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Digital Object Identifier 10.1109/ACCESS.2023.3341057
Framework for Ethically Designed
Microtransactions in the Metaverse
LUIS MARTÍN SÁNCHEZ-ADAME 1, (Member, IEEE), GUILLERMO MONROY-RODRÍGUEZ 2,
SONIA MENDOZA 2, (Member, IEEE), DOMINIQUE DECOUCHANT3,
AND ALFREDO PIERO MATEOS-PAPIS3
1Design and Building Division, FES-Acatlán, UNAM, State of Mexico 53150, Mexico
2Computer Science Department, CINVESTAV-IPN, Mexico City 07360, Mexico
3Information Technologies Department, UAM, Cuajimalpa Campus, Mexico City 05348, Mexico
Corresponding author: Sonia Mendoza (sonia.mendoza@cinvestav.mx)
ABSTRACT Microtransactions, small in-app purchases within virtual environments, have become
increasingly prevalent in modern gaming, often leading to addictive behaviors and financial burdens,
particularly among young male players. The potential consequences of such microtransactions within
the metaverse extend beyond gaming, as they provide companies with unprecedented control over user
experiences and the ability to capitalize personal data for targeted advertising and manipulative practices.
This article presents a comprehensive framework for the ethical analysis and design of microtransactions
in the metaverse to address these concerns. This three-dimensional framework explores Motivation,
Engagement, and Fairness to evaluate the impact of microtransactions on user autonomy, social interactions,
and overall fairness. Additionally, the paper conducts a running example on World of Warcraft to assess the
alignment of its microtransaction design choices with the proposed ethical principles. By shedding light on
these issues, this article aims to raise awareness among consumers, developers, and policymakers about the
need for responsible practices, consumer protection, and privacy preservation in the metaverse. It emphasizes
fostering collaboration and transparency to safeguard users from misuse while promoting a user-centric
metaverse ecosystem.
INDEX TERMS Design, ethics, metaverse, microtransactions, video games.
I. INTRODUCTION
The rise of the metaverse has sparked a lot of excitement
and speculation, capturing the imagination of technologists,
researchers, and consumers alike. While the metaverse
remains a nebulous concept, its potential impact on our
digital lives and society cannot be ignored. In exploring
the implications associated with microtransactions within
this evolving landscape, it is essential to draw upon the
experiences and lessons learned from the realm of video
games.
Video games, especially massively multiplayer online
(MMO) games, have long provided a glimpse into the
dynamics of virtual ecosystems and how people interact
within them [1]. These immersive digital worlds have
The associate editor coordinating the review of this manuscript and
approving it for publication was Derek Abbott .
served as testing grounds for microtransaction models,
offering insights into the effects on player behavior, addictive
tendencies, and financial implications [2]. Understanding
the impact of microtransactions in the gaming industry
provides a valuable foundation for analyzing their potential
ramifications in the metaverse.
While the metaverse promises a more encompassing
and immersive experience, tempering the hype and novelty
surrounding it is crucial. Notable figures like Gabe Newell
have expressed skepticism, highlighting the importance of
recognizing the depth and complexity already present within
MMOs [3]. That is why the metaverse should include the
valuable lessons learned from the virtual communities that
have flourished in gaming environments.
This article aims to bridge the gap between the cur-
rent understanding of microtransactions in video games
and their potential manifestation within the metaverse.
VOLUME 11, 2023
2023 The Authors. This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.
For more information, see https://creativecommons.org/licenses/by-nc-nd/4.0/ 140687
L. M. Sánchez-Adame et al.: Framework for Ethically Designed Microtransactions in the Metaverse
By acknowledging the rich experiences and interactions
facilitated by MMOs, we can better grasp the possibilities
associated with microtransactions and their broader implica-
tions in a virtual realm where the boundaries between reality
and digital spaces blur.
By exploring the parallels between video games and the
metaverse, we gain insights into the potential challenges that
may arise. Leveraging this understanding, we can evaluate
the impact of microtransactions on user behavior, eco-
nomic structures, and social dynamics within the metaverse.
Furthermore, we emphasize the need for caution, ethical
considerations, and consumer protections as this new frontier
takes shape.
This paper is structured as follows: Section II delves
into a comprehensive understanding of the metaverse and
its components. In Section III, we provide a background
on the current landscape of microtransactions in virtual
environments and discuss a taxonomy, business models, moti-
vations, and their relation with addictive behaviors. To guide
ethical analysis and design, Section IV presents a framework
that evaluates microtransactions based on dimensions such
as Motivation, Engagement, and Fairness. The framework
serves as a foundation for the running example conducted
in Section V, which examines microtransactions in World of
Warcraft. In Section VI, we engage in a broader discussion
on the implications of our findings and their relevance in
the broader context of the metaverse. Finally, the paper
concludes in Section VIII by summarizing the key insights
and suggesting future directions for the ethical design of
microtransactions in the metaverse.
II. WHAT IS THE METAVERSE?
Inspired by the visionary world of science fiction, the
metaverse concept has taken shape through a growing
body of research and discourse. Neal Stephenson’s science
fiction novel ‘‘Snow Crash,’’ published in 1992, introduced
the term ‘‘metaverse’’ and sparked imaginations about
interconnected virtual realms [4]. Scholars and researchers
have explored various dimensions of the metaverse in recent
years, providing diverse insights into this evolving virtual
landscape.
Weinberger [5] presents a comprehensive definition of the
metaverse, synthesized from existing literature, describing
it as ‘‘an interconnected web of ubiquitous virtual worlds
partly overlapping with and enhancing the physical world.’’
Al-Ghaili et al. [6] offer a chronological review of metaverse
development, illustrating a pyramid architecture encom-
passing virtual, augmented, mixed, and extended realities.
Almoqbel et al. [7] conduct a systematic literature review
to map scholarly definitions, revealing overlapping themes
while identifying nuanced differences. Their classification of
metaverse definitions encompasses users and roles, activities,
content creation, technical specifications, and the involved
spaces. Mozumder et al. [8] provide a technology roadmap
for the metaverse, incorporating IoT, blockchain, Artificial
Intelligence (AI) techniques, and medical domain activities.
