COMM 190 Exam 2
PC platforms: Epic Games
- 2018 launch; known for Fortnite - Est. 200 million user base - Losing money for current practices - Projected $1 billion loss by2027 - Exclusivity / free games - More generous split (88/12) - Direct publishing still in beta
technologies
- 5G and livestreaming • Virtual Reality (VR) , Metaverse, and Hologram • 2D games --> 3D games • "a metaverse is a collective virtual shared space, created by the convergence of virtually enhanced physicaland digital reality" (Gartner.com, 2022)
Afreeca TV
- A South Korea live streaming platform that everyone can upload and broadcast their own content • In 2006, Afreeca TV launched • Retransmitting TV contents and broadcasting users' content • They host esports leagues, such as Afreeca TV StarCraft League, Afreeca TV LoL LeagueEsports Ecosystem - Chan-nels
Microtransactions
- A business model that relies on small transactions - Typically $5 or under - Double Dragon 3: The Rosetta Stone (1990) - Earliest form of microtransaction; spending money directly for in-game items (quarters) - The Elder Scrolls IV: Oblivion (2006) - Early example with purchasable content - Horse armor for $2.50○ Became the structure for modern microtransactions
Whales
- A small group of players who make up a majority of a game's revenue. - Average spending - General: $100-$200 average - Southeast Asia: $400-$700 - Not exclusive to games with gacha-mechanics or loot boxes: - Any game with microtransactions
Cloud Gaming
- A way to play games using a remote service in data center - Originally attempted in 2003 - G-Cluster - Need strong internet - Available on variety of other non-gaming devices such as: - Amazon Fire stick - Google Chromecast - Smart TV
General concerns with cloud gaming
- Asset flips sometimes taken down - Legally purchased pre-made assets - Unclear rules about sexual content - Heavy focus on sale events - Lack of curation - Poor organization - Discoverability
Appeal to children
- Bright colors and sounds - Loot boxes "break open, shake, spit into the air and rain down items, never revealing what [the player] receive[s] until the very end." - Virtual currency may not appear as "real money" - Alluring gameplay advantages - Influencer promotion - Peer approval
Gacha & Loot boxes
- Chance-based mechanics - Reliant on continuous purchase. - Very similar mechanics - Gacha (Japan) - Loot boxes (US; UK) - May include the list of items, as well as the direct odds of winning certain items. - Difference: - Gacha: Primary source - Loot boxes: Complimentary - Percentage chance of items appear vary from game to game - No set standard - Ex: Apex Legends
Early publications
- Computer and Video Games magazine - UK, 1981 - Electronic Games magazine - US, 1981 - Nintendo Power magazine - US, 1988 - Marketing publication
Twitch Plays Pokemon
- Crowdsourced gameplay for Pokemon Red in 2014 - Users would type a command, and the character would move accordingly - Over 120,000 at its peak; estimated 1.16 million participated - Game completed after 16 days - "Bloody Sunday" - 12 pokemon were released, unable to restore the ones lost
preservation difficulties
- Digital sales positives: - "Shelf space" unlimited - Ongoing sales may encourage ports and updates - No physical degradation (bit rot) - Potential negatives: - Unpatched versions lost - May depend upon internet access - Cannot pass on copies/archive
why did twitch gain popularity?
- Ease of access to connecting with users - Interactivity is key for maintaining audiences - Major eSports competitions are streamed on Twitch - Fortnite; League of Legends; Valorant - Browsing function is simplistic: - Game title - Streamer - Category tags (Action, Visual Novel,Open World, Flight Simulator)
Issues to consider with game advertising
- Exposure - How long and clearly must an ad be on screen? - Ethics - For games with younger audiences, what rules apply? - Especially in games where they're the main demographic? - Are ad-gated levels ethical? - Should ads be included in paid products?
