Why The $183 Billion Video Game Industry Can't Quit Microtransactions
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День томуCORRECTION: 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
@Malaki727 Місяць тому
They keep doing it cause yall keep buying. Stop ✋️ buying this mess
@Nighthawk-8050 Місяць тому
Exactly 💯
@vsznry Місяць тому
Explain how we get planes in MSFS then.
@IlPookiell Місяць тому
They force you to buy
@deyoungyoung3059 Місяць тому
Right. Some people don’t learn.
@vsznry Місяць тому
@@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.
@sync380 Місяць тому
If buying isn't owning then piracy isn't stealing
@mikecallan5165 Місяць тому
Most underrated statement I've heard in years
@huantruonginh2946 Місяць тому
I’ve pirated most games i played since the beginning, no big deal.
@ShalowRecord Місяць тому
Do you guys know any trustworthy sources which teaches how to do it properly without spam or viruses?
@Kr0nicDragon Місяць тому
I miss bit torrent
@MrGuess18 Місяць тому
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.
@Gary_M Місяць тому
"Let's lay off thousands of developers but double the salary of our CEO. These gamess are expensive, y'all. Trust us."
@TylerJacobs3 Місяць тому
Bro clearly didn’t go to business school
@littledudefromacrossthestr5755 27 днів тому
@@TylerJacobs3explain how he is wrong?
@TylerJacobs3 25 днів тому
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
@mikermiks5784 23 дні тому
Doubling the pay for at most 20 CEO will have no effect on a company that needs to pay hundreds of millions to employees
@loneranger4282 10 днів тому
@@TylerJacobs3 Imagine bootlicking billionaires
@katherynlee2421 Місяць тому
I miss games where you have to unlock everything without spending a dime.
@r.a.panimefan2109 Місяць тому
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
@r.a.panimefan2109 Місяць тому
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. 😊
@jasonf7072 Місяць тому
Plenty of those still come out, you’re playing the wrong games
@esestlloco Місяць тому
The real essence of gaming 💯💯 f**k this new bs
@VincentProvencal Місяць тому
I'm not against you but ... And spend dozens or hundreds of hours doing so?
@MitchellEdelman Місяць тому
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.
@faustprivate Місяць тому
You need regulations because the micro transaction model just works. It can't be stopped otherwise.
@ShadowMelt Місяць тому
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
@fupopanda Місяць тому
It's the younger generation of gamers that are more OK with it.
@j.ctuber3666 Місяць тому
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.
@ripplecutter233 Місяць тому
Yeah gamers are weak, that's the real problem
@prometheus140 Місяць тому
“Seriously? I paid 80$ to have Vader locked?”
@Futoiryu Місяць тому
Ah the pried and accomplishment thread. I was there lol
@dbz9393 Місяць тому
Oooooh but look buddy you can also unlock Vader with a cracked helmet for 5 bucks what a bargain give the shareholders your wallet
@cslul 28 днів тому
😂😂😂
@ENTHUSIASTICFIFAFAN Місяць тому
I miss the good old times playing games like Starcraft, diablo 2, age of empire, etc. All of which didn't have microtransaction.
@deadlock_problem Місяць тому
Those were all better games than any micro transaction games that has existed.
@r.a.panimefan2109 Місяць тому
Not entirely take a gacha like genshin.
@deadlock_problem Місяць тому
@@r.a.panimefan2109genshit is trash
@dbz9393 Місяць тому
Peak gaming
@jackattack1993 Місяць тому
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.
@heinousanus9352 Місяць тому
The dealers will keep selling as long as the junkies keep buying.
@TheValiantZero 17 днів тому
I regret recommending people who asked to invest in video games. The public is undisciplined, and video games should have remained a small niche.
@MrBrewman95 Місяць тому
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.
@bigmac22ify Місяць тому
Don't forget Nba 2k now has a battle pass in a sports game.
@CoffeeCup1346 Місяць тому
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.
@HighlordFrancis Місяць тому
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.
@abdu7095 Місяць тому
NBA2k already do this for years man..
@heyarnold2006 Місяць тому
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!
@poopface011 Місяць тому
The golden era of gaming is behind us
@CoffeeCup1346 Місяць тому
It peaked with RDR2, IMO. Rapidly down from there.
