It's such a weird relic, that term. If I recall correctly, it originated with independent creators attempting to figure out monetization schemes that would work for small websites. Scott McCloud used to propose this idea as a way to fund webcomics outside of the old systems of syndication or advertising revenue. Webcomic artists could sell each page of their comic for a fee as low as a couple of cents, and make a profit on sheer volume.
Then they made their way to video games. And it used to be that they presented a reasonably comprehensible bargain:
You get to play a full-featured videogame for free, in return for which the game will occasionally advertise a premium cosmetic or unlock of some kind, for prices like $.99 or a couple of dollars. This was considered slightly annoying, especially in the mobile gaming space, but the trade-off was clear. Free game, paid optional content for less than the price of a cup of coffee.
The absolute maximal price you'd pay for a League of Legends skin was about $30, and those skins were considered an absolutely outrageous expense for totally dedicated League of Legends lifers, and were expected to be the absolute peak of technical possible quality. And those were still mocked as ridiculous expenses for weirdos, the sort of thing that no normal or average player should ever be expected to blow money on.
Bethesda was mocked for MONTHS for trying to sell $2.50 horse armor cosmetics in Oblivion. Microtransactions? In a premium product? In a sixty dollar game? Absolutely unacceptable! That was a breaking of the bargain!
But Bethesda's transgression was the thin end of a wedge. More and more of those post-launch monetizations started creeping into premium products, and by sheer erosion, by sheer slow grinding normalization, they started to multiply and the prices started to creep up and up and up, and day 1 DLC became normal, and ultimate and premium editions and super ultimate exclusive digital deluxe collector's editions and battle passes and lootboxes and... yeah.
It used to be a... not amazing, but at least a reasonably fair bargain. A transparent bargain. You get to play a game for free, and the price you pay instead is the soft pressure of microtransactions—actually micro transactions—being advertised to you.
But the line has to go up. The number needs to get bigger. The center could not hold.
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