These studies collectively portray the metaverse as an
interconnected, immersive, and persistent virtual world that
enhances the physical world.
In the context of its components, Park and Kim [9] empha-
size the hardware, software, and content as integral elements
of the metaverse. Additionally, Chen and Cheng [10] propose
that the metaverse’s economic system may mirror that of
the real world, encompassing functional, hedonic, social,
and programmable values. They emphasize the user’s central
role as a content consumer and producer, shaping economic
activity within the metaverse. Yang et al. [11] stress the
significance of property rights and monetary systems in
ensuring a smooth-functioning metaverse economy, leading
to an increasing reliance on blockchain technology for these
aspects. Lastly, Facebook’s intention to create a metaverse
has been analyzed as a potential radical business model
innovation. However, Kraus et al. [12] suggest that the shift
will likely be incremental.
III. BACKGROUND
As we explore the ethical implications of microtransactions
in the metaverse, it is essential to ground our analysis
in a comprehensive understanding of this evolving virtual
landscape. In the previous section, we delved into various
scholarly perspectives on the metaverse, highlighting its
interconnected virtual worlds and potential to enhance the
physical realm. Now, we provide a comprehensive overview
of the foundational elements underpinning the study of
microtransactions in video games and virtual environments.
We begin by delving into the taxonomy of microtransactions
(see Section III-A), where we categorize these in-game pur-
chases into distinct groups based on their impact on gameplay
and player experiences. Subsequently, we explore various
business models game developers adopt to monetize their
products (see Section III-B), ranging from non-competitive
cosmetic offerings to competitive pay-to-win mechanics.
Furthermore, we delve into the motivations for microtrans-
action purchases (see Section III-C), drawing insights from
psychological theories like the Self-Determination Theory
and the Fear of Missing Out phenomenon. Understanding
these core aspects is crucial for building a solid foundation
to analyze the ethical implications of microtransactions in the
metaverse.
A. TAXONOMY OF MICROTRANSACTIONS
In the evolving landscape of virtual experiences, micro-
transactions have emerged as a significant aspect of user
engagement and revenue generation. A microtransaction
in video games is characterized by its small-scale nature,
typically involving the purchase of virtual goods or services
using real-world currency. Unlike traditional transactions,
which might encompass purchasing a full game license
or a subscription granting access to a game for a spec-
ified period, microtransactions are often incremental and
recurrent, allowing players to acquire specific in-game
benefits. These include cosmetic alterations like character
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FIGURE 1. Taxonomy of microtransactions.
skins, avatars, gameplay enhancements, or exclusive content.
The ‘‘micro’’ prefix in ‘‘microtransaction’’ emphasizes the
often minimal cost and the specific, targeted nature of the
purchase, distinguishing it from larger, one-time purchases
or ongoing subscription fees [13]. This business model
has emerged from the evolution of video games from
standalone products to continuous services, where ongoing
player engagement is facilitated and monetized through these
small-scale transactions [14]. For a better understanding of
microtransactions, we propose a taxonomy that groups them
together (see Figure 1).
We can broadly classify microtransactions into two main
groups: competitive and non-competitive. On the one hand,
competitive microtransactions directly impact the gameplay
dynamics and player competition. The pay-to-win micro-
transactions constitute one controversial subset, as they
offer players the option to gain direct advantages over
others through monetary means. These transactions allow
the acquisition of items, skills, or enhancements that grant a
significant advantage in competitive scenarios. While pay-to-
win microtransactions are often criticized for their potential
to create imbalances and diminish skill-based gameplay, they
remain present in certain virtual environments [15].
One more form of competitive microtransactions is the
purchase of loot boxes. These randomized packages contain
unknown or unpredictable in-game items, ranging from
common to rare or exclusive. Players acquire these loot boxes
to obtain coveted rewards that may provide a competitive
edge. However, the unpredictable nature of loot boxes raises
concerns regarding gambling-like mechanics [16].
On the other hand, the non-competitive category focuses
on enhancing personalization and convenience within video
games. One prominent subset of non-competitive micro-
transactions is cosmetics. These transactions allow users
to acquire unique appearances, skins, and customizable
avatars, enabling them to express their individuality and
style in the virtual realm. Additionally, options for aesthetic
customization, such as different colors, accessories, or visual
effects, fall under this category [17].
Another subdivision of non-competitive microtransac-
tions is those categorized as quality-of-life. These pur-
chases provide players with enhanced gameplay features,
expanded storage space, or streamlined navigation, ultimately
improving their overall user experience.
In considering the taxonomy of microtransactions pre-
sented in Figure 1, it is essential to acknowledge the
dynamic nature of these transactions within different gaming
contexts. The categorization into competitive and non-
competitive microtransactions provides a broad framework
for understanding their impact. However, it is essential to note
that this classification may vary depending on the specific
characteristics of a game. For instance, microtransactions
like loot boxes exemplify this variability. In certain gaming
environments, such as the game Hearthstone, loot boxes
introduce competitive elements, as they offer players the
opportunity to gain advantageous in-game items through
chance-based mechanics, potentially affecting their perfor-
mance in matches. In contrast, the same loot box concept
can take non-competitive attributes in games like League
of Legends, where these items are purely cosmetic and do
not affect gameplay. These distinctions can become more
nuanced in the metaverse, where social interactions and
competitive elements may coexist. As such, the taxonomy
should be viewed as a guide rather than a rigid classification
system, allowing for flexibility in interpretation based on the
unique dynamics of each virtual world.
B. B USINESS MODELS
The implementation of microtransactions in the gaming
industry has sparked significant controversy, exposing the
fine line between player satisfaction and profit-driven prac-
tices. While microtransactions can provide additional revenue
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L. M. Sánchez-Adame et al.: Framework for Ethically Designed Microtransactions in the Metaverse
streams and support ongoing game development, certain
greedy models have taken advantage of players, particularly
in the mobile gaming sector, targeting vulnerable audiences
and employing manipulative tactics [18].
