Pay-To-Win: Analysis of Actual Purchasing and Acceptance of Video Game Microtransactions Among Millennials and Generation Z in the Capital of the Philippines

Research by: Emil Renfred Rendon, John Francis T. Diaz, Ardvin Kester S. Ong & John Xavier Chavez

Executive Summary

The rapid digital transformation of the global video game industry has positioned microtransactions as a dominant monetization model, fundamentally reshaping how players engage with and spend within gaming environments. In the Philippines, now the largest video game market in Southeast Asia, this shift is particularly evident among urban Millennial and Generation Z gamers. This study examines the underlying cognitive and affective factors that drive both behavioral intention and actual purchasing of video game microtransactions within this demographic. By integrating an extended Unified Theory of Acceptance and Use of Technology 3 (UTAUT3) with the Hedonic Motivation System Adoption Model (HMSAM), the research provides a comprehensive framework for understanding digital consumption behavior in hedonic systems.

Using a higher-order Partial Least Squares Structural Equation Modeling (PLS-SEM) approach, data were collected from 300 verified respondents through an online survey conducted between August and October 2025. The study evaluated key constructs including performance expectancy, effort expectancy, social influence, facilitating conditions, hedonic motivation, price value, habit, personal innovativeness, curiosity, immersion, behavioral intention, and actual purchasing. The findings reveal that UTAUT3-related factors significantly influence behavioral intention, with habit, hedonic motivation, effort expectancy, and social influence emerging as particularly strong predictors. These results suggest that microtransaction engagement is shaped not only by perceived usefulness and ease of use but also by social environments and routine behaviors.

In parallel, the study highlights the critical role of curiosity as an intrinsic driver derived from HMSAM. Curiosity significantly influences both behavioral intention and immersion, underscoring the importance of affective and experiential triggers in gaming contexts. Behavioral intention, in turn, demonstrates a strong and direct effect on actual purchasing behavior, confirming its role as the primary predictor of digital spending. Additionally, behavioral intention significantly enhances immersion, indicating a reinforcing cycle between intent and engagement.

However, the study also identifies important boundary conditions. Contrary to expectations, UTAUT3 constructs do not significantly predict immersion, suggesting that traditional technology acceptance models are limited in explaining emotional and experiential outcomes in hedonic environments. Similarly, immersion does not significantly influence actual purchasing, indicating that emotional engagement alone is insufficient to drive spending behavior among Filipino gamers. Instead, purchasing decisions are more strongly influenced by cognitive evaluations, social validation, and perceived value. The construct of control was also found to be insignificant, further emphasizing the dominance of hedonic and social factors over rational decision-making in this context.

These findings contribute theoretically by delineating the cognitive–affective divide in technology adoption models, demonstrating that while UTAUT3 effectively explains intention, HMSAM constructs are essential for capturing experiential engagement. Practically, the results offer actionable insights for game developers and policymakers. The strong influence of social factors and curiosity-driven mechanics highlights the need for ethical monetization strategies, including transparency in influencer marketing, probability disclosures in randomized rewards, and safeguards against excessive spending.

Overall, this study provides a nuanced understanding of microtransaction behavior in a developing economy, emphasizing the interplay between utilitarian and hedonic drivers. It also opens avenues for future research exploring cultural, economic, and regulatory dimensions of digital consumption in gaming ecosystems.

To cite this article:

Rendon, E. R., Diaz, J. F. T., Ong, A. K. S., & Chavez, J. X. (2026). Pay-to-win: Analysis of actual purchasing and acceptance of video game microtransactions among Millennials and Generation Z in the capital of the Philippines. Cogent Business & Management, 13(1), 2667641. https://doi.org/10.1080/23311975.2026.2667641

To access the article: https://doi.org/10.1080/23311975.2026.2667641

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