microtransaction

American  

[mahy-kroh-tran-sak-shuhn, -zak-] / ˈmaɪ kroʊ trænˌsæk ʃən, -ˌzæk- /

noun

1. a relatively inexpensive payment for part of a product or for an upgraded service or experience: often at the core of an alternative sales and revenue model for businesses to maximize profit with a very large volume of piecemeal or à la carte sales, rather than a single lump sum transaction for each full product sold: The vehicle comes with heated seats, but you won’t be able to use them without enrolling in a recurring microtransaction with the manufacturer.

   Developers call this genre of game free-to-play, but the fact is you’ll never succeed without shelling out microtransactions at every level for the gear your character will need.

   The vehicle comes with heated seats, but you won’t be able to use them without enrolling in a recurring microtransaction with the manufacturer.

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Etymology

Origin of microtransaction

First recorded in 1985–90; micro- ( def. ) + transaction ( def. )

Explanation

When you pay a very small amount of money for something online, it's a microtransaction. Buying virtual sardines to feed your virtual pet cat in your favorite game is an example of a microtransaction. The tiny payment a musician receives whenever their song is played on a streaming service is another kind of microtransaction. The amount of money each time is extremely small, much less than a penny per download. Micro- is from the Greek smikros, "small or trivial," and transaction has a Latin root meaning "agreement." It takes millions of microtransactions to add up to anything valuable.

Example Sentences

For the first three years, Redfall had a significant microtransaction plan in place.

From Seattle Times • Jun. 1, 2023

The global online microtransaction market is forecast to grow from $67.94bn in 2022 to $76.66bn in 2023.

From BBC • May 15, 2023

The poster claimed that the ban meant they had effectively lost hundreds of dollars from the microtransaction expenses attached to the account.

From Slate • Apr. 20, 2021

Early players recoiled at the microtransaction system the company designed for the game, forcing EA to pull the plug on the system on the eve of the game’s formal release in November.

From The Wall Street Journal • Jan. 31, 2018

I should stress, loot boxes are only one kind of microtransaction, but they’re often discussed as a unit because all microtransactions rely on similarly seductive sales techniques.

From The Verge • Dec. 19, 2017