The Problem With Video Game Monetization
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- Опубліковано 3 чер 2024
- Video games are one of the most profitable types of entertainment on the planet. But how are game companies like EA really making all this money? Well, let's go through the dark history of video game monetization and find out.
💬 SOCIALS 💬
Support me on Patreon ➜ / lextorias
Second Channel ➜ / @alextorias
Twitter ➜ / lextorias
🎬 CHAPTERS 🎬
0:00 The Problem With Video Game Monetization
1:27 Expansion Packs
4:59 Microtransactions
7:51 Live Service Games
10:41 Virtual Currency
13:58 Pay-To-Win
19:44 Loot Boxes
23:53 Gacha
26:55 The Problem
📌 TAGS 📌
#Gaming
#Microtransactions
#Money - Ігри
the docking bit hit me hard. Funniest deadpan delivery I've heard in a long time
Yoooo…. SAME. That shit was so flat and subtle you could almost miss it 🤣 perfect
I missed it. Explain?
It comes out of nowhere too.
@@JasonMatsoukas google docking
@@blushslice how can I undo what i saw?
Unfinished buggy games at launch and DLCs are the reason I wait for Steam sales or “year 1 editions” for most AAA games: The cost will fall, the quality will rise, but the memes will stop
The industry does everything they can to drum up hype and get preorders and first week sales, because they know that waiting a year or more after launch will get you a better deal on a more complete game
I miss the days where dlc were full on new campaigns or new characters to use.
I actually experienced this for the first time in my independent (no longer living or being financially supported by my parents) living with Star Wars Battlefront 2. I got the game a year or almost half a year after it came out. Certain things like the price, MT loot boxes, buggy were being fixed.
I miss there being special bonuses if you 100% completed the game or for beating a difficult challenge
Same. Been burned too many times. You get better value if you wait.
To echo what everyone else has already said, I’m shocked at the level of quality here from such a small channel. So far your videos are well researched, written and edited, plus your voice and manor of speaking is pleasing to listen to. You’re dry humor is also funny without it coming off as trying too hard, which is super refreshing. I look forward to seeing your channel grow!
I was going to make a comment until I saw this one; hundred percent agree!
that just resumes what the world is into, not only games... Full pocket ppl are trying less, putting less affort on their productions whatever those may be and mass consumers are mediocre enough to consume and support whatever shit is being offered... the few who are not satisfied end up getting upset or even tend to start getting violent or with traces of mental imbalances, this kind of ppl like Lextorias who actually put some effort to make something really valuable is like fresh air from all the stupidity, mediocrity and these despicable scams
*manner, but all corrections aside I absolutely agree with you
@@Linkman8912 ha, good catch. Now I’m wondering how long I’ve been spelling it wrong
The Sims 4: Hold my beer.
THATS WHAT I WAS GONNA COMMENT OMG
I absolutely abhor the gaming industry's monetization model. Especially gacha. Had a friend in uni that was obsessed with collecting characters. I told him to not spend too much of his cash at wc point he said "nah I only spend 5ish dollars a week on it". BRO WE ARE BOTH BROKE WE GO TO THE SAME PART TIME JOB TOGETHER 5 DOLLARS IS A WEEKS WORTH OF MEALS AHSGSWUNSJD
Also love your vids keep them up
Yeah unfortunately the people spending money on games aren't even always the people with enough to spend. Some millionaire spending $5k on gacha can make a headline or a UA-cam thumbnail, but these companies prey on people making closer to minimum wage, where even $100 is a way higher percentage of their income.
2017-18 was probably the worst we’ve had it in a while, but now companies are even trying to justify hiking their prices despite the amount of money they already make. I really hope the customers by some sort of crazy miracle, just stop spending so much money on in game purchases or mediocre titles.
@@sosmooth13 yeah it's not some local industry, this is a world wide business. 60 dollars for a good released game should now remain a standard or else subscriptions will take over.
So many zingers haha
Sounds like your friend is an idiot
The ad bit made me laugh harder than it should have 😂
I have YT premium. Please tell me he put an ad in that section.
