Video Games Attack of the Microtransaction Lets get on the same - - PowerPoint PPT Presentation

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Video Games Attack of the Microtransaction Lets get on the same - - PowerPoint PPT Presentation

Feb 05, 2023 129 likes •356 views

Video Games Attack of the Microtransaction Lets get on the same page. Microtransaction: Purchase of virtual content in a video game using real money. Loot Box: A random assortment of in game items, often offered for purchase through

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SLIDE 1

Video Games

Attack of the Microtransaction

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SLIDE 2

Let’s get on the same page.

Microtransaction: Purchase of virtual content in a video game using real money. Loot Box: A random assortment of in game items, often

  • ffered for purchase through microtransactions.

AAA Game: A big budget game, similar to blockbuster movies in both production cost and hype.

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SLIDE 3

The Issue

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SLIDE 4

The Debate

GAME INDUSTRY

  • Costs of game development have

skyrocketed

  • Unit price of games is constant
  • r even declining due to

inflation GAMERS

  • The game market has also

increased, so sales volumes are higher

  • Game design fundamentally

changes, negatively impacting player experience

  • Illegal/underage gambling
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SLIDE 5

The Game Industry

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SLIDE 6 1 Williams, Dimitri. “Structure and Competition in the U.S. Home Video Game Industry.” The International Journal on Media Management, vol. 4, no. 1, 2002, pp. 43., doi:10.1080/14241270209389979.

Economics

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SLIDE 7 2 Packwood, Lewis. “Microtransactions and Loot Boxes in Video Games - Are They Pure Greed or a Modern Necessity?” Gamesradar, 20 Dec. 2017, www.gamesradar.com/microtransactions-and-loot-boxes-in-video-games-are-they-pure-greed-or-a-modern-necessit y/.
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SLIDE 8

$18 B

The game industry now.3

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SLIDE 9 4 Data From: “How Much Does It Cost To Make A Big Video Game?” Kotaku, Kotaku.com, 15 Jan. 2014, kotaku.com/how-much-does-it-cost-to-make-a-big-video-game-1501413649.
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SLIDE 10 5 Orland, Kyle, and Jonathan Gitlin. “Why Retail Console Games Have Never Been Cheaper, Historically.” Ars Technica, WIRED Media Group, 30 June 2013, arstechnica.com/gaming/2013/06/why-retail-console-games-have-never-been-cheaper-historically/
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SLIDE 11

4%

  • f games that enter production make a significant profit.6
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SLIDE 12

Microtransactions

Take-Two (2K & Rockstar): 42% of revenue from microtransactions (mid 2017)8 Ubisoft: 51% of digital revenue from microtransactions (mid 2017)9

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SLIDE 13

Monetization Tactics

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SLIDE 14

Changes to fundamental game design

  • Layering 7
  • Dynamic Difficulty 8
  • Pain Relief 7
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SLIDE 15

Loot Boxes and Gambling

  • MN State Statutes 10
  • Rep. Chris Lee, HI 11
  • Washington State 12
  • Belgium Gaming Commission 13
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SLIDE 16

What do developers have to say?14

“...I actually think games should cost less” - EA dev “The trouble...is the real risk that the game design fundamentally changes” - veteran game producer “MTX will fail if it *doesn’t feel good to spend*.” - Game Designer Damion Schubert

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SLIDE 17

End Game (conclusions)

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SLIDE 18

Utility

Benefits:

  • Game prices remain low
  • Development of more ambitious

games is possible

  • Shareholders make money

Harms:

  • Some gamers will spend vastly

more money than they otherwise would

  • Exposure of children to

addictive, gambling mechanisms

  • A game with microtransactions is

not the same game as it would be without them

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SLIDE 19

Solutions

  • Speak with our wallets 14
  • Self-regulation (i.e. ESRB) 11
  • Government regulation
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SLIDE 20