Currency (clash of clans)
- Finishing up any upgrade and army creation - Buying resources - Purchasing the extra resources needed for any upgrade. - Skins & scenery
E3 - Electronic Entertainment Expo
- First expo in 1995 (LA Convention Center) - "largest gaming-expo of the year by importance and impact." - Previously industry exclusive - Pre-2017: Media Relations - Post-2017: Direct player interaction - Online 2021 - Cancelled in 2020-present
Summer Games Fest
- First expo in 2020 (LA YouTube Theater) - Created in response to other expo cancellations for COVID (aka E3) - Online only; first hybrid event in 2023 - Major publishers/developers: - Sega - Ubisoft - Friendly to smaller developers - Behaviour Interactive - Devolver Digital - Newer endeavors: - Netflix - Amazon Games
physical locations
- Game-oriented retailers - Chains (GameStop; EB Games[Defunct in US]) - Local (Cartridges Galore in State College) - Broader retailers - Electronic (Best Buy) - Big box stores (Walmart, Costco) - Less popular now - Digital is cheaper (Generally) - eCommerce rise (Amazon)
Cloud Gaming current ventures
- GameFly (2002) - Originally discs by mail - Ended streaming 2018 after EA acquisition; back to rentals - GeForce Now (2020- ) - In beta for 5 years - Rights controversies on launch - Amazon Luna (2022- ) - Included with Prime - Removed service from PC/Mac
Notable outlets
- Gamespot (1996) - Notable alum: Greg Kasavin,Supergiant Games, Jeff Gerstmann, Giant Bomb founder - IGN (1996, Imagine Games Network) - Owned by Ziff Davis - Kotaku (2004) - Part of former Gawker network, now G/O media - Notable alum: Jason Schreier, Tim Rogers, Maddy Myers
How South Korean esports industry had developed ICT
- ICT Infrastructure - Information Superhighway • The first Internet service was introduced in 1994 (e.g., KORNET, DACOM) • Korea Information Infrastructure (KII) Project in 1995 • Broadband Convergence Network (BCN) Project in 2004 • Ultra Broadband Convergence Network (UBCN) Project in 2009 • World's first commercialized 5G - pc bang • They benchmarked business models and ecosystem of traditional professional sport
Types of microtransactions
- In-game currency - Cosmetics - Skins, charms, armor - Characters - Battle Passes ($10 avg.) - Gameplay benefits - Upgrades - Decreasing waiting times - Random chance - Gacha - Loot boxes
Streaming impact on the industry
- Increasing attention to games - Fall Guys; Rocket League - New form of promotion - Game reviewing: Seeing the gameplay before purchase with direct reviewer interaction - Targeting niches - eSports and competitive gaming - Accessible and free to watch - Designing for "streamability" -Some games are fun to play but interesting to watch
PC platforms: Itch.IO
- Launched 2013 - Focused on indie content - "Open revenue sharing" -developers choose their level - Digital rights management (DRM)free
Children and mobile apps
- Less barrier of entry - No parental restrictions required to download - But can be implemented - Example: My Singing Monsters includes spin-to-win mechanics - Not exclusive to children's games, but very common
Games as a service
- Massively multiplayer online (MMO) - Paying to access (not all) - Roots in World of Warcraft - Can also be free-to-play for base game - Systems encourage daily/weekly play - Constant, incremental, often random progression - Can also be microtransaction-driven - Season passes - Expansions/additions to base game
How South Korean esports industry had developed media
- Media - 1990s and early 2000s • 'Predict! Cyber France World Cup 98' by Tooniverse • Ongamenet(OGN) and MBC Game (TV networks specializing in video game) • Imitated traditional professional sports (e.g., MLB, NBA, EPL) • Professional league (e.g., Ongamenet's StarLeague, MBC Game's MSL) • Professional teams and players • Broadcasting and live streaming
Cloud gaming previous ventures
- OnLive (2010-2015) - Available on PC and mobile - Sony acquired its patents - Used for Playstation Now - Merged into PS Plus - Google Stadia (2019-2023) - Shut down games in 2021 - Included AAA titles: - RDR 2; Assassin's Creed
PC platforms: steam
- Owned by Valve - Started 2003; HL2 in 2004; Sourceengine 2004 - Originally intended for their own products - First non-Valve games 2005 - Mod support via Workshop, 2011 - Steam Direct (developer access), 2017 - Steam Deck (hand held), 2022
In-game advertising
