Dissertations / Theses on the topic 'Microtransactions'

In recent years, microtransactions have become a norm for monetization and a standardbusiness model in free-to-play games. This is something that affects multiple individuals andhas caused quite a stir among players. Through this research, we want to gain anunderstanding of why some microtransaction types might be considered more acceptable thanothers. In addition, to gaining potential data that could possibly give us a look into the futureof the design of microtransactions. We have gathered our data by conducting online chatbased semi-structured interviews with current and former university students studying gamedesign at Uppsala University.The research found that game design students have a predominantly negative opinion aboutmost microtransactions, especially when they were affecting the gameplay, contrary to whenthey were not.

Within the realm of applications, a relatively new payment form has emerged: called Microtransactions. These small one-time payments (less than 10 Euros) offer an addendum to an existing app, service, or game. Microtransactions have generated a revenue stream largely due to the tech savvy segment of young adults aged 18 to 24, but there hasn’t been significant research from an academic perspective which sheds light on this trend. This issue prompted the research question: Which quantifiable elements of a Microtransaction contribute to a university student’s purchase decision? The phenomenon of Microtransactions has not previously been studied under traditional theories of consumer behavior, which is what the scope of this research provided. The consumer behavior theories selected include: Ego Depletion Theory, Extended Self, and Perceived Value Theory. The selected methodology was a quantitative survey and content analysis. The data collected partially supported Perceived Value Theory, but was unable to validate Ego Depletion and Extended Self as significant influences on purchasing behaviors of Microtransactions among university students. Although the theories were unable to support all our hypotheses, we still concluded with two major findings. First, pricing and functionality are the primary elements of a Microtransaction which university students will consider before purchasing. Second, the Perceived Value Theory’s consumption values of Emotion and Finance are, indeed, consumption values shared among university students.

The aim of this thesis is to investigate players’ attitudes towards microtransactions within online games. The thesis is based on a multi-method approach combining the following methods: focus group-interviews, interview questions posed to hosts of a podcast, for then to discuss in their episode, and a survey. The results of this study are a categorization of players’ attitudes towards microtransactions consisting of: Activist, Idealist, Agile, Pragmatist, Enthusiast and Compliant. By adopting de Certeau’s concept of strategies and tactics, I have elicited distinctive reactions and ways of meaning making towards microtransactions, associated with each proposed category. Apart from categorizing player attitudes, this study has also identified microtransactions to have brought the broader player base into the symbiosis that previously existed exclusively between fan-programmers, socialized players, and game companies. Meaning, feedback from the whole player-base is crucial for success in implementing microtransactions. In turn, this is perceived as a strategy that surrenders power from the producer to the user.

Mestrado em Gestão e Estratégia Industrial
Esta dissertação procura deduzir e medir o impacto que as microtransações causam na indústria dos videojogos, tanto do lado dos jogadores, como também dos prestadores de serviços, utilizando como base informação e dados recolhidos através de inquéritos online realizados a jogadores frequentes de videojogos, como também através de entrevistas semi-estruturadas a duas pessoas especialistas e experientes na área. Partindo dos inquéritos online, houve uma tentativa de entender se existe algum tipo de correlação entre as variáveis: rendimento bruto anual do agregado familiar de um jogador, consumo médio mensal de microtransações e número de horas semanais despendidas em jogo. Através das entrevistas, foi possível obter opiniões e perspetivas um pouco divergentes, em relação à forma como cada um observa o fenómeno. Todas as variantes de microtransações existentes foram devidamente explicadas, enunciando que tipo de implicações positivas e negativas elas podem gerar. Foi feito também um contexto histórico de como as microtransações evoluíram ao longo do tempo, argumentando que tipo de fatores poderão estar na base do surgimento das mesmas. Finalmente, foi suportado sempre que possível, dados estatísticos que comprovem a importância e relevância das microtransações na indústria dos videojogos.
This dissertation seeks to deduce and measure the impact that microtransactions have on the video game industry, both on the player's and service provider's side, based on information and data collected through online surveys answered from frequent video game players, as well as through semi-structured interviews with two experts and experienced workers in the video game industry. It was made a study if there is any kind of correlation between the following variables: player's household annual gross income, average monthly microtransaction consumption and number of hours per week spent playing. Through the interviews, it was possible to obtain somewhat divergent opinions and perspectives on how each one observes the phenomenon. All variants of existing microtransactions have been properly explained, stating what kind of positive and negative implications they can generate. It was also made a historical context of how microtransactions have evolved over time, arguing what kind of factors may underlie their emergence. Finally, statistical data supporting the importance and relevance of microtransactions in the video game industry were supported whenever possible.
info:eu-repo/semantics/publishedVersion