The Future

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SLIDE 21

References

1. Williams, Dimitri. “Structure and Competition in the U.S. Home Video Game Industry.” The International Journal on Media Management, vol. 4, no. 1, 2002, pp. 43., doi:10.1080/14241270209389979. 2. Packwood, Lewis. “Microtransactions and Loot Boxes in Video Games - Are They Pure Greed or a Modern Necessity?” Gamesradar, 20 Dec. 2017, www.gamesradar.com/microtransactions-and-loot-boxes-in-video-games-are-they-pure-greed-or-a-modern-necessity/. 3. “Video Game Industry - Statistics & Facts.” Statista, 2017, www.statista.com/topics/868/video-games/. 4. “How Much Does It Cost To Make A Big Video Game?” Kotaku, Kotaku.com, 15 Jan. 2014, kotaku.com/how-much-does-it-cost-to-make-a-big-video-game-1501413649. 5. Orland, Kyle, and Jonathan Gitlin. “Why Retail Console Games Have Never Been Cheaper, Historically.” Ars Technica, WIRED Media Group, 30 June 2013, arstechnica.com/gaming/2013/06/why-retail-console-games-have-never-been-cheaper-historically/ 6. Irwin, Mary Jane. “Cooking Up A Blockbuster Game.” Forbes, Forbes Magazine, 13 July 2012, www.forbes.com/2008/11/21/games-eedar-developers-tech-ebiz-cx_mji_1121eedar.html?partner=yahootix#6f610bd61f00. 7. Shokrizade, Ramin. “The Top F2P Monetization Tricks.” Gamasutra, 26 June 2013, www.gamasutra.com/blogs/RaminShokrizade/20130626/194933/The_Top_F2P_Monetization_Tricks.php. 8. Fulton, Will. “Do Players Really like Loot Boxes, or Are Game Publishers Forcing Them on Us?” Digital Trends, Designtechnica Corporation, 16 Nov. 2017, www.digitaltrends.com/gaming/do-players-like-loot-boxes/. 9. McAloon, Alissa. “Ubisoft's 'Player Recurring Investment' Revenues Outpace Digital Game Sales.” Gamasutra Article, 7 Nov. 2017, www.gamasutra.com/view/news/309155/For_the_first_time_Ubisofts_microtransactions_outearned_digital_game_sales.php. 10. “2017 Minnesota Statutes.” 609.75 - 2017 Minnesota Statutes, State of Minnesota Revisor of Statutes, 2017, www.revisor.mn.gov/statutes/?id=609.75#stat.609.75.4. 11. Orland, Kyle. “Meet the Legislator Trying to Do Something about Video Game Loot Boxes.” Ars Technica, 16 Dec. 2017, arstechnica.com/gaming/2017/12/meet-the-legislator-trying-to-do-something-about-video-game-loot-boxes/. 12. Orland, Kyle. “The Legislative Fight over Loot Boxes Expands to Washington State.” Ars Technica, 25 Jan. 2018, arstechnica.com/gaming/2018/01/the-legislative-fight-over-loot-boxes-expands-to-washington-state/. 13. Chalk, Andy. “Belgium's Justice Minister Calls for Loot Box Ban in Europe (Updated).” Pcgamer, PC Gamer THE GLOBAL AUTHORITY ON PC GAMES, 22 Nov. 2017, www.pcgamer.com/belgium-says-loot-boxes-are-gambling-wants-them-banned-in-europe/. 14. Fenlon, Wes. “The Case for and against Loot Boxes, According to Developers.” Pcgamer, PC Gamer THE GLOBAL AUTHORITY ON PC GAMES, 22 Nov. 2017, www.pcgamer.com/the-case-for-and-against-loot-boxes-according-to-developers/. 15. Prell, Sam. “After Heavy Criticism, Star War Battlefront 2 Lootboxes Go Cosmetic Only - but Is It Too Little Too Late?” Gamesradar, GamesRadar+, 16 Mar. 2018, www.gamesradar.com/after-heavy-criticism-star-war-battlefront-2-lootboxes-go-cosmetic-only-but-is-it-too-little-too-late/.