- Paid promotion within a video game - Types of in-game advertising. - Game adjacent ads (kinda) - Product placement - Advergaming - Some overlap - Estimated revenue: $7 billion
other notable outlets
- Polygon (2012) - Part of Vox media - Expanded to general culture - Notable alum: Justin & GriffinMcElroy, Brian David Gilbert - The Escapist (2005, now owned by same company as Destructoid) - Started as digital magazine - Complaints of mistreatment fromExtra Credits, LoadingReadyRun, others - Game Informer (1991) - Connected to GameStop - 8 million copies / issue in 2011
Game adjacent ads
- Pre-roll - Ads displayed before the game starts - Interstitial - Ads placed between - Cover the full screen - Optional, with rewards - Watching ads come with a benefit - In-game currency - Decreasing wait time
Twitch
- Previously Justin.tv in 2007 - Named after one of the founders,Justin Kan - Formally launched in 2011 as Twitch - Amazon acquisition for $970 million - Lead to prime gaming incentives (ex:prime subs, in-game rewards) - Between 50/50 and 70/30 revenue cut - TwitchCon (2015-present) - Gaming convention; focused on general streaming culture - Hiatus 2020/2021○ Oct 20-23 this year
Loot boxes in Star Wars Battlefront 2
- Released 2017; action-shooter - Initially promised better single player campaign - Instead higher focus on multiplayer on "star cards" (Used to level up characters) - Progression system was real money dependent - Heavy reliance on loot boxes - Money vs. Time - Intense backlash online - Most disliked reddit comment to date - Briefly pulled; adjustments were made to provide them when: - Logging in daily - Reaching milestones - Completing timed challenges - Loot boxes no longer contained Star Cards - Why it was different than other games - Pay to win items over cosmetics in loot boxes
PC platforms: Origin (EA app)
- Released in 2011 - Distributes EA games - EA Play/Origin Access ($5/month) - Access to other EA titles - 10% discount on all content - Different name - EA App on PC○ Origin on Mac - Issues with exclusivity
Ethical tensions
- Reliance on access, advertising - Not uncommon - Personal relationships with developers - Ex: Kotaku & Depression Questaccusation - Plagiarism, copyright, and other legalconsiderations - Ex: Dead Cells & IGN
other publications
- Rock Paper Shotgun (2007, PC only) - Notable alum: Kieron Gillen, Jim Rossignol (Big Robot games) - Game Developer (1997) - Previously Gamasutra - Focused on developers and gamedesign - Notable alum: Leigh Alexander - Gamer Network (1999) - Owns Eurogamer, VG247, GamesIndustry.biz, bought RPS
PC platforms: Humble Bundle
- Started in 2010 w/ charity bundles - $240 million. Includes ACLU,Malala fund, Girls Who Code - Originally sold without set price - Players decided how much they wanted to pay - Profit split between charity and developers - Humble Store launched 2013 - More consistent pricing; traditional store
digital platforms
- Strongly favored by developers due to - Reduced manufacturing costs - Reduced used game market - Increased copy protection - Potential considerations - Curation - Continued ownership /preservation - Discoverability - Revenue sharing
events
- Tension between player and press focus - Playable demo distracts developers - High expectations - Expensive, but absence notable - Accessibility - Controversies include - "Booth babes" - Fake footage
Legal attempts - UK
- Tried to regulate loot boxes as a form of gambling: - After 2 years of analyzing the issue, the country did not ban loot boxes. - Instead, placed pressure onto industry to improve consumer protections. - Proposed changes: - Transparent loot box mechanics - Improving researching for future policies - Including more direct parental supervision of purchases
mobile advertising
- Valued at $172.10 billion in 2023○ 13% increase from 2022 - Reliant on specific platforms - Social media (Twitter) - Video (YouTube, TikTok) - Key tactics - False advertising - "Rage bait"
types of video game marketing
- media relations (preview/review materials, events, influencers) - advanced access (demos, early access) - direct player interaction (events, community relations) - advertising (trailers, presentations) MADA
Product Placement
- some interactivity, other times there's not - Static: No real interaction with the game; mostly visual - Madden 20 (in their Championship series) - Tony Hawk: Ride (Stride Gum) - Dynamic: Direct interaction with the game; impacts gameplay - Mario Kart (Mercedes Benz DLC) - Final Fantasy XV (Cup Noodles)
