U.S. adults are spending big on video games, playing mostly on smartphones
reuters.com
reuters.com
"The $43.4 billion spent in 2018 was mostly on content, as opposed to hardware and accessories."
"Nearly 65 percent of U.S. adults, or more than 164 million people, play games. The most popular genre is casual games, with 60 percent of players gaming on their smartphones"
The combination of these two items leads me to conclude that microtransactions in casual games are winning in the financial sense, despite the complaints of "hardcore" gamers.
I'm not a "hardcore" gamer - I'm incredibly casual. I hate microtransactions because the focus has switched to "addictive" play rather than "rewarding" play. Microtransactions are usually BAD for casuals - You might have 10 minutes to play but can only play for 5 mins without paying up. You might have one night a week to play, but it wants you to log in for a few minutes every couple of hours, etc.
BUT the lack of alternatives means that there will be plenty of money spent on them. So I think this is a matter of "microtransactions out-earn flat cost games despite likely player preferences", not "hardcore vs casual".
There's people who've put 10,000 hours into Diablo 2, for example, a game that is incredibly repetitive at the highest level - they play for the chance of that one great random drop.
Microtransaction games generally trade money or time, and then put barriers up on the time, or increase it vastly. The difference is when it feels like you're being asked for money it turns it exploitive, rather than being asked to spend 100 hours waiting for a yellow item to drop (that being more akin to "skill" and "investment").
Players want their reward fix. Microtransaction games are frequently like a watered-down drug. Just like social media, I don't think that just because people use them means they're a good thing - its junk food for the mind.
true, but addictive gameplay isn't necessarily rewarding. That's the critical difference I was trying to emphasize.
You know, I've always been confused by this: if a game is using random chance to require probabilistic hours/days of effort in order to find some drop, my first response to finding that out is not "grinding for the drop", but rather "hacking the game to give myself that thing." (First thing that comes to mind: the Sword of Kings in Earthbound.)
In such cases, the only thing standing in my way of the goal is mindless—and totally automatable—repetition. I could write a bot to grind a Sword of Kings for me. Heck, I could download someone else's bot they already wrote. So what's the difference between downloading+running such a bot, and just editing the game in a save-game editor to give myself the sword? Same amount of effort. Same reward. Either way I'm not really "playing the game." But either way, I get to skip the part of the game that isn't fun, and get back to doing something that is fun.
The only place where I feel that this approach doesn't apply, is when the game isn't using HWRNG randomness, but rather deterministic seed-based randomness, like Minecraft or many modern roguelikes. If the resources I want are only available down on the 90th floor of the dungeon in this seed—and that's a deterministic fact-of-life of the seed—then that's just the scenario I signed up to play, and I'll accept it. But, of course, with such systems, I get to "choose my luck" by looking for a generous or mean seed someone else discovered during their own playthrough (or using a bot to scan for such seeds.)
I don't think I was nearly as smart as you but Maplestory was actually my first introduction to computing.
The game was really grindy and required you to just use your mana (I was a mage), and then sit to recover it, and then go back to killing stuff. It seems like they didn't do server side checks so I actually learned how to use a memory editor and just save the mana field which made it so that it didn't go down.
Of course, the problem with this is that it morally questionable since it gives you an unfair advantage and gets you banned.
But these games don’t work like this. When you’re trying to find a rare drop, there’s nothing giving you the feeling that you’re getting any “closer” to it. You just have to throw days of blind dice rolls for no reward at the game, before it’ll turn around and give you the reward once. Variable-schedule rewards shouldn’t actually work at that sparse a frequency. People who get easily addicted to things don’t usually find themselves grinding for rare drops.
The people who do do this kind of grinding are people with big reserves of determination. And I don’t really get what they get out of it.
On the other hand I spent little time grinding and have little desire to play the game a second time on harder difficulty.
Almost bought Diablo for my Switch this year and recalled how much of it is just clicking.
That said, the amount you have to pay to get a large collection in Hearthstone is staggering, if you drop $80 every few months for the next expansion you still only have a few of the epic and legendary cards.
Free to play games with microtransactions I liked were easy to find and whenever I guessed wrong, attempt was for free.
