English Flash Cards (Facts, Stances & Websites) - Nick McGlennon
You don't have to buy these characters but the amount of hours needed to unlock them is crazy.
https://www.intelligenteconomist.com/economics-of-microtransactions/
Although microtransactions are already quite lucrative for the industry, the backlash they've caused among consumers also shows they are quite costly.
mises.org/wire/microtransactions-and-loot-boxes-can-video-game-industry-regulate-itself.
Controversial loot boxes, crates, or most randomized micro-transactions based on chance.
mises.org/wire/microtransactions-and-loot-boxes-can-video-game-industry-regulate-itself.
In addition to the fairness issue, the ability to use real-world currency to pay for randomized content also carries important psychological and regulatory implications, especially relating to addiction and gambling.
mises.org/wire/microtransactions-and-loot-boxes-can-video-game-industry-regulate-itself.
Several US states have proposed legislation to restrict the marketing and sale of games containing loot boxes.
mises.org/wire/microtransactions-and-loot-boxes-can-video-game-industry-regulate-itself.
Almost every modern game nowadays (especially multiplayer games) has some sort of DLC (Downloadable Content) that you can buy; some companies just handle microtransactions better than others.
https://deltastatement.com/5357/features/editorial/the-gigantic-problem-with-micro-transactions/
Another popular form of DLC in modern games involves character packs, which allows the gamer to purchase new characters to play as.
https://deltastatement.com/5357/features/editorial/the-gigantic-problem-with-micro-transactions/
Ask any person who plays video games on a daily basis about microtransactions and chances are they are going to mention EA.
https://deltastatement.com/5357/features/editorial/the-gigantic-problem-with-micro-transactions/
Many people believe that we should go back to the way games used to be made. A time where games were made, sold, played and were done with.
https://deltastatement.com/5357/features/editorial/the-gigantic-problem-with-micro-transactions/
Microtransactions are permanent, why should find a way to fix them.
https://deltastatement.com/5357/features/editorial/the-gigantic-problem-with-micro-transactions/
One of the ways developers handle DLC is by selling cosmetic items such as new costumes for your character to wear or different types of paint jobs to put on your weapons, vehicles, etc. This type of DLC has no bearing on how someone plays the game.
https://deltastatement.com/5357/features/editorial/the-gigantic-problem-with-micro-transactions/
While that's a more recent example, microtransactions have been around since at least 2010.
https://www.intelligenteconomist.com/economics-of-microtransactions/
They can just sell new characters as DLC (which are usually sold around $4 per character) and patch out any bugs that they find via updates, which in turn benefits the player and makes things a lot easier for the developers.
https://deltastatement.com/5357/features/editorial/the-gigantic-problem-with-micro-transactions/
This is a business model where users can purchase virtual goods via "small" micropayments that can range anywhere from $0.99- $99.
https://deltastatement.com/5357/features/editorial/the-gigantic-problem-with-micro-transactions/
This is now a common tactic, and developers have independently revealed loot box odds for titles like Overwatch, FIFA 19, and Rocket League.
https://mises.org/wire/microtransactions-and-loot-boxes-can-video-game-industry-regulate-itself
A survey by W3i found that "47 percent of total revenue comes from purchases costing $9.99 to $19.99" while only 6% of revenue comes from purchases ranging from $0.99 to $1.99.
https://www.intelligenteconomist.com/economics-of-microtransactions/
Another trick used in conjunction with layering is offering bigger packages at a discounted rate. The discount makes the consumer feel they can buy more and save more.
https://www.intelligenteconomist.com/economics-of-microtransactions/
Developers use a psychological principle called "variable rate reinforcement." The dopamine system enjoys unpredictable rewards.
https://www.intelligenteconomist.com/economics-of-microtransactions/
EA has since removed in-game purchases from Battlefront II, but I suspect this monetization strategy is far from over.
https://www.intelligenteconomist.com/economics-of-microtransactions/
EA introduced a "loot box" system in the game, which encourages gamers to spend real money on the game to unlock particular fan favorites like Darth Vader or Luke Skywalker or other in-game rewards. Keep in mind, that these games already retail for $60 to $80 on Amazon.
https://www.intelligenteconomist.com/economics-of-microtransactions/
FIFA is a huge franchise for EA; it accounts for nearly 40% of EA's revenue.
https://www.intelligenteconomist.com/economics-of-microtransactions/
For example, let's say it would cost you $7.99 to buy 60 Gems. Then you would have to spend 13 Gems to unlock a Lollypop that gives you an extra move in the game.
https://www.intelligenteconomist.com/economics-of-microtransactions/
Free games like Clash of Clans are litered with microtransactions.
https://www.intelligenteconomist.com/economics-of-microtransactions/
Games like Candy Crush Saga are considered skill games and users can progress without having to spend any money.
