Micro-Transactions: The New Way to Pay - the Basic Introduction

As more and more people dive into the golden pond that is Next Gen video gaming, a new nasty little way for companies to take more money out of your pocket is rearing its ugly head. Its name? Micro-transactions. Its game? Getting you to spend small amounts of money more frequently. Here some things you need to know before giving your spare change to the micro-monster.

What exactly are micro-transactions?

Micro-transactions describe exactly what they are, small transactions or transfers of money, usually between company and consumer. Quite simply, they are micro-transactions. These transactions are completely electronic and are usually regulated by the company offering them. Companies will have many forms of micro-transaction. Some, such as Sony and their PlayStation Network (PSN) and Apple's iTunes store, will simply charge real money that can be taken straight out of a source of your choice, whether it be a credit card or debit card. Then you have some networks which have their own form of currency. The list of companies using their own currency include Microsoft's Xbox Live and their Microsoft Points and Nintendo with their Nintendo Points. MTV and various other companies also have websites or services with their own form of these micro-transactions.

How do micro-transactions work?