So for all the crumbling, there are people like me who gained on that development.
Virtually all free to play and free online games I know are exploiting human psychological vulnerabilities in some way or another to keep you playing. Those games leave me completely unsatisfied.
Ms. Pacman, Arcade Tetris, Street Fighter II Turbo.
The "microtransactions" games of the 80s and 90s were the ORIGINAL video games, the arcade scene. I miss the atmosphere and the ability to physically meet friends, but ultimately, they were microtransaction games nonetheless.
I've sunk more time into honing my skills in Ms. Pacman than most modern RPGs. Multiplayer Competitive Tetris is probably my #2 game (through the game Puyo Puyo Tetris). Arcade-style 3-minute games are far easier to get into, AND easy to stop playing (!!). They are games that respect my time, yet provide a deep, and rewarding skill curve.
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TMNT Arcade, X-men arcade, Final Fight, Simpsons, Time Crisis, Missle Command, Millipede, etc. etc. There were a bunch of other arcade games that took up a lot of my time and are also excellent. I'll give Ms. Pacman the title for probably most influential arcade game though.
I don't think there's anything necessarily wrong with the microtransactions model per se. There's a LOT of bad microtransaction games out there, but that's because they're skinner-boxes optimized for addictive gameplay.
The older arcade games were tests of skill, and more than just a skinner box / slot machine loot box crate. You're not spending money at the arcade for the chance of a rare card or rare drop. If someone made an arcade-game skinner box, it'd be quickly forgotten (Ms. Pacman arcades would have been sitting next to it, and no one would seriously play a skinner-box game if Ms. Pacman were so close).
I would argue that "casual game with microtransactions" is a particular design philosophy, and arcade games don't actually share this philosophy. Sure, both games have you constantly paying small amounts, but consider:
In an arcade game, if you get really good, one quarter can let you play for hours. Arcade games effectively charge bad players more for their time, with time-cost trending toward zero as skill increases. So there's effectively a finite amount of money any given player will ever have to spend on the game (unless they hit a skill ceiling, get stuck not making any progress, but continue to find the game fun nevertheless—which is rare); and skill at many types of games are "portable", such that money you spend learning one arcade game is money you don't then have to spend learning another similar game.
In a modern casual F2P game, skill at the game's mechanics is entirely orthogonal to the thing you're paying for. Sometimes this means that the thing you're paying for doesn't affect the mechanics, e.g. skins. But other times this means that both good and bad players can "pay to win", and that there's no point at which you're so good that it would no longer make sense to give the game money.
Imagine a competitive arcade game with a point-based leaderboard on its attract screen (e.g. most racing games, games like Donkey Kong or Pac-Man, etc.) But imagine that, instead of needing to pay to play and quarters equalling continues, instead, anyone can play for free, but quarters increase your score by 1000 points (with no indication that this was done.) Even the top players would need to take advantage of this to show up on the leaderboard, because if they didn't, they wouldn't rank, since all the other top players had.
Of course these shallow experiences are reproduced on mobile nowadays. Match-3 games were a staple of all gaming generations and even reached some depth (Puzzle Quest) before they completely moved to mobile in the form of exploitative skinnerware.
I don't recall ever getting to the leaderboard on Ms. Pacman in my youth. I get it today, but that's mostly because kids these days suck at the game and the leaderboards are empty.
Case in point: the most OG game was probably Whack-a-mole, in existence in some form since the early 1900s. There's no leaderboard: you play the game because its fun. Sometimes there are prizes, but more often than not, its just an arcade booth sitting by itself with a few quarters and a hammer.
Arcade games of the 80s were similar: Ms. Pacman, Missile Command, etc. etc. were just short burst games to take up time while your parents shopped elsewhere in the mall.
By the 90s, arcade games began to have longer, more cohesive stories. You could theoretically get to the end of "Simpsons" or "TMNT", but more often than not... people put a quarter or two for the first level, died, and moved on with their life. Its there just for fun and pure enjoyment.
That is just not how it is and that is also my point.
I understand that other people like it, but these games are not for me.