Examples, such as the Star Wars Battlefront II fiasco, serve
as cautionary tales highlighting the detrimental impact of
prioritizing profit over player satisfaction [19]. The game’s
launch was marred by technical issues, leading to accusations
that microtransactions were employed to compensate for
its shortcomings rather than focusing on delivering a high-
quality experience. This incident intensified the debate
surrounding greedy practices and raised questions about the
relationship between microtransactions and overall game
quality [20].
In contrast, the freemium model, exemplified by games
like Path of Exile, offers a different approach. With freemium
games, players can play the game from start to finish without
paying a cent [21]. However, they also have the option to
purchase additional content or features that enhance their
gameplay experience. While the freemium model can be seen
as more consumer-friendly than greedy practices, it still raises
questions regarding the necessity of certain purchases.
In MMOs, a hybrid model often emerges as a potential
alternative. Games like World of Warcraft and Final Fantasy
XIV operate on a subscription approach while incorporating
microtransactions. This approach allows players to access
core game content through a subscription fee while providing
optional cosmetic or convenience-based microtransactions to
enhance their gameplay experience.
Nevertheless, discussions have focused on the impact of
cosmetic microtransactions. While cosmetic purchases may
initially appear harmless, criticisms have arisen regarding the
disproportionate investment of developer time and resources
into creating visually appealing cosmetics compared to
other in-game assets obtainable through gameplay [22]. This
discrepancy has sparked debates about the perceived value
of skill-based progression and fair competition, as it suggests
that financial gains are prioritized over individual or group
player achievements.
The gaming industry can navigate the landscape more
effectively by understanding the controversies surrounding
microtransactions, including greedy,freemium, and hybrid
models. Striking a balance between financial viability, player
satisfaction, and ethical considerations is crucial for fostering
a healthy and sustainable virtual ecosystem.
C. MOTIVATIONS F OR MICROTRANSACTION PURCHASES
Understanding the motivation behind microtransaction pur-
chases is a complex and multifaceted topic that delves into
the psychology of gamers and the underlying drivers that lead
them to engage in these transactions.
The Self-Determination Theory (SDT) claims that individ-
uals have three basic psychological needs: autonomy, compe-
tence, and relatedness. These needs have a significant impact
on individuals’ motivation and behavior [23]. In the context
of gaming and microtransactions, satisfying these needs
becomes crucial. Gamers seek autonomy and self-expression,
and microtransactions that offer cosmetic enhancements or
personalization options fulfill these desires [15]. Customizing
characters, avatars, or in-game items give players a sense
of uniqueness and control over their gaming experience.
By investing in these microtransactions, gamers can show-
case their individuality and create a more personalized game-
play experience. For example, the massively multiplayer
online battle arena (MOBA) game League of Legends offers
a range of cosmetic microtransactions, allowing players to
express their autonomy and personalize their characters’
appearance.
Furthermore, SDT highlights the importance of compe-
tence and mastery. Players strive to improve their skills,
overcome challenges, and achieve a sense of accomplish-
ment. Microtransactions that offer gameplay advantages,
such as faster progression or access to exclusive items, can
tap into gamers’ desire for competence. These purchases
provide a shortcut to success, granting players a competitive
edge or facilitating their progression in the game [24]. The
‘‘gacha’’ game category is worth mentioning, named after the
Japanese vending machines filled with collectibles and small
toys typically enclosed in plastic capsules. A prime example
of the ‘‘gacha’’ genre is the role-playing action game Genshin
Impact, where players can purchase in-game currency to
acquire rare characters or powerful items, providing a
shortcut to success and enhancing their competence. While
microtransactions offer a faster progression, players can still
obtain these items through gameplay, albeit requiring more
time and effort. Usually, this is called ‘‘pay-to-fast’’.
Moreover, let us consider a scenario that illustrates how
people are motivated to make microtransactions when they do
not have much time for gaming, i.e., the ethos of the ‘‘pay-to-
fast’’ model [25]: a gamer who is also a parent may struggle
to balance their work and family commitments, leaving them
with little time for gaming. However, since they have a
good job, they can afford to make purchases in the game.
In this case, they may find microtransactions that offer instant
rewards very appealing. By buying these rewards, they can
save precious time and quickly catch up with other players
in the game, despite their busy schedule. This scenario shows
how microtransactions are oriented to people who are short on
time but still want to stay competitive in the gaming world.
Additionally, the need for relatedness or social connection
plays a significant role in gamers’ motivations. Many modern
games feature multiplayer components, where players can
interact, collaborate, or compete with others. Microtrans-
actions that enhance the social aspect of gaming, such as
purchasing virtual gifts for friends or participating in coop-
erative challenges, satisfy this need for relatedness. These
purchases can strengthen social bonds, foster community, and
create shared experiences among players [24]. Notably, Final
Fantasy XIV includes an option for two characters to partake
in a virtual wedding ceremony, which exemplifies the game’s
emphasis on fostering social connections.
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In addition to SDT, the Fear of Missing Out (FoMO)
phenomenon is a powerful motivator for microtransaction
purchases. FoMO is characterized by the apprehension of
being left out or skipping out on enjoyable experiences or
rewards others relish. Game developers leverage this fear
by introducing limited-time offers, exclusive items, or time-
limited events that might create a sense of urgency and
scarcity. Players may feel compelled to make microtransac-
tion purchases to avoid missing out on unique or time-limited
content, encouraging a sense of completion, exclusivity,
or collection [26]. In games such as Pokémon GO, limited-
time events introduce exclusive items or experiences only
available for a short period.
While SDT provides insights into the motivations behind
microtransaction purchases, the Uses and Gratifications
Theory (UGT) offers a broader perspective on why players
generally engage with video games. UGT postulates that
media consumers seek out specific sources to fulfill certain
needs or desires, emphasizing that the audience actively
engages with media to achieve specific gratifications [27].
UGT provides insights into why players are drawn to certain
titles or features in video games. A study applied UGT to
examine motivations behind user engagement in multiplayer
video games [28]. It identified enjoyment, fantasy, social
interaction, achievement, and self-presentation as significant
factors affecting the continuance intention of playing titles
in this genre, with enjoyment being the most influential.
The study also highlighted the moderating effects of age
and gender on these relationships. Other research has shown
that recreational motivation, gratification, peer relationships,
and caring predict adolescents’ playing intensity [29].
