Greetings, Earthlings!
Welcome to the Madqueen Show, I am your host the Madqueen
And Mr Ruvver
On today's menu, we are going to talk about the microtransactions in gaming
As we know, in these past years, microtransactions have become a thing in video gaming
Paying more for a game you already paid 60 euros for
Microtransaction is a business model where users can purchase virtual goods via micropayments
You can find two types of games where you can find these micropayments: free-to-play
games, and premium games
What you can get via microtransactions may vary depending on the game, ranging from aesthetic
items that do not affect your gameplay or pay to win assets, that gives you an edge
and advantages over other players that have not invested real money
South Korean developers Nexon started Free-to-Play business model back in 1999 with QuizQuiz
In this trivia-game, you win in-game currency that allows you to buy items to make your
avatar look cool or pay-to-win sunglasses that made you have an advantage in a true-false game
The first case of microtransactions in a AAA game was in Dead Space 3, back in 2013
In this game, you could buy with real money weapons and armor that are not available early
in the game, so if you paid money, you get access to end-game items
EA's Dead Space 3 began the trend of games that could ask for more money from the player
after a full purchase
Wait, EA started this trend?
How could I not imagine this
Cosmetic purchases, skins for your character,
weapons, customization options or just plain progress
Microtransaction has become a tool to squeeze more money from costumers
First, let us talk about free-to-play games
You are able to play them for free, and if you want to progress further in the game in
a faster way, you have the possibility to cut corners by paying money to get that advantage,
like getting better characters, play the game more time, new skills, better weapons, or
things like that In these free to play games, microtransactions
are the source of income of the developers, as these games are delivered for free and
payments inside the game are optional
Games like DOTA2, League of Legends, Hearthstone or mobile games like Clash of Clans fall in this category
As we said, you can play these game for free, but paying money will grant you an advantage
or simply avoid hours of countless grinding to progress in the game
In the Hearthstone example, paying real money will grant you extra packs
These packs do not grant you cards that you do not own, but it will provide you with several
more that you can dust to craft the ones you want to have
When we download a free to play game we may have the impression that these type of games
move a business way smaller than AAA games
As graphics and gameplay is much simpler and they do not make you pay for it to start with,
but with these microtransactions, League of Legends made 1.3 billion dollars and the company
Supercell that created Clash of Clans earned a whopping 2.3 billion in revenue the past
year with all his free to play games for mobile devices
2.3 billion that is half of the total revenue of Electronic Arts for 2017 doing AAA games
so it's not bad for a fraction of the investment
On the other side, we have premium and expensive games that also include this kind of payments
Titles as Overwatch, Deus Ex or FIFA include the option to get new assets via micropayments
This is especially visible in games as FIFA, EA made 1.3 billion in extra content in 2016
and half of it came from Ultimate Team mode
In their annual report, EA stated making 2.4 billion dollars form digital revenue in 2017,
59% of the total revenue of the company
Oh, fuck
Can you whistle for me?
Forget it
And NBA2k made 527 million from microtransactions
In sports games, these in-game payments are
incredibly obvious and annoying, now with the features of "building your dream team"
to play against other people in online mode, you need to amass a huge amount of in-game
currency to buy those packs that give you random players, and of course, the good players
have a very low chance to pop up
Yes, you can grind that currency just playing games, or use the mobile app
That doesn't sound that bad
However, it is so tedious and time-consuming that the game almost incites you to buy that
currency with real money
In NBA2k this is even more obvious, because besides that dream team mode called MyTeam,
if you want to improve your created player to play other online modes, you also need
that in-game currency, known as Virtual currency or VC
So it looks like 2k is saying "if you want to play and have fun with all the
online modes we offer, you need to pay more"
Having in mind that in every game you get along the lines of 800 VC, and having in mind
a game lasts 30 to 40 minutes, you can imagine how long you need to grind to get a significant
amount of currency
If you want to be competitive in these online modes, you are bound to spend real money in
an already expensive game
You can say the developers already spend a huge amount of resources building the game
You need also to pay a lot of money to be able to use the real names and the logos of
the NBA and its teams and to pay royalties to use the names of retired players, but just
remember the numbers given before: microtransactions in sports games are a billionaire business
Rockstar earned 700 million from 2015 to 2016 with GTA V purchases in-game
Having in mind GTA cost nearly 270 million dollars counting both development and marketing,
looks like they made some money back
Because in the 700 million that we just mentioned, the 80 million copies of the game sold are not included
In this kind of titles, there is a subtle difference on what you can get through microtransactions;
for instance, in Overwatch, you can spend extra money for vanity items that don't affect gameplay
In fact, Overwatch generated 80% of Blizzard's revenue from digital channels, up to 1.3 billion
from a player base of 30 million players…
And as we said, only for cosmetic items
Still cheaper than plastic surgery
As we can see, there are different ways to
get money from players
Recently we could see some controversy regarding Playerunknown's Battleground for implementing
microtransactions in early access stages of the game, as you may know; this game is still
in Open Access stages
People argue that this is a lousy movement from Bluehole
But as the creator Brendan Greene stated, if they want to include this characteristic
in-game, they need to polish every aspect and having a healthy market for everyone at official release
He also stated that every player would have a maximum quota of items that can purchase,
up to six per week
Another case is the new Star Wars game, Battlefront II
As we could see in the beta, your progress is linked directly to the purchase of loot
crates, which unlocks special cards and crafting materials that are used to improve your character's
performance and they are only available in these crates
As some YouTubers pointed out, that progress can be made by playing the game, but what
has been showed so far, that indicates an incredibly long grind, making it almost undoable
without paying extra money
EA announced that DLCs and all extra content was going to be delivered for free, but seeing
what we can get, I don't know which model I prefer
I mean, I do not mind loot crates at all, but linking your progression to these crates
and not to your performance when playing…
I think I am going to start not liking them.
They still have time to correct or tweak this loot crate mumbo jumbo, so we will see
Kinda dick move by EA
And the problem is that we are not surprised
There are plenty of examples of games with in-game transactions, like Rocket League,
Deus Ex, Assassins' Creed: Unity…
Some with great success and others that gave a lot of backlash to their companies
The worst part of microtransactions is that we're talking about one of the most expensive
goods in mass market: AAA video games
The average cost is of 60€, and now we need to add all the investment in micropayments
that you need to be able to beat or to even advance or be competitive in multiplayer modes
in some kind of games
Microtransactions are here to stay, they give extra revenue to developers and that makes
the industry of video games one of the most successful in the entertainment scene
On the other hand, it also makes the industry a viable one, where the budgets of some video
games are on a par with budgets of big blockbusters in Hollywood
Besides, consumers are now more informed about what they buy and developers cannot count
on the impulse buy caused by hype, as there are many sources of information regarding
the quality of a game days before it is released
Well folks, thanks for watching
I hope you find this information useful and amusing
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