The video game industry is rapidly growing and evolving. Since the 70’s, video games have been a great way for people to relax, have fun, and escape from reality a bit. However as time went on, video game technology rapidly improved, allowing developers to implement more complex features to make games more appealing to the masses. At first this was mostly graphical and technical improvements to games in order to make them more immersive. With the internet as well, developers were able to sell extra downloadable content for games, otherwise known as DLC.
The first notable micro transaction ever implemented was in The Elder Scrolls IV: Oblivion, where Bethesda Studios sold horse armor to players for only $2.50. Arcade games in the 90’s also technically had micro transactions, where in certain games players could insert extra coins to earn power ups. The horse armor from Bethesda was marketed as just DLC at the time, not knowing this created a very slippery slope for other developers.
MMO’s and mobile games started implementing cosmetic items for in-game characters that were available for purchase. Mobile games especially introduced a new model of gaming: free to play, but pay to win. Clash of Clans, for example, made it very easy for players to just buy mass amounts of the in-game currencies. This allowed players to instantly upgrade their buildings when it would normally take hours upon hours to complete just one building upgrade.
Triple A developers and stockholders began to notice how profitable micro transactions were in the early 2010’s. This led to the introduction of “loot boxes” in console and pc games. This was the first predatory example of micro transactions. The uncertainty of what you could receive from the boxes made them extremely tantalizing, especially when very rare items are possible rewards. This method of monetizing video games is incredibly predatory because to many people, opening loot boxes became very addicting. This led to very unhealthy spending habits in adults and children begging their parents for their credit cards so they could buy loot boxes. Overwatch, Star Wars Battlefront 2, Call of Duty, and many other mainstream video games became notorious for including loot box systems in their games.
Once these kinds of micro transactions reached Triple A titles, everything went downhill from there. Numerous titles shifted to being free to play but having a surplus of purchasable items and currencies within the game. Additionally, many of these titles introduced battle pass systems where players could use the currencies they purchased to gain access to a ladder of premium rewards to unlock as they play the game. Fortnite and Clash Royale are huge examples of this.
Micro transactions have ruined so many video games, making them just about how much money they can make for the developers and shareholders. Even the most popular video game ever, Minecraft, has fallen victim to the atrocities of micro transactions with the marketplace. There are still fantastic video games that have been released recently that don’t include micro transactions that are just absolutely incredible. Elden Ring and Baldur's Gate are huge examples of popular video games that don’t focus on micro transactions, but rather focus on providing an incredible, immersive, and just plain old fun experience for its players. Of course there are other forms of monetization in video games, such as your basic “pay to play” games. Micro transactions have just become the most notorious, popular, and successful forms of monetization, despite the negative feedback from the players.