microtransaction

MY-kroh-tran-zak-shuhn /ˌmaɪkrəʊtrænˈzækʃən/
nounC1IELTS
generalbusiness

A business model where users can purchase virtual items, upgrades, or currency for small amounts of real-world money within a game.

Often controversial, microtransactions are common in free-to-play games and can range from purely cosmetic items (skins) to 'pay-to-win' advantages.

The story behind the word. The term emerged in the early 2000s as internet payment processors became capable of handling very small financial transactions (pennies or single dollars) without charging prohibitive processing fees.

Word relationships

  • in-app purchase: 'In-app purchase' is the broader technical term used by app stores, while 'microtransaction' is the term preferred by the gaming community and industry analysts.

Commonly confused with

  • subscription: A subscription is a recurring payment for ongoing access, while a microtransaction is a one-time purchase of a specific digital asset.

Word family

  • transact (verb): To conduct or carry out business.

Collocations

  • cosmetic microtransactions
  • in-game microtransactions
  • predatory microtransactions
  • microtransaction model

Example sentences

  • "While the game is free to download, it relies heavily on microtransactions to generate revenue from players who want to skip waiting times." An article discussing the economics of modern mobile games.

Memory hook

Microtransactions are 'micro' (tiny) payments that add up to a 'macro' credit card bill. Micro-money for virtual items.

When not to use

Do not use 'microtransaction' to describe buying a full game, a major expansion pack (DLC), or a physical product.

Fun facts

  • The 2006 'Horse Armor' pack for 'The Elder Scrolls IV: Oblivion' is widely considered the infamous pioneer of cosmetic microtransactions in console gaming.

Related words

avatar, sandbox

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