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Playing to Pay: Interplay of Monetization and Retention Strategies in Korean Mobile Gaming

HwiJoon Lee, Kashif Imteyaz, Saiph Savage

TL;DR

The paper investigates monetization and retention strategies in the Korean mobile gaming market using direct gameplay and video analyses to build a taxonomy of tactics. It reveals high prevalence of gacha mechanics (about 92.5%), notable use of time-gated progression (≈25%), ease-of-play monetization (≈25%), and conflict-driven design (≈62.5%), alongside retention strategies driven by loss aversion and sunk costs (e.g., daily rewards used by ≈95% of games). The study discusses ethical concerns—especially transparency around probabilistic rewards and pay-to-win dynamics—and argues for stronger consumer protections and cross-regional research. Methodologically, it combines qualitative thematic analysis with observational data to illuminate how monetization and retention designs interact to maximize revenue while shaping player behavior.

Abstract

Mobile gaming's global growth has introduced evolving monetization strategies, such as in app purchases and ads, designed to boost revenue while maintaining player engagement. However, there is limited understanding of the scope and frequency of these strategies, particularly in mature markets like South Korea. To address this research gap, this study examines the monetization strategies used in the top 40 most popular Korean mobile games through direct gameplay observations and targeted video analyses. We identified the prevalence of specific strategies, including time gated progression, Conflict Driven Design, and social Dynamics, which are systematically categorized in our proposed framework for monetization. Our findings also highlight ethical concerns, including issues with transparency, probability disclosures, and the exploitation of competitive pressures areas that remain poorly regulated. To address these challenges, we emphasize the need for stricter consumer protections, cross regional research, and greater focus on protecting vulnerable populations to promote a more equitable and responsible gaming environment.

Playing to Pay: Interplay of Monetization and Retention Strategies in Korean Mobile Gaming

TL;DR

The paper investigates monetization and retention strategies in the Korean mobile gaming market using direct gameplay and video analyses to build a taxonomy of tactics. It reveals high prevalence of gacha mechanics (about 92.5%), notable use of time-gated progression (≈25%), ease-of-play monetization (≈25%), and conflict-driven design (≈62.5%), alongside retention strategies driven by loss aversion and sunk costs (e.g., daily rewards used by ≈95% of games). The study discusses ethical concerns—especially transparency around probabilistic rewards and pay-to-win dynamics—and argues for stronger consumer protections and cross-regional research. Methodologically, it combines qualitative thematic analysis with observational data to illuminate how monetization and retention designs interact to maximize revenue while shaping player behavior.

Abstract

Mobile gaming's global growth has introduced evolving monetization strategies, such as in app purchases and ads, designed to boost revenue while maintaining player engagement. However, there is limited understanding of the scope and frequency of these strategies, particularly in mature markets like South Korea. To address this research gap, this study examines the monetization strategies used in the top 40 most popular Korean mobile games through direct gameplay observations and targeted video analyses. We identified the prevalence of specific strategies, including time gated progression, Conflict Driven Design, and social Dynamics, which are systematically categorized in our proposed framework for monetization. Our findings also highlight ethical concerns, including issues with transparency, probability disclosures, and the exploitation of competitive pressures areas that remain poorly regulated. To address these challenges, we emphasize the need for stricter consumer protections, cross regional research, and greater focus on protecting vulnerable populations to promote a more equitable and responsible gaming environment.

Paper Structure

This paper contains 15 sections, 3 figures, 1 table.

Table of Contents

  1. INTRODUCTION
  2. METHODOLOGY
  3. FINDINGS
  4. Monetization Strategies
  5. Ease of Play Monetization Strategy
  6. Monetization Strategies Leveraging Time-Gated Progression and Progress Boosters
  7. Monetization Strategies with Randomized Reward Systems (Gacha mechanics)
  8. Monetization Strategies with Conflict-Driven Design
  9. Retention Strategies
  10. Retention Strategies Leveraging Future Loss Aversion Mechanisms
  11. Retention Strategies Incorporating Protecting Past Investments (Sunk Cost Fallacy).
  12. DISCUSSION
  13. Ethical Concerns
  14. Limitations
  15. Future Works and Conclusion

Figures (3)

  • Figure 1: Ad-skipping option in Legend of Mushroom
  • Figure 2: An example of the Complete Gacha system Toto12
  • Figure 3: First purchase bonuses in Wuthering Waves [][]wutheringWaves , where players receive double value (orange) for initial purchases. After the first purchase, the bonus decreases to 13% extra (green), encouraging initial spending with greater rewards.