This bachelor’s thesis presents a study mainly focused on players’ motivations of purchasing cosmetics items in Path of Exile, a free-to-play, action role-playing game. A “Theory of Consumption” is used in this paper as the theoretical framework. This study is conducted by running nine interviews and one survey, where 33 sets of results are collected in total. It was found that there were two main motivations for purchasing cosmetic items in that game. The dominant one is “conditional” motivation which is to support the game or game company, while the second one is “emotional” motivation which is to bring certain feelings within the game experience. However, the study found that one non-cosmetic item in Path of Exile was also purchased very frequently when it comes to the microtransactions of this game, so a “functional” motivation will also be mentioned in this paper. This study could be helpful for game designers wanting to figure out a good monetization strategy which does not alienate, but welcome players, especially in free-to-play games.
Denna kandidatuppsats presenterar en studie huvudsakligen fokuserad på spelarnas motivationer till köp av kosmetiska objekt i Path of Exile, ett ‘free-to-play’ actionrollspel. En “Konsumtionsteori” används i denna uppsats som dess teoretiska grund. Denna studie genomfördes genom nio intervjuer och en enkät där totalt 33 olika svar samlades in. Undersökningen visade att det fanns två huvudsakliga skäl till köp av kosmetiska objekt i spelet. Det dominerande skälet visades vara “villkorligt baserad” där spelare vill visa support åt spelet eller spelföretaget, medan nästa skäl visades vara “känslomässigt baserad” där spelarnas känslor höjs genom köp som förgyller spelupplevnaden. Studien visade även att den enda icke kosmetiska varan i Path of Exile köptes mycket ofta i relation till andra mikrotransaktioner i spelet, så ett “funktionellt baserat” skäl kommer även presenteras i uppsatsen. Denna studie kan bli hjälpsam åt speldesigners som vill lista ut en god monetäriseringsstrategi som inte fjärmar, utan välkomnar spelare, särskilt inom ‘free-to-play’ spel.

Throughout the last two years the revenues from in-game transactions in video-games have increased due to its growing presence both in traditional retail games as well as digital due to the fact that more and more games have become free. This growing presence is the basis for answering the question of what motivates players to spend money on in-game purchases in freeto-play games. The research found that having a well designed game is a very important factor that makes players purchase content. Many respondents made purchases based on emotional reasons such as wanting to look cool. People also made purchases to avoid grinding and to gain competitive advantages. In summary people think that their purchases were justifiable since the games are free but the common consensus is that while cosmetic items are acceptable, pay-towin items which provide a competitive advantage are not.

Cette thèse étudie le comportement des investisseurs des fonds mutuels ouverts et ses implications au risque de liquidité. Ces travaux de recherche ont pour objectif d’aider les gérants de fonds à éviter le scénario de "fund run" où ils perdent leurs clients de manière soudaine. La première étape de cette étude est de collecter une nouvelle base de données qui enregistre les "micro-transactions" des investisseurs. Cela nous permet d’analyser leurs comportements au niveau individuel et d’effectuer trois articles de recherche autours de ce sujet. Dans le premier article, nous développons un modèle de comptage auto-excitant qui capture des faits stylisés des séries des flux du fonds. De là, nous montrons un risque lié au passif du fonds qui est différent de celui lié à l’actif déjà documenté par la littérature précédente. Nous identifions également une contagion des chocs de liquidité entre les différents clients dans un même fonds. Dans le chapitre suivant, nous étudions les horizons d’investissement des clients individuels. Ces horizons sont fortement liés aux caractéristiques des investisseurs et aux conditions économiques. Nous montrons également que les gérants de fonds subissent un risque de sortie pré-maturée relatif au raccourcissement des horizons d’investissement de ses clients. Nous observons ensuite une hétérogénéité entre les investisseurs: ceux de long-terme comportent différemment que ceux de court-terme. Enfin, dans le dernier chapitre, nous nous intéressons aux activités de rééquilibre. Nous trouvons que de nombreux investisseurs détiennent un portefeuille contenant plusieurs fonds et le rééquilibrent afin de garder la même allocation d’actifs
This thesis studies the behaviour of investors in open-end mutual funds and its implications to the liquidity risk. We seek to help the fund managers to avoid the "fund run" scenarios where they loss their clients in a sudden way. We begin our research by collecting a unique data set which records the micro-transactions of fund investors. It allows us to monitor investors’ behaviour at the individual level and to accomplish three research articles around this topic. In the first article, we develop a self-exciting counting process to model the stylized facts of fund flows. Therefrom, we highlight a novel risk linked to the fund liability which is different than the asset-related risk documented by the previous literature. We also identify a liquidity contagion among different investors in a same fund. In the next chapter, we study the dispersion in the investing horizons of individual fund clients. These horizons are strongly determined by investors’ characteristics and economic conditions. We show that the fund managers suffer a pre-mature redemption risk, i.e. clients shorten their investing horizons and redeem pre-maturely. Especially, we observe a heterogeneity among investors: long-term ones bring a higher pre-mature redemption risk. In the last chapter, we are interested in the rebalance behaviour. We find that numerous investors hold a multi-funds portfolio and rebalance it to keep the target asset allocation

