4 ms·

Actually there's a strong power law going on with microtransactions. Most players don't spend any money at all on them; some spend a couple bucks on an item or

by bccdee 5y ago

Actually there's a strong power law going on with microtransactions. Most players don't spend any money at all on them; some spend a couple bucks on an item or two. The model becomes profitable because of the top 1% of spenders — "whales," in industry parlance — some of whom have deeply unhealthy relationships to the gambling mechanics and social pressures underlying microtransaction economies. So it's not exactly true that the public are voting with their wallets here. It's a profitable business model, but the majority of people do not engage with it, and consumers as a whole would be better-off if it died out.

cercatrova 5y ago
They are voting with their wallets. It's just that not every vote has a value of 1; their vote is the number of dollars they spend.
- bccdee 5y ago
  Right, so the market is being disproportionately swayed by gambling addicts and the experiences which appeal to them. This is not a healthy state of affairs.
  - cercatrova 5y ago
    Perhaps. There are a lot of games that are not like that though, catering to gambling, and I presume even in the future many games will not as well. There is always a group of people who like games without stuff like that in there, and it seems like at least some of these game creators do quite well, such as CDPR with their Witcher and Cyberpunk series.
mrjangles 5y ago
It sounds to me like what you are saying is that developers have discovered it is best to offer an amazing free product to the whole world in order to get them involved in the game, and then this attracts rich people, who then go ahead and pay for the whole things themselves. But if you don't attract the little guy with free stuff, you don't get a great game, and so you don't attract the rich people. Seems like a good system that everyone happy with. If they weren't happy they would go play other games that aren't free.
- fsh 5y ago
  Gambling addicts are financing these games. Most of them are not rich at all.
- lifeformed 5y ago
  It's not attracting rich people, it's attracting addicts.
- hamandcheese 5y ago
  They don’t attract rich people, they attract gamblers. And they are incentivized to convert more people into becoming gamblers.
  - ThatPlayer 5y ago
    Some games are starting to remove the gambling. The article's author is outdated on Rocket League which has since removed the lootboxes. Valorant never had any.
- flanking_pajama 5y ago
  In all fairness, Rocket League may be the only "free to play" game that warrants the term "amazing". I'm glad it keeps something like RL around, but let's be real: this game model tends to rake in the cash even with the most generic games. Frankly I'm torn: people can buy digital stickerbomb skins if they want, but it's obviously a bit of a "cheat code" to a profitable game and probably takes a lot of developers/money away from more interesting parts of the industry. It'd also be more forgivable if it didn't seem popularity creates nearly immortal games that too often become stagnant and overrun with toxic players despite still being profitable enough to "keep alive", i.e. payday 2, planetside 2
- mcv 5y ago
  Reminds me again of "when you don't have to pay for it, you're the product, not the customer". Here, all the free players are opponents necessary to attract the whales.
  - 5y ago
danybittel 5y ago
It is almost like the business models are adjusting to the reality of the world. With massive inequality, especially in a global market. And an "entitlement" that digital products should be free or dirt cheap. If you think about it it's sort of a wealth redestribution. One extreme example was that Movie ticket business, that basically paid movie tickets with investor money.
- meheleventyone 5y ago
  This presumes the whales can afford to spend the way they do. Which isn’t true for gambling addicts either. And that the profits end up in the hands of workers rather than in the pockets of investors.
elefanten 5y ago
The megawhale point is a bit overmade. F2p games have vastly different payer distributions by genre, platform, business model, monetization strategy and other factors. Addictiveness and addiction are issues with and around gaming, for sure. But the reliance of f2p games on entranced, pixel-charmed addicts is also overstated. A good number of free to play games have lifespans measured in decades, they can function like a highly social, off-and-on hobby. People are willing to spend $20 to go to the movies a few times per year. How’s it different to spend that on a game you get hundreds of hours of entertainment from?
slightwinder 5y ago
It's not always gambling. There are also collectors and people who just like to show off. Also, the usually f*ing rich dude who has no understanding on the difference between $2 and $20k. Games today are the new social club, where you go and meet and show off your life. And as there are corners for the average people, there are also corners for the rich and powerful. There are some games which really just exist so rich dudes can casually meet and show off how much money they spend on some stupid skin. Similar, some other games have pay2win, because enough rich people live by the philosophy that money can buy you anything, including an easy win. The gambling-games are only the most obvious whale-traps, and they usually not even aim for the filthy rich, but the middle class rich. The rich rich-games are less obvious, because the casuals are not rich enough to even get high enough in that game to gain access to the juicy parts.
- bccdee 5y ago
  > There are some games which really just exist so rich dudes can casually meet and show off how much money they spend on some stupid skin. Possibly, but not in the mainstream market. I'm not concerned with some weird niche luxury thing that 8 rich guys are doing. And as far as the mainstream market goes, the "rich guy to whom money means nothing" is not the average whale. Most whales (as I recall) are of fairly average means.
sidlls 5y ago
Whales are outsized in many games, but non-whales contribute substantially to this model.

