I published an article exposing the hidden costs of virtual currencies. In the days since, Blizzard Entertainment announced a new in-game currency called Hearthsteel for purchasing housing items in World of Warcraft with the upcoming Midnight expansion.
On the surface: convenience. Behind the scenes: something more manipulative. Their stated reason: a currency “makes things more efficient” for many small transactions. They argue that purchasing many tiny items (chairs, candles, decor) using real money each time is inefficient. If you look closer, there’s a disturbing truth we must fight.
What happens when virtual currencies replace real money
When you shop for groceries, you buy toilet paper, soap, and pet food. Your receipt lists each item, price, taxes, and proof of purchase. Clear. Transparent. With virtual currency systems:
- You buy the virtual currency (receipt shows you bought tokens or “Hearthsteel”).
- Then you spend those tokens for items, but your receipt doesn’t show each item’s real money cost.
- In WoW’s case, you buy Hearthsteel with real money. Then you buy housing items inside the game. The Battle.net account shows the currency purchase, but not individual real-money prices for each housing piece.
- What does this do? It shields the true cost from the buyer. It defeats accountability. It makes it easier to overspend because you aren’t immediately aware of how much you’re spending on each item.
The case of Hearthsteel in WoW
Here’s how the new system works (based on Blizzard’s announcement):
- Hearthsteel is purchased with real money via Battle.net balance.
- It’s used only for Housing items (in the store and in-game) in WoW. No mounts, transmogs, pets (at least for now).
- Blizzard claims the vast majority of housing items remain earnable in-game; only a small proportion will be shop-exclusive.
- They say it’s for “efficiency” of many small purchases: you buy the currency once then spend inside, instead of many real-money micro-transactions.
While this sounds reasonable, the problem isn’t the existence of such a currency. It’s what the currency hides.
Why this matters beyond just one game
Virtual currencies like Hearthsteel aren’t isolated. They follow a pattern across games and apps:
- Blurring money & value: When you purchase a virtual currency, your brain stops thinking “I’m spending real money.” You think “I’m spending tokens.” That psychological distance, economists call it money illusion, makes it easier to overspend. You lose track of value.
- Less transparent spending: Receipts and transaction histories become less clear. The game shows you bought currency; it doesn’t show you bought 10 chairs at $2 each. If you can’t trace cost-per-item easily, how do you judge whether you’re overspending?
- Manipulative bundle logic: Often virtual currencies are sold in bundles that don’t align with what you need. Example: you buy 500 tokens, but the items you want cost 520 tokens. You’re nudged to buy more.
- Avoiding stronger regulation: Using virtual currency sometimes allows companies to sidestep stricter rules for direct cash transactions or gambling laws, since they argue you’re spending “in-game currency” not real money, even though you acquired that currency with real money.
- Slippery slope to higher monetization: Once a currency is introduced, it’s easier to expand its use into items previously sold for straight cash (pets, mounts, boosters). What begins as “just decor” becomes “all the premium stuff requires tokens.” That expansion increases risk for players.
You’re not just buying décor. You’re part of a system built to encourage, just a little more, spending than you planned.
The $90 mount that proved the point
In my earlier article I looked at a mount sold by Blizzard for $90. They sold so many that the WoW token system broke temporarily. Players paid for it. That alone shows: yes, players buy digital goods with no problem.
So why invent extra layers of complexity like Hearthsteel? If the company could just sell the item for $90 in cash and people would pay, why introduce the currency in the first place? Because the currency adds distance between money and item. It dilutes the sense of cost.
You might justify “It’s optional” but the financial reality is: some players don’t recognize how many “optional purchases” add up. They use credit cards, pay interest, and the real-life cost gets masked.
When we don’t recognise the true value of what we’re buying, and how often we’re buying it, we lose control.
What game publishers don’t want you to see
- How many purchases you made using the currency.
- How much real money each of those purchases translated to.
- That these small buys add up and maybe should have been direct cash purchases so you think twice about purchasing them.
Blizzard in their blog emphasised ease of purchase over clarity of cost. They framed it as “efficiency” for many small items. Efficiency is good but… when the objective shifts from serving players to increasing convenience & thereby spending, we should consider it critically.
Players often assume “most items are still earnable,” but the checkpoint is: at what cost? Are the cool items locked behind a paywall? What percentage remains earnable? How many players will feel compelled to pay instead of grind, especially when “furnishing your house” becomes part of the meta?
How players can fight back
- Stop buying reflexively. Before clicking “purchase currency,” ask: “Do I really want this item or just the idea of it?”
- Vote with your wallet. If you suspect a design is built to obscure cost or hook you into repeated spending, consider not purchasing it.
- Demand transparency. Transaction receipts should show real-money cost per item, not just “currency bundle purchased.”
- Discuss. Encourage communities (guilds, forums) to talk about these systems. Not with shame, but with clarity. When more players recognize the tactics, publishers feel pressure.
- Support regulation. When laws distinguish between “buying a known item with cash” and “buying a currency to later spend on unknown items,” consumers are safer.
- Recognise you’re a consumer, not just a player. Games are fun but you still spend real money. That distinction matters. Remember: you do not own the games or the digital items you purchase.
If players stay silent or keep paying without question, there is no motivation for companies to stop or even pause these mechanisms.
Awareness is power
The central question you should ask every time you hit “buy currency” is this: What am I really spending, and what am I choosing instead of spending it on? Because pushing a virtual currency gives the publisher more control. It increases the likelihood you’ll spend more than you planned, or less consciously.
Don’t let your purchases be hidden. Don’t let currency systems dilute your sense of cost. Reject manipulation by not buying what you wouldn’t buy if they charged cash for each item.
Don’t have to buy into the illusion. When enough players see it for what it is, and refuse it, the industry will change.
