Economic model of microtransactions in video games

Nenad Zoran Tomić (University of Kragujevac)

Article ID: 439



Abstract: Microtransactions denote a payment made for purchase of mobile phone application or additional content in video games. The basic revenue principle for publisher was to sell the entire content at once, with the buyer having to pay the game as a whole. Trends from mobile applications and mobile games market have slowly transferred to PC games and console video games. About one half of total revenue of big video games publishers comes from microtransactions. The topics of this paper are the economic effects of microtransactions on video game industry business model. The scope of microtransactions and different implementing procedures will be discused in paper. The goal is to determine the change of the position of all stakeholders involved in the process of creating and publishing video games.


Keywords: microtransactions, freemium games, pay-to-win, mobile games, video games

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