Berliano Putra Kukuh Wibowo Semester 2 Fakultas Teknik Informatika Universitas Muhammadiyah Malang Lentera24.com - In the last few years, u...
Berliano Putra Kukuh Wibowo Semester 2 Fakultas Teknik Informatika Universitas Muhammadiyah Malang
Lentera24.com - In the last few years, utilization of in-game currencies in the shape of gems, coins, or points in video games has transformed the gaming landscape. The in-game currencies facilitate the unlocking of content, customization of experiences, and acceleration of progress. Concerns have been raised, however, regarding their impact on spending behaviors, particularly among children. The psychological mechanisms pertaining to spending in-game currencies, the likelihood of excessive spending, the impact on children, and the regulatory responses to such trends are examined in this article.
1. Psychological Factors Behind Spending In-Game Money
In-game money has the tendency to obscure the actual cost of spending in real life, hence causing the phenomenon known as "currency distortion." The absence of attachment to real money is likely to cause increased spending, as players are not necessarily aware of the monetary cost of their in-game expenditures. Research has indicated that individuals will pay more if they perceive that it will prevent them from losses or allow them to continue winning, which is a loss aversion phenomenon. It is used in game situations when players spend money not to lose progress or lose the progress they have already made but are afraid to lose the status or progress they already have. Touro University Worldwide
2. The Risk of Spending Too Much and Debt The in-game purchase model can lead to excessive spending and, in some cases, debt. A study in Addictive Behaviors did a survey on adult gamblers and found that loneliness was associated with increased loot box purchasing. In addition, problem gambling mediated the relationship between loot box purchasing and debt, suggesting that individuals may resort to borrowing to pay for their in-game purchases.
PMC
3. Impact on Children and Adolescents
Children and adolescents are particularly vulnerable to monetization strategies employed within video games. Social pressure and desire for social approval can result in young gamers spending money on in-game transactions. For example, in multiplayer games, children might feel pressure to spend money so that they don't let down their team mates with poorer equipment or skills.
Family Online Safety Institute
Moreover, the complexity and deviousness of the in-game expenditure feature can lead to accidental overexpenditures by children. It has been found, through a study at the University of Sydney, that children struggle to deal with such features, thus the need for regulations to protect young consumers. The University of Sydney
4. Regulatory Responses and Consumer Protection Regulatory bodies have begun addressing the problems created by in-game currency. The Consumer Financial Protection Bureau (CFPB) issued a report examining the growth of financial transactions in online video games, highlighting concerns about scams and theft on gaming platforms and the lack of expected consumer protections. \ Consumer Financial Protection Bureau
At a European level, there are newly enacted consumer protection laws for virtual currencies used for video games. The new law has the intent to promote openness and equity when making in-game purchases so consumers become more informed about the underlying real-world monetary expenses of the virtual currencies.
National Law Review
5. Responsible Engagement Recommendations
In a bid to win the challenges behind in-game money, parents and gamers can embrace the following tips:
Set Limits on Spending: Plan a budget for spending in the game to prevent overspending by mistake.
Track Spending: Review in-game spending from time to time to remain aware of overall expenses.
Teach Younger Players: Inform children and youth about real-world implications of spending in the game to teach them to spend wisely.
Employ Parental Controls: Employ parental controls to restrict or monitor spending in the game by youth.
ScienceDirect
The convergence of in-game currencies in video games is both an opportunity and a challenge. On one hand, they can enrich the gaming experience. On the other hand, it is extremely important that the players, parents, and regulators be watchful of the possibility of overspending and the psychological processes driving it. Through evoking awareness and taking precautionary steps, the gaming community can strive towards an open and responsible gaming world.
Sources :
The Psychology Behind Microtransactions (Touro University Worldwide)
🔗 https://www.tuw.edu/psychology/psychology-behind-microtransactions/
Addictive Behaviors – Loot box purchasing and problem gambling (NIH/PubMed Central)
🔗 https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10616135/
Family Online Safety Institute – Understanding In-Game Purchases and Their Impact on Kids
🔗 https://www.fosi.org/good-digital-parenting/gaming-safely-understanding-in-game-purchases-and-their-impact-on-kids
University of Sydney – Study on Roblox and Child Gambling
🔗 https://www.sydney.edu.au/news-opinion/news/2025/03/24/literally-just-child-gambling-study-urges-swift-regulation-of-roblox.html
Consumer Financial Protection Bureau – Video Game Marketplace Risks Report
🔗 https://www.consumerfinance.gov/about-us/newsroom/cfpb-report-identifies-financial-and-privacy-risks-to-consumers-in-video-gaming-marketplaces/
National Law Review – EU Consumer Protection Guidelines for Virtual Currencies
🔗 https://natlawreview.com/article/eu-new-european-consumer-protection-guidelines-virtual-currencies-video-games.***
