It seems the video game industry has become heavily reliant on microtransactions, with major companies such as Take-Two and Electronic Arts generating most of their revenue from live-service subscriptions, games, and in-game purchases.
Games such as Call of Duty: Warzone, Fortnite, and Clash Royale are built around microtransactions, with publishers needing to provide updates to keep their players engaged. The early backlash led to a shift towards more transparent models such as battle passes, which offer seasonal content packages.
It would seem that in-game spending has become a significant source, with Electronic Arts earning $5.6 billion from live services in a recent quarter.
Legal disputes which have seen Epic Games suing Apple over in-game payment systems, and regulatory scrutiny in Europe highlight the contentious nature of in-game purchases.
What Are Microtransactions?
Microtransactions involve users spending real money on in-game items such as virtual currencies, subscriptions and character customization options.