@@hatsjerhe did
I still have a soft spot for that time loot boxes were called "surprise mechanics" by some CEO and Steph Sterling reacting with the Surprise Mechanic, who is a mechanic who randomly appears and does mechanic things and/or bashing people's faces in with a hefty wrench.
TOOOOOOODDD
-Jim, at the time.
Man microtransactions should be illegal. They're so damn predatory and they play on a potential gambling addiction
Ope didn't finish the video before I posted this. I see you made the same link
Yeah its sick how they exploit people like that. I was gonna talk about it more than just a mention, but didn’t have the time in the video.
Jim Sterling has a great one on it actually: ua-cam.com/video/7S-DGTBZU14/v-deo.html
@@Lextorias cool, ill have to check it out 👍
I refuse to buy the microtransactions in these games cuz I remember being a kid and actually playing games that did not have this monetization garbage
@@redseagaming7832 agreed
Dude, the comedic timings and deadpan deliveries were AMAZING in this one.
If I see EA, anywhere on a game, its a huge red flag.
just because it's EA doesn't mean it's 5190% p2w there's spore which doesn't have p2w stuff and i'm pretty sure they didn't put p2w in plants vs zombies 1
@@xxGreenRoblox oh well. I take it all back.
as long as those 2 games are ok. then they are fine. EA are the worst company in the world. why are you defending them?
Everything new that's came out is a red flag from EA. Literally can't play Jedi Survivor. It's been a year, and it's still unplayable on pc. Good thing I just only tried it on gamepass.
@@xxGreenRobloxEA was only good during the 2000s when none of this greedy trash existed
True. Sometimes they make a decent game like the Dead Space Remake
Gacha games have got to be the most insidious monetization method by far, as well as virtual currency, because of all the trickery they pull off to obscure how much money you're spending. When I could still play Mario Kart Tour, I legit came close to dropping some cash for rubies (the premium currency) because the prices can seem really enticing, and usually it happened when I was just a bit short of them to pull the pipe which is basically the game's gacha element. I'm pretty sure I spent money on Clash of Clans and Royale back when I played them too, and even though it probably wasn't a lot, I refuse to even touch the games at all now. Even without paying money they're such time sinks that it's insane.
Also, I just found you through your fanservice video and I gotta say your style is great, good balance of information and jokes, definitely going to stick around for more!
I’m not 100% knowledgeable about what a gacha game is. Are those the type of games that have you spend little bits of money here and there? I do this for fortnite every 4 or 5 seasons. Sometimes even drop an extra buck if I realize I’m missing out on in-game currency in games like Destiny 2 for something. Do those examples count?
@@sosmooth13 In this context it's a reward system with some randomized reward rate, like say item drops in a Diablo game, but monetized. The prizes can be character units, art skins, weapons, skills, etc. (Unlike the video claims, the rates are displayed for all to see and they all have upper bounds on their cost. And if one can't do math nice people on the internet will tell you what it requires. For most games this is an outrageous $500+ if you buy the scam gems raw like a dum-dum.)
For 98.5% of the player base, they spend $0 on these games and treat them like MMO's, to be played over months and years. Most of those who have self control only pay for the worthwhile deals, a $5 monthly sub, an annual ~$30 unit selector ticket.
Where it becomes infamous are the whales, who are people to whom money means nothing to them, or addicts who get to a dark place where they only care about the game and ruin themselves financially.
True buddhists realize the point is in not having things, as once you have something you can no longer want it. And if there's nothing left that you want, there's nothing left to look forward to or desire. And then, why, you might as well be dead, right?
I'm not familiar with Fortnite, but I did hear it used to have lootboxes which are indeed gacha.
And things can get really funky sometimes: Azur Lane is a gacha game all but technically: it's barely a speedbump, people will get all the units very quickly. The *true* monetization scheme of that game is selling skins. While the flipside are games that push the power ceiling up constantly like Final Fantasy Brave Exvius. And something like ArKnights avoids ever truly raising the power ceiling, but is more ponderous at the rate it gives top units. This kind of system can be implemented in very different ways on the practical level.
