A microtransaction is any low-priced digital purchases made within video games and apps. Examples include new weapons, skins, vehicles, outfits, etc.

Microtransactions are prolific in free-to-play games. In this business model, the game itself is free, but the items mentioned above are only available through an in-game store via cash or purchased tokens or loot boxes.

Microtransactions are controversial in that they can give certain players an unfair advantage by spending more money. This phenomenon has spawned the term “pay-to-win” amongst gamers.

Business terms, F2P, Freemium, Game terms, Internet terms, Pay-to-win