The video game industry continues to grow exponentially, with revenue projected to reach over $200 billion globally by 2025. As competition increases between game developers, companies utilize clever psychological tactics to encourage players to spend more time and money in-game.
One of the most common approaches is time-limited bonuses – special offers, rewards, or content made available for only a few days or weeks. The underlying motivator this strategy targets is fear of missing out (FOMO). Game developers spark anxiety that players need to act now before the opportunity is gone forever.
Scarcity Elicits Urgency and Desire
According to psychological reactance theory, when free choice is limited or threatened, people desire it more. Time constraints make an offer seem more scarce and valuable. This elicits urgency and tempts players on the 711 NL online platform with the fear that they’ll miss out on something important.
For example, limited-time skins, characters or seasonal battle passes play upon players’ desire to collect exclusive content. The countdown clock pressures them to purchase immediately rather than rationally evaluating if they’ll actually use the content regularly.
People Overvalue Temporary Bonuses
Consumer research reveals that time limitations cause people to overvalue bonuses compared to permanent ones. In a series of experiments published in the Journal of Consumer Research, participants consistently rated temporarily available rewards as more enticing, even when the actual value was the same as or less than permanent bonuses.
Video game developers leverage this bias by offering short boosts to XP gains, resources, or premium currency. The ticking clock makes the bonus seem more significant than continual small improvements.
Loss Aversion Encourages Purchases
Losing something elicits a stronger emotional reaction than gaining something equivalent. Known in psychology as loss aversion, people feel the pain of loss twice as intensely as the pleasure of gaining.
Time-limited offers tap into loss aversion. Players imagine failing to obtain exclusive, high-value items before the offer disappears. To avoid this painful loss, they become more willing to spend real-world money on temporary bundles and battle passes.
| Psychological Trigger |
Definition |
Example in Video Games |
| Scarcity |
Limited access to something makes it seem more valuable |
Limited-time character skins |
| Overvaluation of temporary bonuses |
Short-duration bonuses seem better than equivalent perpetual bonuses |
Double XP events for a weekend |
| Loss aversion |
Losing something feels worse than gaining something equivalent |
Missing out on battle pass rewards by not completing in time |
This mixture of psychological mechanisms compels players to jump on time-limited offers. The urgency makes them spend money without pausing to evaluate if the transaction is worthwhile.
Ethical Considerations Around FOMO Tactics
While time-limited bonuses have proven an effective monetization strategy, the use of FOMO raises ethical questions around manipulation. Critics argue that these psychological triggers can lead more vulnerable players to overspend and develop unhealthy gaming habits driven by anxiety.
Some countries have begun restricting certain FOMO tactics:
- In 2018, South Korea banned “gacha” loot boxes that generate random rewards. These caches leverage scarcity and loss aversion.
- Legislatures in several states in the U.S. have proposed bills requiring video games with microtransactions to disclose the odds of obtaining rare loot box items. This transparency could reduce overvaluation biases.
- Some game developers now allow players to obtain previously time-limited premium content through alternative means. This helps mitigate loss aversion when players miss exclusive windows.
Balancing Business Success with Ethical Standards
The video game industry must strike a delicate balance between profitability and ethical standards. While FOMO tactics elicit more spending, companies also risk manipulative overreach, resulting in player burnout and PR backlash.
By making time-limited offers optional, ensuring transparency around odds, and providing alternative access paths to exclusive content, developers can encourage spending while maintaining respect and trust with players. Small design tweaks enable profit while avoiding accusations of predatory psychological manipulation.
The human mind is riddled with irrational biases, but not all business strategies that leverage them cross ethical lines. As the video game industry continues maturing, both developers and the public benefit from ongoing discussion around balancing business success with moral standards around psychological influence. Careful self-regulation can prevent government legislation while retaining innovative game design and revenue models.
