microtransaction

[ mahy-kroh-tran-sak-shuhn, -zak- ]

noun

1. a relatively inexpensive payment for part of a product or for an upgraded service or experience: often at the core of an alternative sales and revenue model for businesses to maximize profit with a very large volume of piecemeal or à la carte sales, rather than a single lump sum transaction for each full product sold: The vehicle comes with heated seats, but you won’t be able to use them without enrolling in a recurring microtransaction with the manufacturer.

   Developers call this genre of game free-to-play, but the fact is you’ll never succeed without shelling out microtransactions at every level for the gear your character will need.

   The vehicle comes with heated seats, but you won’t be able to use them without enrolling in a recurring microtransaction with the manufacturer.

Word History and Origins

Origin of microtransaction¹

First recorded in 1985–90; micro- ( def ) + transaction ( def )

Example Sentences

Genshin Impact, Destiny 2 and Apex Legends have all earned hundreds of millions of dollars through microtransactions, but as competition for players’ time increases, the financial strategy finds itself in limbo.

From New York Times

For the first three years, Redfall had a significant microtransaction plan in place.

From Seattle Times

Rather than profiting from the initial sale of a video game, many of today's gaming companies rely on revenue generated by in-game purchases, or microtransactions.

From BBC

It seems possible that system could come with some upcharges; mobile games often use upgrades and gear as an opportunity to charge users, and the original Division included a microtransaction system for cosmetics and skins.

From The Verge

This was then followed up by an improved and expanded sequel, which only reached its full potential years after it was nearly immobilized by an industry-shaking microtransaction controversy.

From The Verge