I dagens spelindustri är det allt vanligare att spel innehåller affärsmodeller som innefattar mikrotransaktioner, det vill säga köp inom spelet. Framfarten av mikrotransaktioner har skapat många skilda åsikter. Denna studie är gjord för att skapa en inblick till hur spelare uppfattar och förhåller sig till fenomenet och dessutom fördjupa förståelsen av vad spelutvecklingsföretagen gör för att få sina spelare att genomföra köp inom sina spel. För att belysa problemet formades forskningsfrågan som följande: Hur förhåller sig spelare till mikrotransaktioner och på vilka sätt påverkar spelutvecklare spelare att genomföra köp genom mikrotransaktioner? Studien utfördes med en enkät som bestod av frågor utifrån en mixad metodansats. Frågornas karaktär formades med inslag av både kvantitativa och kvalitativa ansatser. 117 respondenter svarade på enkäten varpå enkätsvaren sedan analyserades och resultatet visar på att det finns både positiva och negativa åsikter om mikrotransaktioner och att det finns flera olika angreppssätt som spelutvecklarna använder sig av för att få sina spelare att genomföra köp. Utifrån tidigare forskning påvisar denna studie att synsättet på mikrotransaktioner förändrats positivt. Framför allt för att spelutvecklingsföretagen på senare tid fokuserat på att lyssna på sina spelare och genom det utvecklat mikrotransaktioner utifrån spelarnas behov men man måste också ta i beaktande att en positivare syn på mikrotransaktioner eventuellt kan leda till olika grader av beroende. Resultaten i denna studie kan påverka läsarens syn på fenomenet. Studien lyfter en ny syn på hur spelare förhåller sig till fenomenet som både motsäger och stärker tidigare forskning, vilket eventuellt kan gynna spelutvecklingsföretagen samt vidare forskning inom ämnet.
In today’s gaming industry it’s increasingly common to use business models that include microtransactions, in short in-game purchases. The recent rise of microtransactions has created many different opinions. This thesis was conducted to provide an insight of how the players perceive and relate to the phenomenon and further deepen the understanding of what game development companies do to get their players to make in-game purchases. To highlight the problem, the research question was formed as follows: How do players relate to microtransactions and how do game developers affect players to make purchases through microtransactions? The study was conducted with a questionnaire consisting of questions based on a mixed method. The nature of the questions was shaped with elements of both quantitative and qualitative approaches. 117 players responded on the questionnaire, which was analyzed and the result shows both positive and negative opinions about microtransactions and there were several different approaches that the game development companies use to convince their players to perform in-game purchases. Based on previous research, this study shows that the view on micro-transactions has changed to the positive. In particular, game development companies have recently focused on listening to their players leading to developed microtransactions based on player's needs but it need to be considered that a more positive view of microtransactions may potentially affect different degrees of addiction. The results in this study may affect the reader’s view of the phenomenon. The study highlights a new view of how players relate to the phenomenon that both contradicts and strengthens previous research, which may benefit game development companies as well as further research on the subject.