Additionally, social interaction and recreation have been
identified as positive predictors of gameplay [30]. These
motivations align with the principles of SDT, suggesting a
convergence in the underlying psychological drivers that lead
players to engage in both gameplay and microtransactions.
Relatedly, the domain of persuasive technology and gami-
fication offers insights into the mechanisms that can influence
player behavior in video games. Persuasive technology
refers to systems designed to change attitudes or behaviors
through persuasion and social influence, but not through
coercion [31]. Gamification, conversely, involves applying
game-design elements in non-game contexts, aiming to
enhance user engagement and motivation [32]. These tech-
niques can encourage specific player actions in video games
and enhance the overall gaming experience. For instance,
rewards, challenges, and feedback loops, common in gami-
fied systems, can be linked to the basic psychological needs
of autonomy, competence, and relatedness as posited by
SDT [33]. However, it is crucial to approach these techniques
with caution. Many mobile games employ notifications to
remind players of everyday rewards, enticing them to open
the app daily. While some games allow players to claim
these rewards immediately, others require some gameplay,
ensuring users remain engaged. Have they forgotten a
reward? Microtransactions often provide a solution, allowing
players to purchase what they missed. This intertwining of
persuasion (keeping the player hooked) and gamification
(disguising purchases as game features) raises questions
about their implications. Many of these tactics are found in
games targeted at young children, such as those developed
by Toca Boca.
Another motivation stems from players’ desire to support
their favorite developers and game studios. By engaging in
microtransactions, players feel they are actively contributing
to ongoing game development, updates, and the creation of
new content. This sense of loyalty and gratitude towards
developers often drives players to willingly make purchases,
considering it a form of financial support [24]. For instance,
the already mentioned Path of Exile provides a free-
to-play experience with the option to purchase cosmetic
microtransactions. Players who enjoy the game and want
to contribute to its continued development can make these
purchases as a form of support and appreciation.
D. M ICROTRANSACTIONS AND ADDICTION
The realm of video games has witnessed a significant shift
in monetization strategies, with microtransactions becoming
a dominant force. These in-game purchases raised concerns
due to their potential association with digital addiction.
For instance, in the game Fortnite, players can purchase
‘‘V-Bucks’’ (virtual currency) to buy loot boxes containing
in-game items. By March 2019, Fortnite boasted over
250 million registered users, and its microtransactions con-
tributed over $1 billion in revenue since its 2017 launch [34].
However, the allure of microtransactions extends beyond
mere cosmetic or gameplay enhancements. A systematic
review identified a positive relationship between micro-
transactions, particularly loot boxes, and Internet Gaming
Disorder and Gambling Disorder. This association was
more pronounced with loot boxes, with risky loot box use
potentially mediating these relationships [35]. Such findings
are further underscored by a case study of a U.S. Veteran
who, after engaging in the Candy Crush Saga game, escalated
his in-game spending to nearly 40% of his monthly income
within six months [36].
The blurred boundaries between gaming and gam-
bling become even more evident when considering the
physiological arousal associated with microtransactions.
A study focusing on opening loot boxes in video games
found that players experience increased physiological
arousal, akin to the thrill derived from gambling. This
arousal, measured through heart rate and galvanic skin
response, was particularly evident when purchasing loot
boxes, emphasizing the addictive potential of such in-game
mechanics [37].
The global gaming market, which generated $159.3 billion
in 2020, is expected to encompass over 3 billion gamers
by 2023 [35]. As the industry grows, microtransac-
tions’ ethical implications and potential risks cannot be
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FIGURE 2. Framework for ethical analysis and design of
microtransactions.
ignored. Regulatory bodies in countries like Belgium and
the Netherlands have already taken steps to classify loot
boxes as illegal gambling, highlighting the urgent need for
a broader discourse on the impact of microtransactions on
player behavior and well-being [37].
IV. FRAMEWORK FOR MICROTRANSACTIONS
In order to comprehensively examine the ethical dimensions
surrounding microtransactions in the metaverse, we first
establish a solid background section that sheds light on the
various facets of these in-game transactions. This contextual
understanding lays the groundwork for our proposal, that
serves as a lens through which we analyze the impact
of microtransactions on players and the broader gaming
community.
The framework encompasses three dimensions: Moti-
vation, Engagement, and Fairness, providing a holistic
understanding of microtransactions in the metaverse and
offering valuable insights for analysis and design purposes
(see Figure 2). We present clear definitions, illustrative
examples of improper practices, and thought-provoking
reflection questions within each dimension. By delving into
these dimensions, developers can gain a deeper understanding
of ethical considerations and work towards implementing
mechanisms that prioritize user experience and discourage
greedy models.
A. MOTIVATION DI MENSION
This dimension focuses on understanding the underlying
motivations that drive users to engage in microtransactions.
In addition to including the two main classifications of
microtransactions in our taxonomy: competitive and non-
competitive (see Figure 1), it encompasses five levels of
motivation: Supporting Developers, Autonomy, Relatedness,
Competence, and FoMO.
1) SUPPORTING DEVELOPERS
At the foundational level, microtransactions are driven by
users’ desire to support developers and contribute to ongoing
game development. This motivation arises from a sense
of loyalty, gratitude, or a desire to sustain a free-to-play
model. By offering microtransactions that allow users to
support developers financially, ethical considerations include
transparency in how these funds are utilized and the impact
on the overall gaming experience.
a: QUESTIONABLE PRACTICE
The game Path of Exile implements a microtransaction
system where players can purchase additional inventory
tabs and storage upgrades, limiting the number of in-game
items they can acquire without making purchases. This
would seem a good thing in principle, as players support
the game’s development, which is offered free of charge.
However, this restricts players’ gameplay experience and
creates a perception that basic inventory functionality is being
withheld for monetary gain.
b: REFLECTION QUESTIONS
•MQ1: How can developers create a supportive micro-
transaction system that allows players to contribute
financially without compromising fair competition and
gameplay balance?
•MQ2: Can alternative methods be emphasized to
encourage player support while maintaining fairness?
•MQ3: How can transparency be maintained to ensure
players understand the purpose and impact of their
financial contributions?
