4 Ethics of Microtransactions and Monetization in Gaming

Griffin Brown

Introduction

In recent years, the video game publisher, Activision Blizzard which is now under the ownership of Microsoft has utilized the usage of political economy through in-game customizations, advertising, and microtransactions. Activision which was founded in 1979 is credited as one of the first third-party video game developers on their own website (Activision). Now Activision is a major publisher of video games with many developer studios that they own. One of Activision’s well established series is Call of Duty which is a military first person shooter (FPS) video game that began with stories that are set in the time period of World War 2, the Cold War, and modern day to futuristic global conflicts. In a military FPS video game, such as the Call of Duty titles the player is in control of the character. The first Call of Duty game which was released in October of 2003 takes place during the time period of World War 2. In the two newest installments of the franchise Call of Duty: Modern Warfare III (2023) and Call of Duty: Black Ops 6 (2024), Activision Blizzard has implemented usage of artificial intelligence in their games customization elements. One of the main developers that creates the Call of Duty: Black Ops games is Treyarch Games who helped in the development of Call of Duty: Modern Warfare III and were the main co-developers of Call of Duty: Black Ops 6. Treyarch however is the lead developing studio of the Black Ops series as they oversee the development of the games within the Black Ops branch of the Call of Duty franchise.

In Game Customization

In the two most recent Call of Duty games which are Call of Duty: Modern Warfare III and Call of Duty: Black Ops 6 there are some concerns about items that the players can obtain and unlock through hours of playtime. One of the many items in the game are calling cards, these calling cards add personality to the player as they are displayed behind the players name in the game and can be unlocked through in-game purchases, doing challenges, and unlocking rewards in a system that is called the prestige system. An example of some calling cards in Call of Duty: Black Ops 6 are shown in Figure 1.

 

A grid of six illustrated banner images in a warm, painterly art style featuring scenes of a black cat in a forest, a woman aiming a rifle, a sniper in a landscape, a soldier with a scoped rifle, floating hats, and a lone figure beneath a red tree.
Figure 1. Image by, CallMeFortitudo. (2025, April 15). Are these calling cards AI generated? [Online forum post with images]. Reddit. https://www.reddit.com/r/blackops6/comments/1gucyu5/are_these_calling_cards_ai_generated/

The figure above which has a depiction of 6 types of calling cards that can be unlocked and used by the player have had some involvement with artificial intelligence in the making of these designs. In the fourth calling card that has a man holding a sniper both of the man’s arms are close to the grip of the sniper rather than having the hand that is not on the grip closer towards the center of the sniper. The calling card above that one has the woman’s right hand stretched out on the bottom of the sniper and she only has three fingers on her right hand while her left hand has four fingers. While that is a small instance of AI usage in the calling cards another element is in the emblems that players earn for leveling up in prestige.

In the prestige system players level up their account and are rewarded with an emblem that represents their prestige level in the game. In Call of Duty: Black Ops 6 the game uses the prestige level emblems to represent their previous titles and popular maps from the franchise. The newest emblems that were released with Call of Duty: Black Ops 6 are references to the other Black Ops games in the order of their release. The first level is in reference to their game Call of Duty: World at War, which takes place during World War 2 and it is the first Call of Duty title that introduces zombies as a game mode, which all of the Black Ops games have as a playable mode. In Figure 2 the first 10 prestige levels are shown, while Figure 3 is a closer look at the prestige 1 emblem.

 

A Black Ops 6 prestige icons chart showing ten ornate, skull-and-animal-themed badges labeled Prestige 1 through 10, surrounding a central gold Prestige Master trophy with three wolf heads.
Figure 3. Matthew, Pryor. All Prestige Icons in Call of Duty Black Ops 6. Esports.gg, 29 Mar. 2025, https://esports.gg/news/call-of-duty/all-prestige-icons-in-call-of-duty-black-ops-6/

 

A illustrated icon of a zombie soldier wearing a military helmet with glowing yellow eyes, holding a submachine gun, set against a full moon with spiky shadow bursts around the circular frame.
Figure 3. Treyarch. [@Treyarch]. (2024, Oct. 29). #BlackOps6 Classic Prestige pays homage to every title in the Black Ops series. Here’s your first look at Prestige Icons 1–4 [Tweet]. X. https://x.com/Treyarch/status/1847772195533312141

This prestige icon which is of a zombie dressed in attire from World War 2 has a glossy texture on the details of the coat and the zombies left arm has two cuffs on the sleeve of the uniform while the right arm only has one sleeve cuff. Another aspect of the emblem is the mouth of the zombie as the inside of the mouth does not match up with the style of the zombie. In the steam page for Call of Duty: Black Ops 6 there is a segment that was implemented by Steam Digital Distribution Service for game developers and publishers to disclose if their games use AI for in-game assets. The language that is used in the disclosure message uses the term “in game assets” in order to disclose what AI is being used for in the game. In the screenshot from figure 4 which is from the store to purchase Call of Duty: Black Ops 6 for $70 USD there is a small segment that discloses how AI is being used in the game.