In-game purchase options are referred to as microtransactions and have become a common revenue for modern video games. Microtransactions refer to small payments made inside of video games to acquire game content. The phenomenon of microtransactions is often related to "loot boxes". The definition of loot boxes are items in video games that players can buy with real-world money, the loot boxes, when opened contain randomised rewards. The rise of microtransactions has led to concerns for vulnerable users overspending with currently no regulation or consumer protection. The chance-based nature of loot boxes has arisen discussion regarding the similarities of loot boxes and gambling. The apparent similarity is that the player is risking the loss of real-world money for a small chance of getting a valuable reward. The thesis aims to research video game players motivations, experiences and gameplay habits, to establish guidelines for loot box systems later. Empirical methods, such as surveys and semi-structured interviews, were used to collect data. Established theories Hedonic motivation-system acceptance model (HMSAM) and Theory of planned behaviour (TPB) were used as a theoretical framework to understand the collected data. The results of the empirical data display negative attitudes towards loot boxes. Themes were made to make sense of the attitudes and provide an understanding of the negative attitudes. A design solution in the form of guidelines was developed based on the themes. The guidelines were implemented in a design prototype and thereafter evaluated by participants with a user experience questionnaire. The results of the user evaluation illustrate a positive attitude towards the design, but not convincing enough. Participants raised concerns about a few features of the design and had difficulties to see the features be implemented in the future. Therefore, arguments for further research of the guidelines were established
Alternativ för köp i videospel kallas mikrotransaktioner och har blivit en vanlig inkomstkälla för moderna videospel. Mikrotransaktioner avser små betalningar inuti videospel för att skaffa spelinnehåll. Fenomenet med mikrotransaktioner är ofta relaterat till "loot boxes". Definitionen för loot boxes är föremål i videospel som spelare kan köpa med riktiga pengar. Loot boxes, när de öppnas innehåller slumpmässiga belöningar. Ökningen av mikrotransaktioner har lett till oro för utsatta användare som överkonsumerar med för närvarande ingen lagstiftning eller konsumentskydd för mikrotransaktioner. Den slumpmässiga karaktären hos loot boxes har lett till diskussioner om likheterna med loot boxes och gambling. Den uppenbara likheten är att spelaren riskerar förlusten av riktiga pengar för en liten chans att få en värdefull belöning. Denna uppsats syftar till att undersöka videospelspelares motivationer, erfarenheter och spelvanor, för att senare fastställa riktlinjer för loot box-system. Empiriska metoder, såsom enkät och semistrukturerade intervjuer, användes för att samla in data. De etablerade teorierna Hedonic motivationssystem acceptance model (HMSAM) och theory of planned behaviour (TPB) användes som ett teoretiskt ramverk för att förstå den insamlade data. Resultaten av empiriska data visar negativa attityder för loot boxes. Teman gjordes för att skapa förståelse till de positiva och negativa attityderna. En designlösning i form av riktlinjer utvecklades utifrån dessa teman. Riktlinjerna implementerades i en designprototyp och utvärderades därefter av deltagare med ett frågeformulär för användarupplevelse. Resultaten från användarutvärderingen illustrerar en positiv inställning till designen, men inte övertygande nog. Deltagarna tar upp bekymmer över några funktioner i designen och hade svårt att se funktionerna implementeras i framtiden. Därför upprättades argument för ytterligare forskning av riktlinjerna.

Spel är en av de största underhållningsbranscherna, vilket ger utvecklare möjlighet till stor lönsamhet. Syftet med denna studie är att identifiera faktorerna för varför spelare känner behov avatt göra köp av virtuella produkter i onlinespel och hur det kommer att påverka spelupplevelsen.Detta hjälper spelutvecklare att skapa en bättre affärsmodell med mer optimerade produktergenom att ge spelarna vad de önskar. Denna studie kommer att använda en kvalitativ forskningsdesign eftersom det gör det lättare att ta del av olika spelares åsikter. Resultatet från studien visar att emotionella och funktionella faktorer har störst inverkan på beslut att köpa virtuella produkter i onlinespel, och att spelupplevelsen gynnas så länge inte produkter påverkadespelmekanismer.
Games are one of the biggest entertainment industries, which provides an opportunity for developers to generate a lot of money. The aim for this study is to identify the factors why playersfeel the need to make in-game purchases of virtual products in online games and how this willaffect the gaming experience. This will help game developers create a better business modelwith more optimized products by giving players what they desire. This study will be using aqualitative research design since it will make it easier to take part in different players' opinions.The results from the study show that emotional and functional factors have the greatest impacton decisions to buy virtual products in online games, and that the gaming experience benefitsas long as products do not affect gaming mechanisms.

