks to game developers. They work in companies that hire them or share data with them, create business strategies, outline profitable areas in the gaming market, and make the company look more attractive to investors.
SuperData gets a huge amount of data involving consumer spending habits, consumer game preferences and even their interest in certain brands. This information is obtained through the companies they work for. PayPal and Visa are two companies that share consumer spending habits with SuperData for them to do their research. Enough is enough, the SuperData job is targeted to support the growing companies of microtransactions, and it is not easily available to the average consumer whose information is what makes their job possible. The three major console companies, Sony (PlayStation), Microsoft (Xbox), and Nintendo (Switch) are also the main data dividers with SuperData. In addition to this, companies like Google, Apple, Blizzard, and Twitch are also partners. With all this data collected, it allows video game companies, such as EA, Blizzard and Ubisoft, to safely implement micro transactions into their games, knowing what areas and types of business models they will get.
Ethics
The collection of this data to consumers, although technically legal, can be considered unethical. Companies sell data about consumers, involving their spending, bank information, preferences, etc., all to better understand consumers, make business models for gaming companies safer and more profitable. Considering all the companies involved, the limits to the shared data are endless. Visas, Google, Microsoft, and PayPal already have so much data on consumers, and can freely share it. Google specifically stores information in more than just a video game, which raises questions about what they share. With microtransactions already under the negative spotlight of the gaming community, people may not be happy to hear that their data is being shared to make microtransactions possible.
Revenue
Data from multiple sources, including SuperData, suggest that microtransactions can greatly increase a company's earnings. Free smartphone games to play like Clash Royale, Clash of Clans and Game of War are all in the top five most profitable smartphone games 2016. Microtransactions alone have generated most of their income. Grand Theft Auto V as another example, is a game that holds the standard game price when it's released, but has generated more revenue through micro-deals than game sales. This trend is consistent with many other games with microtransactions, which is why more game developers include microtransactions in their games.
See also
- Downloadable content
- The booty box
References
Source of the article : Wikipedia
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