In-game purchases soar as freemium games captivate 82% of gamers

A newly released joint report by media and analytics giant, Comscore, and in-game advertiser, Anzu, has provided a look into US gamers' behaviors and preferences, and prevailing trends in the gaming ecosystem.

Majority of US Gamers Tolerant of Shelling Out Extra Money on In-Game PurchasesFree-to-play Games Become Increasingly Popular

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Titled "Comscore's 2024 State of Gaming Report," it is a newly released joint report by media and analytics company, Comscore, and in-game advertiser, Anzu, that covers US gamers' gaming habits, preferences, and spending patterns. It likewise delves into the popular genres among gamers across different platforms.

According to the report, 82% of US gamers made in-game purchases in freemium games last year. Freemium is a portmanteau of the words free and premium. Freemium Games are downloadable and playable for players completely for free while offering optional in-app purchases for additional features and benefits, such as extra coins, health points, and exclusive items. Popular examples of freemium games include miHoYo's global hit Genshin Impact and Riot Games' League of Legends.

The freemium model has seen widespread adoption and success, particularly in the mobile gaming scene. Nexon Korea’s MMORPG Maplestory, which was released in North America in 2005, is known for being one of the first games that pioneered the freemium game concept. In Maplestory, players were able to buy virtual items, such as pets and rare weapons, using real money—a concept that has since been widely embraced by developers and online retailers.

Game developers and online retailers like Google, Apple, and Microsoft have landed on great success as freemium games continue to grow and remain popular. Research from Corvinus University, a private research university, highlighted that the appeal of freemium games is driven by a combination of factors such as utility, self-indulgence, social interaction, and in-game competition. These elements motivate players to make in-game purchases to enhance their gaming experience, unlock new content, or avoid interruptions from ads.

Steve Bagdasarian, Comscore's Chief Commercial Officer, commented on the findings, stating, "Our 2024 State of Gaming Report highlights the cultural significance of gaming and the vital role of gamer behavior for brands looking to tap into this dynamic and engaged audience."

In February, Tekken's Katsuhiro Harada weighed in on in-game purchases and transactions as they rolled out paid items in Tekken 8, the latest in the fighting game franchise. Harada said that, especially with the rising cost of game development, profit made from such transactions will go to Tekken 8’s development budget.