The monetary policies of states and systems built upon them do not naturally allow transactions of a very small value, as the transaction costs exceeds the actual value of the transaction. These types of transactions are called micropayments. This is problematic as it removes the possibility to monetize content that has a valuation that is so low that the costs of the transaction exceeds the value of the content. In this thesis we aim to create a system that allows micropayments to monetize low value content. We do so by developing a design theory based on Gregor and Jones conceptual model for design theories within Information Systems research. The system that we develop will use the end users computational power to generate a value, by running a cryptocurrency miner. We present the background knowledge required to fully understand the presented design theory. Within the design theory, we present a theoretical framework to base systems on that enables micropayments through cryptocurrency mining. We also present a developed proof of work prototype that proves the validity of the theoretical framework. Lastly we discuss our design theory. We conclude that the design theory enables transactions of a very low value, such as 0,0001 \$ cents. Transactions of such small value is not possible with systems built upon states monetary policies. We also conclude that the proposed design theory can be further developed to function independently of cryptocurrency mining. Instead the value for the transaction could be generated through solving complicated problems if institutions are willing to pay for computational power to solve them.

Currently, the profitability of the video game industry is at an all-time high. The traditional system of selling physical copies of video games in electronic stores is progressively falling out of practice, as the internet and mobile trends have exponentially transferred business to direct digital access on personal devices. The majority of revenue being generated by video game publishers come from digital in-game purchases, known as microtransactions, which offerin-game content in exchange for a monet a ryfee. The subject of microtransactions have generated significant interest from consumers, developers, academics and legislators resulting in a complete remodeling of the business strategies used in the video game industry. This study aims to document the impacts of the microtransaction business model on the various aspects and stakeholders of video game production and video game consumer markets.
Atualmente, a lucratividade da indústria dos video jogos está a atingir os seus maiores valores. O sistema tradicional de venda de videojogos por cópias físicas em lojas de eletrónica está progressivamente a cair em desuso devido ao crescimento exponencial de negócio digital através da internet, onde permite o processo de compra ocorrer diretamente nos dispositivos pessoais dos consumidores. A maioria da receita gerada por companhias de videojogos provém de compras digitais dentro dos videojogos. Estas compras denominadas de microtransações, oferecem conteúdo adicional para um videojogo por um valor monetário. O tópico de microtransações gera interesse por parte de consumidores, produtores, académicos e legisladores, de tal modo que resultou numa reestruturação completa das estratégias de negócio utilizadas na indústria. Este estudo visa documentar os impactos do modelo de negócio das microtransações nos vários aspetos relacionados com os stakeholders e com os mercados de videojogos.

Microtransactions are part of a business model used almost extensively in the video-gaming industry where developers offer virtual goods or features via micropayments. The concept is relatively new and still unknown to many but deeply rooted in modern video-game developers’ business strategies. Microtransactions are found in smartphone applications, online games played on computer or gaming consoles, and while the concept might be unfamiliar to many, the odds are most have encountered it.   Most published games will feature in-game purchases where users have to option to purchase features, items or content for a small amount of money. A microtransaction in its most simplistic form is ad-removal, here developers offer the user a way to get rid of ads by charging a small amount, like $.99. While one microtransaction may seem insignificant, multiple impulsive purchases can quickly add up to considerable sums. This has resulted in the use of microtransactions becoming the most profitable business strategy for game developers.   This study seeks to describe what stimulates a person to complete a purchase by using the components of hedonic motivation from the HMSAM theory leading to the research question: Which hedonic motivations induce use of microtransaction systems and does it vary by age? To research the phenomena a quantitative questionnaire was formed based on hedonic motivations, including three motivations added by the author, gathering responses from 398 video-game players having completed a microtransaction purchase.   After analyzing the results, some components protruded more than others while the consensus suggested that the influence of hedonic motivation was comparatively low. The argument for this outcome may be that players see in-game items as objects of real-world value, making the microtransaction system within a game a utilitarian-motivation system. The general attitude towards microtransactions appeared to be poor which contradicts some elements of previous research while supporting others.   This thesis will contribute to the field of informatics by complementing the traditional technology acceptance model (TAM) with hedonic motivations, as proposed by Lowry et al. in 2013. The author of this study argue it is a modernized way of researching intentions to use asort of system.

