Why The $183 Billion Video Game Industry Can't Quit Microtransactions
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- Опубліковано 15 тра 2024
- CORRECTION: At 6:28, this video incorrectly attributed the source of the United Kingdom's loot box protections guidance. It came from the Government of the United Kingdom.
The video also misstated the number of countries where loot boxes are currently illegal. Only Belgium has laws currently in place that ban loot boxes.
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.
Chapters:
0:00 - Intro
1:23 - The rise of microtransactions
4:00 - Gamer backlash
6:07 - Regulation
8:08 - What's next?
Produced, Scripted and Edited by: Christian Nunley
Animation: Christina Locopo, Jason Reginato
Camera, Jeniece Pettitt and Andrew Evers
Supervising Producer: Jeff Morganteen
Additional Footage: Getty Images
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Why The $183 Billion Video Game Industry Can't Quit Microtransactions
They keep doing it cause yall keep buying. Stop ✋️ buying this mess
Exactly 💯
Explain how we get planes in MSFS then.
They force you to buy
Right. Some people don’t learn.
@@IlPookiell Only if you keep wanting the latest skins / weapons etc.
So no responsibility is on the gamer? Like gamblers & drinkers? Gaming can be an addiction too.
If buying isn't owning then piracy isn't stealing
Most underrated statement I've heard in years
I’ve pirated most games i played since the beginning, no big deal.
Do you guys know any trustworthy sources which teaches how to do it properly without spam or viruses?
I miss bit torrent
I’ve lost my husband to FIFA
It’s the only thing he wants to talk about. He plays it all day and doesn’t acknowledge how miserable/depressed/burnt out I am as a SAHM.
To me, our marriage is boring AF but he still seems as happy as ever because of the high he gets from FUT.
It’s like he’s in a cult. He doesn’t care to to go on dates or do anything fun with me anymore.
I’m pregnant with our second child and he doesn’t even care to talk about that.
I feel like I have to turn myself into an NPC in order for him to look at me.
"Let's lay off thousands of developers but double the salary of our CEO. These gamess are expensive, y'all. Trust us."
Bro clearly didn’t go to business school
@@TylerJacobs3explain how he is wrong?
You have to pay for top tier talent. If you’re too cheap to pay the CEO aka the one who makes all your decisions how can you expect to have a well run company? Probably went cheap on the ceo to begin with and now everyone pays the price
Doubling the pay for at most 20 CEO will have no effect on a company that needs to pay hundreds of millions to employees
@@TylerJacobs3 Imagine bootlicking billionaires
The premise that gamers can do nothing about this is not true. If people didn't participate and buy micro transactions they would fail to exist. The issue is micro transactions are wildly popular among gamers.
You need regulations because the micro transaction model just works. It can't be stopped otherwise.
I'm 41 and I view this as all bs, when asking people that are 20 years younger they are totally okay with this and prefer micro transaction
It's the younger generation of gamers that are more OK with it.
It can't stop. Most young gamers were brought in gaming when micro transactions was norm to them.
It just easy access and addictive to press few buttons and spending money from donation via streaming or credit card from parents.
Yeah gamers are weak, that's the real problem
I miss games where you have to unlock everything without spending a dime.
And those still come out.
Ragnorak. Nier.
Horizon.
The model.should be say 1 or 2 live service every few years. Use the revenue to make 1 and done.
Games are what they are for that reason
Also let's say a pvp like ships.
It takes about 15 hrs for a campaign.
Ok let's say
A parent works a job maybe 2
With kids.
If he wants to spend 20 dollars out of a 2000 dollor paycheck.
That's his time and his resources.
No diff than u choosing to sit on yo ass and play.
In single player. Ya micro is stupid.
But what u want would destroy pvp. 😊
Plenty of those still come out, you’re playing the wrong games
The real essence of gaming 💯💯 f**k this new bs
I'm not against you but ... And spend dozens or hundreds of hours doing so?
“Seriously? I paid 80$ to have Vader locked?”
Ah the pried and accomplishment thread. I was there lol
Oooooh but look buddy you can also unlock Vader with a cracked helmet for 5 bucks what a bargain give the shareholders your wallet
😂😂😂
I miss the good old times playing games like Starcraft, diablo 2, age of empire, etc. All of which didn't have microtransaction.
Those were all better games than any micro transaction games that has existed.
