Up until the emergence of mobile gaming market in late 2010s, most of the games were designed for PC or consoles, mostly Playstation by Sony or Xbox by Microsoft. One used to pay up-front for a full game with add-ins/extension packs, each of which significantly extended play time, often 20-40%, and were released within months from the main game.
Mobile gaming changed the rules entirely. Mobile games provided more casual, fast-paced gaming experience with less time spend on the game. Shorter gameplay meant lower development costs, which enabled low-cost titles to commercialize exclusively through in-game ads. Paid titles were typically in price range of $0.99-9.99, compared to $49-99+ for top PC/console games. It is microtransactions however, that mobile gaming is known for among development studios' CFOs.
Microtransactions themselves precede mobile gaming with first known in-game transaction being in PC/Xbox game Elder Scrolls IV: Oblivion in 2006. Mobile users however have it seemingly easier to pay for in-app purchases with password/fingerprint/face camera verification instead of traditional online credit/debit card payments. Sometimes too easy, as one can hear every now and then about kids abusing their parents' credit cards stacking up hundreds or thousands of dollars in in-app purchases.
Embedding microtransactions into the game impacts game mechanics. Studios have incentive to include elements in the game that when purchased, extend gameplay or accelerate advancements in the game. Some gamers blame studios for purposely slowing down natural progression in their games to boost in-game sales. This is being noticed by gamers community and their sentiment reaches development studios.
Will it hold up in the future then? Many believe microtransactions have to change. Some point Fortnite as a good example - game available across all platforms where microtransactions can impact cosmetics of one's character in-game but cannot be used to accelerate advances in game or unlock additional gameplay. Others bring CD Project RED and "no microtransactions" approach in their AAA titles (e.g. The Witcher, upcoming Cuberpunk 2077).
Sources:
1) wikipedia
2) https://www.engadget.com/2006-04-04-bethesda-responds-to-oblivion-backlash.html
3) https://www.theguardian.com/technology/shortcuts/2013/mar/26/apples-in-app-game-charges-kids-bills
4) https://www.howtogeek.com/449521/what-are-microtransactions-and-why-do-people-hate-them/
5) https://www.dsogaming.com/news/cd-project-red-on-multiplayer-and-microtransactions/
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