The gaming industry has witnessed immense growth in recent years, mainly when we talk about online purchases and transactions. According to a study, nearly 69% of gamers make money in the form of micropayments via their games.
Before proceeding, it is prudent to mention some earning models that have been in use since the gaming industry gained prominence in the mid-1980s. In the initial days, it was mostly the pay to play model, which was prevalent. As per this model, the user paid the full price of a game and enjoyed uninterrupted access it. However, with time, a new approach was developed wherein the game was reduced into small parts. Every part was charged separately via virtual currency.
Micropayments have been under a lot of scrutiny from the global community of gaming since last few years. This is because these seem to be a cash grab technique for the game developers. Furthermore, they take away the sense of accomplishment that is synonymous with these games.
The benefits and cons of micropayments
A micropayment is basically a commercial transaction where a tiny amount of money is involved, with the sum being no more than a few dollars. Different business models exist within this structure, including pre and post-pay and pay as you go.
The structure of Microtransaction is used by several popular titles in the past years. For instance, while Fortnite is a free video game, it generated $2.4 billion in revenue for the publisher owing to this model.
The primary advantage of this model is that the gamers get to unlock new skins by playing the game for long hours, and they do not have to pay anything for the same.
However, the problem is that developers tend to go a tad bit too far and charge an alarming amount of money as the game proceeds. For instance, certain games make it impossible for the nonplaying gamers to proceed unless they buy the credit packs, which cost them quite a lot. Gamers have spent thousands on microtransactions and later realized their folly.
The use of crypto payments
With online transactions becoming such a vital part of the global gaming industry, a new payment avenue has been introduced for the in-game purchases, which are virtual currencies. It was back in 2017 that the idea was first introduced wherein Steam and Twitch were the first ones who allowed their customers to use cryptocurrencies for in-game transactions. Steam has to disable the option due to the volatility of this currency.
Some platforms that charge in crypto for in-game purchases include Bitrefill, Gipsybee, scan.co.uk, BMI Gaming, and Caseking, among others.
While it is true that many do not appreciate the concept of micropayments, the reality needs to be accepted. It is here to stay. With crypto, there will be a substantial decrease in the cost of individual transactions. Furthermore, crypto assets can easily be scaled down, making it easier for gaming companies to process the transactions.