Support NeoGAF

[Thick Thighs Save Lives]

The video game industry cannot quit microtransactions.

In fact, two of the largest video game companies in the United States — Electronic Arts and Take-Two Interactive — now make the overwhelming majority of their money from live-service games, subscriptions and in-game purchases, according to their recent earnings reports.

Microtransactions are purchases that users make inside a game using real money. They show up as subscriptions, virtual currencies, and character customization options, among other examples.

Popular live-service titles such as Fortnite, Call of Duty: Warzone, and Clash Royale were built around this revenue model. Game publishers must provide updates throughout certain game life cycles to retain player attention, which is where the term "live service" comes from. Gamers pay for those updates through season passes or subscriptions.Gamer backlash from the early attempts at in-game purchases caused the video game industry to shift its approach to these subscriptions and bundling purchasable content.

"The industry is really moved to more of a what they call a battle pass system, or some kind of packaging of seasonal content," said Mat Piscatella, executive director of video games at Circana. "Those systems have found much warmer response because I think people are finding that they're getting more value, and more reliable value for their money."

In-game spending has become a high-stakes issue in addition to a lucrative business. Electronic Arts' live-services operations made the company $5.6 billion in its most recent quarter, according to the company's latest earnings report. Epic Games, which created the popular Fortnite franchise, took Apple to court over an in-game payment system that the developer released inside Fortnite in order to bypass Apple's App Store fees. In Europe, app stores and so-called loot boxes are a major focus of tech regulators.

Watch the video above to learn more about microtransactions, the backlash involved, and where the industry goes from here.

 

[64bitmodels]

Dumb gamers keep buying them and they make tons of money.

In other news, why are forks commonly found in kitchens and dining tables? The answer may shock you.

 

[realcool]

 

[Men_in_Boxes]

Because we rather invest in games we enjoy than buy full priced games that are too boring to finish.

Not rocket science.

 

[DaGwaphics]

LOL @ 4:50

What kind of defense could you possible make for Pay 2 Win. Yeah! that billionaire dude really mopped the floor with the downstairs folks. LOL

 

[ChorizoPicozo]

gaming is 90% shit. just like movies, tv shows and music.


Fortunately, there are always forces of good who believe in the medium as an art form as well

 

[Audiophile]

I never had an issue with the concept, if there's artists building assets or designers building missions that are all on top of a reasonably-sized standard package then I'm happy to part with a little money each time in return for that.

The issue is the execution. There are far worse examples but as a player I particularly hate the way COD has gone. (I know WZ is free, but..) you pay full price for the main game and then pay for a battlepass (which itself has tiers) then you have a storefront that rotates which incentivises you to either wait or buy content you don't want so that you might get access to content you do want. Then after that everything is in bundles, so more often than not if you find something you like, you're paying ~£15-20 for 7 or 8 items you don't want to get one or two items you might.

What they should do is a have a full, open transparent storefront where you can buy every individual item you want from the get-go with prices ranging from say £0.49 for small charms/extras to ~£1 for gun skins to ~£1.49 for character skins; then have bundles as a small-discount opportunity. As it is everyone I know who plays will not take part in the MTX as they're just a piss-take, but many have said they would take part if they could choose exactly what they want and get those items for reasonable price. Overall engagement would probably go up considerably and they may make as much if not more as a result. But they seem to favour being predatory and charging absurd prices upfront over actual win-win scenarios.

 

[SmokedMeat]

I don’t think GaaS is a problem.

The problem is greedy publishers pushing the envelope. As an example Blizzard selling a pack of portal colors, Activision selling a red dot targeting reticule, and Capcom selling a map marker.

That’s what’s so ridiculous about GaaS, and what really gives it all a bad look.

We’ve also arrived to this point due to how stupid expensive game development has become.

 

[RJMacready73]

Dumb gamers keep buying them and they make tons of money.

In other news, why are forks commonly found in kitchens and dining tables? The answer may shock you.

I honestly believe it's not dumb gamers making up the majority of this shit, it's dumb fucking parents, obviously this is all my own personal first hand knowledge but when it came to Fortnite a few parent I know for the sake of peace and quiet would often spend a ton on little Johnny's favourite games, my wee lads mate a few years ago I think the da admitted to blowing near £2-300 on fucking items for him when we where all drinking at a BBQ and another admitted to around £100 on cosmetics... Lol I said my son gets to spend a tenner of his own money at his bday and Xmas to buy cosmetics and now that he's moved on he thinks it's all a load of bollocks, I taught him well

 

[Cert.in.Death]

Gist: the price of cocaine isn’t going down, so it’s necessary

 

[64bitmodels]

gaming is 90% shit. just like movies, tv shows and music.

Your posts, too.

 

[IAmRei]

Greed, fomo, expensive development. Its not only company who is wrong, but also gamers who keeps buying mtx without thinking.

 

[Men_in_Boxes]

What kind of defense could you possible make for Pay 2 Win.

If the games industry wants to grow, they should embrace PAY 2 WIN. Yeah yeah, calm down...

