The San Francisco Games Revolution Is Over
techcrunch.com
techcrunch.com
Note to investors: find someone who understands psychology and the other social sciences to help with your due diligence. And not just normal psychology, but also specifically Internet psych. (Which is actually a field.) For basically all businesses you should be looking at whether they're consistent or inconsistent with what the social sciences suggest will work, work great, or be completely non-viable.
(Also, it should be noted that there are startups that use gamification to good effect, like Squidoo and Ginzametrics, but these are very rare.)
Can you help me understand what this means?
The original book on this is Alfie Kohn's Punished by Rewards: The Trouble with Gold Stars, Incentive Plans, A's, Praise, and Other Bribes. Pretty much the most important book for any entrepreneur to read. Daniel Pink also has a much more recent book called Drive, but I haven't read it so I can't offer any comparisons.
(And speaking of reading, one of the most cited papers on early childhood literacy, by Scarborough & Dobrich, found that reading books to your kids does not actually help their reading skills at all. Why not? They say it's because the most important determinant of later ability is intinsic motivation, and for every parent who is building up their kid's love of reading by reading aloud to them, there is another one who is diminishing it. So if your three year old doesn't like being read to, let them do other stuff for a few months and it may actually benefit them in the long run.)
While I agree with what you're saying, I think this is a bad example because frequent flier miles work more as a barrier to switching, rather than a classical extrinsic motivator. (You overpay every time you buy a ticket, and you don't get your money back if you switch airlines.)
Where broadly "customer" is "you're trying to persuade them to [X]", and "employee" is defined as "additionally, you're in a position of power over them".
So, instead of an innate desire to take on the task, the person now has an artificially incentivized desire, which results in lower motivation, since the motivation doesn't come from their own innate desire to do the work, but rather from the money.
"At least 70 studies have found that rewards tend to undermine interest in the task (or behavior) itself; this is one of the most thoroughly replicated findings in the field of social psychology." http://www.alfiekohn.org/managing/cbdmamam.htm — and see also Alfie Kohn's book Punished By Rewards.
It's not money or physical reward, but a 'badge' or an 'achievement'. It's automatically having the system give attention and recognition to people who do something the system likes, instead of having that recognition parseled out by manually by moderators and admins.
Yes, the psychology is the same whether you're talking about tangible rewards (money, physical products, digital downloads, movie tickets, etc.) or intangible rewards (grades, praise, points, stickers/badges, etc.)
This article is an excellent discourse on the corportification of the gaming experience. It really points out the notion that 'smart money doesn't innovate, it evaluates' which is so prevalent in the casual game space. So much data, the temptation to use it is impossible to resist, but then going against it becomes equally impossible.
I don't think the revolution is over though. There is a lot of money to be made in entertainment, but it is true that trying to make it mathematically or through statistical analysis is in peril. Actual game designers, folks who can conceive out of whole cloth a fun and entertaining gaming experience, will come out on top.
Like there are auteurs like Kevin Williamson and Aaron Sorkin in Hollywood, so there are true renaissance men and women in game creation.
Zach Gage.
"Gage is an indie game designer — the Bon Iver to Rovio’s Katy Perry, the artisanal free-range heirloom-turkey breeder to Zynga’s factory farm. He works out of his apartment and has long hair and a perpetually in-progress beard. He works on games mostly by himself, collaborating occasionally with friends, and sometimes he drops into immersive research sessions that can last for weeks. One recent session was intended to figure out why people like playing word games, a genre Gage has always hated. (He thinks it’s cheating to build a game on top of a system that already exists, like words or numbers.)
So he spent two weeks playing Bookworm, Words With Friends and Wurdle, during which he decided that the genre suffered from a serious lack of strategy — aside from Scrabble, he says, most of those games are just dressed-up word searches.
The result of this was SpellTower, Gage’s newest and most successful game, which allows users to create towers by building words from letters in adjacent boxes. In its first two months, he says, it earned him enough money to live off for two years." [1]
[1] http://www.nytimes.com/2012/04/08/magazine/angry-birds-farmv...
The market is changing but I'm not sure if traditional handhelds are being hurt by the new iOS market.
It was a (very) short-lived phenomenon that was wildly profitable for a short time, and at no point did it appear to be sustainable. Everyone who thought this was the beginning of a long-term industry was delusional.
http://en.wikipedia.org/wiki/Slot_machine#History
Zynga is merely a continuation in that fine tradition... whether their pivot to real-money games works or not.