Advergaming
- the game is developed (or closely collaborates) with the product or service - More popular in the 1990s-2000s with food products - Chex cereal; M&M; Koolaid - Lost popularity over children's eating habits - Bringing the games to existing platforms - Less expensive - Roblox and Walmart - Heavy product placement = new advergaming? -Fortnite; COD
Legal attempts - Belgium
2018 - loot boxes are illegal: - AAA companies removed loot boxes from Belgian versions. Included titles like FIFA 18 (console) and Animal Crossing Pocket Camp (mobile) - Labeled as gambling because it used real world money 2022 - no enforcement: - Study found mobile games were disregarded - 82% of Belgian mobile games in 2021 had loot boxes or very similar mechanics - Too loose; blanket ban
Video games journalism
Broad term: - Consumer interest: Announcements, previews, updates, patches, etc. - Criticism: Reviews and analyses - True journalism: Industry conditions, social significance Difficult working conditions: - Ad revenue low - Other information sources growing - Easily upset audience
Pros of Streaming
Community Building: - Playing with viewers - Conversations with viewers - Streamers can directly respond to their chat comments live - Shared common interest - The game itself - Larger genre (horror, adventure, simulation, etc.) - Generating larger impact - Charity streams; mobilizingcommunity for good
cons of streaming:
Controlling Viewerbase - Cannot always control who watches the stream or who comments - Criticism vs verbally attacking - Mods provide a barrier to enforce rules set by the streamer - But cannot always catch or prevent the comments - "Hate Raids" - Streamer's channel becomes filled with abusive or hateful messages - Can be bots Hard to break into; maintain popularity - Can be difficult to stand out and make full time career - Time commitment - Algorithm and luck - Gameplay plays a role - Average stream 35-30 viewers - Streaming viewership drops - Average 13.5% since 2021 - Twitch (6%) and YouTube (9%)
other platforms
Facebook gaming - Launched in 2018 - Tournament sign ups - Competing with other players; little barrier of entry - Difficulty in practices - Biggest drop in viewership (56%) - Facebook Gaming app shut down in2022 - Previous overrun with spam and stolen content Kick - Launched in 2022 - Backed by a gambling website (Stake) - Promotes 95/5 revenue split - Clearer revenue stream, including: - Number of hours - Flat rate included - Average viewer count - Viewer engagement - Concerns over security system and vulnerabilities in website's code Mixer - Launched 2016; Shut down 2020 - Acquired by Microsoft six months after launch - Ninja - $20-30 million to switch - Concerns over compete with other platforms (aka Twitch, kind of FB Gaming) - Inability to adapt/update Mixer - Existing Mixer partners were moved toFacebook Gaming - The viewer with active subscriptions received Xbox giftcards
problematic campaigns
Fallout 76 (2018): - Promised high-quality bag with $200 deluxe edition purchase - "Delivers Nylon Trash Instead" Watchdogs (2014): - Watch Dogs promotion triggered bombscare - Ninemsn offices in Australia didn't recognize beeping package Resident Evil Outbreak (2004): - T Virus Texts - ""Outbreak: I'm infecting you with t-virus, my code is ******. Forward this to60022 to get your own code and chance to win prizes. More at t-virus.co.uk." Playstation: - PSP "White is coming" (2006) - "10 years of passion (2005) - PS Vita "Touch both sides for added enjoyment" (2014) Dante's inferno (2009): - Electronic Arts staged a fake protest for its game at E3 - 20 actors participated in the"protest" - Backlash from religious groups about the protest
Legal attempts - United States
Federal: - The Protecting Children from Abusive Games" - Regulate games with any type of microtransactions, more specifically loot boxes, to curb them from appearing in games that target children State: - Hawaii - Included language to add disclaimer to games with microtransactions and tried to ban the purchases to players under 21 - Illinois - Similar to Hawaii, but provides a stronger disclaimer
Pros and cons of streaming
