WEBVTT

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A microtransaction
is a business model

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where users can
purchase virtual items

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for small amounts of money.

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They've become popular
in video gaming,

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especially in
free-to-play games.

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There's no cost to download
these games, just a cost

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to purchase in-game items
and to tip other players.

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Fortnite is a free
game that relies

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upon in-game
purchases for skins,

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how a person or
thing in the game

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looks, and power-ups It uses an
in-game currency called V-Bucks

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that players earn through
game play or purchase

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using real money.

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V-Bucks are used to buy
skins and to unlock features.

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Players can also
buy a battle pass

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to earn awards and level up.

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Most console releases make
money from the game itself,

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but platforms like Fortnite
find revenue almost entirely

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from microtransactions.

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Counter-Strike Global Offensive
is another classic example

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of a game with
microtransactions.

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It launched in 2012 for
$14.99, a small cost

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compared to the $50 price
of many other games.

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It's a first-person shooter
that introduced skins

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for its guns, a new
economic dynamic.

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When games ended, players were
awarded crates of weapon skins

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or bonus items, and
these crates could only

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be opened with a
key that cost $2.49.

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This led to a surge in
the game's popularity

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and reputation.

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This feature created
an in-game economy that

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has real-world consequences.

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Tournaments have prize
pools of these items.

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Microtransactions
are changing the way

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gaming and e-sports
companies generate revenues,

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and they allow
greater flexibility

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for gamers and spectators
to enjoy and interact

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with video games.

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