@lunarblackstar1 Місяць тому
It peaked with PS2/Xbox 360. That era of being blown away by massive generation jumps is long dead @@CoffeeCup1346
@tym3116 29 днів тому
Yeah!...(sigh)...😒😒😒...😤😤😤...and I really miss those days of the golden era and now gaming industry is pretty much dead.
@TwoWorldTradeCenter 25 днів тому
You need to play some indie games
@omlg4svector 18 днів тому
Its definitely ahead of us
@Nighthawk-8050 Місяць тому
It's greed plain and simple. Microtransactions is why I don't enjoy gaming as much.
@ryantetreault3447 Місяць тому
define greed
@Jose-Luis.Garnica-Sanchez Місяць тому
@@ryantetreault3447prioritizing profits over actually making games fun while blurring the lines of ownership and renting
@imthatguybrandon Місяць тому
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.
@burd7455 Місяць тому
Blame gamers
@vonb2792 Місяць тому
You are also getting older
@karni60 Місяць тому
Mobile gaming, is not gaming. Its software that is designed to separate you from your money
@tiisetsomatsimela-ce6yn Місяць тому
What are you exactly trying to say?
@hutt1936 29 днів тому
@@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.
@user-lp5wb2rb3v 28 днів тому
@@tiisetsomatsimela-ce6yn read it again, but slowly this time.
@Mahlak_Mriuani_Anatman 25 днів тому
That makes no sense whatsoever, re read what you said slowly You could say this for everything
@rulershiroutac2471 23 дні тому
@@tiisetsomatsimela-ce6ynit means they are literally gambling games and the prize is a picture of your dream girl/husband or something else you desire.
@AJftwlol Місяць тому
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.
@Christmas12 Місяць тому
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 🫠
@jasonzhu9742 Місяць тому
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
@Agent-lr4ez Місяць тому
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.
@1MTW Місяць тому
Gamers don't keep letting this happen, Government's keep letting this happen
@fupopanda Місяць тому
@@jasonzhu9742 If only you had $100 million to create your own game.
@TheDrosul Місяць тому
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.
@HistoryMajor7 Місяць тому
Exactly, cause the problem then sell the solution
@phaolo6 Місяць тому
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.
@NighCraw00 28 днів тому
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.
@JRPGGUY Місяць тому
90s and 2000s gaming was peak. 2010s and beyond was gaming's downfall
@antimatter7629 Місяць тому
There are still plenty of games that have no micro transactions, most of those are Japanese
@overwatch8848 Місяць тому
@@antimatter7629not everyones a weeb lil bro.
@antimatter7629 Місяць тому
@@overwatch8848 oh, have fun spending money on pixels little bro
@MorbidHunter Місяць тому
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.
@jesusfernandez-eh8cx Місяць тому
It's mostly little kids who use their parents credit cards..
@CodingAbroad Місяць тому
I have never purchased a microtransaction
@arieswicaksono5887 Місяць тому
almost similiar with me i dont see them usefull nor im too poor
@JUNKJACKZACK Місяць тому
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...
@SuperSnickerS19of88 Місяць тому
“A way to recoup staggering developments costs” how about not paying your executives ludacris bonuses
@brodriguez11000 Місяць тому
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.
@CoffeeCup1346 Місяць тому
Ah demanding gamers! That must be why the gaming industry is run on razor-thin margins. 🙄
@ddt6003 Місяць тому
7% of the development cost goes to the CEO alone...that's why the development cost are so high😂
@moneynoob1372 Місяць тому
Imagine buying something and not actually owning it. Not many understand this.
@grimmlinn Місяць тому
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.
@ruffethereal1904 Місяць тому
@@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.
@XOPOIIIO Місяць тому
@@ruffethereal1904 Yeah, right, like programming and designing a video game doesn't cost anything.
@ruffethereal1904 Місяць тому
@@XOPOIIIO I was arguing the theater example where I'm paying for temporary access to their hardware and services. It's a bad analogy.
@XOPOIIIO Місяць тому
@@ruffethereal1904 How is that hardware and services are different from software and digital services? Both require work, right?
@RedShipsofSpainAgain Місяць тому
2 simple rules on games: 1. Always say NO to microtransactions. 2. Always say NO to subscriptions.
@virtuaguyverify Місяць тому
My rule is more simple. Enjoy life, pay for what you enjoy.
