Console games seem to have one mission and one mission only: drain your bank account and rob you blind.
There are loot boxes, microtransactions, battle passes, V-Bucks… you name it.
The game publishers have mastered the art of extracting as much money from their player bases as possible.
In-game economies have completely changed the economics of playing and paying for games.
Fortnite Battle Passes and Ultimate Team FIFA Points are just two examples of console games that have completely shifted their game economy online, with some of the biggest sellers raking in billions of dollars each.
Check out these stats: In 2024, 58% of all revenue in gaming came from microtransactions, equalling a monumental $24 billion paid by players all over the world.
The truth is that understanding in-game economies and the psychology behind them can help you save money and make more intelligent purchasing decisions about what you are really buying.
In this guide, we are going to talk about:
- How In-Game Currencies Really Work
- Why Console Games Use Virtual Money
- The Different Types of In-Game Purchases
- How to Spot Pay-To-Win Mechanics
- Smart Spending Tips for Console Gamers
How In-Game Currencies Really Work
In-game currencies are the fake money you use inside a video game to buy things. Unlike real cash, these digital coins come with a couple of tricks game developers use to manipulate players into spending more.
One of the biggest things to understand is that most games today do not allow you to pay with real money for the items you want to buy.
If you really want to purchase a skin or a gun in a game, the only way to do that is by buying some virtual currency first and then use those to make purchases.
So you buy 1,000 V-Bucks for $10 in Fortnite and then spend those V-Bucks on a new skin or battle pass.
This is a psychological trick. If you have to first buy a currency and then buy items with that currency it feels less like spending actual money. It tricks your brain into not processing the information the same way as if you paid the real price in actual dollars.
Sound familiar? This is exactly how casinos get you to play with chips instead of your real money.
And there is another trick that most games use to trick you into spending even more.
They will almost always sell you currency in bundles that are not equal to the price of items you want to buy.
If something you want to buy costs 1,000 coins, they will only sell you currency in bundles of 700 or 1,600 coins. This way you are always left with leftover currency at the end of the day that is basically worthless if you are not going to buy even more stuff.
Psychology 101.
Why Console Games Use Virtual Money
The console gaming experience used to be very different before in-game currencies and virtual money.
In the old days, you paid, let’s say $60 for a full game. You received a copy of the game on a disc or a download code, and that was it. No more microtransactions, no season passes, just one price for the full experience.
So what happened?
Mobile games. The rise of mobile gaming showed game developers and publishers that they could make much more money with players if they incentivized and enabled ongoing spending.
The game economy exploded in mobile with in-game currencies and microtransactions. It became a much bigger source of money than full game purchases.
Online gaming platforms like link-zzang.com and network connected consoles provided the infrastructure and payment processing needed to bring the same systems from mobile to console games.
Console games generate approximately $51 billion in revenue annually, or 28% of the total gaming market. This is a massive amount of money, much of which comes from in-game purchases.
Game companies have figured out that players will pay $60 for a full game, AND they will happily continue spending afterwards if the game has enough fresh content and new features being released.
It has effectively turned gaming from a product into a service.
The “live service” model is now the standard in most games.
Free-to-play games like Fortnite or Apex Legends don’t cost you anything to start playing. But once you get in, companies will work to get you to spend as much as possible by hooking you on their service.
These game companies also make money selling full game titles for consoles that include season passes and microtransactions, like Call of Duty.
The Different Types of In-Game Purchases
There are different types of in-game purchases, and it is important to understand the differences so you know what you are spending money on.
Cosmetic items are skins, outfits, and purely visual elements that do not have an impact on gameplay. Players typically have a free choice if they want to buy these microtransactions or not. That is why these are often referred to as the “fairest” kind of in-game purchase.
Battle passes are time-limited passes you buy to unlock rewards by completing challenges. They are a good value if you are constantly playing, but it requires a time commitment before a season ends.
Loot boxes are randomized bundles of content where you never know what you are going to get. Some countries have banned them because they are basically gambling. You can spend $100 on loot boxes and still never unlock the specific character or skin you want.
Pay-to-win items are any content that give you actual gameplay advantages, like better weapons, upgrades, or power-ups. These items give some players advantages over others and split the player base into those who pay and those who do not.
How to Spot Pay-To-Win Mechanics
It can be difficult to tell right away if a game is pay-to-win or not, but there are some warning signs to look for:
If a game allows players to compete against each other in any way, either directly or in multiplayer modes, any stat, weapon, or power-up advantage a paying player gets is pay-to-win. Games should be even playing fields of skill, not money.
If it takes hundreds of hours to unlock the same premium items that you can buy with money, it is designed to encourage you to pay. Free grinds should be available, but not at the cost of your time.
If the game pressures you with “limited time offers” constantly in order to rush your decision making, that is a red flag. Fear of missing out is a dangerous tool.
Gamers spent an estimated $80 billion in microtransactions in 2024 worldwide. This is a ton of money being dropped on virtual items.
But it turns out that a lot of that money was regretted, with many players later saying they did not feel their purchases were worth it.
Smart Spending Tips for Console Gamers
So how can you be smart with your gaming budget?
Set a monthly limit and stick to it. This should be your entertainment budget for games as well, not unlimited. If you only want to spend $20 a month, then cap yourself to that amount and never go over.
If you see something you want, wait a day or 24 hours before buying. Most of the time, you will find that you don’t really need it after all.
Always do the math when buying virtual currency. When you buy coins or points, always figure out the actual real cost of items you want to buy in dollars.
Stay away from loot boxes like the plague. The whole idea is to keep you addicted and empty your wallet.
Figure out if it is possible to earn it through gameplay first. If you want something, can you unlock it through regular gameplay instead of paying for it? Try to at least see if it is possible before you buy it.
Do your research before any big purchases. Before buying any season passes or expansions, look up reviews and see if other players think it was worth it.
Don’t take the game companies word for it. You are their customer, and they are trying to sell you stuff. That does not mean you can’t enjoy games or make in-game purchases. Just be smart about what you are spending your money on.
In-game purchases should be treated like any other spending. Ask yourself: Is it worth it? Can I afford it? Will I regret this later?
If you keep those three questions in mind, you are way ahead of most other players.
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