How does Micro-transactions as a Business Model Affect the Player Enjoyment of Games

Frederik Lysgaard

Student thesis: Master thesis


Over the last couple of decades the game industry and video games has grown from being something only male teenagers played in their rooms, and now it has evolved into a multi billion dollar industry with all kinds of consumers from young people to busy house moms, and old folks. With the rise of the video game industry new business models has emerged, one of these being micro-transactions. In the report the habits of consumers and the attitudes they have and how they work is investigated in relation to micro-transactions. The study then identifies the eight core elements of the GameFlow model: the game, clear goals, immersion, challenge, control, concentration, feedback and social interaction and these are used to measure game enjoyment. The study then looks into how micro-transactions affect the core elements of GameFlow specifically immersion, challenge, control and concentration. The data for the report was gathered with both quantitative and qualitative methods, a series of semi-structured interviews and web based questionnaire was conducted to get a better understanding on the effects of micro-transactions on game enjoyment. The results showed that micro-transactions will always affect some players but some types of micro-transactions has a greater impact on game enjoyment than others, specifically game changing microtransactions.

EducationsMSc in Business Administration and Information Systems, (Graduate Programme) Final Thesis
Publication date2016
Number of pages84