Monday, February 16, 2015

Freemium Games

As cell phones have exploded in popularity and technological advancement over the past years, so too have the video games that are available on them for download. By far the most popular types of games are what are known in the industry as ‘freemium’ titles. These games follow a pricing strategy where the base level of the software is free to use, but money is charged for proprietary features, functionality, etc. (i.e. extra lives, special weapons/characters). These types of games have been a topic of debate lately and have been pinned with the derogatory term ‘Pay2Win,’ which criticizes them for giving an advantage to players who pay more money as opposed to those who have more skill. What is more worrisome; however, is the correlation that is being made with those who purchase add-on content for freemium games and individuals with gambling addictions.

To make a point to just how much freemium games with micro-transactions have risen in popularity, this past Superbowl had two direct examples: a Clash of Clans spot with Liam Neeson and another for Game of War: Fire Age starring Kate Upton. These 30 second spots were valued at $4.5 million each which is a lot considering that the actors needed to be paid handsomely as well as the CGI developers. However, this amount of money is nothing compared to what these titles generate in sales. Clash of Clans, for example, generated $2.4 million in revenue a day as of 2013, which means they would have had enough money to pay for a minute long commercial in less than a week. So where does all of this revenue come from?

To begin with, it’s estimated that only 1.5% of freemium players made in app-purchases during January 2014. 50% of these revenues came from the top 10% of players. This means, that 0.15% of total players accounted for half of the money brought in by the freemium model [1]. These big spenders are actually called “whales” by some in the industry which is a reference to high-rolling gamblers. So it is no question then, that these top buyers are exhibiting the same sort of compulsive behavior that is associated with drug or gambling addictions. In fact, this was the plot of a South Park episode which aired just last year and if history has taught us anything, it is that if South Park is ridiculing a topic, it is for obvious reasons.  

I believe that these types of games should not exist on our cell phones or in any shape or form. I’m ok with making an initial payment to purchase a game for my phone and I’m also ok (albeit with a grain of salt) with spending money on downloadable content for certain games which advance plots, add extra maps, etc. However, I’m not ok with companies like Machine Zone (creators of Game of War, valued at $3 billion) making half of their entire profit off of the exploitation of users who either have too much money to know what to do with or those who are plagued by the same issues that gamblers face. Compared to almost any AAA title on gaming consoles and PCs which are able to offer cinematic experiences with engaging plots (comparable to a trip to the movies), freemium games are simply time wasters and undeserving of the attention they get. I find them to be the equivalent of a scam and refuse to support the companies that create them.

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