@kingdomross8974 29 днів тому
@virtuaguyverify buying skins is fun to you?
@virtuaguyverify 29 днів тому
@@kingdomross8974 if it's something that will make me happy. Sure!
@eligreg99 28 днів тому
You can’t avoid subscriptions bro.
@RedShipsofSpainAgain 28 днів тому
@@eligreg99 watch me, bro.
@apostolos8734 Місяць тому
CEO of predatory mobile game developer Kabam says regulations are in a good place right now.
@Helfirehydra 6 днів тому
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
@blacklinkfirelink2304 Місяць тому
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.
@impos1966 Місяць тому
AAA publishers saw how well it worked for mobile, of course they'll adopt it for their business.
@heyarnold2006 Місяць тому
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.
@Helfirehydra 6 днів тому
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 UKpostsrs 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
@TheNativeBandit Місяць тому
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
@1MTW Місяць тому
Old men who never played a video game can't understand gamers. Go figure 😂😂😂
@obits3 Місяць тому
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.
@KhanJoltrane Місяць тому
Yea they’re not thinking about their profits 😂
@jayreed9370 Місяць тому
@@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.
@dbz9393 Місяць тому
any game that has elements of pay to win immediately goes on my blacklist of games I will never support or partake in.
@pmluciano Місяць тому
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
@sortasurvival5482 Місяць тому
This. I liked how borderlands 3 handled dlc. We always waited for sales, but, having more maps and stories was fun.
@Pannikin_9 13 днів тому
The only games that selling cosmetics make sense in free to play multiplayer live service games
@jasondisney Місяць тому
Whenever I see/hear Microtransactions being mentioned, the first thing on my mind is EA..
@MementoMori_2070 Місяць тому
Ubisoft
@TheDarkKnightRacist Місяць тому
@@MementoMori_2070 more like U be broke
@dbz9393 Місяць тому
I memba when SIM city was still alive, then ea destroyed it
@jasondisney Місяць тому
@@dbz9393 For real. The 2012 version had to be a joke
@jeromespann4698 Місяць тому
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
@celieboo Місяць тому
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.
@armastus1474 Місяць тому
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!
@Andrew_Dude Місяць тому
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.
@Boss-Fight-Wiki_muki-twitch Місяць тому
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.
@brodriguez11000 Місяць тому
P2W is the answer to, "what do you mean the game costs this much"?
@markolea3986 Місяць тому
Congrats to Baulders Gate 3 from doing amazing work on their game over microtransactions .
@Femmigje112 Місяць тому
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
@rahimsvoice Місяць тому
It's the rich people who don't mind spending $1000 to unlock things.
@r.a.panimefan2109 Місяць тому
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.
@flpndrox Місяць тому
@@r.a.panimefan2109yes, gatekeeping is good.
@A1stardan Місяць тому
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
@dbz9393 Місяць тому
@@r.a.panimefan2109 put down the crack pipe
@sacredpower7530 Місяць тому
@@r.a.panimefan2109Pass me that blunt
@bottlecapbrony366 Місяць тому
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 :)"
@Christmas12 Місяць тому
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
@r.a.panimefan2109 Місяць тому
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.
@djp1234 Місяць тому
I have never spent a penny on microtransactions or bought any games that have this gimmick, and never will.
@shadowninja1275 28 днів тому
I'm so done with gaming, I .....can't take this anymore🤦🏾♂️
@yurigladtsynov1632 Місяць тому
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….
@Helfirehydra 6 днів тому
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
@unchi1999 3 дні тому
Thank god i still play my PS1 and PS2 all the time
@travisblitz Місяць тому
The Video Game Industry: "Get used to not owning your games." The People: "This became known as the Great Pirate Era!!"
@Gigadanopoly Місяць тому
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.
@Steamrawrler Місяць тому
Dont preorder?
@SogMosee Місяць тому
What did dragons dogma 2 do?
@Gigadanopoly Місяць тому
Haven't pre ordered in 10 years but to each there own @@Steamrawrler
@Gigadanopoly Місяць тому
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
@menaceflame Місяць тому
@@SogMoseemicro transactions appeared after game released
@prague5419 Місяць тому
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.
@yazx2434 Місяць тому
< 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.
