The Science Behind Battle Passes: Why They Work So Well

How game developers use battle passes to boost retention, engagement, and revenue

Introduction

Battle passes have taken the gaming world by storm. What started as an experiment in a few free-to-play games has now become the dominant monetization model across the industry. Games like Fortnite, Apex Legends, and Call of Duty: Warzone have all leveraged battle passes to keep players engaged while generating billions in revenue.

But what makes battle passes so effective? Why do players willingly spend money on a system that requires them to keep playing to unlock their rewards? And why do game developers favor battle passes over traditional monetization strategies like loot boxes or one-time purchases?

The answer lies in the psychology of player engagement and motivation. Battle passes tap into powerful psychological triggers—FOMO (fear of missing out), the endowment effect, and progression-based rewards—to create a system that feels rewarding, fair, and addictive all at the same time.

In this issue of PM Playground, we’re diving into the science behind battle passes—why they work so well, how they drive revenue, and what makes a well-designed battle pass stand out from the rest. Let’s break it down.

The Psychology Behind Battle Passes

Battle passes aren’t just a way to monetize games—they’re a masterclass in behavioral psychology. The best ones keep players engaged, invested, and coming back day after day. Let’s break down the key psychological principles that make them so effective.

FOMO (Fear of Missing Out): Limited-Time Rewards Drive Engagement

One of the strongest motivators in human psychology is the fear of missing out. Battle passes are designed around this principle by offering exclusive, time-limited rewards. Players know that if they don’t complete the pass before the season ends, they’ll never get another chance to unlock certain skins, emotes, or other items. This creates a sense of urgency, encouraging players to log in frequently and engage with the game to avoid missing out.

For developers, this means sustained engagement throughout the battle pass cycle. Unlike traditional one-time purchases, battle passes keep players returning over weeks or even months, ensuring consistent player activity and retention.

The Endowment Effect: Players Feel Invested Once They Start Progressing

The endowment effect is a psychological bias where people place more value on things they already own. Battle passes take advantage of this by giving players some rewards right away and letting them see locked rewards they could earn. Even if a player starts with the free tier, they see the premium rewards stacked along the progression path—essentially teasing them with what they could own if they upgraded.

Many battle passes even use a “pay later” approach: players can progress through the battle pass for free and then retroactively unlock all the rewards by purchasing the pass before the season ends. By the time they reach a high level, they feel invested and more likely to make the purchase to claim the rewards they’ve “earned.”

Sunk Cost Fallacy: Once Players Buy In, They Want to Maximize Value

Once a player purchases a battle pass, they’re far more likely to keep playing to ensure they “get their money’s worth.” This is due to the sunk cost fallacy—a cognitive bias where people continue investing in something simply because they’ve already put time or money into it.

With a battle pass, the rewards are unlocked progressively, meaning that the more time a player spends playing, the more valuable their purchase becomes. Unlike a loot box system (where players pay for a chance at rewards), a battle pass makes it clear exactly what they’ll get. This transparency makes players feel like they’re making a smart, worthwhile investment—especially if they reach the end and unlock everything.

Progression & Motivation: Daily/Weekly Challenges Keep Players Engaged

Battle passes are designed around structured progression systems that keep players engaged over time. Rather than relying solely on organic play, games introduce daily and weekly challenges that incentivize specific behaviors.

• A player might be asked to win three matches, complete a mission using a certain character, or log in multiple days in a row.

• These small, achievable goals keep players coming back and create habits around engaging with the game.

• As players check off challenges and see progress on their battle pass, they get a constant sense of achievement and forward momentum—fueling the desire to keep playing.

This mix of long-term goals (reaching the final tier of the pass) and short-term milestones (completing a daily challenge) creates a highly motivating loop. Players always have something to work toward, ensuring that engagement remains steady throughout the season.

The Business Side: Why Developers Love Battle Passes

Game developers are all about battle passes these days—and for good reason! Here's why they’ve become such a hit:

• Predictable Revenue
  Unlike loot boxes, which can feel like a gamble, battle passes are much more transparent. Players know exactly what they're getting and when. This gives developers a steady, reliable stream of income, rather than relying on random purchases.

• Encourage Regular Play
  Battle passes aren’t a one-and-done deal. Players are motivated to log in regularly to complete daily or weekly challenges. This means developers see consistent engagement over a longer period, rather than short bursts of activity.

• Reduce Churn
  By offering rewards over an entire season, developers keep players invested for weeks or months. This helps reduce churn (when players leave after just a short time) and builds a more loyal player base.

• Long-Term Player Engagement
  The battle pass system encourages players to stick around, progress through levels, and keep coming back for more. The longer players are engaged, the more likely they are to spend on premium content.

• The Upsell Opportunity
  Battle passes offer a clever way to upsell! Players who are enjoying the free content may decide to splurge on the premium version for those exclusive rewards. Plus, the optional nature of the purchase means non-paying players aren’t alienated.

Best Practices for Designing a Great Battle Pass

Designing a battle pass that players will love (and that keeps them coming back) isn’t just about throwing in a bunch of rewards. There’s a strategy behind it! Here are some best practices to keep in mind:

• Balance Free & Paid Rewards
  Players shouldn’t feel like they have to pay to get meaningful rewards. The free tier should still offer cool stuff that makes players feel rewarded, while the paid tier provides extra exclusive goodies. The key is balance!

• Offer Meaningful, Desirable Rewards
  No one wants to grind through a battle pass for a bunch of filler content (looking at you, generic skins and emotes). Focus on rewards that players actually want—whether it’s unique outfits, in-game currency, or cool cosmetics that feel special.

• Fair Progression System
  Players shouldn’t feel like they’re slogging through endless tasks to unlock rewards. The progression should feel smooth and achievable without requiring too much grind. Challenge them, but don’t frustrate them!

• Tie Into Live Ops & Seasonal Content
  A great battle pass is never static! It should be integrated with live operations (Live Ops) and seasonal content, like limited-time events or story updates. This keeps things fresh and gives players new reasons to stay engaged throughout the season.

• Keep It Fun
  Above all, a great battle pass should make the game more fun! The challenges should feel rewarding, the rewards should feel exciting, and the whole experience should keep players coming back for more.

Closing Thoughts

Let’s wrap things up! Here’s what we’ve learned about battle passes:

• They’re a win-win for players and developers. Players get rewarded for their time and engagement, while developers benefit from predictable revenue and long-term player retention.

• Psychology plays a big role. Concepts like FOMO, the Endowment Effect, and the Sunk Cost Fallacy all help drive the battle pass’ success. Players feel invested and motivated to keep progressing.

• Design is key. A great battle pass strikes the right balance between free and paid rewards, offers meaningful content, and keeps the gameplay fun and engaging.

Now I want to hear from you:

• What’s the best battle pass you’ve experienced? (Or maybe the worst? We won’t judge!)

• What makes you keep grinding for rewards?

Stay tuned for next week’s topic, if you would like to know how to design the perfect battle pass let me know, I would be happy to share my resources.

Best,
Matt Street
Founder, PM Playground