Not entirely take a gacha like genshin.
@@r.a.panimefan2109genshit is trash
Peak gaming
Age of empires 2 is still around and actually growing. guess what. It has micro transactions now! Want new civilizations spend some money! Its fine though because f2p franks is still the strongest.
Madden is hands down, the worst. You buy the same game every year and pay for micro-transactions and the game and graphics never change.
Don't forget Nba 2k now has a battle pass in a sports game.
But see I think we’ve reached a point where the paying isn’t tethered to companies performance any more, or even the content they deliver - no, it’s tied to your tolerance.
How much mistreatment will you take before you throw the game away? They’re betting it’s a lot.
It’s literally copy, paste, rename. People who buy those games need to buy a football or a basketball and go to the local court.
NBA2k already do this for years man..
I was thinking FIFA when I read this comment, but realizing that all sports games follow this approach now really speaks about the current state of gaming. I wanna go back to 2006 and play NBA Street with my cousins again!
The dealers will keep selling as long as the junkies keep buying.
I regret recommending people who asked to invest in video games. The public is undisciplined, and video games should have remained a small niche.
It's greed plain and simple. Microtransactions is why I don't enjoy gaming as much.
define greed
@@ryantetreault3447prioritizing profits over actually making games fun while blurring the lines of ownership and renting
I mean is it greed? It's a business at the end of the day. Games are increasingly more expensive to make. Gamer's forget that thought you may have an emotional attachment to gaming, it's a business and if it wasn't profitable it would be gonee with nothing but passion indie projects left.
Blame gamers
You are also getting older
Mobile gaming, is not gaming. Its software that is designed to separate you from your money
What are you exactly trying to say?
@@tiisetsomatsimela-ce6yn They don't care about consumers enjoying their games as they're not designed to be enjoyable. Mobile games are designed to prioritise traps to get you to spend more. Most mobile games aren't just a 1 time payment.
@@tiisetsomatsimela-ce6yn read it again, but slowly this time.
That makes no sense whatsoever, re read what you said slowly
You could say this for everything
@@tiisetsomatsimela-ce6ynit means they are literally gambling games and the prize is a picture of your dream girl/husband or something else you desire.
The saddest part is that gamers will keep buying these games and spend money on microtransactions just because they are addicted to the gameplay loop. We let these companies keep getting away with this.
It's basically an extension of mad men - people can't afford nice things in their own lives anymore but they can maybe afford nice things for their avatar in a virtual world 🫠
Makes me want to create my own game and add a bunch of microtransactions and get rich from it. Knowing idiots will buy them anyways. I think this is a good business model
The only time I spent money on a game was getting dlc for the Witcher 3 and I am going to get the dlc for Elden ring if good sense I am going to get countless hours of gameplay.
Gamers don't keep letting this happen, Government's keep letting this happen
@@jasonzhu9742 If only you had $100 million to create your own game.
The problem with micro transactions is that the company is then incentivized to create problems in the game, just so they can sell you the solution for more cash.
Exactly, cause the problem then sell the solution
And also that they rely on shady tactics (e.g: FOMO, gambling, etc) to prey on young or weak willed people. All this should be heavy regulated or straight up banned.
This makes absolutely no sense, maybe for a shady mechanic so they can keep costumers coming back to spend money on problems they created but not with a digital product lol.
I have never purchased a microtransaction
almost similiar with me
i dont see them usefull nor im too poor
If the original payment of the game does not give me a full experience than I do not want it. We do not pay for a game to then just acquire the market place...
Same here, I make 6 figures and still refuse to waste money on microtransactions. I'm not sure what compels people to pay so much, especially since there's often ways to get these items for free on many games like for example csgo, league of legends and even phone games. You just have to spend time playing the game to unlock the items, but if you enjoy the game why not grind for your items rather than wasting hard earned money on them
7% of the development cost goes to the CEO alone...that's why the development cost are so high😂
90s and 2000s gaming was peak. 2010s and beyond was gaming's downfall
There are still plenty of games that have no micro transactions, most of those are Japanese
@@antimatter7629not everyones a weeb lil bro.
@@overwatch8848 oh, have fun spending money on pixels little bro
Now that is a fallacy, even tho we didn’t have these scummy tactics back in the 2000s, some games now are infinitely better, deep and rich.