Flexibility: - Streamers decide when they want to go live; no "supervisor" setting a time - Scheduled times can change at any time Can become rigid: - Primary audiences might be location-specific - Changing times can be difficult - Esp. after an audience becomes accustomed to a time - May require intensive hours to maintain audience
structure
Free to play/Freemium: - Shortened to FTP or F2P - Players have free access to the game - No upfront payment - Rely on microtransactions for revenue. Pay to Win: - Purchasing items to increase win odds. - Characters; XP boosts - Not every free to play game is pay to win - And not all pay to win games are free
Addiction with loot boxes
Gambling-like mechanics: - Predetermined odds - Hoping for to receive certain items - Higher rarity = more valuable - "Sense of pride and accomplishment" Money vs. time: - Money: Monetary investment upfront to avoid grinding (spending a lot of time playing) - Time: Playing for hours to avoid spending money
Advertising elements
Goals: - Create brand/product awareness - Build brand identity and loyalty - Provide information about product Ethical Considerations: - "mature content" - representation of gameplay - "bullshots"
Pricing considerations with platforms
Initial price - Relative to costs - Relative to comparable games Price trends over time - Gradual decrease - Increase after early access - Overall steady or increasing - ASP = average sale price Openness to sales - Regularly discounted - Never discounted
Concerns with video game journalism
Journalism vs critical - What is a game overly critiqued? Bias? - Reporting the facts vs providing an opinion in a review Impact on Sales - Game leaks used in reviews - Negative reviews can lead to poor sales - Blacklisting in extreme casesImpact on sales Embargo - Withholding game reviews until set date - Outlets may wait longer to include specific critiques
Pros of streaming cont.
Monetary incentives: - Multiple opportunities to make money - Similar to other social media influencer models - Advertisements on streams - Twitch affiliate and partner programs - Subscriptions - Ad-free access for viewers - Donations through the platform directly - Also through third party (Patreon)
Subscriptions
Nintendo Switch Online - Launched 2018 - Legacy games service - Standard subscription (NES; SNES;Gameboy) - Expansion (Nintendo 64; GameboyAdvance; Sega Genesis) Microsoft Game Pass - Launched 2017; PC launched 2019 - Separate plans based on platforms - Key factor driving acquisition with Activision Blizzard - Shared EA Play Plan Playstation Plus - Launched 2010 - Monthly free games - Can only access while subscriber - Classic catalog - Access older Playstation games - Game trials Humble Choice - launched 2019 - Through Humble Bundle - Includes store discount - One single tier ($12)
Nostalgia used for marketing
Nostalgia: Bittersweet feeling about past - Invoked by games: - For past play of those games - For events depicted in games - For similar types of games played in past - Invoked about games: - By conversation/reflection - By other media representationsMarketing usage
Game advertising
Traditional ads - print, television, internet, outdoor Unique Types - native advertising, paid promotions, influencers
Other platforms
Xbox/Microsoft Store: - Xbox 360 (2005-2024) - Xbox One (2013) - Shifted to Microsoft store Mobile gaming: - Apple App Store (2008) - Google Play (2012) Nintendo Eshop - 3DS (2011-2023) - Wii U (2012-2023) - Switch (2019) Playstation Shop: - Playstation 3 (2006) - PSP (2008-2021) - PS Vita (2011) - Playstation 4 (2013) - Playstation 5 (2020)
streaming and COVID-19
general stats: - Number of streamers: 3.6 million (2019) to 8.5 million (2020) - 44% rise in Twitch users - $800 million revenue jump Example: amongus - Released in 2018; spiked in popularity in 2020 - Socializing with friends in online communities - Well over 204,000 monthly viewers by late2020 - Viewership has dropped to - 375 viewers on Oct. 14
Challenges
• Game developer's exclusive rights on Intellectual Property (IP) • Who can argue I have every right on tournaments, events, broadcasting, etc. on baseball? • Riot Games manages, administers tournaments and league, create content, live stream through platforms, etc • Blizzard has and operates Overwatch league and broadcast on streaming platforms - Corruptions • Esports betting (underaged gambling and skin betting) • If betting platforms do not have a qualified license, it is an illegal • Match-fixing
