Microtransactions & DLC

Microtransactions are small in-game purchases that are offered to players of a particular game, that when purchased, seek to enhance a players experience of that game. Downloadable content (DLC) is similiar to a microtransaction, but more often refers to the purchase or "unlock" of additional game content, that was not included with the fee of the originally purchased game.

Microtransactions

For example, Fifa Ultimate Team -

DLC

For example, Arma III Apex -

Advantages of Microtransactions / DLC:

• Extra source of income for developers or third-party "modders" (e.g. developing and selling "skins" for a moddable game)
• Can enhance a players experience, either cosmetically, or with in-game items to help players achieve success or complete challenges more easily
• DLC allows profit to be made after initial release, which also prolongs the lifespan of a game
• Because of this prolonged lifespan, the quality of a game can be further refined or enhanced long after release.

Disadvantages of Microtransactions / DLC:

• "Pay-to-win" (P2W) game models - players that cannot afford microtransactions may be disadvantaged in-game when non-cosmetic purchases are available.
• Microtransactions could be considered gambling for minors (see "loot box controversy with Belgian Gaming Commission")
• In game currencies can lead to illegal online currency "stores", that sell in-game currencies at cheaper rates. Often these stores have come across these excess digital amounts through glitches, hacks or "gold farming". These practises may also involve using prison labor camps in poorer countries - which may constitute a human rights abuse. They can also skew in-game market economies, thus causing full fee paying customers to pay even more.
• Game companies may deliberately make "end-game" items or achievements incredibly hard to achieve (despite claiming otherwise), thus subtly "pushing" more consumers to pay extra when they were not intending too.. this could be considered deceptive.

Other Considerations with Microtransactions / DLC:

• It was predicted years ago that one day all games will be "free-to-play", and will rely solely on micro-transactions for revenue. Source? Have a guess which game company said that..