It's mostly little kids who use their parents credit cards..
“A way to recoup staggering developments costs” how about not paying your executives ludacris bonuses
Except that's not the reason for higher costs. Just look at how many years and people it takes to create a game. As big as it does a blockbuster movie. Gamers want to be entertained, and like a dopamine fix they want more, and more of it. Last years game is already played out, and gamers need some more stimulation along with their energy drinks.
Ah demanding gamers! That must be why the gaming industry is run on razor-thin margins. 🙄
Imagine buying something and not actually owning it. Not many understand this.
You do that every time you watch a movie at the theatre. You pay for the experience. You don’t own the experience in perpetuity.
@@grimmlinnTerrible example. The theater has equipment, a building, and employees that gives me a better experience than I could ever afford in exchange for having to enjoy it with several other people in the same space.
I gane at my home, paying for my electricity and internet, on equipment i bought myself.
@@ruffethereal1904 Yeah, right, like programming and designing a video game doesn't cost anything.
@@XOPOIIIO I was arguing the theater example where I'm paying for temporary access to their hardware and services. It's a bad analogy.
@@ruffethereal1904 How is that hardware and services are different from software and digital services? Both require work, right?
CEO of predatory mobile game developer Kabam says regulations are in a good place right now.
Isn’t that the creators of guns of boom
A semi predatory game like the skins in guns were paid to win
Like you literally had to pay to get overpowered, Gonzaga ranked your opponent S weapon
Whenever I see/hear Microtransactions being mentioned, the first thing on my mind is EA..
Ubisoft
@@MementoMori_2070 more like U be broke
I memba when SIM city was still alive, then ea destroyed it
@@dbz9393 For real. The 2012 version had to be a joke
Gamers let this happen. I worked for EA when this trend started and actual fun got thrown out the window in favor of microtransactions. So enjoy it!
2 simple rules on games:
1. Always say NO to microtransactions.
2. Always say NO to subscriptions.
My rule is more simple. Enjoy life, pay for what you enjoy.
@virtuaguyverify buying skins is fun to you?
@@kingdomross8974 if it's something that will make me happy. Sure!
You can’t avoid subscriptions bro.
@@eligreg99 watch me, bro.
When I was younger I used to game a lot. Now I barely do it. Paying for a DLC is worth it if you’re getting a new single player story and/or getting lots of maps for multiplayer. Using real money to get skins is ridiculous. The price for those is insane
This. I liked how borderlands 3 handled dlc. We always waited for sales, but, having more maps and stories was fun.
The only games that selling cosmetics make sense in free to play multiplayer live service games
The Video Game Industry: "Get used to not owning your games."
The People: "This became known as the Great Pirate Era!!"
I'm mostly interested at how little innovation there is with microtransactions. It seems like AAA games have just adopted the systems created for mobile gaming, with very little consideration for the differences in game structure and likely playerbase.
AAA publishers saw how well it worked for mobile, of course they'll adopt it for their business.
There is a saying: "If it ain't broke, don't fix it." They don't need to innovate because they know somebody's gonna buy their garbage.
I have a theory for a while the reason why they were adopted predatory micro transactions is because of the rise of content, creator, and live streaming
Because any video game live streamer can write micro transactions off and video game purchases off as a tax write off and get it back when they do their taxes
So if you were making money by playing video games, you don’t need to buy those video games
So those thousands of dollars that are being spent
Are not being spent by Lil Timmy they’re being spent by big-name UA-camrs and live streamers
Just average gamer, and Lil Timmy is caught in the crossfire, and
They keep justifying it saying that everybody wants this, even though nobody wants it the reason why live streamers don’t complain because they get free micro transactions
Just wanna correct one thing. You said that in battlefront 2 the micro transactions weren't there at launch but they were. It made the game pay to win so bad they had to redo the entire system
The problem isn't the microtransactions itself, It's about the perversion of game design by mtx. While not horribly bad in some games, ushered the start of 1p games becoming like p2w mmos.
P2W is the answer to, "what do you mean the game costs this much"?
Micro-transactions are why I’m not gaming as much. I only bought 6 “normal” games on PS5 since launch. I had 40 great games on PS3….
