A new study shows that so-called “free” games can carry a heavy cost for a small group of players, because the bulk of the industry’s revenue is funded from the pockets of that same high-spending minority.
Video games are a primary source of entertainment for teenagers and adults, and many of today’s most popular titles use the “free” business model. Players can start the game without paying, but are repeatedly presented with offers to buy virtual items, upgrades, subscriptions and other microtransactions.
According to ITNA and citing SciTechDaily, although these transactions are optional, modern games are designed so that spending appears natural, immediate and hard to resist.
Accordingly, the term “microtransaction” underestimates the true cost, because a single purchase can cost up to one hundred euros or more; a sum that is never trivial, especially for a child or adolescent. Many players spend only small amounts, but averages can hide the behavior of a small minority that supplies a large share of revenue.
It is worth noting that “loot boxes,” which allow the purchase of random rewards, have drawn special attention from researchers and regulators, and some compare them to gambling.
However, chance-based rewards are only part of the free-to-play economy, and tools such as battle passes, rotating stores, virtual currency and time-limited offers also encourage players to make repeat purchases.
The study shows that the top ten percent of spenders, whom researchers call “big spenders,” account for the majority of money spent; a pattern that strikingly mirrors spending inequality in the gambling industry. Researchers add that gaming disorder, gambling disorder and similar risky behaviors are also more common among this same group.
Nevertheless, regulation has mostly focused on “loot boxes,” and countries such as Belgium and the Netherlands have tried to restrict this mechanism, although the outcome of these measures has been limited.
Researchers recommend that, instead of focusing on a single feature, the frequency of microtransactions should also be considered-similar to the gambling industry-as an indicator of a game’s addictive potential, and that greater protections be applied for vulnerable children and adolescents.