Player choices and in-game activities

Purchasable In-Game Content

The ability to purchase optional in-game content is a vital part of the success of the modern video games industry. It has:

more choice

Giving consumers more choice, with tens of thousands of games now available with no upfront cost

New revenue source

Created a significant new revenue source, allowing the market to diversify with thousands of new companies forming across Europe

New shared experience

Enabled the live operation of games that continue to be updated many years after release, creating a whole new type of shared experience that can evolve over years and even decades and foster entire communities

For many mobile game developers, of which many are small and independent studios, optional purchases of in game content is their only revenue model

The player must be informed upfront, before download or purchase, if the game includes optional purchases of in-game content

20%

Around 20% of the games rated by PEGI each year include the ability to make optional purchases of in-game content, including some of the most popular and longest-lasting on the market

This is perhaps the best example of how a creative sector has succeeded in its transition towards digital. Our industry has responded to consumer demand with an increased offer, at lower cost, and more choice

95%

95% of parents of children who buy in-game extras actively monitor their children’s spending

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76%

76% of the parents of children that play games say their children do not purchase 
in-game content 
(stable since 2020)

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18%

18% of parents say their children are allowed to spend on in-game content

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21%

21% amongst those all owing to purchase content, the average spend has decreased by 21% since 2023

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11%

in all ages 11-64, just 11% of video game players have spent real money on in-game currency within a game

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Some common in-game content

Optional in-game content refers to add-on items that can enhance a players’ experience, such as costumes, levels and characters, and in-game currency

This optional content can be purchased in one of two ways:

Through a clearly distinguishable game storefront operated by a platform holder or publisher

Via a storefront presented in-game

Whichever option consumers choose, their purchase takes place separately from the gameplay experience, which is long standing best practice following regulatory advice

In-game currency

In-game currency is a form of optional content in some games and can usually be purchased in either bundles or individually. Additionally, in some games, it can be earned through normal gameplay. Once purchased or earned, it can then be exchanged for other forms of in-game content, such as a new hat or potion

it is not a real currency and it has no real world monetary value and cannot be used outside of the game

As with all purchases of in-game content it is never mandatory to purchase in-game currencies

LOOT BOX

A loot box is an optional virtual item in video games that contains randomised rewards. The contents of a loot box are unknown until it is opened…

…however, players may be made aware of what class or level of item is contained within. Their content can include in-game items such as weapons, cosmetic items, or upgrades

A game that includes loot boxes must always clearly inform consumers prior to acquisition about the probability of receiving each item or category of items. The consumer will always receive something of at least equivalent value to their purchase

In-game ADVERTISING

In-game advertising refers to the inclusion of advertisements or branded content inside a video game. These advertisements can appear in the forms of product placement or in the video game’s world environment, such as billboards, banners or an interactive format

In-game advertising, often utilised in mobile and free-to-play games, as a way to recover development cost and sustain the game’s future development, is not a main source of revenue for studios

The significant body of  pre-existing European legal and regulatory requirements, including applicable data protection rules under GDPR, general marketing rules and specific requirements on marketing to children, all apply in full to the video games industry

The sector has also undertaken initiatives that go beyond mere compliance with the law and has set self-regulatory standards to protect children from inappropriate advertisements

Battle pass / Season pass

Battle passes or season passes are optional purchases allowing players to play and access challenges in a time-limited frame within an existing game. They are common in role playing games, and have been popular features in these types of games for many years

Players complete tasks and challenges to earn functional or cosmetic content

Some games may offer a free version with basic content and a paid version

The European Games Developer Federation, Video Games Europe and our members are committed to a policy framework that ensures fair and transparent player and consumer experiences when playing games. This is why we constantly promote the PEGI system ‘and the easy-to-use tools for players and parents

OUR POSITION ON PAPER
PEGI Code of Conduct Article on in-game monetisation
  • Information obligation: game purchases icon
  • Transparency in transactions
  • Transparency on in-game currency and how it is offered
  • Transparent and fair paid random items
  • No skin gambling
  • PEGI CODE OF CONDUCT Enforcement
Additional Commitments
  • Tools to manage, limit or block purchases
  • Transactions are kept separate from gameplay
  • Fair refund policies
  • Inform players about discontinuation of in-game currency
  • No unauthorised trading
Education Campaigns & Data
  • Trade associations information campaigns – work together with stakeholders
  • Commitment to provide trusted data
Video games industry’s revenue split by source
10%

Physical revenue

90%

Digital revenue

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