@Helfirehydra 6 днів тому
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
@awesomebrotherhood7698 Місяць тому
2. Loot boxes and anything that can be used for gambling must need license and adhere to strict rules and regulations.
@Helfirehydra 6 днів тому
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
@Sushi0923 Місяць тому
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.
@snypa-ck7hn Місяць тому
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
@snypa-ck7hn Місяць тому
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.
@legendarynoobz Місяць тому
@@snypa-ck7hnbro, i'm sorry but you need help. Spending 22k on free to play games isn't healthy.
@HiThere619 Місяць тому
I never have and never will buy any game or DLC digitally, and I especially will *never* spend a dime on in-game microtransactions.
@overwatch8848 Місяць тому
monopolizations ruined the video game industry. same thing Hollywood is going through.
@Jose-Luis.Garnica-Sanchez Місяць тому
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
@maythesciencebewithyou Місяць тому
There are more game studios than ever
@babypluto636 Місяць тому
@@Jose-Luis.Garnica-Sanchezthat’s only with AAA gaming if you want creative games then buy indie titles
@Jose-Luis.Garnica-Sanchez Місяць тому
@@babypluto636 so developers not fueled by greed? Just proves my point since they are the niche
@johnpreston230 Місяць тому
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.
@FatBunny168 Місяць тому
the more accepting you are to microtransactions, the more they will do it.
@bryanmahoney3434 Місяць тому
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.
@unchi1999 3 дні тому
@@bryanmahoney3434Thank god i still play my PS1 and PS2 all the time
@rainerzufall9881 Місяць тому
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.
@mrcookies409 Місяць тому
BG3 was almost everyone's GOTY except IGN's. lol
@MementoMori_2070 Місяць тому
Larian put a lot of love in that game. Kinda felt like playing a pre 2010 game
@Simon-L-B Місяць тому
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.
@nothingreallyrhymeswithora9377 Місяць тому
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
@Simon-L-B Місяць тому
@@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!
@flpndrox Місяць тому
@@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.
@nothingreallyrhymeswithora9377 Місяць тому
@@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.
@nothingreallyrhymeswithora9377 Місяць тому
@@flpndrox LOL. You think games are going to reverse in quality or something? Jesus. It must be nice to live in your own world.
@TheWizard856 Місяць тому
I'll just keep playing Skyrim. Hopefully, elder scrolls 6 can keep it to meaningful expansions only.
@RebelMan- Місяць тому
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.
@travisspazz1624 Місяць тому
Never even played online lol. I'm just here running around in the Forbidden West and Tsushima!
@RedShipsofSpainAgain Місяць тому
Attention gamers: why TF do y'all keep paying these microtransactions?
@clivematthews95 Місяць тому
It’s unfortunate that not everyone involved in gaming is in it just for gaming
@cfbmoo1 Місяць тому
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.
@whealman142 Місяць тому
Loot boxes were the lowest gaming has ever gone, and battle passes are a reasonable substitute compared to how awful loot boxes were
@Deathscroll41 Місяць тому
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.
@curiouspeople6441 Місяць тому
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
@glados4765 Місяць тому
Same reason why kids pay for OF content when they can get it for free.
@ddc2343d Місяць тому
It should be illigal to offer microtransactions to children.
@Helfirehydra 6 днів тому
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
@seanwhitehall4652 Місяць тому
4:00 "spend opportunities" What kind of language is that?
@deadlock_problem Місяць тому
soulless investor talk from people with golden spoons and no souls.
@Roxasthesupersaiyan Місяць тому
Blame weak consumers who show these companies that this is ok.🤷🏽♂️
@virtuaguyverify Місяць тому
I don't like micro transactions anymore than you, but because you have money, doesn't make you weak.
@deep-seeker Місяць тому
The worst micro transaction is not video games. Its health insurance.
@virtuaguyverify Місяць тому
Exactly! with games, you have a choice. Health, you don't.
@dukelynch6973 Місяць тому
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.
@estebanlopez4498 Місяць тому
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.
@dark12ain Місяць тому
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
@TalosLordOfNight Місяць тому
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.
@shadowninja1275 28 днів тому
We need a protest against these greedy game companies.
@mohamethseck Місяць тому
I hope the power goes to the indie developers. The small studios who just want to make awesome fun games
@mymadeupdreams Місяць тому
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
@rogue8554 29 днів тому
It's crazy that kids nowadays grow up with a $20 skin being the norm in gaming
@Helfirehydra 6 днів тому
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
@nexusyang4832 Місяць тому
Micro transaction are the digital quarter slots of the 21st century.
