Microtransactions are just one example of how business strategy and psychology intertwine. The belief that players can continue to win with the item they acquired drives them to pay. The crux of a player’s decision to pull the trigger on a micropayment centers on not wanting to lose the game. This goes a long way toward leading players to impulse buying. The idea behind loss aversion is that players would rather enjoy the satisfaction of winning rather than losing. Many games use loss aversion to encourage spending. Perhaps the player is out of lives a game will offer a renewed opportunity at a cost to make the experience more enjoyable. Players are more likely to make a purchase when they perceive it will make them happy immediately. If players are struggling to complete a part of the game, the game will suggest something that can improve their experience. Potentially, a player can end up spending a lot of money on a game that originally cost nothing. However, it quickly becomes clear that microtransactions will help the player advance more quickly and easily.
Often referred to as “free to play,” the games are free to download and it is possible for users to never spend a dime. Microtransactions are very small payments made in games in exchange for something that can help the player advance in the game.
Micropayments rely on psychology to convince you that spending such a small amount of money is worth it. When you multiply single microtransactions by millions of users, games can generate significant revenue.
Candy Crush Saga, Angry Birds and so many others use a revenue model based on tiny little payments. The small purchase you made is called a microtransaction, which is how countless games work. It’s only a dollar, so you tap and play for another 20 minutes. Unfortunately, you’re out of plays for the day, but a window pops up telling you it only costs 99 cents for another 10 plays. You have spent 15 or 20 minutes playing a game on your phone but are stuck on a level.