I think the reason why they have ramped up micro transactions heavily over the past 20 years is because of the live stream content creation
Because these live streamers can literally right micro transactions off as a business expense
You can spend $5000 on fortnight Vbox and just because you are a Fortnite Contant creator, and if you play Fortnite and show off the skins that you buy with the money, you can literally get a percentage of that money back
The reason why contact creators can spend so much money on video games because they actually don’t
And that’s why video games have so many predatory micro transactions and it’s doing them good business
Because instead of one little Timmy, buying one fortnight skin 10 Lil Timmys, give their money to Fortnite streamer to buy the skins and he gets money back because he bought the skins in Fortnite gets all of the money
So if anything American taxpayers are paying for a percentage of video game sales
Thank god i still play my PS1 and PS2 all the time
I am 44 and I noticed this disturbing trend back in 2013? when "Plants vs Zombies II" came out. I spent about $80 in a month trying to get past one kevel. When i got my credit card bill, i deleted the game and have avoided ganes with microtransactions and loot boxes ever since then. This also means that I rarely play games anymore because very few games do not have those features these days.
4:46 “Gamers who buy games have this code, which is kind of not very well thought through but that they hate pay to win.” - Michael Pachter - Wedbush Securities Managing Director
Old men who never played a video game can't understand gamers. Go figure 😂😂😂
I don’t see what is so hard to understand for that old guy. Cosmetic enhancements are generally not pay to win (unless they increase stealth in competition). Anything that gives an unfair advantage is pay to win.
Yea they’re not thinking about their profits 😂
@@1MTW old men ARE the gamers. Eventually children will age into a market that simply won't remember the time before microtransactions, and then it won't even be a debate anymore. The video gaming industry is just waiting for the gamers to die off. These companies will be around in sixty years, and we won't.
any game that has elements of pay to win immediately goes on my blacklist of games I will never support or partake in.
Modern games: "You're not connected to the internet so single player is locked. Oh and you need to input all of your personal info on our website to validate your copy of the game. And whenever we release an update there is a chance that current features will stop working."
Halo Combat Evolved: "I am a complete game at launch and I don't include any microtransactions and I only take a few seconds to install and I you don't need internet for single player and you can install me on as many computers as you want, and you don't even need to have the disk in the drive in order to save your game :)"
A thing that wasn’t mentioned is that most microtransaction models depend on being addicting. Gatcha’s are the most obvious, it’s essentially a slot machine. Most of them, if not all, have an animation play before getting an item to create a bit of hype for an even bigger dopamine rush, especially if you get the item you want/need. Even just buying an item from the cash shop feels just as good as buying a new book or Lego set you’ve been looking at for a while. Cosmetics-only cash shop items depend on us wanting to fit into a group and using clothes and hair to indicate such a thing, not having a cool skin or virtual outfit can make you feel like a misfit in the game
I have never spent a penny on microtransactions or bought any games that have this gimmick, and never will.
I'm so done with gaming, I .....can't take this anymore🤦🏾♂️
Congrats to Baulders Gate 3 from doing amazing work on their game over microtransactions .
It's the rich people who don't mind spending $1000 to unlock things.
I'm gonna ask.
Take a game like wows
When I'm not working. I could easily clear a battlepass. For a new ship.
I would choose 10 dollars or not.
It's a choice.
But there was a option. To boost for dublloons through 4 week campaign.
Ok. So u can grind for a few hrs a week or pay.
Let's say I work a full time commute job
.
Like my friend who's on a base.
And has a 1 and half hr commute.
So he doesn't have the 9 extra hrs a day.
So if let's say someone has a 30 dollor a hr job. Working as say a doc.
Is it so wrong for them to get on wows. And see this awesome campaign. Ship.
Who cares if he boosted.
He spent his time earning a living he spent his time working.
Not gaming.
So in your world in your argument.
That would gate keep working people in live service.
@@r.a.panimefan2109yes, gatekeeping is good.
There were many cases where kids secretly used their parents cc to buy thousands of dollars worth, which that parents couldn't afford.
And these game companies have hired psychologists to prey on people with gambling addictions
@@r.a.panimefan2109 put down the crack pipe
@@r.a.panimefan2109Pass me that blunt
The golden era of gaming is behind us
It peaked with RDR2, IMO. Rapidly down from there.
It peaked with PS2/Xbox 360. That era of being blown away by massive generation jumps is long dead @@CoffeeCup1346
Yeah!...(sigh)...😒😒😒...😤😤😤...and I really miss those days of the golden era and now gaming industry is pretty much dead.
