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In this paper I will be investigating the ethics of freemium games, microtransactions, and loot boxes.  Three distinctions are relevant here.  First, there is a difference between a fixed-reward microtransaction and a random one, such as a loot box.  In the former, a player knows exactly what she is purchasing and how much it will cost her.  In the latter, a player knows how much she is paying for the loot box, but she does not know what is inside.  Second, there is a difference between cosmetic items and those which affect gameplay; this is particularly pronounced in multiplayer games, where a player might have an advantage over another through the expenditure of real money.   Third, there is a difference between items which are obtainable both for real money and for in-game effort and items which are only obtainable for real money.  Ultimately all three of these distinctions will prove necessary to show that fixed cosmetic rewards are ethically permissible, random rewards of all types are ethically problematic, and fixed functional rewards can be acceptable, but only under certain conditions.