microtransaction
A business model where users can purchase virtual goods, cosmetic items, or upgrades with small amounts of real-world money.
Often associated with 'free-to-play' games, microtransactions can range from purely cosmetic items (like skins) to functional items that affect gameplay.
Word relationships
- in-app purchase: In-app purchase is the broader technical term used across all mobile apps, while microtransaction is specifically favored in gaming contexts.
- flat-rate purchase: A flat-rate purchase involves paying a single, upfront price for the entire game with no further fees.
Commonly confused with
- subscription: A subscription is a recurring, fixed fee paid periodically (e.g., monthly), whereas microtransactions are one-off, voluntary purchases.
Word family
- microtransactions (noun): Plural form of microtransaction.
Collocations
- cosmetic microtransaction
- predatory microtransactions
- microtransaction model
- in-game microtransactions
Example sentences
- "The transition from upfront purchase prices to the microtransaction model has fundamentally altered game monetization." An economic analysis of the mobile app ecosystem. (Financial Times, 2016)
- "Although the game is free to play, it relies on the microtransaction model to sell cosmetic outfits and weapon skins." Critiquing a game's monetization.
Memory hook
Micro-transactions are micro (tiny) transactions (payments) that add up to macro spending. Small payments for virtual pixels.
When not to use
Do not use to describe purchasing a full game or a major, story-expanding downloadable content (DLC) pack.
Fun facts
- The first infamous gaming microtransaction was the 'Horse Armor' pack released for The Elder Scrolls IV: Oblivion in 2006, which cost $2.50 and sparked massive player outrage.
Explore more words
freemium, transaction, paywall, subsidy, subscription, monetization
Also appears in
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