You need to play some indie games
Its definitely ahead of us
Down with App store monopolies and also down with these greedy studios preying on gamers and kids with their bs expensive virtual items. Most of the time we buy these games and they're not even finished, buggy as hell then they want you to pay more, and then pay to win on top
Um ya that will go over well u now how popular games are on phones.
That's the reason Sony came stateside. Mobile games. Apps.
Like azure lane there fun.
I'm glad CNBC is talking about these subjects because it brings these issues into the spotlight and gives credibility and support to a category of consumers that have been taken advantage of for years. I'd love to see a follow up where you discuss matchmaking systems and algorithms manipulating in game experiences in FPS multiplayers like Call of Duty.
It should be illigal to offer microtransactions to children.
The only reason they get away with it is because they’re buying premium currency, and they’re not technically buying micro transactions
Because in game currency falls under a different legal umbrella because it’s not considered a product
And that’s why all these games have premium currencies instead of being able to buy the skins directly from the shop
Because there’s a reason why you can’t go onto your steam shop or PlayStation shop or Xbox shop and buy any skin that is available because they want to keep it limited availability and justify charging $20 a skin
I would be less mad, if it was more of an optional premium currency than a mandatory premium currency
And fortnight has recently implemented multiple battle passes so people who earn enough money to buy the next battle pass have to start paying money
If they want the festival pass or the The special crossover item like avatar skin
< gamer for over 20 years. AAA games only cost that much because of how they choose develop. They have literally dug their own grave and no one feels bad for them. There are individuals that make games 10x the value with a fraction of their budget. They have made their goals to be about profit, the sickness is in the heart and soul of those companies.
That is exactly how it is this about how they developed simply because a $3 million development budget versus $100,000 video game budget and the $3 million game isn’t guaranteed to be good
Look at how many Indy developers that make the same amount of money as a AAA game studio does with multiple titles after the release of a single game
There should be more pushbacks against microtx and outright ban of loot boxes. Safe and responsible gambling is an absurd hypocrisy. You are always bound to risk something when gsmbling because that's what it is all about.
1 billion for a game? Sounds like extreme corporate mismanagement to me. Very inefficient game development. We had Baldurs Gate 3 for 100-200 million which is still very high but look at what you get.
At the other end look at what indie developers are doing for under 1 million, some of the best games I’ve ever played.
Bruh, look at the modern game and compare it to an old-ass game. It's not even a comparison. Modern games take A LOT to produce to the quality that people expect as a bare minimum. Some games need literal teams of hundreds of people to put together the graphics, sounds and everything else. It's a lot of money. You make it sound like these AAA games can be made on the cheap. Good luck with that. XD
@@nothingreallyrhymeswithora9377 you consider 100-200 million on the cheap? I think you need to stop believing what these CEOs say, who by the way, earn hundreds of millions of dollars - no wonder their games are so expensive when their salary is so high. But, you seem quite happy to feed these mega rich CEOs and greedy shareholders. I won’t even ask your option on AAAA games like Skull and Bones, you probably think they deserve to cost 100 billion!
@@nothingreallyrhymeswithora9377who cares about AAA and photorealistic graphics? I just want a fun game that isn't going to cost me >$60. Given the current GPU and global security situation AAA graphics may not be tenable for much longer anyways.
@@Simon-L-B You legit think games cost like a few grand to put together? Christ. You're also an extra clown if you think these CEOs are making that much money. You are a damn child. Actually ignorant. You probably think socialism would work as well.
@@flpndrox LOL. You think games are going to reverse in quality or something? Jesus. It must be nice to live in your own world.
BG3 was almost everyone's GOTY except IGN's. lol
Larian put a lot of love in that game. Kinda felt like playing a pre 2010 game
Attention gamers: why TF do y'all keep paying these microtransactions?
most microtransactions are bought by the rich, which is the problem and why microtransactions will sadly never go away. Average people don't spend money on microtransactions because they can't afford to. The rich on the other hand, buy micro transactions as a flex. Gaming is now an unequal social caste system were the rich flaunt/flex their wealth onto the poor so they can assert dominance.
@jaserader6107 Ahhh, I see. That's a good point. I didn't know the purchases were mostly by the rich, but that totally makes sense.