What is interesting is they all stem from Mobage - old, simple browser games that sold cards of cute/cool characters/monsters or lewd girls. Which in turn is influenced by Magic The Gathering and Baseball Cards.
Paper Magic The Gathering is so much worse than gacha games. But hardly anybody ever seems to notice.. $4 for one randomized cardboard rectangle and like 10 pieces of trash....
Yeah, people are too easy to forget and forgive the existing TCG/CCG models when they're worse gacha models, you can only pay with real money.@@BMoser-bv6kn
@@BMoser-bv6kn ðe gacha system in pj sekai works similarly to what you described for azur lane
I live in Belgium and it’s true that they banned loot boxes but worse is that when playing War Thunder I was introduced to a message from Gajin that loot boxes are indeed banned in Belgium BUT if I were to buy them I would only and only get the lowest rarity of an item… I mean…
Calling loot boxes and gatcha games gambling is too generous. They're just theft. In gambling you have a chance to win money. Loot boxes and gatcha give you absolutely *NOTHING!* The "items" are virtual and disappear when the game service ends. They're more like drugs than gambling. You get a thrill/high and awful lows.
This video was really well done, I enjoyed it a lot
Thanks!
Man, keep making these great videos, I'm big fan of nakeyjakey, and you are one of the few youtubers that make content that make me feel something similar and as cool as his content, thank you!
Thank you! To even be compared to him is an honor.
@@Lextorias I feel the same too
Keep it up man,
Hope you don't burn out man, getting a 30 min vid done in just 2 weeks is pretty wild and awesome. But definitely take longer if you ever need to
I appreciate the concern. It's not so much pushing myself to make the video in 2 weeks, but more that I could've always done this, I just procrastinated before. So don't worry, I'm not pushing myself into any burnout. Just working more regularly since my videos are getting some traction :)
There are a lot of videos about this topic, but this is definitely among the best written and most informative I've seen so far.
Great content!
16:38 I honestly was expecting a cut to an ad right after that. Good for you for resisting the temptation.
Nope there was an ad right after he said that and looked deadpan at the camera. I thought it was funny though
there was it was kinda funny
That ad joke you made at 16:35 a 1000 iq joke right there.
So the ad role here was on purpose - i knew it 😂👌🏼
Holy shit dude your humor is top notch. Had to actually stifle a laugh a couple of times at work, especially when you very apparently set up for a Raid: Shadow Legends ad, only to move on without the ad. I almost cried it was so beautifully done.
I'm so glad that the games I'm interested in are either indie or just Japanese titles. Indie metroidvanias and roguelikes, and most JRPGs ship out complete and the early access open world survivals I play are worth the low price with the stuff they currently have in-game even before release. I eventually have tuned out the FOMO for the AAA titles, even the ones I once supported. I haven't paid anything after purchasing a game for years now, well, except for buying their OSTs.
Halo 5's Warzone mode was literally an entire intricate gamemode designed around a lootbox system. Fun mode that was completely PTW. Since the "req" (short for requisition) packs had armor (which was simplified in its customization, likely for the MTs), weapon skins, and entire variants of the game's basic weapons with different scopes and attachments, alongside more powerful and varied weapons with insane effects of different rarities.There was a full-auto lmg with explosive rounds, over half a dozen variations of a single type of rocket launcher. Different flavors of one-hit-kill melee weapons. And much, *much* more. And this was all for a single mode, not including Forge, where anything can be spawned in, or modes with randomized weapons.
It would be a pretty great showcase for some sort of addendum video to this one. And that's not even all! There was pre-existing content removed and drip-fed back for free by the oh-so-generous developers. Longtime fan-favorite modes were included in these free updates. Infection, one of Halo's most beloved multiplayer gametypes, came to Halo 5 half to almost a year after launch.
Whoo, anyway, that's enough venting about Halo 5, and now unfortunately Infinite.