Pay 2 win is one of the most universally despised concepts in gaming. I, like many of you, hissed at it for most of my gaming life. I was wrong. The problem with Pay 2 win has always been in its implementation, not in it's concept. Our favorite movies, TV shows, and books abide by Pay...

www.neogaf.com

 

[Miles708]

Games used to be complete products, without patches or additional stuff to buy.
Then somebody had the brilliant idea to add an internet connection to a console and now we are all paying the price.

 

[Laptop1991]

well the answer is the money they make from them obviously, MTX make more money than game sales now.

 

[64bitmodels]

Then somebody had the brilliant idea to add an internet connection to a console and now we are all paying the price.

I mean it objectively was a brilliant idea. Mtx and all the other terrible stuff only got a hold because we funded them when we bought the horse armor back in 07

 

[phil_t98]

so what is better, 360/ps3 days paying for map packs that fragment the community or free maps and paying for skins?

 

[64bitmodels]

so what is better, 360/ps3 days paying for map packs that fragment the community or free maps and paying for skins?

Mod support and level editors allowing players to go make their own for free without any funding or money exchanged.

See also, halo, doom, quake, TF2

 

[Killjoy-NL]

I have no problem with MTX.
If I don't think they're worth it, I just don't buy them, whether it's the MTX or the game itself.

Nobody is forcing anyone to pay for them, so complaining about it is petty af.

 

[Reizo Ryuu]

so what is better, 360/ps3 days paying for map packs that fragment the community or free maps and paying for skins?

I don't think most people realise how shitty map packs/expansion packs were for online games, you just completely take an axe to your player base and segregate them; a bunch of people buying skins in CoD so the rest of us can keep playing new content for free all time without anyone being left out is such a much better prospect.

 

[BennyBlanco]

 

[Krieger]

Don't quit it, but put all that shit into mobile games and leave normal games alone.

 

[Dane]

A bunch of stuff

1) The most successful games are good titles filled with MTX, something that companies like Square and Warner doesn't get with their GaaS attempts.
2) You have titles that have low entry barrier like GTA V always at sale for 15 bucks or less and Fortnite that is F2P
3) Some games like Fortnite are regarded as very generous with their season passes, with the game for example giving you V Bucks at late progress up to paying it back in full + bonus when finished.
4) Sports games are exclusive licenses most of the time, EA claimed NFL exclusive license in 2005, killing NFL 2K by Sega immediately. This gives zero incentives to have any competition.

ANNNNNNNNNNDDDDDDDDDDDD A very important aspect down here

I honestly believe it's not dumb gamers making up the majority of this shit, it's dumb fucking parents, obviously this is all my own personal first hand knowledge but when it came to Fortnite a few parent I know for the sake of peace and quiet would often spend a ton on little Johnny's favourite games, my wee lads mate a few years ago I think the da admitted to blowing near £2-300 on fucking items for him when we where all drinking at a BBQ and another admitted to around £100 on cosmetics... Lol I said my son gets to spend a tenner of his own money at his bday and Xmas to buy cosmetics and now that he's moved on he thinks it's all a load of bollocks, I taught him well

5) Its a very pareto principle economy (80/20) where the vast majority of the MTX comes from a minority of the players.

 

[Fabieter]

More and more people buying on sale doesn't help the fact that the industry is pretty much fact.

 

[dreamstation]

Mod support and level editors allowing players to go make their own for free without any funding or money exchanged.

See also, halo, doom, quake, TF2

Yep and remember servers being hosted by telco's and other third party companies. Developers/publishers want everything locked down to keep control but then whinge about the cost

 

[Clear]

Isn't part of the appeal PC of gaming as a whole, the fact that owning better hardware is highly advantageous experientially and competitively?

I mean particularly with PvP titles, having a better frame-rate, resolution, and obviously accessories, is going to offer benefits over someone who doesn't have the same.

Not saying this to pick a fight or throw shade, just to point out that "pay to win" is kinda baked-into gaming as we know it. MTX didn't invent it, or create the demand.

 

[64bitmodels]

Yep and remember servers being hosted by telco's and other third party companies. Developers/publishers want everything locked down to keep control but then whinge about the cost

Yep. So many closed GAAS would still be alive today if they allowed players to self host their own servers. No need for anticheat either as the most effective anti cheat is a moderator paying attention.

 

[Metnut]

My guess is that there’s a substantial overlap between the rubes who pay for these microtransaction games and the people who paid to see all 25 marvel movies.

 

[TheThreadsThatBindUs]

Isn't part of the appeal PC of gaming as a whole, the fact that owning better hardware is highly advantageous experientially and competitively?

I mean particularly with PvP titles, having a better frame-rate, resolution, and obviously accessories, is going to offer benefits over someone who doesn't have the same.

Not saying this to pick a fight or throw shade, just to point out that "pay to win" is kinda baked-into gaming as we know it. MTX didn't invent it, or create the demand.

You're right but to some extent that's why the majority of competitive gaming and eSports is focused around consoles; since the level playing field in hardware is embedded.

 

[MasterDerico]

 

[kyussman]

We all laughed when these things first arrived,paying extra money for a virtual thing that games were already full of seemed like taking the absolute piss out of gamers.....yet they embraced them and now they are a majority source of income......pretty fucking nuts,lol.