I never have and never will buy any game or DLC digitally, and I especially will *never* spend a dime on in-game microtransactions.
EA shouldn't be held up as "the example of developer studios", they are the most hated gaming house in the world without exception. I have no friends or family left (Im almost 50 so I have a lot under that list) that haven't boycotted Electronic Arts as well as several other violators.
ive got 12k into warframe by now, 10k into world of tanks. Free to play actually means, free to decide to speed things up. world of tanks sells premium TANKS for $30-50 EACH, rather than an entire GAME. Its crazy, but 10 - 12 years into a game, it adds up
sure you can play the game free, but it is miserably slow, and i enjoy having what i want the second i want it. i work to make money, then i spend it on things i want. i dont want to farm for something that takes 20 hours to grind out if i can get it with 1 hour of irl work.
@@snypa-ck7hnbro, i'm sorry but you need help. Spending 22k on free to play games isn't healthy.
2. Loot boxes and anything that can be used for gambling must need license and adhere to strict rules and regulations.
Some games did loot boxes correctly with only cosmetic skin
Like original overwatch loot boxes once they re-balance the drop rate
Because you had the option to buy loot boxes or grind for them now we don’t even have the option anymore. It’s either pay or don’t pay.
Battle passes are a lot more predatory, then loot boxes, because battle passes
Pray on fear of missing out instead of gambling
And not everybody has a gambling addiction, but everyone has the inherent desire of fear of missing out
When their product is going to be around forever and they’re making false scarcity
Because they couldn’t justify its charging $20 a Fortnite skin if you could buy all of them at any time
The only reason they can charge so much is because they’re considered rare or scares and limited
monopolizations ruined the video game industry. same thing Hollywood is going through.
The entertainment industry as whole really. Creativity has stagnated in the name of profits as everything is being remade, remastered, rebooted or remixed. Not to mention ownership is becoming a thing of the past as all paths lead to a subscription model
There are more game studios than ever
@@Jose-Luis.Garnica-Sanchezthat’s only with AAA gaming if you want creative games then buy indie titles
@@babypluto636 so developers not fueled by greed? Just proves my point since they are the niche
I don't agree. There are tons of games to play. Just look around. And if you still not happy, you can emulate the good times.
the more accepting you are to microtransactions, the more they will do it.
It was always trending this way. Ever since downloading on consoles became a thing. I saw it coming since the PS3 era. Microtransactions are just a part of the industry now. It will never go away. Especially because most of the in game content that is sold people want for the most part. All we can hope to fight for now is fair pricing.
@@bryanmahoney3434Thank god i still play my PS1 and PS2 all the time
I'll just keep playing Skyrim. Hopefully, elder scrolls 6 can keep it to meaningful expansions only.
We need the government to step and ban all microtransactions. Once the game releases that’s it. No more changes. If they release a bad game it will fail.
We need a protest against these greedy game companies.
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All thanks to my aunty who introduced her to me.!
One can only hope that there is going to be a huge crash on the gaming market where a lot of rethinking has to take place. Personally, I feel less and less interested in video games as they become more and more of a cashgrab. Quality has been decreasing while the publishers want us to pay more and more. Moreover, I feel like microtransactions in full-priced games are still insolence.
People pay up to $2000 just for a graphics card to play games where you constantly have to pay for micro transactions to get anywhere decent in new games. Almost seems better to not play modern games these days since they're more about setting up revenue streams for the company then actual game play itself. Back in the day top end desktop graphics cards were around $500. Also the games you bought back in the day were on a physical media you could actually keep and use again and again. These days game makers/publishers can pull those titles from your online service and they're gone. I still have my Windows 98se games and they still install and play to this day on my Windows 98se box. Can't do that with modern gaming.
"Gamers Can't do anything about it" when cnbc referenced microtransactions in this video. Yet they can and do influence games. Also, cloud based gaming doesn't work well because of input lag for multiplayer games.
Also, Fortnite, Warzonez and many other multiplayer games are free to play. The battle pass works because they do not charge $80 out of the gate for an unfinished game.
The worst micro transaction is not video games. Its health insurance.
Exactly! with games, you have a choice. Health, you don't.
Blame weak consumers who show these companies that this is ok.🤷🏽♂️
I don't like micro transactions anymore than you, but because you have money, doesn't make you weak.