Halo died with 4 thanks to modern greed crap
Amazing video. I’ve been binging your content for about a day now, I’ve gone through most of your videos and this one is genuinely one of the best made and most entertaining I’ve ever seen on UA-cam. I’ve been hearing about anti-consumer practices in the video game industry for years, but I’ve never really understood the full story and scope of the issue until watching this. I will absolutely be joining your patreon, thank you so much for your hard work.
thank you! I appreciate it
wonderful video. educational experiences like this are the kind of videos that should have a massive amount of views. people need to not just watch them but share them. so more people can be well informed!
Man your content is fantastic. Another great vid. Keep it up man big things are on the horizon.
i fully expected to see millions of views on this video! was kinda surprised when i didnt. keep up the fantastic work, i couldnt agree with this video more! i wish every senator could see this
I spent this morning listening to your videos while doing the dishes. This is my third video and that docking joke got you a subscriber lmao. Very high quality my guy, keep it up!
>[laughs in Sims community pain]
Fun fact: This disease of monetization has actually infiltrated the Sims modding community. It's been lurking in it for at least 15 years, but it's gone to a fever pitch recently with Patreon. All this, after the Sims 4 + DLC alone costs around $1000 (or did, last I checked). I've been playing the series since the days of Sims 2 and I hear EA is going to try and make TS5 a multiplayer game. Because, you know, EA hasn't already tanked enough games by adding ~co-op~ to them. Even if they didn't corner the market on life simulators--even if they had significant competition, they'd still be doing this, because it's EA.
As someone who's been playing games since I fought over the SNES with my older brothers in the 90s, and as someone who likes texture modding and 3D meshing, this whole situation (re: the video games industry at large) is absolutely ludicrous. The cynic in me says it's only going to get worse as future generations grow up without knowing a world of video games that wasn't so saturated by the death spiral of capitalism, while old dinosaurs in suits (not even the COOL kind) keep their chokehold on the industry (or pass the reins along to younger dinosaurs who suck just as much).
Is it still capitalism if competition between companies no longer incentivizes innovation and progress and consumers no longer have real stopping power by choosing to abstain or go somewhere else? Smarter people than I may be able to answer that.
PS: Awesome video, definitely subsnirbing! You do good stuff, man.
hey, REALLY good video! just discovered your channel and i'm glad i did, your videos all have such great production value and it's always nice to see content from people who are willing to call out bigotry and predatory business practices while still valuing the merits of games as a whole. seems like your channel has really blown up quickly, i hope you're taking breaks from the comments and taking care of yourself! i've heard that content creator burnout can be pretty intense
The video is amazing! I've been listening to your videos while I work and they're really fun AND interesting, the way you explain things is great.
I do want to correct that, in Genshin Impact, you only have a 0.3% chance of getting your 5 star character of choice, the 0.6% is the chance you have to get a 5 star character. It's not super relevant but just shows how these games are just worse gambling with a different name.
Keep up the good work, and congratulations on 33.3K subscribers!
This is a great video man, this channel is mini-ActMan, its only a matter of time before you get the recognition you deserve
DUUDE that ending is hands down THE BEST promo for a creator’s other vid I’ve ever seen. I’ve watched it already but hell yeah good shit man.
Just watched this and your video about why horror games get less scary. Then a whole bunch of your other videos showed up in my recommended, and I can already tell I've got the next several hours of UA-cam content sorted. Keep it up :)
I can't believe I never discovered your channel until tonight but I'm glad I did. I've been binging a few vids and so far love it. I would like to add to this particular subject that if you ever come back to it (and haven't done so already), going into detail about how companies will utilize a hidden ELO system behind the scenes to increase a player's association with "spending money = better chances of winning" through Pavlovian tricks they DO NOT TELL THE PLAYER is built into the game, well, that itself and some of the dirtier tactics found, openly bragged about on other YT channels with recorded seminars from the devs who sell these backend products to companies like EA, make everything you mentioned here just the tip of an even darker iceberg. (run on sentence did run on, my bad)
Anywho, stay awesome and I'm glad I found your channel. You're doing an awesome service with your video essays. Looking forward to catching up on more of them. :D
Stumbled upon your channel a few days ago and just finished watching all your videos. I like your stuff, keep it up and thanks for the videos!