It is very similar with other games you mentioned. Not for me at all (maybe Mario kart would be exception for occasional play).
This argument comes up often, but I as soemone who also has limited time I can't understand it. Nobody forces you to finish huge games like The Witcher 3 in weeks, months or even years. It just means that the price of such a game buys you a lot and long-lasting entertainment (assuming you like the content). Just take your time, use the free evening that may come up every few weeks and enjoy the game much longer than most people.
Admittedly, 10 minute play sessions won't work in this case, but if you never have more time than that available, I'd say there are other things to consider, but it's not my place to judge.
Second, it is time where you can't be interrupted, so you can't do it while kids don't sleep yet (or you basically expect partner to handle it for you). It is huge chunk of regular time when you also ignore partner and are not learning something for the job are not exercising etc. That is not available three times per week in two hours long minimum chunks.
There are more then one reason why this is not for me and hated mobile games with microtransactions are something I actually enjoy. There is nothing wrong with that. There is no reason to force myself into playing games that are just annoying to me.
I'm not sure what you consider a "microtransaction game" but LoL and dota 2 are both completely free and have huge hardcore followings. I believe CS: GO is also free to play now.
They're significantly more involved than Mario Kart at the very least.
With "Mario Kart multiplayer" I mean the experience of 4-player couch multiplayer, not online multiplayer.
Financially the gambling engines have eaten classic gamings lunch.
Well then, it's your lucky day: https://arstechnica.com/gaming/2019/05/senator-hawley-announ...
Senator Josh Hawley (R-Mo.) today announced plans to introduce "The Protecting Children from Abusive Games Act," which would target "the exploitation of children through 'pay-to-win' and 'loot box' monetization practices by the video game industry," according to a summary released by Hawley's office.
I will watch his progression with a lot of interest
Games > Expansions > DLC > MTX >> MTX that contain temporary boosts only >> Loot boxes.
In my mind, banning MTX's seems to be on the same level as banning DLCs in general. They are a worse value, but they are the same kind of thing. Personally I wouldn't support banning MTX's.
I would definitely support loot boxes being treated as gambling (ban for those under 18, regulation for adults). MTX's containing only temporary boosts is something I've yet to decide upon.
Also, I think that tcg booster packs (like with Magic) should be classified as loot boxes/gambling and treated the same under any loot box law.
Which is why a lot of mtx are using some kind of "prenium" currency that's bought with real money, usually in increments different from the prices in the item shop (so that you always have some left-over); then there's the limited revolving selection, to use FOMO (currently used by Fortnite, for example)
The notion that people are perfectly free and rational entities is a dangerous fallacy. People don't have perfect information, they don't make perfect decisions, and if there's something the government can do that improves the lives of many while inconveniencing few, then it's absolutely the government's job.
There exist substances which will get you addicted instantly. Do these have any place in a free market? Where does the rational "value equation" come in to that?
Perfect Information is what the government needs to guarantee and regulate, not morality. Apps need to be transparent and honest and substances need accurate labeling and purity from contaminants. Heroin is a one-way ticket to pain and degeneracy and everyone in the Western world knows this; it's a terrible value that generally only appeals to someone who's already hooked on opiates.
So why don't we regulate/ban quack medicine then?
https://en.wikipedia.org/wiki/History_of_the_Food_and_Drug_A...
That's about as helpful as telling people to solve their gambling issue by not gambling. The problem is that many of these microtransaction-based games use the same mechanics as gambling to make them addictive _and_ they're targeting minors with it.
Given that this is not occurring, it does not "seem like" this.
With gambling people may be driven to gamble to get out of debt. With gacha games, you can't.
Microtransaction games are based around exploiting an inherent flaw in human reasoning; predatory behaviors that exploit our weaknesses as humans should be regulated against.
edit: to back this up: The wordpress blog linked below references 19 clinical studies and explains in detail much better than I care to write up.
https://platinumparagon.wordpress.com/2017/11/16/the-psychol...
When people start killing each other, or letting their lives fall apart around them, just so they can spend more money on another cute girl in Fate GO, then I'll let you make that analogy.
