The Predatory Monetization of Video Games - How Money Works

Morning Brew has been the inspiration for many of my video's so if you enjoy my content you will love theirs.

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Video game developers are companies with a profit motive and in many instances shareholders who they need to keep happy.

Selling a game once is great but it means there is a set amount of money that can be made from a set market of games. Exceptions do exist, somehow I have managed to buy Skyrim for the PS3, PS4 and PC, but I don’t like to talk about it.

The problem here is that some people are only willing to spend $20 a month on video games where other people are happy to spend thousands.

The only way to truly maximise profits is to get every possible gamer to pay the maximum possible amount that they are individually willing to pay for a game.

#HowMoneyWorks #MicroTransactions #Monetization
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Music by Epidemic Sound

Stock footage by Storyblocks

[HowMoneyWorks]

To get a sense of pride and accomplishment in your morning routine be sure to sign up to Morning Brew.

[GrandSupremeDaddyo]

The future we feared when horse armor was released wasn't even the tip of the iceberg. Back then people were worried that games would soon be sold in chunks; unfinished and/or chopped into parts. These days the idea of a game sold in "episodes" seems harmless, because instead we're dealing with predatory gambling mechanics targetting addicts and children.

[crestinglight]

The idea that the players who aren't spending any money actually become a product for the whales completely blew my mind. Never thought of it that way. It's so important to shine a light on these disgusting practices!

[thruwaycircus]

That line at the end about who you're NOT sponsored by is a gem.

[brrrr]

Personally for me, this whole toxic monetization of the video game industry made it a whole lot easier to quit playing altogether

[tj-cogo]

This is the main reason I play only single-player games (apart from Minecraft), and mostly old ones. Usually I buy them from sales or bundles where I can buy the all the DLC included for the price of base game. I don't buy any subscriptions, loot boxes or cosmetic DLCs that have no impact no the gameplay. In addition, I try to pick games with the most depth and playtime available (at least 100+ hours and replayability). So far I have been quite successful in this

[mearkatman]

There's a fine line between spending money on a game you enjoy and spending money because you're addicted. A self check I often use is "does this money I'm spending result in more total play time or less". The more predatory pay to win systems that feed off addiction typically are designed to reduce total play time (skipping build times, auto leveling, equipment that would otherwise take a large amount of time to grind for), where more positive DLC will typically extend play time (additional quests/story lines).

[OmDahake]

Worst ones also include when a company takes pre orders and yet releases a game unfinished for which they made their developers work all night without extra pay

[parsafarjammusic]

I feel like this concept applies to more than just video games and all industries these days are trying to push some sort of microtransaction system into their business models.

You see airlines like Ryanair who charge very little for the actual price of the ticket but charge for even the simplest stuff (such as in person check in). You see tech companies like Samsung that sell you cheap tech (e.g. a budget Galaxy Phone) but then tease you into buying accessories (such as Fast Chargers, Cases, Wireless Earbuds etc) and the list goes on

[Leptospirosi]

You forgot the "even worse" scenario, when a company putting out loot boxes for real money actually put a closed list of worthless goods you have to all already have or to "get" inside those loot crates, before having a chance to win what you are looking for, but keeps the fact hidden to the costumers. This has been proven to be done by Wargaming and it backfired massively in their face.

[redtigergaming]

It's interesting to see videos like this, honestly as a dude who plays lots of games i really think this is an interesting video we perhaps haven't thought about but now we should. Very Informational and creative love it! Keep it up man.

[TheMoneyInnovator]

I virtually stopped playing video games 10 years ago because this sort of thing started getting bad... I understand why gaming companies do this, but for me it's ruined what a game was. I'll just go back to the old Rome Total War and call it a day. Thanks for the video! I hope someone watches this who's getting into debt to play games.

[jason]

I feel victim to this. Thank you for putting this together; I hope it will keep others out of harm's way.

[jensenchavez]

I'm glad more people are learning about this. They absolutely do prey on those who struggle with addiction and social isolation. I miss the days of Warcraft and Warcraft 2, back when Blizzard still had a soul.

[whaha]

As a gamer and as a person who is interested in the economy, I'm really glad you made this video. You make so many valuable points and arrange them so nicely that non-gamers and gamers alike can understand what the issues are with the gaming industry.
Now that Microsoft is about to acquire Activision Blizzard I'm even more concerned about the future of the industry.

Where will it end? Will we have another E.T. again? When will consumers stop financing all these bad practices?

[josesalgado]

👏👏👏 Great presentation! Thank you for bringing awareness to this issue, my son has this addiction thanks to Roblox but i was not a good role model either. I personally quit playing Clash of Clans late November 2020. It was taking away from my time with my family and while I wasn't dropping thousands every month I have probably spent thousands on mobile games overall. I personally saw it as a contribution to the developers from some games but CoC was just in it for the money with no improvement to the quality of the game. Roblox is probably the worst offender right now who takes advantage of children and creates this addiction

[andrewrockwell]

I love how this video is not sponsored by Raid Shadow Legends.
I have stopped spending any money on online games, I only spent modestly and have cut the games because they end up eating my life as well.
Also me: I am back into paper Magic The Gathering; and if I buy that Toxic Deluge for $20 bucks I can be just a little more competitive in my plays when I want to defeat my opponents.

[Saarth_]

Now imagine gaming companies adding another layer of monetisation with NFTs and Cryptos. What a nightmare that will be.

[PassportBrosBusinessClass]

SOLUTION: refuse to buy DLC.

Plan B: refuse to buy/ play the game.

“THE ONLY WAY TO WIN IS NOT TO PLAY” -War Games

[tedbendixson]

Thanks for shedding more light on this. I make games as a hobbyist, and I'm looking to build an ethical business selling puzzle games for a flat price. It's really disheartening to see all of these so-called "AAA" studios basically bilking their customers out of money while providing a terrible gaming experience.

Meanwhile, over in the indie scene, there are people who just want to get paid to make good games. We won't go get a job in the game industry because so many companies would have us building predatory psychologically addictive trash.

I'm not sure what the answer is (maybe regulate casino-like elements in video games the same way regulate physical casinos/gambling), but I do hope consumers are becoming increasingly aware of these scam tactics and are pushing back by not giving a dime to these companies.

Burn the predatory studios to the ground. Salt the Earth. Give your money to people who make real games, and only pay a fixed price for it. Ethical game studios exist. They don't have as big of a name or budget, but their games are much better and they respect your time.