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Play and Pay: The Real Costs of Gaming Currencies

“The great thing about games is that they are an evolving world, and digital currencies are the future. We’re already seeing a world where what’s in the game can transcend beyond the game itself.” 

– Hideo Kojima (Creator of Metal Gear series)

It is no secret that the gaming industry has changed drastically in the last few years. One major gaming element that changed is the ‘gaming currencies’. I remember playing classic games like Super Mario, where these currencies were used to buy in-game items. 

But today, it has become much more than that. Now, most games include multiple layers of currencies. But here is the real catch, these can be bought with real money and are increasingly getting linked to real money. It might come as a shocker to you, but even cryptocurrencies and NFTs are emerging in games. 

This involvement of actual currency has also led to many challenges and scams, as explained in this CyberGhost (CG) article. I understand that this synergy between real and in-game money can be a little confusing, especially if you are new to this gaming territory. That is why I’ve tried to explain all these new concepts precisely in this article. 

So, read till the end and learn more about in-game cash. 

How In-Game Cash Works 

I think all of us must be aware of the traditional ways, which include acquiring in-game cash through gameplay to spend it on related items in the game. But, as I mentioned in the introduction, now games have introduced the concepts of microtransactions. This allows players to purchase gaming currencies or items using real-world money, without needing to purchase the whole game. 

It is estimated that only 5 to 20% of gaming communities make microtransactions, which might seem like a small number to you. But you’ll be shocked to know that it is responsible for generating huge revenues for free-to-play games. (Investopedia: How Microtransaction Impact the Economics of Gaming)

Another development in this aspect is multiple currencies in games. For example, in Fortnite, V Bucks is the premium currency and Gold is the usual in-game currency. Both these currencies help purchase different elements, which encourages players for microtransactions.

INTERESTING TIDBIT 
Just like in real-world economies, in-game currencies can fluctuate in value, influenced by game updates, new releases, or player demand. A limited-time item or special event may cause in-game currency values to shift.

How to Effectively Manage Game Cash  

I know the excitement and adrenaline high from the game can feel uplifting and worthwhile, but spend responsibly while sticking to the budget. Remember that you do not need to spend all the money at once, so try to build a reserve and look for sales events to get more of your currency. 

Also, scams in gaming stores have become common these days. Always stick to the authorized in-game stores. Ensure that your account is secured with strong passwords to prevent any unauthorized transactions or purchases. 

The Ethical Considerations. 

Gaming currencies are enhancing the overall gaming experience, there is no question about that, but there are a few ethical concerns as listed below – 

• Pay-to-win Models – Many games allow players to purchase powerful tools to boost their performances. This gives them an edge over other players and can lead to unfair advantages. 

• Psychological manipulation– To maximize profits, games often announce variable rewards or timed offers, which encourage users to spend more than intended. 

• Underage spending – Children are more susceptible to spending money without parental guidance, which can lead to significant consequences.

• Hidden costs – Some games do not provide a clear picture of the actual costs, this lack of transparency makes it difficult for players to track their transactions and can lead to overspending. 

FUN FACT 
The most expensive in-game items purchased using game cash often blow players’ minds. For example, in World of Warcraft, a rare mount sold for over $25,000 when it was auctioned on eBay. These “collector” items, obtained through in-game currencies, can sometimes be resold for eye-watering prices!

The Future of Gaming Currencies 

Looking at the current landscape, I can confidently say that with the rise of technology, we will be able to see more exciting developments in gaming currencies. I’ve enlisted below, some trends and predictions that we might see in the future – 

• Dynamic economic models – Companies are working on inflationary and deflationary currencies, that will fluctuate based on in-game economy, events, and player demands.

• Enhanced payment methods – As the gaming industry expands and becomes more interconnected, players may be able to use universal digital wallets that will make the payment processes much smoother. 

• NFT as in-game assets – Non-fungible tokens (NFTs) are becoming increasingly popular in the gaming sector. Integrating these into the game could allow players to trade these items in both centralized and decentralized markets. 

• Microtransactions – Microtransactions will be tailored to create a more seamless and enjoyable experience for players while providing a sustainable revenue model to the game developers. 

It is expected that the online microtransaction market will grow from USD 80.88 billion in 2024 to USD 121.18 billion at a CAGR of 10.6%. The gaming industry plays a significant part in this surge.

Final Take 

As I already mentioned, gaming currencies enhance the overall gaming experience for players by providing a convenient way to unlock progressive rewards in the game, But as it is said, every coin has two sides. The excitement and dopamine spikes from making in-game purchases can lead to addictions or overspending. 

Players should keep in mind the potential risks and ethical considerations concerning these aspects of the game. In the end, I would just advise you to spend responsibly and not get blinded by the thrill of buying new items in the game.

Posted by

Priya Prakash

Internet Writer