Online Gaming Pitfalls: Navigating the Risks of In-Game Add-On Purchases

In-game add-on purchases have been noted as a system that turns players into payers. Video companies use behavioural psychology to stimulate and hit users with an in-game purchase. This system is highly successful and used in several video games.

The system is disguised from its users in a way that makes the games appear as if they are free. This is a system used by most digital games, except for online casinos. Online casinos often require you to deposit to play games like Jackpot 6000 and others. They commonly also state their wagering requirements clearly in terms of bonuses they offer.

In-app purchases are a system that monetises gaming and can now be found in many video games. According to studies, how much you play can have an effect on how much money you spend on games. This suggests that gamers should be concerned about issues more than just gaming addiction. Read on as we look at the dangers related to in-game purchases.

How In-Game Add-On Purchases Work and Common Concerns

In-game add-on purchases are optional for users and players, and they often require your credit or debit card for transactions to get the extra tools you need to pass a level in a game. Doing a purchase while using an unsecured Wi-Fi network could cause problems, making it easier for hackers to access your personal information.

The gaming industry’s term for these in-game purchases is “microtransactions” because of the low amount required to purchase a single item. Creating a gaming bundle is the trick that is often seen and used - value packs are offered players to purchase, or the game simply requires a player to repeat a purchase to advance in the game.

These seemingly minor and unimportant microtransactions can soon pile up to thousands, or even millions, of dollars. By its nature, this method of monetisation can mostly affect those who have a history of gambling issues.

There’s No Free Play

Offering in-game add-on purchases eliminates the element of free play in video gaming. The packaging can be seen as a way of enticing players into spending money on so-called free games. The free-to-play games actually generate a revenue of over €70 billion annually with these in-game purchases.

It’s considered a hidden cost for users of apps that don't want to pay for the app. Adding in-game add-on purchases diverts what would have been used to purchase the app into the game. 

These in-app purchases are strategically timed into parts of the game where the player may be more emotionally active. When emotions are high, the ability to reason and make smart decisions is compromised. It is proven to be harder for adults and worse for children and teenage players.

An example of a game that generated millions from in-game purchases is Candy Crush Saga. Candy Crush Saga is a simple puzzle game, but the urge to move to the next level is very high, as you can connect and see other players as they rise in the game. Game developers use triggers to get players to spend within the games.

In Gaming Sales Techniques

The video game industry generates more money than the music, movie and sports industries. This is all because of their sales techniques. Game companies first want players to be involved and then entice them to spend money on a game. The standard methods used in gaming sales include microtransactions, personalised pricing, hidden advertising, algorithms determining the best sales strategy, limited-time offers and loot boxes.

The Psychological Element in In-Game Add-On Purchases

For decades, psychologists have known that the best way to get someone to form a new habit is to reward them for that behaviour. The secret to this reward is to deliver it unpredictably. If an animal or a person enjoys a particular reward for an action, they will likely keep repeating the action.

Video game companies use this psychology to study players' behavioural actions that contribute to habit-forming. This area of psychology is known as apparent conditioning, which simply means creating habits. In gaming, variable ratio is what is used to deliver rewards unpredictably to players.

Attributes that Link In-Game Purchases to Addictions

There are attributes that link in-game purchases to addictions. A player may have financial problems and miss important payments like utilities and rent because that money has been spent on a game. Gaming becomes the most important thing in the player's life and overrides all other forms of socialisation such as work, school and family time, and they may even start ignoring their hygiene and health.

They stay up late just to beat the next level and often struggle to wake up in the morning.

They become depressed and anxious, especially when they can't get their next in-app purchase. They don't leave their private space such as the bedroom or basement, except when they want to use the bathroom or eat. Family members start to fear the person and feel like they no longer recognize them.

How to Avoid Impulse In-Game Purchases

All it takes is a click of a button to make an in-game purchase. To help you avoid making impulsive purchases when gaming, remove all debit and credit cards and banking information from your electronic devices and app store accounts. For children, ensure they can't access this information in other ways as well.

Set a budget for your gaming needs. Consider how much you can spend on in-app purchases. Have a  limit, and don't exceed it. By all means, avoid all manipulative tactics used in in-app game purchases.

Understand the game's interface and design, as most games are designed to trick players into making microtransactions.

In-App Purchasing and the Law

Gaming companies and developers should consider the following legal concerns when developing in-app purchases.

The main concern in in-app purchases is Consumer Protection. Consumer protection laws in the European Union and the United States require a business to provide accurate information about their goods and services. This must also have clear terms and conditions. For developers, this means they must be transparent about the nature of their in-app purchases, including their cost and function.

The use of customer personal data is also a major concern. Most in-app purchases require users to provide their personal information. Gaming companies have to comply with data protection laws; they must have a legitimate basis to collect and process all information. They also have the duty to provide clear information on what customers’ data will be used for and how it will be protected.

Proper consent should also be obtained from the user before processing any transactions. This consent shouldn’t only be obtained with the first transaction but with all transactions.

App developers should also be aware of any legal disputes arising from in-app purchases, especially concerning intellectual property rights. Failure to produce the necessary licences and permissions for copyrighted information could result in financial penalties for these app developers.