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Elvis Velasquez

Professor Malcolm Campbell

UWRT 1104

2/4/2019

Topic Proposal: Micro-transaction in video games

Introduction/Overview

The topic that interest me is the existence of micro-transactions within video games.

More specifically, I will focus on whether micro-transactions are necessary for future game

development. Micro-transactions are items that a player can buy within a game which usually

include cosmetic items, advantageous items and loot boxes which award random rewards for a

particular game. Major development companies have stated that they are necessary to cover

increasing cost of game development, yet decisions such as giving new executives sign on deals

of over ten million dollars (as reported by ngf.com) while certain games take much less to create

don’t support their statements. As such, I will focus on whether micro-transactions are necessary

or if action should be taken to counter predatory actions.

Micro-transactions have brought the game economy to a scary state which could possibly

lead to a game crash such as the one that occurred in 1983 (worldhistoryproject.org). The

incentive for micro-transaction is clear to see, profit, lots of it. However, major game developing

companies have taken full advantage of this and use predatory tactics such as locking massive

amounts of content behind a pay wall and giving unfair advantages to those who pay more

money than others. Furthermore, loot boxes are highly considered a form of gambling and are

accessible to kids of all ages, which can lead to bad habits further in their lives because of the
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detrimental psychological effects. These purchases are also terribly priced ranging from one

dollar to more than twenty, all of which are usually put on top of the retail price of the game.

Technically my research began from a young age, I was introduced to micro-transactions

at about the age of 14. Playing a game called Call of Duty, within the in game digital store it

offered different paints for the weapons you used within the game and nice tags that other

players could see for generally low prices, the highest being around three dollars. As I decided to

focus on this topic I delved further into the origins by researching online websites including IGN

or game informer and YouTube videos that discuss the effect of micro-transactions on the

gaming community and economy from commenters such as Yong Yea. Furthermore, I will do

research in the library focusing on economic needs and continue to research the evolution of in

game micro-transactions by speaking with various players of different games and game

developers.

Until recently micro-transactions have remained outside of the spotlight because it only

affects a particular demographic, gamers. Even so, the complexity of the issue at hand is much

more diverse. The main issue is the obvious abuse of players by major companies, much of the

treatment of gamers by large companies is something that would not be tolerated elsewhere. For

example, if a company such as Wal-Mart began skyrocketing prices or selling pieces of a bike

individually at insane prices outrage would surely follow. Companies believe that these methods

are necessary for the development of newer games, however games sale statistics prove

beneficial return upon release without micro-transactions. A good example for this is Black ops 4

making over half a billion while only taking around 6 million to make. Apart from the

companies, the most popular opinion is that micro-transactions could happily be removed. In the

end, there are various micro-transactions that are welcome as they are reasonably priced and
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offer true incentive while also being available through other in game methods so to not spend

real money. Micro-transactions such as these are considered by players that wish to support

developers they love but are few and far in between.

Initial Inquiry Question(s)

Are micro-transactions necessary for game development? Will micro-transactions lead to

another game crash? Are micro-transactions dangerous to children development or addiction in

adults? Should legislation be introduced to prohibit or limit micro-transactions? Is there a

compromise for major companies and consumers on the issue of micro-transaction?

My Interest in this Topic

I am interested in the issue over micro-transactions because I am very passionate about

video games. I began playing at about the age of four with the Nintendo 64 playing super Mario

kart and it has been a loving relationship ever since. Over the many years I played on many

different consoles and many different games, the evolution and capabilities of games is truly

amazing. With evolution came new opportunities such as the capability to connect games to the

internet, the ability to add content to a game by making it downloadable and with no delay the

ability to charge for extra downloadable content. I began playing video games when companies

sought to create amazing stories, incredible gameplay experiences or simply spill out their

creative passion in hopes of creating an amazing game, it was beautiful. Today these efforts still

exist but, they exist under a large cloud of corporate greed and stagnant creations. Before many

games had an opportunity to be sold, today it is much harder due to the quality expected from big

budgets that not all projects have. This leads major companies to create games that are seen as
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profitable, destroying creativity, limiting the diversity of games and creating a toxicity between

consumer and developer.

I am open to micro-transactions however, developers have resorted to tactics such as

removing content from a complete game to be sold later as separate or extra content, locking

content behind pay walls, locking the most desirable items behind vendors who require real

money, targeting the younger demographic and simply taking advantage of the gaming

community because of the profit they have made. When abuse is apparent it must be stopped yet,

currently it only continues to stifle games, while they can be fair and optional their current state

are only to feed greed. I have a deep love for video games, seeing the dark path that many games

are taking is quite heart wrenching, while there are still some games that refuse to follow the

path, it is sickening to see hidden potential lost to corporate greed. Throughout the research I

hope to learn if micro-transactions are truly necessary.

Next Steps
I will diversify my resources to some library books on economics and game history,

currently they are mostly informational YouTube videos and a few websites. Next, I will discuss

with other passionate gamers on the topic of Micro-transactions and the current state of gaming.

Furthermore, I will research the cost of game development by speaking to game developers I

personally know, compare that to other major games such as triple A titles and finalize that

research by looking at revenue and loss. Lastly, I will research the phycological effect of Micro-

transactions on players.