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{{short description|Video game business model}}
{{use mdy dates|date=September 2019}}
'''Microtransactions''', often abbreviated as '''mtx''',<ref name="Ivanov">{{cite book|last1=Ivanov|first1=M.|title=Simulation & Gaming Through Times and Across Disciplines|last2=Wittenzellner|last3=Washboard|first3=M.|date=2019|publisher=Kozminski University|isbn=978-83-66502-01-7|editor1-last=Wardaszko|editor1-first=Marcin|location=Warsaw|page=422|chapter=Video game monetization mechanisms in triple A (AAA) video games|chapter-url=https://books.google.com/books?id=Wkq4DwAAQBAJ&q=mtx}}</ref><ref name="Chandler">{{cite book |last1=Chandler |first1=Heather Maxwell |title=The Game Production Toolbox |date=2020 |publisher=CRC Press |location=Boca Raton, Fla. |isbn=978-0-429-80178-5 |page=18 |url=https://books.google.com/books?id=MPHcDwAAQBAJ&q=mtx}}</ref> are a [[business model]] where users can purchase [[virtual goods]] with payments or [[micropayment]]s. Microtransactions are often used in [[free-to-play]] games to provide a revenue source for the developers. While microtransactions are a staple of the [[mobile app]] market, they are also seen on PC software such as [[Valve Corporation|Valve]]'s [[Steam (service)|Steam]] digital distribution platform, as well as console gaming.
Free-to-play games that include a microtransaction model are sometimes referred to as "[[freemium]]". Another term, "[[pay-to-win]]", is sometimes used pejoratively to refer to games where buying items in-game can give a player a disproportionate advantage over other players,<ref>{{Cite web|title = EA suspends in-game payments for new 'Star Wars: Battlefront II' video game|url = https://www.marketwatch.com/story/ea-suspends-in-game-payments-for-new-star-wars-battlefront-ii-video-game-2017-11-16|website = Marketwatch|access-date = July 11, 2019}}</ref> particularly if the items cannot be obtained through free means. The objective with a free-to-play microtransaction model is to involve more players in the game by providing desirable items or features that players can purchase if they lack the skill or available time to earn these through regular game play. Also, presumably the game developer's marketing strategy is that in the long term, the revenue from a micro transaction system will outweigh the revenue from a one-time-purchase game.
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