Part 1
Yesterday, I spoke about the positives of micratransactions, but today it's time for the bad news. Here, I'm going to list the ways microtransactions are used in video games today, at an ever increasing rate.
Should they be regulated? Should they be banned? Let's explore.
1 - Premium Games
While it seems justifiable to have microtransactions in free to play gaming, it does not in games that already run the consumer 60 to 70 USD to purchase. Developers like to update games to make them better and give more variance to the end user, and have traditionally done so using map or weapon packs. While these are still a thing, it is becoming much more common to put them on cosmetic items, loot boxes and weapon gates with weapons being one time use (Halo 5).
2 - Fake Currencies
World of Warcraft has proven that you can have an entire economy created from a fake coin if enough users participate in it. When you can't readily see what the intrinsic value of something is, you are more likely to spend more on it. For example, if we forced people to buy with a currency called GT1, which there is no max supply (like a fiat currency), and it cost you $25 to get a pack of 100 GT1, and then it cost you 7 GT1 to buy a pack of gum, you couldn't readily see how much money you are spending due to the lack of maths.
Most people aren't going to sit and calculate the percentage of their money that is used in a video game for an item that they are having fun playing. Most people don't care to think about that regularly, so putting that type of math in a game is just wrong (in my opinion). Add to this, the person is buying the add-on with a debit card... and then that brings us to number 3.
3 - Pushing Digital Downloads
This study by the Copenhagen Business School (here), shows that users pay more when paying for things with a debit / credit card. We can feel the sting of a purchase when we have to count out the value of it, because it seems real. We give something and then we get something in exchange. But when we use a piece of plastic, or phone / other, then we don't feel like we've given something in our brains. We just feel the "reward" of the item.
4 - Randomization
When you add in the effects of debit / credit transactions, on top of in-game currency, then this one is a killer. Recently, Destiny 2 has taken the heat for using microtransactions for their weapon system, because it is based on random rewards. These rewards are akin to slot machines at a casino, except they are literally at your finger types.
These people are called "whales" in the free-to-play world, and they are a relatively small group of people that literally fund the game to millions or billions of dollars in profit. But in in the world of premium gaming, does it truly make sense?
Solutions
I think regulation, similar to in some Asian countries like China, where they disclose the amount of money they are making in what area, as well as their profit margin, from these transactions. But I think it needs to go further. The transactions just need to be away from in-game currencies so it's clear to the consumer and a warning added the first time someone tries to buy (about the addicting nature of it). People know they are gambling in a casino, but not in a video game. What is their real reward, really? They can't win money from their efforts for the most part, so why?
There are many other points that I did not touch on, and I will touch on them in another writing, but I wanted to share some of the most pressing issues we face in gaming today.
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I look forward to your comments ;)