Gambling, video game, and internet addictions are real and do ruin lives.
While I don't want to dive into hyperbole territory and don't blame video games for this instance of violence, just this week someone punched and killed their 1 year old child because they lost at a video game[1].
Brains are weird and are easily highjacked by dopamine hits, whether they're obtained from drugs or external stimuli.
[1] https://people.com/crime/dad-allegedly-kills-baby-son-punch-...
But that does not make it harmful or predatory. People are allowed to spend money on whatever they want, just because you don't agree with their choices doesn't mean you should make it illegal.
In China these days, parents pretty much do treat smartphone games "as bad as drugs" for kids.
Rooting phones to prevent game installation and removing/breaking/locking payment APIs is one of most popular services in phone repair shops.
> With gambling people may be driven to gamble to get out of debt.
This is not really the problem with gambling.
>This is not really the problem with gambling.
Yea it is? People lose money gambling, people bet more money to try and make back what they lost. But you'll always eventually lose money gambling in the long run. It's the most common fallacy that gets brought up in gambling.
1: https://www.pokernews.com/news/2016/04/black-friday-five-yea...
If you want to argue that this could be fixed in libertarian-topia without government intervention, you might argue that I dunno, there could be a class action suit showing that the gaming companies knew that such and such mechanics were resulting in many people becoming addicted/going bankrupt and did it anyway, and maybe that's right.
And if you wanna argue that who is so-and-so to argue that X really didn't want to spend all her money on virtual farm upgrades then that's an argument too I suppose.
But if the problem is people are buying something they don't want to because of a dopamine hook, then arguing that the solution is to stop buying it isn't satisfactory.
But in Clash of Clans, for example, you can be very 'good' (idk what word to use with these kinds of games) without having spent money. You will of course, have spent your time instead.
Theoretically maybe, realistically many of those types of games would require about as much time devoted as a full time job to be winnable, if not playable, without microtransactions.
You can play F2P. If you want to save 3 hours of grinding buy spending $5, why do you want to stop them? It's their money, if people enjoy these games, why stop them? You don't need to control every aspect of peoples lives.
Just check how the cigarette industry moved public attention from addictive substances they deliberately put into cigarettes to "personal responsibility of smokers".
That's a lot of footgunning spent hoping a lot of other people footgun. I've been there, and I was the only that suffered, not the companies doing wrong.
However if you examine things on the micro level, the games sector is facing a number of challenges.
One is with the micro transactions model: though it is widely adopted in mobile, its inclusion in AAA titles has backfired in terms of PR. Mortal Kombat 11 and several EA titles such as Battefront 2 ans Need for Speed have been penalized heavily both by critics and vocal customers.
When you combine this with the looming pressure of regulation, things don’t look great for that revenue stream.
Secondly you have pressure towards subscription based models. Microsoft has the game pass, Apple is doing the arcade, Google is doing game streaming. So we’re going to see a Netflix type of subscription become more and more the norm. These games are full games, often AAA though there are some indie darlings. They’re not based on consumables.
Because of this, the proportion of revenues coming from micro transactions on both mobile and console is likely to shrink, and transform. It’s going to be interesting to see how this will affect the unit economics of game studios going forward.
Addicting clicking games get boring.
Sure it's weird to see a middle aged mom playing these worthless games, but give them another 2 years and they will move on.
Gaming has only evolved to be better. And we have already achieved unlimited entertainment if you are a PC gamer.
Worse games in the future is a near impossiblity. Or at least informed consumers are able to avoid the blight of micro transactions.
I’ve found some I like, but by and large they seem to just exist as commercials for in app revenue. Give me a good immersive game for $20 and I’d do it.
With that, making a game that's good to you appeals to a smaller percentage of the population than making a game full of addictive dark pattern microtransactions, so many of the companies with the money (and consequently advertising) choose to do that.
Over and over again, with satisfied reviews, I see: "Great way to waste time!", "Nice Time killer". and i just sighhh.
More on-topic: it's ok for a game to be time-waster, but I suppose when that's the overriding goal of games, it becomes a problem. Play is not only a pastime.