@filip9587 Місяць тому
Someone at CNBC tried to play Dragon's Dogma 2 and decided to make this video.
@dbz9393 Місяць тому
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
@raventhorX Місяць тому
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.
@mrZanZibar777 Місяць тому
@@raventhorXIt's also not independent, it's literally published by Sony
@JohnYuFitness Місяць тому
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.
@wellallnasib Місяць тому
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.
@stevenhudson6354 Місяць тому
Success is not built on success. It's built on failure, It's built on fraustration. it's built on fear that you have to overcome. I pray that anyone who reads this will be successful in life
@HannahWebb-ry9xm Місяць тому
You are right.!
@HannahWebb-ry9xm Місяць тому
That is why I had to start forex trading 2months ago and l now am making benefits from it.!
@AuroraParra-ey3vc Місяць тому
And I can even say she is the sincere broker I know....
@billytorres3715 Місяць тому
Victoria has changed my financial status for the best.!
@billytorres3715 Місяць тому
All thanks to my aunty who introduced her to me.!
@RantRantJoe Місяць тому
Yes. Microtransactions does make a big impact, that is why I stopped playing.
@matthewhardwick8208 Місяць тому
Education about gambling and how it is being implemented into video games is essential for the next generation of gamers. And just being responsible with money overall.
@ALPHA_OMEGA3 Місяць тому
Make live service into gambling and regulate it. Only 21 and over can play live service. Might stop em from doing it
@rothn2 Місяць тому
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.
@austinh1028 Місяць тому
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
@wizirbyman Місяць тому
marketing is majority of the cost tbh - without marketing you wouldn't even know the games existed
@rothn2 Місяць тому
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.
@wizirbyman Місяць тому
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
@Franklinsone Місяць тому
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.
@burchified Місяць тому
shoutout to all the marketing majors who helped make this happen. im glad you were able to find a job after dropping out of both psychology and sociology, exploiting human vulnerabilities rather than helping to fix them.
@apierre6 Місяць тому
This is an awesome video. Keep it up!
@unchi1999 3 дні тому
IKR? Glad i still play my PS1 and PS2 all the time
@KevoF06 Місяць тому
“Cloud based gaming” you heard it, that’s where its shifting towards.
@blanesiwicki7851 Місяць тому
As a 90s kid, I will always be grateful for not having to deal with this nonsense growing up
@bladej7688 Місяць тому
"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.
@bladej7688 Місяць тому
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.
@prilep5 Місяць тому
When they started making pointless video games with out challenges goals scoring and limitless “spawning” was the pivot point into making more money in selling merchandise physically and virtually
@philipberlanda Місяць тому
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.
@JohnnySoCal Місяць тому
We need to stand up and start a movement to STOP microtransactions.
@DeadAir21 Місяць тому
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.
@JohnnySoCal Місяць тому
@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.
@jaughnekow Місяць тому
Greed is killing the gaming industry slowly.
@raghavthakur388 Місяць тому
"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%.
@obits3 Місяць тому
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.
@Mr.Coffee576 Місяць тому
It didn’t change gaming. It killed it.
@Tomhyde098 Місяць тому
WW2 was the last Call of Duty game I played for the entire year. The microtransactions were pretty bad but once the battle pass system really took off I stopped playing most online games in general. Probably for the best, I just beat The Last of Us parts 1 and 2 for the first time and I’m working on the Uncharted series
@MuhammadAli-hg1td 25 днів тому
This report was very well done and captures most of the big macro developments over the past 10-15 years from both studios' and gamers' perspectives.
@lc285 Місяць тому
Greed.
@mikeweatherford5312 Місяць тому
Last I looked, it was a for profit industry not a charity
@awesomebrotherhood7698 Місяць тому
1. If the extras are cosmetic and does not affect gameplay mechanics then, charging extra is a social peer and personal preference issue. If it is not, then it is unfair and maybe criminal in the future.
@jimfix6810 Місяць тому
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.
@Ninja8021 Місяць тому
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.
@satriaamiluhur622 Місяць тому
That awkward moment when the game is free but you have thousand dollars worth of spending on it