Case Study
Abstract
Microtransactions and gacha systems have become a major part of modern video games, and recent research shows that they can create conditions similar to gambling. Studies on loot boxes and monetized gaming content consistently show that chance-based purchases are connected to unhealthy gaming and gambling behaviors. Gacha systems, which are built into popular games like Genshin Impact, rely on low odds, unpredictable outcomes, and pity systems that keep players engaged through repeated attempts. These mechanics are built on psychological reinforcement patterns that encourage players to spend more over time, with younger players being especially vulnerable. The research also shows that these systems can normalize gambling-like behaviors, blur the line between gaming and gambling, and increase financial and emotional risks for certain groups. This case study uses evidence from recent academic work to explore how game design, reward frequency, monetization strategies, and player psychology interact to shape future gambling tendencies and what ethical responsibilities developers and regulators should consider.
Table of Contents
Learning Objectives
Understand what microtransactions, loot boxes, and gacha systems are and how they function in modern video games
Explain how chance based reward systems in games can resemble gambling behaviors
Identify why children and teens are more vulnerable to the effects of microtransactions
Recognize the ethical tension between game company profit and player well being
Analyze how game design choices can influence spending habits and long term behavior
Introduction
Microtransactions are everywhere in modern video games. Players buy items, characters, or bonuses with real money, and many games use systems like loot boxes and gacha pulls to give out random rewards. Even though these features are meant to keep games fun, research shows they can influence players in ways that look a lot like gambling. Many games use chance, surprise, and unpredictable outcomes to keep people spending, especially when a reward feels close or when the chance of getting something rare slowly increases. Younger players are especially exposed to these systems. Gaming is a normal part of everyday life for kids and teens, so they often interact with these mechanics without fully thinking about how they work. Research on young players shows that many of them spend money on in-game purchases and repeatedly try to obtain extremely rare items. These habits matter because higher spending on loot boxes has been linked to stronger signs of unhealthy gaming and gambling behaviors later on. Gacha systems make this even more complicated. They use specific drop rates and sometimes a pity mechanic that improves the chance of getting a rare item only after many failed attempts. This encourages players to keep spending because they feel like they are getting closer each time. Some players end up spending more than they intended without receiving the item they want, which makes them feel too invested to stop. Instead of walking away with nothing, they continue spending to reach the pity system or hoping the next attempt will finally be the lucky one, making the money already spent feel less wasted. The gaming industry benefits greatly from these designs. Microtransactions bring in huge amounts of money, giving companies strong reasons to keep these systems in place. Some companies also use player data to push offers that match individual behavior. The problem is that this creates a conflict between profit and player well-being. Research shows that these systems can lead to overspending, frustration, and long-term gambling-like habits, especially for younger players. This case study looks at how microtransactions and gacha systems affect players, what research says about future gambling behaviors, and why this matters. It explores how these mechanics work, why they are effective, and what responsibilities developers, regulators, and players have in creating safe and fair gaming environments.
Background
Microtransactions have grown into one of the biggest changes in gaming, shaping how players experience games and how companies make money. They began with early online games that let players buy simple cosmetic items, then spread quickly as mobile games and app stores became popular. The freemium model played a huge role by letting players download games for free but pay for boosts, power-ups, or items that made the experience easier or more exciting. As this model proved extremely profitable, companies started using microtransactions in larger console and PC games, including loot boxes and gacha systems that used random rewards to keep players spending. This caused a lot of debate, especially when fully priced games used these systems in ways that affected fairness or pushed players toward spending more than they planned. Over time, developers began experimenting with different monetization styles, like battle passes, cosmetic shops, and subscription models, while still keeping microtransactions at the center of their business. Microtransactions also changed how games are designed because developers now think about long term engagement and spending habits from the very beginning of the design process. This history shows how microtransactions became normal in almost every genre of gaming, and why they raise questions about player behavior, fairness, and the impact these systems can have on future habits.
Stakeholders
a) Players
Players, especially children and teens, are the group most directly affected by microtransactions because they spend the most time in these gaming environments and are still developing their decision-making skills. Many young players do not fully understand how odds, spending, or reward systems work, so the excitement of opening loot boxes or pulling for rare items can feel harmless even when it leads to overspending. Games often use bright visuals, quick animations, and the thrill of surprise to make these moments feel rewarding, which can push kids to try again even when the chances of winning something valuable are low. For teens, microtransactions can also become tied to social pressure, since rare items or limited cosmetics can make them feel included or left out among friends. Younger players are more likely to chase a reward because they feel close to getting it, and they may spend more money trying to recover from a bad pull or keep up with others. Over time, these habits can teach players to rely on risky spending patterns without realizing it, which is why this group is especially vulnerable to the long-term effects of microtransaction systems.
b) Game Companies and Developers
Game companies and developers are deeply tied to microtransactions because these systems have become one of the main ways they make money and support long-term game development. Microtransactions give companies a steady income, which helps them release updates, create new content, and keep games running for years. Because of this, developers often design games with long-term engagement in mind, encouraging players to return daily, participate in events, or buy items that make the game feel more rewarding. At the same time, companies face pressure to stay competitive in an industry where almost every major game uses some form of monetization. This makes microtransactions difficult to avoid, even when developers know that certain designs might frustrate players or encourage unhealthy habits. Some companies try to balance fairness with profit by offering mostly cosmetic items, while others rely on chance-based rewards that bring in more revenue but also create more controversy. Developers must also consider regulations and public opinion, since backlash from players or governments can harm a company’s reputation. Overall, game companies and developers are caught between making money, keeping players satisfied, and avoiding harm, which makes them a key part of the discussion around microtransactions and gambling-like behavior.
Discussion Questions
Should game companies be required to limit or change how microtransactions work for minors, or should it be the responsibility of parents and players?
How can developers balance making money through microtransactions with keeping games fair, safe, and enjoyable for everyone?
Do features like pity systems protect players from harm, or do they encourage players to spend more than they intended?
After completing the interactive activity, did your view on microtransactions change, or did it reinforce your original opinion? Explain how considering the consequences of your chosen option affected your thinking.
References
Thavamuni, S., Khalid, M. N. A., & Iida, H. (2021). Inherent addiction mechanisms in video games’ gacha. Frontiers in Psychology, 12, 674354. https://doi.org/10.3389/fpsyg.2021.674354
Gibson, E., Griffiths, M. D., Calado, F., & Harris, A. (2022). The relationship between videogame micro-transactions and problem gaming and gambling: A systematic review. Computers in Human Behavior, 131, 107219. https://doi.org/10.1016/j.chb.2022.107219
Gibson, E., Griffiths, M. D., Calado, F., & Harris, A. (2025). The role of videogame micro-transactions in the relationship between motivations, problem gaming, and problem gambling. Journal of Gambling Studies, 41(4), 1087–1118. https://doi.org/10.1007/s10899-024-10365-9
King, D. L., & Delfabbro, P. H. (2020). The convergence of gambling and monetised gaming activities. Current Opinion in Behavioral Sciences, 31, 32–36. https://doi.org/10.1016/j.cobeha.2019.10.001
The economics of microtransactions. (2024, October 18). Economics Online. https://www.economicsonline.co.uk/definitions/the-rise-of-microtransactions-in-video-games.html/
A history of microtransactions in gaming. (2023, December 12). https://www.cgmagonline.com/articles/a-history-of-microtransactions-in-gaming/