It's a simple and the most fair model we have to date. Valve pioneered it with TF2 and perfected it later with CS:GO and Dota 2.

Give users a complete functional experience for free, and sell them emotional experiences - hats, knives, etc. #nostrdesign

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skins provide stimulation even when the game itself doesn't so much anymore

there's also the status and hierarchy aspect involved. those with higher buying power can flex their muscles in-game, while it has zero effect on gameplay