Microtransaction
A microtransaction, sometimes called a MTX, is any low-priced digital purchases made within video games and apps. Examples include new weapons, skins, vehicles, outfits, etc.
Microtransactions are prolific in F2P (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.
On April 3, 2006, Bethesda released horse armor for $2.50 for its game Elder Scrolls IV: Oblivion. Although not the first microtransaction in a game, many remember this horse armor as a gaming turning point because of the news it garnered.
Business terms, Computer abbreviations, DLC, F2P, Freemium, Game terms, In-app purchase, Internet terms, Loot box, Pay-to-win, Subscribe, TLA