![]() ![]() ![]() In the first three years after its launch, iOS apps made over $3.6 billion in revenue with over 15 billion downloads, and 80% of that revenue coming from mobile games. ![]() In 2008, the iOS store launched on Apple iPhones, and games there used microtransactions as their main source of funding. Bethesda and other game studios began using microtransactions more as an extra stream of revenue. Despite the negativity, the horse armor became the ninth best selling DLC in Oblivion and was still being purchased more than two years after its release. Most players reacted negatively, claiming that $2.50 for an in-game cosmetic item was too much. It was made as an experiment to test the market’s reaction to DLC. The first microtransaction sold by a major publisher was in 2006 when Bethesda sold horse armor in The Elder Scrolls IV: Oblivion for $2.50. In 2002, Microsoft released Xbox Live, an online platform for the Xbox, which allowed players to purchase DLC on it. Video game developers and hobbyists would sell or share expansions to PC games as downloadable content (DLC). In the late 1990s with the rise of popularity in the Internet, people began downloading video game content online. History Xbox Live allowed players to purchase microtransactions on the Xbox While video games are the focus, microtransactions are an example of when lack of regulation can lead to exploitation for financial gain. This investigation will explain the incidence of microtransactions in video games explore their psychological effects on addicts and youth document criticisms and justifications from the perspectives of the gaming community, companies, trade associations, and governments and cover lawsuit cases that call for the regulation of microtransactions due to its harmful effects. As with gambling, certain groups of people are more susceptible to the influences of microtransactions. Video game companies employ psychological tactics, such as loss aversion and sunk costs, to keep consumers buying microtransactions. Once a credit or debit card is used to purchase a microtransaction, the storefront or game offers to store their card, which can cause consumers to be less mindful about future purchases. While storefronts disclose whether microtransactions exist in the game, individuals may purchase a game without realizing how prevalent microtransactions are in that game. In video games, a microtransaction, also known as in-game or in-app purchases, is a transaction where consumers exchange real-life currency for virtual currency or goods, such as unique characters, weapons, mounts, and pets that may have superior stats or only cosmetic differences. 5.1 Reactions to Microtransactions in Star Wars Battlefront II. ![]()
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