2) AUTONOMY
Moving up the motivation scale, microtransactions address
to users’ need for autonomy and self-expression. Cosmetic
purchases allow users to customize their in-game avatars,
appearances, or items to showcase their individuality and
create a personalized gaming experience. Ethical consider-
ations involve ensuring a fair pricing structure for cosmetic
items, avoiding misleading practices, and providing clear
information about the nature and value of these purchases.
a: QUESTIONABLE PRACTICE
In Reddit, users can purchase microtransactions that offer
exclusive and highly detailed avatar customization options.
However, the platform restricts the availability of basic avatar
customization options, leaving players with limited choices
unless they make additional purchases.
b: REFLECTION QUESTIONS
•MQ4: How can developers provide a wide range of free
character customization options while offering attrac-
tive cosmetic microtransactions that enhance players’
autonomy and self-expression?
•MQ5: Can in-game achievements or unlockable cus-
tomization options be implemented to provide a sense
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of progression and reward for players who choose not to
make microtransaction purchases?
•MQ6: How can the balance be maintained between
offering enticing cosmetic microtransactions and avoid-
ing misleading practices that pressure players into
excessive purchases?
3) RELATEDNESS
The next level of motivation addresses users’ desire for
social connection and relatedness within the gaming com-
munity. Microtransactions that enhance the social aspect
of gaming, such as gifting virtual items or participating in
cooperative challenges, foster a sense of community and
shared experiences. Ethical considerations involve promoting
positive social interactions, avoiding greedy practices, and
safeguarding against practices that promote spending to
maintain social status.
a: QUESTIONABLE PRACTICE
Games such as Fortnite and World of Warcraft implement
battle passes, i.e., an in-game progression system that offers
various rewards. These games often notify users when their
friends have purchased the pass while they have not, resulting
in the missed opportunity to obtain valuable rewards.
b: REFLECTION QUESTIONS
•MQ7: How can developers foster social connections and
meaningful interactions among players without creating
artificial limitations that encourage microtransactions?
•MQ8: Can additional in-game activities or shared expe-
riences be implemented to promote social bonding and
engagement without relying solely on microtransaction
purchases?
•MQ9: How can the in-game economy support social
interactions while maintaining fairness and inclusivity
for players who choose not to make purchases?
4) COMPETENCE
The competence motivation involves microtransactions that
offer gameplay advantages, enabling users to progress faster,
gain skills, or obtain exclusive in-game items. Ethical consid-
erations revolve around balancing the competitive landscape,
ensuring fair and skill-based gameplay, and avoiding pay-
to-win scenarios that create imbalances and diminish the
experience for more casual players.
a: QUESTIONABLE PRACTICE
The online game Honkai: Star Rail offers microtransactions
that provide powerful equipment and abilities, creating a
significant advantage for players who make these purchases.
This leads to an imbalanced competitive environment that
favors monetary power over skill-based progression.
b: REFLECTION QUESTIONS
•MQ10: How can developers ensure fair competition and
skill-based progression while offering microtransactions
that satisfy players’ desire for progression?
•MQ11: Can alternative paths for acquiring in-game
advantages be provided, such as earning them through
gameplay achievements or events, to balance the
competitive landscape?
•MQ12: How can the impact of microtransaction-
acquired advantages be carefully balanced to avoid
creating insurmountable gaps between paying and
non-paying players?
5) FOMO
At the highest level of motivation, the fear of missing out
on limited-time offers, exclusive content, or rewards drives
users to engage in microtransactions. Ethical considerations
include providing clear information on the availability and
duration of time-limited content, avoiding opaque practices
that indulge in users’ fear and urgency, and maintaining
fairness in offering rewards and opportunities.
a: QUESTIONABLE PRACTICE
Genshin Impact regularly introduces limited-time events
where players can purchase exclusive characters and con-
sumables through microtransactions. The game uses alluring
marketing tactics and limited availability to create FoMO and
urge players into impulsive purchases.
b: REFLECTION QUESTIONS
•MQ13: How can developers create a sense of excitement
and exclusivity without taking advantage of players’
FoMO and encouraging impulsive spending?
•MQ14: Can alternative reward systems or periodic
events be implemented to ensure that players who cannot
or choose not to make microtransaction purchases still
have opportunities for unique rewards?
•MQ15: How can limited-time events be designed to
be more inclusive and rewarding for all players rather
than creating a sense of urgency that promotes impulsive
spending?
B. E NGAGEMENT DIMENSION
This dimension explores the models of microtransaction-
based business strategies. It examines two critical elements:
Design and Technical Necessity.
1) DESIGN
This element explores how user interfaces and interaction
design influence users’ purchasing behavior. It encom-
passes persuasive design patterns, user experience consider-
ations, and creating an engaging environment encouraging
microtransaction purchases. Ethical considerations involve
avoiding manipulative techniques, providing transparent
information on pricing, and ensuring that design elements do
not create an addictive environment.
a: QUESTIONABLE PRACTICE
The mobile game Diablo Inmortal uses manipulative design
elements, such as deceptive pricing, aggressive pop-up
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L. M. Sánchez-Adame et al.: Framework for Ethically Designed Microtransactions in the Metaverse
notifications, and misleading visual cues, to pressure players
into making unintended or excessive microtransaction pur-
chases. This exploitative design undermines the player trust
and can lead to unintended and regretful spending.
b: REFLECTION QUESTIONS
•EQ1: How can developers ensure that design elements
are user-friendly, transparent, and do not manipulate
players into making unintended purchases?
•EQ2: Can ethical design principles, such as clear and
non-deceptive notifications, be implemented to pro-
mote informed decision-making and prevent unintended
spending?
•EQ3: How can the game’s design foster a sense of
trust and respect for the player’s autonomy in purchasing
decisions?