 

A screenshot of a Steam store page for Black Ops 6 describing the return of Round-Based Zombies mode, followed by an AI Generated Content Disclosure stating the developers use generative AI tools to help develop some in-game assets.
Figure 4. Note. Screenshot from Steam Digital Distribution Service. Own Work.
The disclosure statement that is displayed in figure 4 provides a short summary of what generative AI is being implemented for in Call of Duty: Black Ops 6.

Advertising

Advertising itself has a connection to the discussion of political economy as advertisements are means to persuade an audience to buy a product, which in this instance is video games. Activision Blizzard who is now under the ownership of Microsoft have had a significant usage of utilizing artificial intelligence in their ad campaigns roughly around 2022, however these advertisements have been promptly taken down due to backlash from fans. In a gaming related article from the website Game Developer the author Justin Carter solidifies on this recent upcoming usage within Activision Blizzard. Carter (2025) post discussed the following:

VGC spotted promos for three fake titles—Guitar Hero Mobile, Crash Bandicoot Brawl, and Call of Duty: Zombie Defender—on Instagram. The ads lead to mockup app store pages on a site called Geeklab, where upon clicking ‘Get,’ viewers are treated to the message: ’Thanks for your interest! This isn’t a real game, but could be some day! We’d love if you could answer this short survey, which could help inform the potential future of this game. Your feedback really matters to us!’. (paragraph. 1)

The response itself from Geeklab prompts an important issue in regards to this topic as these types of advertisements promote fan favorite intellectual properties such as with the series of Call of Duty in particular having a new mobile game installment for fans of the zombies community in Call of Duty games. Another instance of advertising that uses artificial intelligence from Activision’s official Facebook account promotes a Call of Duty title that is called Call of Duty: Snipers. Both figures 5 and 6 which are official Activision Facebook posts represent the promotion of the Zombie Defender and Sniper mobile games.

 

Official key art for Call of Duty: Sniper showing two armed soldiers facing each other across a split battlefield — one in tactical gear with a mask, the other in a ghillie suit — each holding a sniper rifle, with a war-torn city and helicopter in the background.
Figure 5. Activision. (2025, February 28). Experience the thrill in our latest Call of Duty update [Video]. Facebook. https://www.facebook.com/share/v/1AsGa3Bffe/

 

Official key art for Call of Duty: Zombie Defender showing a bearded soldier leaping forward firing a pistol, flanked by teammates with rifles, as zombies swarm through a destroyed urban environment under a dramatic stormy sky.
Figure 6. Activision. (2025, February 28). Defend, survive, conquer — Call of Duty: Zombie style [Video]. Facebook. https://www.facebook.com/Activision/videos/call-of-duty-zombie-defender/993054855679934/

This type of advertising can be beneficial especially for a smaller indie development team as it can promote their game efficiently. However, using this tactic to promote non-existent games and to justify firing artists and writers in order to cut costs such as what Activision Blizzard has done illustrates some ethical issues and concerns. Some of these concerns have also been looked at in the cosmetic side of the industry through microtransactions.

Microtransactions

The foundation of microtransactions in video games is a much newer idea and it rose to popularity through the use of loot boxes and battle passes. Microtransactions are a way for video game developers to produce more revenue from the games and IPs.  According to Lies van Roesell and Jan Švelch (2021) in the article:

Microtransactions have become such a contentious part of video games – even more so in the context of mainstream PC and console games – that developers and publishers employ various discursive strategies in order to reframe the public discussion or divert attention away from these controversial monetization practices. The marketing strategy of Apex Legends to publish the game right after its announcement to prevent negative reception of its chosen revenue model – freemium with loot boxes and season passes – is only one of many examples of this deliberate behaviour. (p.198)

