Gaming companies rake in profits one dollar at a time

Games today are full of microtransactions. These are small fees that players can pay for cosmetic upgrades or access to new content. 

Many games also have their own in-game currency, like in Grand Theft Auto (GTA). A new trailer for the game was recently released. The game will be released on May 26, 2026.

“Much of the content available for purchase doesn't directly impact gameplay. It typically includes new looks for game avatars, pets that follow you around, or similar items. But even though these may be small amounts, they can add up to have a significant impact,” says Tobias Scholz.

He is an associate professor at the University of Agder.

Parents have grown up with games

He thinks that because today's parents grew up with games themselves, they're better equipped to understand their social value. 

Scholz encourages parents to also talk to their children about the financial aspects of gaming. 

Here are his tips for parents:

• Play together: Understanding the games your children play helps you make more informed decisions about purchases.
• Set clear boundaries: Set a monthly budget for gaming that covers both game purchases and in-game items.
• Use platform controls: Most gaming platforms offer family settings to help manage purchases.
• Have open discussions: Talk about the difference between virtual and real-world value, and how to balance social interaction with responsible spending.

“Microtransactions are now an embedded part of gaming culture, and ultimately, it's up to the players to decide how they want to engage with them. For a game like GTA, designed for adult players, these choices should be simpler,” says Scholz.

Profitable horses

Microtransactions might be small, but they can generate significant revenue for gaming companies. 

Scholz highlights an example from the gaming company Blizzard. In 2010, they introduced the option to buy a flying horse in the game World of Warcraft. It cost 15 dollars.

The horse generated enormous revenue for the gaming company. Within three hours of its launch, over 140,000 players queued up to buy it, bringing in 3.5 million dollars for the company.

So microtransactions are naturally something game companies invest heavily in. Just a few hours of development can result in millions of extra revenue. 

The horse from Blizzard cost a bit more to develop compared to others, but it made many gaming companies realise the potential of microtransactions. Most amounts are as low as one to two dollars.

“In the current version of GTA, you can also buy advantages. By spending 70 dollars, you get 10 million in the game's currency to use on weapons, cars, outfits, and other content. This will, of course, be part of the new game as well, just like in other games,” says Scholz.

“No limit on spending"

According to the statistics website Statista.com, 36 per cent of Brits reported that they first started playing GTA between the ages of 12 and 15.

This is despite the game having an age rating of 17-18 in most countries. The distributors of the game are well aware of this.

“It's already an issue that kids are playing games they shouldn't, but we also need to talk about the money side of things. What outfits a game character has can really impact status among friends, so parents and teachers need to be aware of that,” says Scholz.

Many parents are familiar with similar issues in games like Minecraft, Fortnite, and Roblox. This aspect of the gaming industry is rapidly evolving, while legislation struggles to keep up. Gaming companies will do whatever they can to maximise revenue from players because they rely on profit. 

Some countries have started working on regulations, but most are still just discussing options and are far from implementing concrete measures. Meanwhile, gaming companies continue to amass large profits.

“The key is not to fight against gaming culture, but to help children develop a healthy relationship with both gaming and spending,” says Scholz.

This content is paid for and presented by the University of Agder

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