The gaming industry has grown tremendously, generating $139.9 billion in 2020, an increase of 9.3% from the previous year, according to research by Newzoo. In-game purchases are a common monetization strategy for popular games and account for a significant part of gaming revenue. Gamers are spending 14% more time playing games than they did in 2019, with young adults accounting for the most significant increase in gameplay time, and the surge in time spent on gaming has led to an increase in in-game purchases. Steam, PlayStation, and Xbox have their in-game purchase systems, which have contributed to the growth of in-game purchases.

Gamers are Spending More Time and Money on In-Game Purchases than Ever Before

Introduction

Gaming has become an increasingly popular pastime for people of all age groups globally. In recent years, the gaming industry has seen tremendous growth, with the number of gamers and gaming revenue skyrocketing. According to research by Newzoo, gaming generated $139.9 billion in 2020, increasing by 9.3% from the previous year.

In-game purchases

In-game purchases have been around since the early days of mobile gaming. Today, it is a common monetization strategy for almost all popular games. In-game purchases are virtual goods that gamers can buy using real money to enhance their gaming experience. These purchases range from unlocking new levels, characters, skins, to digital items such as limited edition items, special game modes, and exclusive upgrades. In-game purchases account for a significant part of gaming revenue.

Growth in time spent on gaming

With the emergence of mobile gaming, playing games on the go has become more accessible than ever. Coupled with the COVID pandemic and subsequent lockdowns, gaming has become a staple source of entertainment for many. According to the Entertainment Software Association, gamers in the US alone spent 14% more time playing games in 2020 than they did in 2019, with an average of 5.05 hours per week, with young adults accounting for the most significant increase in gameplay time.

Increase in in-game purchases

This surge in time spent on gaming has led to an increase in in-game purchases. According to a report by App Annie, in 2020, consumers worldwide spent $72.2 billion on in-app purchases, with mobile games being the main revenue generator. The study also found that a vast majority (around 95%) of mobile gamers make in-app purchases. In fact, the average gamer spent $94.54 on in-app purchases in 2020, an increase of 8.9% from the previous year.

Popular gaming platforms and their in-game purchases

Popular gaming platforms such as Steam, PlayStation, and Xbox have their in-game purchase systems. Steam, the world’s largest digital game distribution platform, provides a wide range of in-game items such as skins, maps, weapons, and other virtual goods for purchase. PlayStation and Xbox offer their in-game currency systems, which can be used to buy games, expansions, and other digital items. The popularity of these platforms has significantly contributed to the growth of in-game purchases in recent years.

Conclusion

Gaming has undoubtedly come a long way since its inception, and in-game purchases have become an integral part of the gaming experience. With the growing number of gamers, time spent gaming, and the availability of increasingly sophisticated in-game items, in-game purchases are here to stay. Gamers are likely to continue to spend more time and money on in-game purchases, enabling developers to invest in creating better experiences and, in turn, drive the growth of the gaming industry.