I'm not saying mobile gaming like Clash of Clans or Candy Crush are bad, just that... man, they aren't for smart people. Likely most games aren't, but playing World of Warcraft and Diablo and Starcraft required a lot of thought and theory crafting to feel like I knew how to be elite at them.
So I know Blizzard is mathematically right to focus on mobile gamers, I just really miss "the good old days" when I spent as much time outside of the game learning about the game as I did playing the game. I doubt I'm the only one, but I know that sort of thing has a limited appeal and over time the market has evolved.
I just miss it. No game has pulled me in like Diablo 2 or World of Warcraft. Games like Fallout (not the latest), XCOM, and Civ are great... but man, if I'm honest, I really miss WoW circa 2006-2010. Doubt I'll ever have a gaming experience like that again.
They are a total no-name to mobile gamers, and mobile gamers in general don't care about brand and have no loyalty. They will play what their friends tell them to, which will almost always be and remain one of the top 10 titles with maybe half of said titles changing hands every year.
Yes, companies like Bethesda, EA, Activision, etc have the developer talent and cash to build games that could reach that top 10 app store status, but even they don't have the influence to buy their way there from Google, and the demographics of mobile gamers have very little overlap with traditional video gamers... at least in the audience they want, either very young children or middle aged adults that will spend all their free time on the one game constantly putting money in the slot machine.
If core gamers are going to dedicate themself to one title, its going to be a full featured experience, not a click bot braindrain.
So Blizzard is in large part sacrificing what gives their brand value (their appeal to core gamers) to enter a market they have no stake in or guarantee of success because they see other games winning the app store lottery to make fortunes on very little developer investment and want that money.
Its like being a business owner who sells their stake to buy lottery tickets. Sure, maybe you do win the jackpot of several hundred million without strings attached but you threw away reliable income for hard work to gamble with total chance.
Alright bud, let's get back to letting people enjoy whatever sort of games they want and not attacking their intelligence.
My sister-in-law is a doctor, love's candy crush. She doesn't play it for the intellectual stimulation.
Clash of Clans has a lot of strategy so I don't know why you're using that as an example. Frankly almost any PvP game is going to have a lot of strategy. My friend who has scored twice as high as anyone else in the school in math competitions loved that game.
You seem to have this idea that smart people only do things that require they use their intelligence. I'd argue that is very much not the case.
Outside of PVP WoW doesn't require much thought for the majority of players. Rotations can be automated through things like TellMeWhen and other addons. Then there are addons to tell you what gear is better, when to move, etc. Simming for the most part is a 'solved problem'. And that is only if you want to raid. If you have no interest in raiding you'd be able to do everything by just pressing 2 buttons.
Diablo, you'd be in the top 1% if you just google builds and grind your way there. It's mostly a time thing. And when they had the Ah you could "buy you way to the top".
Starcraft is a pure pvp game so it's slightly different. Skill requirements are probably similar to something like Clash Royal. Although CR can pay to advance (cards). It still requires some general strategy and has a meta.
If they can get, say, 5% of the existing US market to pay $10/month, that's still around 1 billion USD annually.
My guess is that they can probably get a lot more than that.
Here's a direct link to the press release: http://www.theesa.com/article/65-american-adults-enjoy-playi...
And this is the Essential Facts PDF: http://www.theesa.com/wp-content/uploads/2019/05/EssentialFa...
No wonder I don't play games with my computer! What an awful selection!
Back then, there was no question of that being a deviant thing, and I thought that only very messed up countries can host such culture where people die playing computer, kill people over videogames and live day and night in internet cafes.
Well, nowadays it became an everyday reality for countries far more developed than ones where this originally started.
For a carefree 13 years old me, it was bordering on personal tragedy loosing 1 to 3 hours a day to damn Quake 3.
I have no words for just how bad it is to be in that state for a person in their thirties, with his/her social obligations and family.
Zynga obsessed adults spending 3-4 hours a day on that are way worse than kids doing the same.
And you add gambling problem on top of that. On mobile you don't even have to input your credit card yourself - Google built a whole freaking gambling/play API specifically for that. One click and it bills your cellphone account, if you live in a right country.