Insert More Coins: The Psychology Behind Microtransactions
You’ve been engrossed in a mobile game for 20 minutes, but now you’re stuck. Out of moves for the day, a prompt offers 10 more plays for just 99 cents. It’s a small amount, so you tap, and suddenly you’re back in the game for another 20 minutes.
This seemingly insignificant purchase is a microtransaction. Microtransactions are a revenue model driving popular games like Candy Crush Saga and Angry Birds. While each payment is tiny, when multiplied by millions of users, the profits are massive. These micropayments cleverly leverage psychology to make spending a little feel worth it.
What Are Microtransactions?
Microtransactions are small payments that give players an advantage in games. These “free-to-play” games cost nothing to download, but microtransactions offer a faster and easier way to advance. While players can enjoy the game without spending, these purchases can add up quickly, turning a free game into a significant expense.
History of Microtransactions
Microtransactions, those tiny in-game purchases, have their roots in the old arcade machines. Back then, you’d pop in quarters to keep playing after losing a life. This “pay to continue” idea evolved into today’s free-to-play games, where players spend small amounts to progress.
In the late 1990s, games like Neopets, RuneScape, and MapleStory were among the first to use this model. They were free to play but offered optional purchases to help players advance faster. Meanwhile, older audiences were still paying monthly subscriptions for their favorite MMO games.
The trend really took off in the late 2000s when popular games like EverQuest switched from subscription-based models to free-to-play. This change led to a huge boost in player logins and new accounts, proving how effective microtransactions could be.
Today, mobile gaming has made these free-to-play models nearly universal, with in-game purchases driving much of the industry’s success.
Types of Microtransactions in Games and Apps
Today, mobile gaming has made these free-to-play models nearly universal, with in-game purchases driving much of the industry’s success.
In-Game Currencies
Many games use virtual money that players can buy with real cash. This currency is then used to purchase items or upgrades within the game. The trick is that it hides the true cost of what you’re buying, making larger currency bundles seem like a better deal. This approach can easily mislead players about how much they’re actually spending.
Random Chance Purchases
Some games offer mystery boxes or packs that contain random items. Players pay real money or in-game currency for a chance to win something valuable. The excitement of possibly getting a rare item hooks players, often leading them to spend more. Games might even offer “discounts” on these packs to make them more enticing.
In-Game Items
Despite free-to-play games having no cost of entry, they will offer players upgrades. These items are often better than what players can earn for free, and they can make the game easier. This can pit players who do not pay for upgrades against those who do, giving a clear advantage to gamers who pay and encouraging people to pay more frequently.
Expiration
Some games have items or abilities that wear out or expire after a certain time or number of uses. When that happens, players are prompted to spend real money or in-game currency to keep going. If players feel like they’re being cut off, they’re more likely to pay to continue playing.
Why We Buy
Microtransactions tap into deep psychological triggers, driving players to make quick purchases with just a tap. Game designers are well-versed in these psychological principles, and they skillfully use them to increase spending. The surge in games with microtransactions is no accident, it’s rooted in understanding human behavior.
Impulse Buying
Free-to-play games excel at exploiting the psychology of impulse buying. They often place time limits on purchasing opportunities, pushing players to act fast. This urgency, combined with the frustration of being stuck or low on resources, makes players more likely to make a purchase. The game may even suggest that buying a boost will improve their experience, leveraging the player’s desire for immediate satisfaction.
Loss Aversion
Another powerful tactic is loss aversion, the idea that people are more motivated to avoid losses than to achieve gains. In gaming, this means players are more likely to spend money if they believe it will prevent them from losing or help them continue winning. The fear of losing progress or missing out on a win drives many to make quick purchases, ensuring they stay ahead in the game.
These psychological strategies aren’t just coincidental, they are carefully crafted to maximize revenue by tapping into fundamental human emotions.
Understanding Business and Psychology
Microtransactions are a prime example of how business strategies are deeply connected to psychological principles. Touro University Worldwide offers accredited, affordable online business and psychology degrees that equip students with the knowledge to succeed in these intertwined fields. Whether you’re looking to advance your career or start a new one, Touro’s fully online programs provide the flexibility and support you need to achieve your goals. Learn more about how you can leverage an education from Touro to excel in the dynamic world of business and psychology.
