Over-Monetization of Online Games By: Nick Meyer History Online - - PowerPoint PPT Presentation

Over-Monetization of Online Games

By: Nick Meyer

History

• Online games have evolved a lot in a short amount of

time. ○ Huge improvements is communication, graphics, and development in general.

• Older games had a straightforward business model.
• MMOs would generate their revenue with

subscription fees and expansions in most cases.

• DLCs were occasionally offered for certain games

like CoD and Fallout 3.

• With growth of mobile gaming, came new forms of

monetization.

History Cont.

• Microtransactions saturate free mobile games.

○ Clash of Clans, Candy Crush.

• Microtransactions implemented in traditional games.
• Loot boxes become common monetization method.

○ Overwatch, PUBG, Apex Legends

• Business model proved to be very lucrative.
• Shift in focus for companies to focus on further

monetization methods.

Progression

• Most monetization accepted by gaming community.
• Companies need to make money.
• Reasonable prices for DLC and expansions.

○ Long development times and significant amount of added content.

• Rising price of games.

○ Cost of development, and distribution. ○ Added monetization schemes.

• Push for pre-orders of new games.

○ Leads to inferior product.

Bad Business

• EA’s Star Wars: BattleFront 2…
• $60 base price up to $100 for special editions.
• All that, with a side order of predatory monetization.
• Absurd amount of play time required to unlock the games content.

○ Approximately 4,500 hours for enough points to unlock all in-game content.

• Time shortened by spending more money.

○ Estimated cost to unlock content with money $2,100.

• Massive consumer backlash.

○ EA lost $3.1 billion in stock market value.

• EA is not the only ones who have done this.

Regulation

• Belgium and The Netherlands classify virtual

loot-boxes as form of gambling and outlaw them.

• U.K.’s gambling commission looking into the

use of loot-boxes in games.

• Here in the U.S. the Federal Trade

Commission(FTC) has opened an investigation as well.

• Regulations on the business practices of these

companies could be coming soon.

What Can Be Done?

• Wait to purchase a game after it has been released

and has been reviewed by trusted individuals.

• Avoid games from companies who have repeatedly

implemented predatory monetization systems.

• Don’t blame the individual game developers, they are

hurt from these practices as well.

• Support games and companies who are doing the

right thing. ○ Empower them to compete.

Future

• Small chance of these massive companies shifting

focus away from monetization techniques. ○ Pressure from parent companies, and investors.

• Potential regulation.
• Rising competition from free-to-play games.
• Show these companies we won’t be exploited.

○ Don’t use microtransactions. ○ Don’t pre-order games.

• Hopefully see some large companies take a different

route after seeing backlash towards EA.

Questions?