https://www.intelligenteconomist.com/economics-of-microtransactions/
I think it's safe to generalize that in the early days, most of the large game studios ignored microtransactions.
https://www.intelligenteconomist.com/economics-of-microtransactions/
Like customizing microtransactions to your gaming abilities and price sensitivity to encourage more spending.
https://www.intelligenteconomist.com/economics-of-microtransactions/
Loss aversion also plays an important role here, especially if you're only one or two steps away from winning. It's the "tendency to prefer avoiding losses to acquiring equivalent gains: it's better not to lose $5 than to find $5."
https://www.intelligenteconomist.com/economics-of-microtransactions/
Overwatch has a progression bar system for loot boxes, which means users anticipate the next drop.
https://www.intelligenteconomist.com/economics-of-microtransactions/
Previously video games were expensive; most console or PC games retailed for $30-60 per game. However, with the advent of the smartphone, now you had access to a massive selection of games.
https://www.intelligenteconomist.com/economics-of-microtransactions/
Publishers can always argue that people have a choice to make in-game purchases or not. I can only imagine this trend becoming worse in the future.
https://www.intelligenteconomist.com/economics-of-microtransactions/
Similar to arcade games that had a time limit, expiration is used to encourage you to purchase to continue playing.
https://www.intelligenteconomist.com/economics-of-microtransactions/
Similar to the expiration microtransaction, this tactic puts the user in a stressful situation and offers them a way to try again or a way to advance.
https://www.intelligenteconomist.com/economics-of-microtransactions/
Some games add more complexity by using "weird" exchange rates than a 1:1 exchange rate.
https://www.intelligenteconomist.com/economics-of-microtransactions/
The game uses a fake in-game currency that players can redeem. Games use these exchanges to hide the real value of what players may purchase and to make more substantial quantities seem like the "better deal."
https://www.intelligenteconomist.com/economics-of-microtransactions/
These in-game purchases allow purchasers to have an advantage in the game. For example, World of Warcraft offers in-game purchases like pets and mounts.
https://www.intelligenteconomist.com/economics-of-microtransactions/
These may be known as loot crates or bags, packs in different games. Players don't know what's in the box but are tempted to unlock something special. Games may also offer "deals" that make these packs appear to be at a discount.
https://www.intelligenteconomist.com/economics-of-microtransactions/
This technique involves giving the user a significant reward and then threatening to take it away if you don't make a purchase. Research shows that we value the reward more if we are to lose it than we initially appreciated it if we were to buy it.
https://www.intelligenteconomist.com/economics-of-microtransactions/
Today, some games practically require users to complete microtransactions to complete a game.
https://www.intelligenteconomist.com/economics-of-microtransactions/
As of last Friday, an online petition already had more than 9,000 signatures. "Stairway to Heaven" appears to have become a "Highway to Hell."
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But most of the outrage was directed at Activision's bundling policy, which could have the effect of forcing gamers to buy one or two songs they don't want in order to get the ones they do.
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Consumer outrage has surrounded the price of the songs set by Activision's bundling policy.
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Message-board posters quickly calculated that to repurchase all the songs from the first Guitar Hero would cost $62.48, even though the PS2 version of Guitar Hero I, available only on disc, can be bought for $40.
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One of the videogame industry's biggest and most surprising recent hits has been Guitar Hero. Since its release in November 2005, nearly 3 million copies of Guitar Hero and its sequel have been sold in the United States alone, according to the market research firm NPD Group.
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Some were upset at the per-track price of $2.08, wondering why the songs, all performed by cover bands, were priced higher than an iTunes download.
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The biggest hook, however, was that gamers would be able to download additional songs for a fee, rather than being limited to the tracks on the disc
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Then the publisher Activision announced its retail strategy-songs would be sold only in packs of three at a cost $6.25-infuriating legions of Hendrix wannabes.
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EA was cautious with their release of Battlefront 2 and I think that shows that developers are thinking twice about how they incorporate it. We have not seen the last of "play-to-win" but hopefully, it will evolve in a direction that is more acceptable.
www.forbes.com/sites/kevinanderton/2018/03/07/the-on-going-controversy-of-microtransactions-in-gaming-infographic/#4a050d3f1d9c.
Micro-transactions are very lucrative for the industry.
www.forbes.com/sites/kevinanderton/2018/03/07/the-on-going-controversy-of-microtransactions-in-gaming-infographic/#4a050d3f1d9c.
Star Wars Battlefront 2 removed micro-transactions before the games release, likely leading to poor sales.
www.forbes.com/sites/kevinanderton/2018/03/07/the-on-going-controversy-of-microtransactions-in-gaming-infographic/#4a050d3f1d9c.
Very few players like the microtransaction system but a large majority think its ok as long as the upgrades are just cosmetic.
www.forbes.com/sites/kevinanderton/2018/03/07/the-on-going-controversy-of-microtransactions-in-gaming-infographic/#4a050d3f1d9c.