2) TECHNICAL NECESSITY
This element addresses the practice of withholding essential
features or functionalities and offering them as microtransac-
tions. It raises questions about the fairness of gating crucial
aspects of the game behind paywalls. Ethical considerations
involve evaluating the necessity of unavoidable microtrans-
actions, providing alternative paths for non-paying users to
access essential features, and ensuring that microtransactions
do not disrupt the overall gameplay experience.
a: QUESTIONABLE PRACTICE
In the popular game Destiny 2, players can purchase micro-
transactions that provide in-game currency for acquiring
powerful weapons and items. The game’s progression and
difficulty are designed to create bottlenecks and encourage
players to make microtransaction purchases to progress more
quickly or obtain rare items.
b: REFLECTION QUESTIONS
•EQ4: How can developers design gameplay features to
promote engagement without making microtransactions
a central aspect of progression?
•EQ5: Can alternative methods, such as balancing the
game’s difficulty curve or providing more generous
in-game rewards, be implemented to avoid creating a
perception of technical necessity for microtransaction
purchases?
•EQ6: How can developers effectively convey the
benefits of microtransactions in a manner that enhances
player engagement without overshadowing the core
gameplay experience?
C. FAIRN ESS DIMENSION
This dimension focuses on ensuring fairness and transparency
in the implementation of microtransactions. It consists of two
crucial elements: Transparency and Security.
1) TRANSPARENCY
This element involves providing clear and explicit disclo-
sure of the probabilities associated with acquiring specific
items from chance-based mechanics like loot boxes or
random reward systems. It addresses concerns related to
gambling-like mechanics and ensures that users are fully
aware of the odds and risks involved. Ethical consid-
erations include providing comprehensive information on
the contents and chances of acquiring items, avoiding
persuasive practices, and preventing users from experiencing
disproportionate losses.
a: QUESTIONABLE PRACTICE
In Star Wars Battlefront II, players could purchase loot boxes
containing in-game items with undisclosed probabilities. This
lack of transparency led to frustration and criticism as players
felt manipulated and unable to make informed purchase
decisions.
b: REFLECTION QUESTIONS
•FQ1: How can developers ensure transparency in the
odds or probabilities of obtaining specific items or
rewards through microtransactions?
•FQ2: Can alternative methods, such as clearly defined
item tiers or fixed pricing for specific items, be imple-
mented to provide more transparency and avoid the
negative perception of unfair randomness?
•FQ3: How can developers communicate the value and
rarity of items within the microtransaction system to
help players make informed decisions without resorting
to deceptive marketing tactics?
2) SECURITY
This element emphasizes the need for robust cryptographic
measures and secure systems to protect users’ personal
information, financial transactions, and in-game assets. It also
highlights the importance of offering clear options and
configurations regarding data privacy, consent, and control.
Ethical considerations involve safeguarding user data from
unauthorized access or exploitation through persuasion,
preventing fraudulent activities, and ensuring user trust and
confidence in the microtransaction system.
a: QUESTIONABLE PRACTICE
Fallout 76 players could purchase microtransactions to obtain
premium in-game currency, but the game suffered from
significant security breaches that exposed players’ personal
and financial information. This security breach undermined
trust and raised concerns about the safety of engaging in
microtransactions.
b: REFLECTION QUESTIONS
•FQ4: How can developers ensure the highest data
security and protection standards for players engaging
in microtransactions?
•FQ5: Can alternative payment methods, such as uti-
lizing trusted third-party payment processors or imple-
menting additional security measures like two-factor
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L. M. Sánchez-Adame et al.: Framework for Ethically Designed Microtransactions in the Metaverse
authentication, be implemented to enhance the security
of microtransaction?
•FQ6: How can developers build trust and reassure
players that their personal and financial information
will be secure and not misused or exposed to potential
threats?
V. RUNNING EXAMPLE: WORLD OF WARCRAFT
In this section, we examine the MMORPG (Massively
Multiplayer Online Role-Playing Game), World of Warcraft
(WoW), through the lens of our framework. Microtrans-
actions have become an integral part of modern gaming
experiences, and WoW, developed by Blizzard Entertain-
ment, is no exception. We chose WoW for two reasons:
The first is that there are still no applications that can
be considered part of the metaverse, at least not strictly
in terms of interaction and reality augmentation that we
explored above (see Section II). Thus, the second reason
is that, as discussed in Section I, the experiences inherent
in MMORPGs are the closest thing to a persistent virtual
world with hedonic, social, and functional values. In addition,
WoW, in particular, has been classified as an essential
event that has contributed to the conceptualization of the
metaverse [38].
By applying our framework, we aim to gain insights into
how WoW’s microtransactions align with user needs, ethical
considerations, and long-term sustainability. By analyzing
each dimension and considering the implications of these
design principles, we can provide an assessment of the impact
of microtransactions in WoW.
A. MOTIVATION DI MENSION
Players are not primarily motivated to support developers,
as the game already requires a subscription and additional
payments for expansions. Instead, the primary motivations
for microtransaction purchases in WoW are autonomy,
relatedness, and FoMO, as players can acquire, regularly or
seasonally, cosmetic items for personal expression or engage
in social interactions by gifting items to others.
However, certain aspects related to autonomy and related-
ness motivations can be problematic. The most significant
one is the presence of the ‘‘WoW Token’’ (which allows
players to exchange real money for in-game gold or game
time) can create a pay-to-win scenario. Players with financial
means can gain an advantage by purchasing powerful items or
services, potentially causing imbalances and diminishing the
skill-based gameplay experience. Moreover, the ability to buy
‘‘carries’’, i.e., hire other players for assistance in obtaining
rewards, raises concerns about fairness and the merit of in-
game achievements.
1) AUTONOMY
Users can purchase mounts, pets, and other cosmetic items
to personalize their in-game characters and enhance their
experience. The game also provides achievements and
unlockable customization options that players can earn
through gameplay, providing a sense of progression and
rewards for those who choose not to make microtransaction
purchases. Table 1shows the answers to the reflection
questions for this element.
TABLE 1. Reflection questions for autonomy in WoW.
2) RELATEDNESS
WoW incorporates multiplayer elements that allow players
to interact, collaborate, and compete with others, fostering
social connections within the game. While microtransactions
themselves may not directly impact social interactions,
players can use cosmetic items as virtual gifts for friends,
creating shared experiences and strengthening bonds. Table 2
presents the responses to the reflection questions related to
this element.
TABLE 2. Reflection questions for relatedness in WoW.