by bccdee 5y ago

cercatrova 5y ago

They are voting with their wallets. It's just that not every vote has a value of 1; their vote is the number of dollars they spend.

bccdee 5y ago
Right, so the market is being disproportionately swayed by gambling addicts and the experiences which appeal to them. This is not a healthy state of affairs.
- cercatrova 5y ago
  Perhaps. There are a lot of games that are not like that though, catering to gambling, and I presume even in the future many games will not as well. There is always a group of people who like games without stuff like that in there, and it seems like at least some of these game creators do quite well, such as CDPR with their Witcher and Cyberpunk series.

mrjangles 5y ago

It sounds to me like what you are saying is that developers have discovered it is best to offer an amazing free product to the whole world in order to get them involved in the game, and then this attracts rich people, who then go ahead and pay for the whole things themselves. But if you don't attract the little guy with free stuff, you don't get a great game, and so you don't attract the rich people. Seems like a good system that everyone happy with. If they weren't happy they would go play other games that aren't free.

fsh 5y ago
Gambling addicts are financing these games. Most of them are not rich at all.
lifeformed 5y ago
It's not attracting rich people, it's attracting addicts.
hamandcheese 5y ago
They don’t attract rich people, they attract gamblers. And they are incentivized to convert more people into becoming gamblers.
- ThatPlayer 5y ago
  Some games are starting to remove the gambling. The article's author is outdated on Rocket League which has since removed the lootboxes. Valorant never had any.
flanking_pajama 5y ago
In all fairness, Rocket League may be the only "free to play" game that warrants the term "amazing". I'm glad it keeps something like RL around, but let's be real: this game model tends to rake in the cash even with the most generic games. Frankly I'm torn: people can buy digital stickerbomb skins if they want, but it's obviously a bit of a "cheat code" to a profitable game and probably takes a lot of developers/money away from more interesting parts of the industry. It'd also be more forgivable if it didn't seem popularity creates nearly immortal games that too often become stagnant and overrun with toxic players despite still being profitable enough to "keep alive", i.e. payday 2, planetside 2
mcv 5y ago
Reminds me again of "when you don't have to pay for it, you're the product, not the customer". Here, all the free players are opponents necessary to attract the whales.
- 5y ago

danybittel 5y ago

It is almost like the business models are adjusting to the reality of the world. With massive inequality, especially in a global market. And an "entitlement" that digital products should be free or dirt cheap. If you think about it it's sort of a wealth redestribution. One extreme example was that Movie ticket business, that basically paid movie tickets with investor money.

meheleventyone 5y ago
This presumes the whales can afford to spend the way they do. Which isn’t true for gambling addicts either. And that the profits end up in the hands of workers rather than in the pockets of investors.

elefanten 5y ago

The megawhale point is a bit overmade. F2p games have vastly different payer distributions by genre, platform, business model, monetization strategy and other factors. Addictiveness and addiction are issues with and around gaming, for sure. But the reliance of f2p games on entranced, pixel-charmed addicts is also overstated. A good number of free to play games have lifespans measured in decades, they can function like a highly social, off-and-on hobby. People are willing to spend $20 to go to the movies a few times per year. How’s it different to spend that on a game you get hundreds of hours of entertainment from?

slightwinder 5y ago

It's not always gambling. There are also collectors and people who just like to show off. Also, the usually f*ing rich dude who has no understanding on the difference between $2 and $20k. Games today are the new social club, where you go and meet and show off your life. And as there are corners for the average people, there are also corners for the rich and powerful. There are some games which really just exist so rich dudes can casually meet and show off how much money they spend on some stupid skin. Similar, some other games have pay2win, because enough rich people live by the philosophy that money can buy you anything, including an easy win. The gambling-games are only the most obvious whale-traps, and they usually not even aim for the filthy rich, but the middle class rich. The rich rich-games are less obvious, because the casuals are not rich enough to even get high enough in that game to gain access to the juicy parts.

bccdee 5y ago
> There are some games which really just exist so rich dudes can casually meet and show off how much money they spend on some stupid skin. Possibly, but not in the mainstream market. I'm not concerned with some weird niche luxury thing that 8 rich guys are doing. And as far as the mainstream market goes, the "rich guy to whom money means nothing" is not the average whale. Most whales (as I recall) are of fairly average means.

sidlls 5y ago

Whales are outsized in many games, but non-whales contribute substantially to this model.