Microtransaction in the context of "Downloadable content"

Free-to-play (F2P or FtP) video games are games that give players access to a significant portion of their content for free. The term "free-to-play business model" or simply, "free-to-play model", refers collectively to business models that ultimately result in the creation of free-to-play games. Games that adhere to free-to-play business models are distinct from traditional premium games, which require payment before use. Free-to-play games are not to be confused with freeware games, which are entirely costless. Accordingly, free-to-play games are sometimes called "free-to-start" due to not being entirely free. Certain free-to-play games have also been labeled as "pay-to-win"—that is, that players can pay to obtain competitive advantages over other players.

There are several kinds of ways that free-to-play games generate money, despite being mostly free. A common method is based on the freemium software model, in which users are incentivised to make small purchases, called microtransactions, to either access additional cosmetic or gameplay content, progress through the content faster, or gain competitive advantages over other players. Another method of generating revenue is to integrate advertisements into the game.

Virtual goods are non-physical objects and money purchased for use in online communities or online games. Digital goods, on the other hand, may be a broader category including digital books, music, and movies. Virtual goods are a subclass of intangible goods.

Including digital gifts and digital clothing for avatars, virtual goods may be classified as services instead of goods and are usually sold by companies that operate social networking services, community sites, or online games. Sales of virtual goods are sometimes referred to as microtransactions, and the games that use this model are usually referred to as freemium games.

Hearthstone is a 2014 online digital collectible card video game produced by Blizzard Entertainment, released under the free-to-play model. Originally subtitled Heroes of Warcraft, Hearthstone builds upon the existing lore of the Warcraft series by using the same elements, characters, and relics. The game is available on the Windows, macOS, iOS and Android platforms, featuring cross-platform play. It has been a critical and commercial success, with Blizzard reporting more than 100 million Hearthstone players as of November 2018, and the game has become popular as an esport, with cash prize tournaments hosted by Blizzard and other organizers.

The game is a turn-based card game between two opponents, using constructed decks of 30 cards along with a selected hero with a unique power. Players use their limited mana crystals to play abilities or summon minions to attack the opponent, with the goal of destroying the opponent's hero. Winning matches and completing quests earn in-game gold, rewards in the form of new cards, and other in-game prizes. Players can then buy packs of new cards through gold or microtransactions to customize and improve their decks. The game features several modes of play, including casual and ranked matches, drafted arena battles, and single-player adventures. New content for the game involves the addition of new card sets and gameplay, taking the form of expansion packs.

In the video game industry, AAA (Triple-A) is a buzzword used to classify video games produced or distributed by a mid-sized or major publisher, which typically have higher development and marketing budgets than other tiers of games. The term originated in the 1990s and 2000s as development budgets for high-profile video games, such as Final Fantasy VII, grew into the tens of millions of U.S. dollars. Such costs were incurred due to the use of cinematic cutscenes and voice acting, coupled with higher fidelity graphics made possible with video game hardware.

By the late 2010s and early 2020s, the boundaries of the AAA label had become increasingly fluid as development budgets rose and production pipelines grew more complex. Some industry commentators noted that the escalating cost of producing large-scale titles encouraged publishers to invest primarily in established franchises, leading to fewer experimental projects within the AAA space. Others argued that advancements in game engines, digital distribution, and crowdfunding allowed smaller studios to achieve production values approaching those of traditional AAA teams, further blurring categorical distinctions. AAA games also began heavily to rely on microtransactions and operating as live service games. Such changes led to the growth of the indie game market in the mid 2010s, as well as other categories of games, such as AA games, representing works by smaller teams but with the quality and approach used in AAA games.