3) FOMO
In WoW, limited-time events, seasonal rewards, and exclusive
content create a sense of excitement and exclusivity among
players, encouraging them to engage in microtransactions to
avoid missing out on unique opportunities. The reflection
questions concerning this element are addressed in Table 3.
B. E NGAGEMENT DIMENSION
In WoW, the microtransaction design is quite prominent, with
various elements enticing players to engage in purchases.
The design of the microtransaction system is relatively
invasive, with options available both in the game launcher
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TABLE 3. Reflection questions for FoMO in WoW.
and character selection screen. Additionally, players receive
promotional emails and in-game offers, encouraging them to
explore the microtransaction store further.
1) DESIGN
WoW employs persuasive design patterns to encourage
microtransaction purchases while avoiding manipulative
practices. The game primarily offers cosmetic items, such
as mounts, pets, toys, and appearance-changing equipment,
allowing players to personalize their characters and enhance
their self-expression. The design emphasizes the aesthetic
appeal of these items, making them attractive to players
seeking greater autonomy in customizing their in-game
experience. Table 4displays the answers to the reflection
questions for this element.
TABLE 4. Reflection questions for design in WoW.
2) TECHNICAL NECESSITY
In WoW, microtransactions do not encroach on essential
gameplay features or functionalities. The game follows a
hybrid business model, where players need to purchase
expansions and subscribe to play, but the core gameplay
experience is accessible without additional purchases. While
the game offers character services, such as race or faction
changes, they are not technically necessary for the fundamen-
tal enjoyment of the game.
Although the game itself does not sell essential gameplay
features, an important consideration arises concerning add-
ons, i.e., third-party software integrated directly into the
game, providing players with valuable information, timers,
detailed statistics, and additional customization options.
While many add-ons are freely available, some of them may
be sold, creating a potential issue.
Players heavily rely on these add-ons to coordinate effec-
tively during challenging battles and encounters. Although
technically possible to play without them, the complexity
of battles makes them practically mandatory for success.
This dependence on add-ons raises questions about whether
certain functionalities, essential for optimal gameplay, may
effectively become microtransactions. The responses to the
reflection questions for this element can be found in Table 5.
TABLE 5. Reflection questions for technical necessities in WoW.
C. FAIRN ESS DIMENSION
The microtransactions themselves do not fall under
chance-based mechanics like loot boxes, as players are fully
aware of the items they are purchasing and their associated
costs. However, there are fairness concerns related to other
aspects of the game’s design and business model.
1) TRANSPARENCY
While the microtransactions in WoW are transparent, some
elements within the game lack transparency, specifically
regarding the probabilities of obtaining certain items. For
example, rare mounts and legendary weapons drop from
enemies and bosses with undisclosed drop rates, leading
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to uncertainty and frustration among players. In general,
microtransactions in WoW are implemented with a non-
persuasive approach, since persuasion is related to FoMo,
as we described in the section above. The reflection questions
pertaining to this element are summarized in Table 6.
TABLE 6. Reflection questions for technical necessities in WoW.
2) SECURITY
In terms of security, WoW does not directly face issues
with microtransactions, as payment information is processed
securely. However, the game’s design and business model
may influence player engagement and retention, leading to
potential concerns about fairness. In relation to security
considerations, Table 7presents the answers to the reflection
questions.
VI. DISCUSSION
The future metaverse poses numerous challenges, partic-
ularly in establishing protocols, standards, and company
collaboration. Drawing from the lessons learned in video
games becomes crucial as delving into microtransactions
within this virtual landscape.
In the vast expanse of the metaverse, where users would
seamlessly interact and explore, a question arises: How can
we ensure that inter-company collaborations balances user
experience and profit? Historically, such collaborations have
been rare, making it imperative to critically examine the
feasibility and trustworthiness of collaborative efforts in this
new digital frontier [39].
Another concern is the immense computational power
required to sustain the metaverse [40]. Current MMOs
already grapple with server capacity and concurrency, often
employing various techniques to alleviate these challenges.
Companies may use microtransactions to finance and support
the metaverse infrastructure considering the magnitude of
resources demanded.
TABLE 7. Reflection questions for technical necessities in WoW.
Nevertheless, addressing the metaverse resource allocation
and collaboration challenges necessitates meticulous plan-
ning and innovative solutions [41]. Active involvement from
industry leaders and regulatory bodies will be essential in
creating an environment that fosters healthy competition, user
empowerment, and protection.
As individuals immerse themselves in the metaverse, their
digital presence, identity and activities generate a wealth of
data, including personal preferences, behaviors, and even bio-
metric information. While this data holds immense value for
metaverse operators, it also raises valid privacy concerns [42].
To safeguard user privacy within this immersive realm, robust
data protection measures, transparent policies, and effective
user consent mechanisms must be implemented.
One significant aspect is the influence of microtransactions
on user behavior within virtual environments. Lessons
learned from video games indicate that microtransactions
tap into players’ motivations and desires, addressing to their
need for autonomy, competence, and relatedness [24]. The
metaverse will likely amplify these motivations, presenting
new possibilities for self-expression, achievement, and social
interactions.
While many ethical and economic challenges associated
with microtransactions are not unique to the metaverse,
this digital realm’s immersive and interconnected nature
can amplify specific issues. For instance, the concept of
pay-to-win can be particularly stark. In real life, financial
resources often translate to educational, health, and oppor-
tunity advantages. Philosophers like Žižek [43] have delved
into the societal structures perpetuating these inequalities.
However, this disparity becomes more explicit in video
games, making it contentious. A player’s skill might be
overshadowed by another’s financial capability to purchase
in-game advantages. This explicitness of the pay-to-win
model in games often leads to significant backlash from
the gaming community, making companies reconsider its
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implementation due to potential risks to game popularity and
acceptance [44].
The running example of microtransactions in World of
Warcraft illustrates how developers can provide a wide
range of character customization options through both
microtransactions and gameplay, fostering autonomy and
self-expression for players. Additionally, in-game achieve-
ments and unlockable customization options offer a sense of
progression and rewards for players who choose not to make
microtransaction purchases.