M30, M31
With mobile technology evolving at a very fast-paced level, consumers now have many choices of entertainment on their mobile devices. Thousands of games are available to download free of charge on virtually every smartphone and with them a new revenue model has emerged: microtransactions. Characterized by low price points, microtransaction have seldom been studied extensively. With great potential in the future, this type of revenue model is currently outgrowing traditional pay-to-play model types. By focusing on several types of mobile game item drivers and adapting some previous research and models, this study intends to identify and create a model with the main drivers of microtransactions that lead to impulse purchases in mobile game applications and understand if a price increase will lead to a lower purchase intention. A PLS-SEM analysis was conducted on a sample of 301 individuals. The measurement model showed a good fit of parameters, with AVE above 0.50 for all components, composite reliability superior to 0.70 for all components as well as an HTMT value inferior to 0.90 present in each component relationship. The six components considered explained 53.3% of the variance in impulse buying tendency. Significant component drivers from strongest to least robust were flow experience, social, hedonic/emotional and performance drivers. Functionality and low perceived risk were not drivers of impulse buying tendency.
Com a tecnologia móvel a evoluir a um passo cada vez mais acelerado, os consumidores têm agora várias escolhas de entretenimento nos seus dispositivos móveis. Milhares de jogos estão disponíveis para descarregar de forma gratuita em virtualmente qualquer smartphone e com isso, um novo modelo de negócio tem emergido: microtransações. Caracterizado pelos seus preços baixos, as microtransações têm raramente sido estudadas extensivamente. Com um grande potencial no futuro, este tipo de modelo de negócio está a ultrapassar no presente os modelos tradicionais de comprar-para-jogar. Ao focar-se em vários tipos de drivers de itens de jogos móveis e adaptando pesquisas e modelos anteriores, este estudo pretende identificar e criar um modelo com os principais drivers das microtransações que originam compras por impulse em aplicações de jogos móveis e compreender se um aumento de preço leva a uma intenção de compra reduzida. Uma análise de PLS-SEM foi efetuada numa amostra de 301 indivíduos. O modelo medido demonstrou um bom índice dos seus parâmetros, com um AVE superior a 0.50 para todos os componentes, confiabilidade composta também superior a 0.70 para todos os componentes e um valor de HTMT inferior a 0.90 para cada relação entre os componentes. Os seis componentes originais considerados explicam 53.2% da variância da tendência de compra por impulso. Os drivers de conteúdo significantes do mais forte para o menos forte foram: fluidez de experiência, social, hedónico/emocional e performance. Funcionalidade e baixa perceção de risco não foram drivers de tendência de compra por impulso.

Microtransactions – in-game purchases associated with gambling symptomology, excessive gaming and psychological distress - generate substantial revenue for game publishers. Microtransactions facilitate avatar customisation. However, avatar identification (AID) and avatar customisation are yet to be investigated as individual difference factors relating to in-game spending behaviours. This preregistered, online, quantitative, cross-sectional study surveyed 333 participants (61.3%M, 18 to 64 years) to investigate whether AID moderated a relationship between attitudes towards avatar customisation (ATAC) and in-game spending (outcome variable). We investigated relationships between in-game spending and ATAC; in-game spending and multiplayer gameplay; the Risky Loot Box Index and AID; and ATAC and AID. We found extreme evidence for positive associations between ATAC and loot box and non-randomised spending. No moderation effect was detected, however, we found extreme evidence for a relationship between the RLI and AID, implicating AID with risky loot box behaviours. Extreme evidence for a moderate positive association between AID and ATAC supports previous research findings. Results suggest players who care about avatar customisation are more likely to purchase items that provide direct choice rather than purchases that provide chance-based reward. Findings are examined in relation to Self Determination Theory and implications for future research is discussed.

