If you ever wondered what microtransactions are– here’s the answer. They refer to small payments for virtual content mostly associated with games. Many entrepreneurs and large companies create free-to-play games but they earn money through microtransactions. Recent study shows that free-to-play games earn more money than regular fixed price games.
Riot Games is one of the companies that utilize this feature very well with their worldwide popular game League of Legends. It is a free to play MOBA (Multiplayer online battle arena) game that provides additional skins for in game characters in exchange for Riot Points bought with real money. The skins have special effects and themes and make the players want them, thus making the entrepreneur earn more money. The additional skins don’t make your virtual character stronger or make you better than other players so it’s a fair thing to do. It is also a great system that could work with any new gaming companies as putting a hefty price tag on an unknown game with no hype can lead to devastating results. In the end few or no people will buy the game.
Other companies however implement microtransactions even in regular pay to play games and those microtransactions offer powerful upgrades and make the game very hard for non-paying players. There is no skill, only the depth of wallet that make you win and defeat other players. However if the game is free to play it is expected that it should have some source of income so microtransactions are one way of making it all work quite well. All they have to do is make a good and exciting game and the players will recognize the quality and support it.
Microtransactions are often paid by PayPal, Skrill and other online services, but some companies also provide payment via phone by sending an SMS. All in all microtransactions is a double edge sword. It can make your company grow if done the right way, but can also doom it and put a negative and bad image you will spend years cleaning off.