Video games and the emerging metaverse inherit specific
business models from the real world, such as loyalty
programs designed to retain customers. However, there is
a fundamental difference in these models. In traditional
loyalty programs, points or rewards are often earned as a
byproduct of purchases. In contrast, video games require
users to directly purchase virtual currencies or points, which
are then used to acquire in-game items or advantages. While
ensuring continued user engagement, this direct purchase
model represents a distinct approach compared to traditional
loyalty-based rewards. As we transition more profoundly
into the metaverse, this redefinition of value and ownership
becomes even more pronounced [45]. Virtual assets acquired
through microtransactions may hold significant value within
the metaverse, but their legal status and protection in the
physical world remain uncertain. This interplay between
the virtual and real worlds, which is not exclusive to
the metaverse but has been evident in video games for
years [46], underscores the need for establishing appropriate
frameworks for ownership rights, copyright protection, and
dispute resolution mechanisms. Ensuring a fair and secure
economy in the metaverse and video games will be critical as
these digital realms continue to influence and intersect with
our real-world experiences.
However, caution must be exercised when considering
buzzwords like Blockchain, non-fungible tokens (NFTs),
and Web 3.0 as solutions for the metaverse. While they
hold promise, their viability has been questioned. Concerns
regarding environmental impact, volatility, and actual value
have cast doubt on their practicality [47]. It is imper-
ative to critically evaluate these technologies, exploring
alternative approaches that provide the necessary infrastruc-
ture and resource management without compromising user
experiences or relying solely on microtransactions.
While our framework provides valuable insights, it also has
its limitations. The rapidly evolving nature of technology and
the metaverse may require regular updates and refinements to
address emerging challenges. Moreover, cultural differences
and regional regulations may impact the ethical considera-
tions and implementations of microtransactions in various
parts of the world.
VII. OPEN QUESTIONS
Our framework presents a series of questions tailored to
each dimension to guide further research and exploration
of microtransactions. These questions, embedded within the
dimensions, serve as focal points for the community to
address, thereby advancing our understanding and potentially
leading to solutions. We encourage researchers to delve into
these questions, as they represent challenges and gaps in the
field.
VIII. CONCLUSION
The metaverse concept holds immense potential to reshape
our digital experiences, offering a vast virtual realm where
users can connect, create, and explore. However, as navigat-
ing this new frontier, it is crucial to approach it with a critical
mindset and address the challenges that arise.
The significance of this study lies in bridging the gap
between the current understanding of microtransactions in
video games and their potential manifestation within the
metaverse. By employing our proposed three-dimensional
framework for ethical analysis and design of micro-
transactions, we explored the dimensions of Motivation,
Engagement, and Fairness, providing valuable insights into
how microtransactions may shape user behavior, social
interactions, and overall experiences in this new digital field.
Privacy concerns must also be addressed through robust data
protection measures and transparent policies to ensure that
users have control over their personal information within the
metaverse.
Through our running example of World of Warcraft,
we observed how developers can enhance player autonomy
and self-expression by providing a wide range of cosmetic
items available through both microtransactions and game-
play. Furthermore, by implementing activities accessible to
a broader player base and fostering camaraderie, developers
can promote social bonding and meaningful interactions
without solely relying on microtransaction purchases. Addi-
tionally, we highlighted the importance of transparency in
odds and probabilities to ensure fairness in a metaverse like
economy.
As microtransactions play a significant role in the
metaverse, drawing from the lessons learned in video
games becomes crucial. Striking the right balance between
providing meaningful experiences through microtransactions
and avoiding misleading practices will be essential. Learning
from past mistakes is vital to cautiously explore alternative
approaches that align with user interests and enhance the
overall metaverse experience.
The metaverse offers a tantalizing vision of a digital world
filled with endless possibilities. To ensure its success and
sustainability, it is imperative that stakeholders, including
companies, users, and regulatory bodies, work together
to shape an inclusive, fair, and user-centric metaverse.
By addressing concerns, fostering collaboration, and uphold-
ing ethical standards, we can pave the way for a metaverse
that enriches our lives and reflects our collective aspirations.
Ultimately, the metaverse is not merely a technological
construct but a reflection of our societal values and aspira-
tions. It is up to us to shape it to align with our vision of a
140698 VOLUME 11, 2023
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digital future that empowers and connects individuals while
safeguarding their rights and well-being.
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LUIS MARTÍN SÁNCHEZ-ADAME (Member,
IEEE) received the M.Sc. and Ph.D. degrees in
computer science from CINVESTAV-IPN, Mexico
City, Mexico, in 2016 and 2021, respectively.
He is currently an Associate Professor with
FES-Acatlán, UNAM, where he conducts research
in the fields of human–computer interaction, user
interface design, and user experience.
GUILLERMO MONROY-RODRÍGUEZ received
the M.Sc. degree in computer science from
CINVESTAV-IPN, Mexico City, Mexico, in 2014,
where he is currently pursuing the Ph.D.
degree. His research interests include ubiquitous
computing and the Internet of Things.
SONIA MENDOZA (Member, IEEE) received
the Ph.D. degree in computer science from INPG,
Grenoble, France, in 2006. She is currently a
Full Professor with the Department of Computer
Science, CINVESTAV-IPN, Mexico City, Mex-
ico. Her research interests include groupware,
ubiquitous computing, and human–computer
interaction.
DOMINIQUE DECOUCHANT received the Ph.D.
degree in computer science from Grenoble Univer-
sity, France, in 1987. Since 1989, he has been a
CNRS Research Scientist, and since 2009, he has
been a Full Professor with the Information Tech-
nology Department, UAM, Cuajimalpa Campus.
His current research interests include distributed
cooperative authoring on the web, the design and
implementation of efficient web infrastructures
for supporting groupware applications, and the
management of distributed collaborative environments.
ALFREDO PIERO MATEOS-PAPIS received the
Ph.D. degree in electrical engineering in the area
of communications from UNAM. Currently, he is
an Associate Professor with the Information Tech-
nology Department, UAM, Cuajimalpa Campus.
He has worked on issues of networks, protocols,
and the simulation of computer networks, wireless
communication systems, and the information the-
ory and compression of voice signals, with various
publications in this regard.
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