It’s unfortunate that not everyone involved in gaming is in it just for gaming
Buy the Game, buy the Subscription for extra unlocks, buy the DLC for the extra side quest and content, and buy the micros for that sweet skin care. I don’t mind all these things, but the real issue is the Publishers don’t disclose the game costs until after release. Anyone who pre orders gets sold a game different from what they initially bought. The lack of transparency is what gives me concern. Dragons Dogma 2 is the latest example of this.
Dont preorder?
What did dragons dogma 2 do?
Haven't pre ordered in 10 years but to each there own @@Steamrawrler
Micros anounced after luanch, you only get 1 game save file so if you want to do multiple play throughs you have to delete the current character and you can't load a previous save on the current character. And practically unplayable on PC. They will probably fix some of this but as it stands, if you get stuck and can't move due to a bug you are restarting the game. Buyer be ware, recommend doing your own research too.@@SogMosee
@@SogMoseemicro transactions appeared after game released
I used to work for a huge gaming company. Back in the days, when we 1st tried out microtransaction, our KPI was $5M for the year. We ended up at $50M. Now, many years later, it is pulling in $5M per day. People vote with their wallets so we give them what they want.
You know what I hate even more than micro transactions? Engagement optimized match making, AKA, EOMM. For multiplayer games, match making should be skilled based at most and not engagement or even retention based.
Worst thing to happen to gaming EVER. Will never play EA titles or any other greed driven developer like Blizzard with Diablo Immortal. Rockstar is breaking our hearts with GTA+. Maybe 30 yrs old is a good time to retire gaming.
Same reason why kids pay for OF content when they can get it for free.
Never even played online lol.
I'm just here running around in the Forbidden West and Tsushima!
Make live service into gambling and regulate it. Only 21 and over can play live service. Might stop em from doing it
This is why indepedant games are becoming so popular lately. Gamers are tired of being fleeced of their money. One need only look at games like Baldurs gate 3, Helldivers etc that are taking a standing against excessive microtransactions
I dont think helldivers is a good example for your point. They still have a decent amount of microtransactions and it's unclear if they are pay to win or not though some people believe they are.
@@raventhorXIt's also not independent, it's literally published by Sony
I am still playing MegamanX , super Mario64 , Zelda ocarinas of time , 🚨 red alert 2 , StarCraft 1 . So definitely not spending a penny on new game anytime soon
Loot boxes were the lowest gaming has ever gone, and battle passes are a reasonable substitute compared to how awful loot boxes were
Baldur’s Gate 3 and Elden Ring are legendary games in this day and age. No MTX nonsense. You get everything within the game starting day 1.
What a softball of a video. No discussion about the predatory nature of many of these schemes that will purposely target an individual's weakness for gambling-like mechanics, as well as other insidious methods. That really bothers me. There are many people that have a difficult time resisting games of chance, and games like Call of Duty Mobile exploit that to the far extreme. It's disgusting.
I am a developer, and 'recouping costs' is a big stretch. For games like Call of Duty, weapon skins may take two hours to create, then it goes on the store. No expensive marketing to recoup there. Developers such as Activision and EA will add a skin to anything and sell it. They would put a skin on air to sell it if they could.
I'm not against micro transactions, what I am against, companies taking away perks of beating games and not having the ability to unlock new characters or features. Now a days people just buy gear and new characters.
Yeah, I’m okay with micro transactions on cosmetics with free to play games like Fortnite,Apex, etc. I am completely against games like 2K that you have to buy then also have to buy VC to get better.
Someone at CNBC tried to play Dragon's Dogma 2 and decided to make this video.
How to fix the issue:
1. Gamers, stop buying games with micro-transactions.
2. If you do buy them, don't spend money within the game.
3. Stop spending money.
I miss unlocking everything the game has to offer by completing the story mode. Or completing story mode a couple of times over for the rest of things
I hope the power goes to the indie developers. The small studios who just want to make awesome fun games
Yes. Microtransactions does make a big impact, that is why I stopped playing.
Yes please do more videos on the gaming sector! Video games is the most profitable entertainment right now so it's best to videos on that.! 😎👊
"80% of the world population is using a smartphone" is not right, as the number of smartphones in circulation might be able to cover 80% of the population but there are people using 2 smartphones too or even more.