Fantastic Work! I discovered your channel a few weeks ago and you are really talented
Thank you!
Great video!! Thank you for making it!
Loot boxes are like gambling, but you can't get money back
I’ve been watching all your videos the last few days and you rock!
Great commentary. Wish more people would see this. Are you working for any gaming / journalism outlets? You really should.
That's it, the docking joke got me subscribed. Many of the well written jokes were fantastic, but this was on another level (alongside the swat coming for cod players looking to buy cp). Amazing job, gonna look forward for each upload no matter how much time they get.
your channel is so good i just found it and cant stop watching all your videos, keep it up man.
Thank you!
Your channel is going to blow up big time. Nice Work.
Wow! Thank you for that comprehensive explanation with the history included. Insightful.
So far every video I’ve seen on your channel has been clever and super funny.
Great video! 👍
I know most of this as I experienced this changes in gaming first hand. Some interesting information that I didn’t new (gacha).
That's actually what I have been telling people, you got all the points correctly, so you earned yourself a sub from me. And the ending is very WELL done mate.
Found this channel through the fanservice video. I feel like I've discovered a goldmine of UA-cam content
Just came across your videos man. Great content, love from Brazil.
Second video, just found ya. I enjoy how you just chillin with your hands in your pockets makin gestures. Also good humor. Go ahead and get this sub and support :3
I really appreciate your style of videos and your perspective! Keep doing what you're doing.
watched your video about stealth games and went back to watch your other videos. that "docking" joke sold me. bravo man bravo lol
Overwatch 2 just came out this week and I used to hate loot boxes but the battle pass system that’s been added and the other systems of unlocking characters and getting skins is absolutely ridiculous. I spent so many years on OW1 collecting all of the cosmetics without spending any actual money and now that’s impossible to do
Decent dive into this topic. Not that much new info or opinions as others I have heard, but I appreciated the honesty of the presentation.
In one of the Eidos Montreal Deus Ex games (I think it was Mankind Divided), you could literally buy skill points. The kicker was that it was a one time purchase meaning the skill points did not transfer over new saves.
Even deus ex got ruined by modern greed its crazy
Watched this whole video. Good video dude
Star Wars battlefront 2 2017 actually got rid of loot boxes before launch and ended up spending a lot of it’s post launch time reworking the game to not need them for progression, eventually ending up becoming a great game it’s just a shame that it didn’t start where it ended
"Who would play ads in the middle of free content just to make a quick buck?" I love your humor sir.
The bit at the end... Slowly turns to a pirate.. Hilarious!
i find it mind boggling that a game can no longer just make money, it has to make ALL the money, and it must continue to do so forever, and the first dip in revenue, support will be pulled, the game will be abandoned and the studio running it will be shut down
20:47 great moment XD. I thought you made some cheesy "there isnt", but this is really good
I remember og season passes generally u get all dlcs for like $30. He'll gears 3 had a 30 dollar season pass and u got like 4 or 5 map packs, a campaign dlc, I don't recall if u got all the skins or a couple (gears 3 had a lot of weapon skins), and all playable pvp characters, oh and a new fortification and a new fortification upgrade
Man i love your channel
I don't know how I got here, but the grade A humor (and being a fellow Canadian) has gotten you a sub.
Keep it up, good sir.
You are so right! Your channel definitely deserves a lot more viewers!