Microtransactions however are also ways for other IPs to integrate with one another and for multi developer collaborations such as with Fortnite. This title is a prime example of how in-depth microtransactions are in gaming as there are cosmetics for character models, licensed music, other video game IPs and designs all implemented into this one popular free to play video game. Microtransactions are a way for these developers to make money, however these transactions are still incorporated in video games that cost 60 dollars and more. While other triple A developers such as Ubisoft have a lower price for their game Tom Clancy’s Rainbow Six: Siege the game similar to Fortnite has multiple different IPs integrated as cosmetics from noticeable video game and television series which include: Halo, Yakuza, NieR: Automata, Assassin’s Creed, Tomb Raider, Rick and Morty, The Boys and Resident Evil as some of the characters in the game have skins which change their outfit to represent another character from one of the other IPs. The change in the characters have no significant pay to win features such as changing the character model hitbox or limiting the voice lines of the characters, however in some instances some of the skins made it easier to blend into certain backgrounds and shadows or even made characters blend less into the backgrounds.

In July of 2023 many fans noticed a bundle that appeared within the shop and it incorporated some elements of AI for the design. One un-named Activision employee spoke out in an interview with Brian Merchant in a WIRED interview (2024) Merchant states:

When Noah saw the email, a wave of anxiety hit. It was spring 2023, and the Activision artist was reading a message from the company’s then chief technology officer, Michael Vance, about how artificial intelligence was ‘top of mind’ at the video game publisher. Systems were still being tested, Vance wrote, but ‘what we have seen thus far holds a ton of promise.’ (paragraph. 1)

The statement from the employee and how these systems were being tested but ultimately deemed to be ready for use by the artists from those in charge of the studio led to more implementations for the game and cosmetics that Activision owns. Merchant (2024) highlights:

There had been a couple emails like this sent to the employees of the studio, which produces the juggernaut Call of Duty series. A previous one had approved the internal use of generative AI tools Midjourney and Stable Diffusion for producing concept art.

That spring, backchannel chats lit up with rumors, worry, and whisper networks of whose jobs AI might replace. Where executives saw reason for excitement, many game artists, writers, and designers saw a direct threat to their livelihoods. Noah was grief-stricken.  (paragraphs 2-3)

The concept art designs and implementation of AI and the accounts for the emails that approved the internal usage of AI to create designs and cosmetics for the company impacts those hard working writers, actors, and designers at Activision Blizzard. One such bundle in question which is still purchasable in game would cost roughly $15 which might not seem that much in retrospect but that does not account for the base price of the game which for the cheapest edition of this game would be $70 and other versions of this game would cost more for the consumer. Not to mention that the battle pass and bundles contain different variations of the weapon within the games and other cosmetics such as skins to personalize the account. In the Yokai’s Wrath bundle that was released for Call of Duty: Modern Warfare III (2023) the loading screen which is another type of customization that the player has features some elements that are attributed to AI art such as the design for the loading screen that is represented in Figure 7.

 

A Call of Duty: Modern Warfare III store bundle preview for ‘Yokai’s Wrath’ showing five items: the Yokai operator skin in a demon mask and feathered costume, the Demon Breath WSP Swarm weapon blueprint, the Samurai Resolve calling card, the Mempo sticker, and the Demon Face loading screen.
Figure 7. From Activision Reportedly Sold an AI-Generated Call of Duty: Modern Warfare 3 Cosmetic, by IGN Staff, 2024, IGN. https://www.ign.com/articles/activision-reportedly-sold-an-ai-generated-call-of-duty-modern-warfare-3-cosmetic. © 2024 by IGN. Reprinted under fair use for educational purposes.

In the figure above, the loading screen is shinier and has a glossy texture and it does not represent what the character skin looks like. There are also some ethical concerns when it comes to artificial intelligence and the political economy aspects of the video game industry.

Ethics and AI

The ethical question about the usage of artificial intelligence in the video game industry is not necessarily its implementation but is more of a reflection on how companies such as Activision Blizzard have used it as a cost cutting tool to replace employees. Merchant’s (2025) discussion with the anonymous Activision employee Noah (which Merchant establishes is a false name due to protecting the privacy of the employee) raises concerns:

“I felt that we were throwing away our humanity,” he says.

Then the jobs started disappearing….

Its economic might has long since eclipsed Hollywood’s, while its workforce remains mostly nonunion. A recent survey from the organizers of the Game Developers Conference found that 49 percent of the survey’s more than 3,000 respondents said their workplace used AI, and four out of five said they had ethical concerns about its use. (paragraphs 4-5, 7)

Noah’s statement about how AI is looked at by executives in the company to cut the jobs within the company provides enough of a concern to how far a triple A company such as Activision Blizzard can go to cut costs to make the games and to promote quantity over quality. In a statement by Tom Ivan (2025) he writes:

Activision recently confirmed that its teams use generative AI tools to help develop some in game assets for Call of Duty.

