Finance

Virtual Reality: The Very Real World Of Virtual Currency

Virtual Reality: The Very Real World Of Virtual Currency

Video game currency doesn’t simply exist in the virtual world. Debts racked up virtually are a very real problem according to UK finance-broker Solution Loans.

Virtual Reality: The Very Real World Of Virtual Currency

In fact, the company has seen a 15% yearly increase in individuals seeking financial assistance because of debts racked up spending in the virtual world. Specifically, the broker dealt with 25 cases in the last two months. But nationwide this volume is likely to be the tip of a much, much larger iceberg.

For many parents, monitoring how many hours their kids spend in virtual worlds is a difficult problem to track, and that’s without the phenomenon of in-game spending or microtransactions.

And it truly is a phenomenon, with £58,850,752.79 spent globally every single day by video game enthusiasts during their game time.

The amount spent on in-game transactions looks set to continue to rise. Red Dead Redemption 2 has been a runaway success and if developers Rockstar follow the same model they used with GTA5 (and there’s no reason to think they won’t) then they’ll be looking to maximise their profits with micro transactions for the multiplayer version of the game.

According to information provided by the Intelligent Economist, gaming companies make 50% of their revenue for mobile games from just 0.15% of users. Also termed, “whales”, each of these users would need to spend £11 every single day for Fortnite, another blockbuster game, to make its current daily revenue.

For each whale that would equate to £4,015 a year – more than it would cost for a family season ticket for Premier League champions Manchester City.

Amanda Gillam from Solution Loans said: “This is a very real problem, and one that simply shouldn’t be ignored.

“Parents need to understand how in-game spending works and the games where users are most tempted to part with their cash. For many users it may not feel real as the transaction is quick and simple, but it is very real. And so is the potential impact it can have.

The issue is being taken more seriously. In the UK the NHS has set up an internet addiction clinic. Whilst this ostensibly covers all internet use the focus is very much on gaming. In June the World Health Organisation classed gaming disorder as a mental health condition in June.

For further information about the real world of virtual currency visit: https://www.solution-loans.co.uk/blog/real-world-virtual-currency/

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