Bonus Point for the end. Took me second but... 🤣🤣🤣
such a great video its a shame you arent much more popular
I loved that ending bit, your "video game piracy is good" video popping up, as you fade in a pirate hat and eye patch is gold
Also liked the vid that part was just my favorite
One correction on the part about FIFA: You can play online without playing ultimate team, the mode where you have to buy boosters to get players (and afaik, those players can even expire). A few years ago, I was actively playing FIFA online, and there is an entire online league mode where you play with ordinary teams. I never got into FUT because it was convoluted as hell and I never got why one would pay to play in a mode with less balanced teams instead of just playing the normal online mode. Anything else you say about FUT is correct, but you can 100% avoid it and play FIFA online
I once bought like most of the LEGO® franchise's games for a bit over $100 in a Steam sale, including most of the (gameplay oriented) premium. That's like 20-30 games for the prize of one modern triple-A game with DLCs.
thank you for having me research docking. very informative 👍🏻 10/10
I just discovered your channel, god damn you are an underrated content creator!
That bit at 16:29 really got me lol. I was legit surprised you didn't cut to a sponsor there
(Or was there a youtube ad break there that my adblocker plorped?)
Judging by other comments, there was a UA-cam ad there
@@PhoenicopterusR ah I see
Another banger of a video!
Yo! love your vids. commenting for the alg.
15:06
also in Pokémon go you can get the coins even without paying (placing Pokémon in gyms).
they have now a different kind of microtransaction - events which cost real money (no real to fake currency transaction)
It doesnt get talked about nearly enough but gambling addiction is statistically more dangerous than the hardest drugs. Gambling addicts are super susceptible to endgame ideation.
That ending f$#%ing killed me lmfao, great video dude.
Love your content bro.
Loot boxes are microtransaction, specifically heavy microtransaction. Microtransaction isn't nessecarily loot boxes, but loot boxes is microtransaction.
Thank you for the Big Mac conversion, I was confused when you gave Canadian prices.
LOL as soon as you said who would randomly play ads in the middle of a game an ad popped up on the video 🤣
Another absolute banger of a video gonna be at 100k in no time at this rate.
Just found your channel you're really knowledgeable i liked your videos subscribed! 😊
Excellent channel with super low subscriber count for some reason. I will join your sub club and wait for more quality content patiently.
Street Fighter II was the first major game that utilized expansion. There was
SFII
SFII Championship Edition which allowed you to play as the 4 bosses and mirror matches.
SFII Turbo which sped the game up
Super SFII added 4 new characters, new moves, new stages, updated sound (CPS2 chip)
Super SFII Turbo which sped the game up again, added super combos, even more new moves, and added Akuma as a secret boss.
Dude. Your content is amazing. Keep it up.
Thanks for making these videos. They are great. Loved the ending 😂
Awesome video bro
Thank you for posting this video! I will recommend it.
Surprised not enough people mention Star Wars: Galaxy of Heroes. Contains pretty much all of the following scummy mechanics mentioned here, uses psychological tactics and addiction to keep you playing, is actually MUCH more expensive to play compared to pretty much every game listed here, they reach a new moral low with almost every update, and the icing on the cake: it's made by (you guessed it) EA.
Gotta repeat myself but these are Insanely catchy intros.
Good stuff!
One of my favorite things about old-school expansion packs is that some of the really great ones could even overshadow the original games they were attached to in one way or another. My go-to example is Baldur's Gate 2: Throne of Bhaal, an expansion so influential that I've known people who straight up forgot the original game's story and remembered ToB as though it were the whole thing
Great analysis!
Keep up the good work
16:35 bro i got an ad as soon as he said that 💀
The CP bit sent me ☠️☠️☠️☠️☠️☠️
That was such a damn good takedown of these viciously predatory practices. Subscribed.
OMFG I started dying after you were talking about the Sonic and Knuckles expaansion and said "Google 'docking to learn more about it."!! 🤣
It's funny but after playing video games my entire life, all I really do now is play gacha games due to my job and lifestyle lol. The gambling aspect of those games are far more exciting to me than regular gameplay now.
Those damn companies rewired my brain lol.
Edit: I gave it some thought and I realized how much I actually appreciate mobile gacha games. They led to my first real college relationship and friends at my current job. They also provided a ton of entertainment during downtime while watching sports, in between workout sets, or in my other hobbies like golf.