In a GDC survey published this January, 52% of developers said generative AI tools were being used at their workplace. (paragraphs 8-9)

The confirmation that AI is used by roughly half of the working force on video games raises more ethical concerns of its usage. In recent news Activision Blizzard has had recent controversy with their use of artificial intelligence through cosmetic bundles. There have been a few instances where cosmetic bundles had elements of AI used for the loading screens.

Conclusion

The political economic factors that surround the gaming industry and the impact that artificial intelligence has on the monetization and advertising of video games raises more ethical issues on the rampant reliance of AI. Activision Blizzard’s usage of artificial intelligence in the political economy of gaming which has been seen in their customization, advertising, and monetization practices in the Call of Duty franchise can have a lasting impact on the video game industry. Artists can lose their jobs due to competing against growing AI designs, developers can create more cosmetics in faster time frames without significant quality control while charging more for for bundles, and use artificial intelligence to promote false games to fans which can ruin the reputation of a Triple A publisher for their future titles costing many employees to be let go and to lose jobs. In the figure below is a screenshot of fan reviews for the latest Call of Duty titles.

 

A Steam library screenshot showing two Call of Duty games: Black Ops 6 (released October 25, 2024) and Modern Warfare III (released November 10, 2023), each priced at $69.99.
Figure 8. Screenshot from Steam Digital Distribution Service. Own Work.

The review for Call of Duty: Modern Warfare III has an all time negative review score that has a positive rating of 32% from 11,939 players and the review for Call of Duty: Black Ops 6 has an all time mixed review score with a 45% rating from 11,624 players who reviewed the game.

Sources

Activision Blizzard. (2023). Activision Blizzard | Who We Are. Www.activisionblizzard.com. https://www.activisionblizzard.com/who-we-are

Activision on Facebook: “Crash bandicoot brawl: Party hard, brawl harder — crash team brawl is here” Facebook. (n.d.). https://www.facebook.com/Activision/videos/crash-bandicoot-brawl/569180362817791/

Activision. (2025, February 28). Call of duty sniper: Take the shot – call of duty: Sniper is mobile: By Activision. Facebook.https://www.facebook.com/share/v/1AsGa3Bffe/

Activision. (2025, February 28). Call of duty zombie defender: Defend, survive, conquer – call of duty: Zombie style: By Activision. Facebook. https://www.facebook.com/Activision/videos/call-of-duty-zombie-defender/993054855679934/

Activision on Instagram: “Play your way – guitar hero goes mobile.” Instagram. (n.d.). https://www.instagram.com/p/DGn9-qkAR3F/

Bernevega, A., & Gekker, A. (2022). The Industry of Landlords: Exploring the Assetization of the Triple-A Game. Games and Culture, 17(1), 47–69. https://doi.org/10.1177/15554120211014151

Carter, J. (2025, March 4). Activision Blizzard is using Generative AI to Hawk games that don’t exist. Activision Blizzard is using generative AI to hawk games that don’t exist. https://www.gamedeveloper.com/business/activision-blizzard-is-using-generative-ai-to-hawk-games-that-don-t-exist

Ivan, T. (2025, March 3). Activision taps AI for Sneak Peek at possible guitar hero, call of duty and crash Bandicoot Games. VGC. https://www.videogameschronicle.com/news/activision-taps-ai-for-sneak-peek-at-possible-guitar-hero-call-of-duty-and-crash-bandicoot-games/

McKaughan, J. G., Zoch, L. M., Bowers, K. W., & Smith, M. J. (2017). Video Game Values: A qualitative study of organizational values in the video game industry (Doctoral dissertation, Radford University)

Medrano, H. (2025, February 25). Activision admits the use of generative AI on current Call of Duty titles. SiegeGG. https://siege.gg/news/activision-admits-the-use-of-generative-ai-on-current-call-of-duty-titles

Merchant, B. (2024, July 23). Ai is already taking jobs in the video game industry. Wired. https://www.wired.com/story/ai-is-already-taking-jobs-in-the-video-game-industry/

Warby, N. (2023, July 11). Warzone players claim the Boys Black Noir skin will be next “pay-to-win” Roze skin. Charlie INTEL. https://www.charlieintel.com/call-of-duty-warzone/warzone-players-claim-the-boys-black-noir-skin-will-be-next-pay-to-win-roze-skin-260563/

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