碩士
國立臺灣大學
企業管理碩士專班
101
ABSTRACT This thesis paper presents a detailed assessment of microtransactions and its role amongst online business models in the gaming industry. In order to shed clarity on this type of model, a brief history is provided, the fundamental elements are explained, and a minor case study on a few companies that have yielded exceptional profit due to this business strategy is included. Two major topics that are subject to analysis include the effects that microtransactions has on customer acquisition and its effects on revenue stream. As this type of business model appeals to customer segments of different niche types, it has resulted in the growth and sales of gaming companies by a high margin. The different types of target demographics are explained and the appeal that microtransactions provide to each group is covered. I provide relevant arguments to corroborate the concept that microtransactions are the new business model of choice for game developers that strive to remain competitive. Furthermore, I conduct an analysis on the Internet as the new universal marketplace for consumers, rendering physical copies obsolete in favor of digital content. Finally, this thesis shares insight on the current market trends as well as the potential contribution of microtransactions to the future sustainability of the gaming industry as a whole.

This item is only available electronically.
With the increasing reach and accessibility of modern video gaming, individuals have become more invested in gaming. In recent years, increased levels of global video game consumption has led to Internet Gaming Disorder (IGD) being included in international health classifications, such as the DSM-5 and ICD-11, and is defined as a behavioural addiction by the WHO. Over-engagement in gaming has been exacerbated by the emergence of new business models by gaming companies, particularly the ‘recurring revenue model’ that incentivises players to spend more money in games via options like downloadable content or microtransactions. Previous research has examined the associations between behaviours like FoMO (Fear of Missing Out) and impulsiveness, and their role in contributing to gaming disorder symptoms. However, little is known about the relationships between these predictive behaviours and how they may influence additional spending. This study examined the relationships between gaming disorder symptoms and in-game purchases. It also investigated whether traits such as FoMO, impulsivity, maximization and regret have any influence on additional purchases. The study involved 377 gamers recruited from an online platform who were asked to complete measures of problem gaming, personality and to describe their gaming expenditure. The results showed that there were modest relationships between IGD, platform choice and FoMO with additional purchases. Additional findings also showed that gender, impulsivity and regret were significantly linked to additional purchases. The results of the study provide preliminary evidence that influential behavioural traits associated with IGD symptoms are related to increased levels of in-game purchases.
Thesis (B.PsychSc(Hons)) -- University of Adelaide, School of Psychology, 2021

The growth of the gaming industry has seen an increase of predatory monetisation techniques, like loot boxes: a digital container that generates random rewards of subjective value. Loot boxes have been described as a converging point between problematic gambling and excessive gaming, as it shares structural and psychological similarities with conventional forms of gambling and exists mostly unregulated in online gaming. Understanding who engages with these mechanics may help in regulation and prevention for vulnerable groups. We looked at personality research in problem gambling and excessive gaming to formulate an idea of what we might see in loot box engagement. We firstly hypothesised high neuroticism and low conscientiousness would positively correlate with loot box engagement, and then hypothesised if loot box engagement was more like problem gambling, we would see lower agreeableness, or if it was more like excessive gaming, we would observe lower extraversion and openness. 153 participants were recruited to one of three conditions in our custom version of Candy Crush. We measured engagement with in-game purchases, personality and levels of gambling and gaming. We found no evidence to support our hypotheses but did find moderate evidence to support a relationship between loot box engagement and excessive gaming.

This master's thesis describes the use of microtransactions in video games and their influence over the game design, player experience, and virtual goods presentation. The goal was to compare the titles that use different monetization methods (paid and free to play games) and different types of microtransactions (functional and cosmetic), and to identify which parts of those games could be influenced by microtransactions and how. The research focuses on five titles - The Witcher 3: Wild Hunt, Assassin's Creed: Odyssey, Anthem, Warframe a Path of Exile. The first part of the thesis summarises the historical evolution of monetization models used in video games and defines the terms microtransaction, micropayment, virtual goods, or loot box. It also contains a typology of microtransactions, describes their implementation methods, and possible consequences tied to their use. The second part focuses on the analysis of the chosen five games. The research used the following methods - analysis of my own gameplay and mutual comparison of each game. Each game was examined over the course of ten hours, in sessions about 45-60 minutes long - the gameplay was accompanied by video recordings of the gameplay, screenshots, and a journal that contained detailed information about each gaming session. The research...