Realistically the population with smartphone and a stable internet connection is not more than 60%.
4:00 "spend opportunities"
What kind of language is that?
soulless investor talk from people with golden spoons and no souls.
I'm a machine learning engineer with computer graphics and amateur modding experience. If it costs a billion dollars to make a game, you're doing it wrong.
cheeky, they included the marketing spend with the 'dev costs'... which could have been 10x the actual developer costs/pay/licensing...
just making up the justification, because the A-titles should make back the production costs purely from the game purchases, but they also need to justify their CEO's $60 million raise each year
marketing is majority of the cost tbh - without marketing you wouldn't even know the games existed
Folks are saying this is marketing. Generally, good stuff will bubble to the top with minimal marketing. And from data I've seen, the effectiveness of most ad campaigns is dubious at best.
i mean game advertisement and hype closely mimics the entertainment/movie industry. if you see how much advertising barbie did and how much money they poured into marketing - it really paid off in the end. tell me when the last GOTY winner did not have any advertising.
@@rothn2
It's crazy that kids nowadays grow up with a $20 skin being the norm in gaming
I worry what Gaming will be in the next 5 to 10 years
He’ll probably have daily subscription fees just to open the game
I really hope they wake up and realize the value of money
Because it’s only like one percent of the kids to actually realize battle passes are a scam and micro transactions are predatory
I do not mind microtransaction, but when it causes pay2win, blocked content not part of the full release, short quality gameplay or simply super expensive skins or skins in-game blocked by special paid coins, then it is a major problem. I wish games went back to monthly fees like FF15 to play. That is so much better because it is no different than paying for much more expensive streaming services.
As long as these micro transactions don’t affect gameplay I’m fine.
In Fortnite, you can buy skins and emotes but that doesn’t change the mechanic of the game. I played for 4 years without paying and got enough free v bucks to pay for a battle pass, and the great thing in Fortnite is that if you play enough you end up getting enough v bucks to buy the next battle pass and a little more to be able to save up for a skin. This is a model I can stand with, not sure how other games work though
As a 90s kid, I will always be grateful for not having to deal with this nonsense growing up
Micro transaction are the digital quarter slots of the 21st century.
This is an awesome video. Keep it up!
IKR? Glad i still play my PS1 and PS2 all the time
We need to stand up and start a movement to STOP microtransactions.
There is nothing wrong with microtransactions. In most cases they are to sell extra content and doesn’t affect gameplay. And if that’s how people choose to spend their money then so be it. No one is forcing you to by them and there are plenty of games that don’t use them.
@DeadAir21 I completely disagree with your statement. Games with micro transactions are designed from the start to be applied after a few hours of gameplay to hook the player. It's all carefully studied and researched.
“Cloud based gaming” you heard it, that’s where its shifting towards.
I only play single player games without online play. This means not only do I not pay for the online, but I don’t pay for any micro transactions either.
Greed is killing the gaming industry slowly.
Greed.
Last I looked, it was a for profit industry not a charity
It didn’t change gaming. It killed it.
Make your own game.
Seriously, it's never been easier or cheaper.
Microtransaction has killed gaming for me, i gave up a while ago, because they know we do not like it or want it, but they will do it anyway. So i quit.
Regarding the cost of development, I propose the following: Duel pricing.
Give one price for full ownership. Give another for partial ownership with a micro transaction system.
Let people choose. This is the best of both worlds. Hard core fans will buy outright for game preservation. Casual players will go cheap and spend a few dollars on micro transactions.
All I want is an honest way to buy the entire game. Name your price. I can buy an entire house, car, microwave, etc. for one price. It should be the same for games.
At first I was completely against microtransactions. But in a free game they are completely optional. You could just try a game and then stop if you didn't like it.
I might only spend money on a game if I play it a long time. Example being fortnite. You could only buy the battle pass once. Which is cheap then never pay again. Or you could buy things that you only really want. Your not forced to spend alot. Everything is optional and the game gets constantly updated.
Of course consumers can do something about it, by not buying their games and let them go bankrupt. That's why a lot of people prefer retro games.
Gaming on PC since 1998 proud to say haven't paid a single $ to micro transaction.
I heard a EX Blizzard employee say that a horse cosmetic in WoW made more money than SCII-WoL , they cant quit because we cant quit buying.
The only change I noticed is that I stopped gaming