Pay-to-win: analysis of actual purchasing and acceptance of video game microtransactions among Millennials and Generation Z in the capital of the Philippines

The rapid digitalization of the gaming industry has increased the prominence of microtransactions as a dominant global business model. This study investigated the key factors influencing behavioral intention and actual spending on microtransactions among Urban Millennial and Generation Z Filipino gamers in the capital region of the Philippines. Using a higher-order Partial Least Squares Structural Equation Modeling (PLS-SEM) approach, the study integrated constructs from the extended Unified Theory of Acceptance and Use of Technology 3 (UTAUT3) and the Hedonic Motivation System Adoption Model (HMSAM). Data were collected through an online survey administered from August to October 2025, generating 300 valid responses. Results revealed that UTAUT3 factors namely habit, performance expectancy, effort expectancy, personal innovativeness, social influence, hedonic motivation, price value, and facilitating conditions significantly influenced behavioral intention to purchase microtransactions. Curiosity also showed significant effects on both behavioral intention and immersion. Furthermore, behavioral intention was found to significantly affect immersion and actual purchasing behavior. Overall, the findings provide a comprehensive understanding of the technological, psychological, and motivational drivers of digital spending behavior in gaming. These results offer valuable implications for policymakers, game developers, and regulators in developing responsible monetization strategies and highlight directions for future research considering cultural and economic contexts within the Philippine gaming community.