0:02

Hello and welcome to FuffleWib , the podcast

0:04

where we talk about gaming , technology

0:06

and entertainment . I'm

0:08

your host , quantico , and today

0:10

we have a very interesting topic how

0:13

video games monetize and persuade players

0:15

to spend money . We

0:19

all love video games , right ? They

0:22

are fun , immersive and engaging

0:24

. They can also be very

0:26

addictive and sometimes very

0:28

expensive . Have you ever

0:30

wondered why you feel the urge to buy that extra

0:32

loot box , that special skin or

0:35

that premium subscription ? How

0:37

do video games manipulate your psychology

0:40

and emotions to make you spend more than you

0:42

planned ? In

0:45

this episode , we will explore some of

0:47

the techniques and strategies that video

0:49

game developers use to monetize their

0:51

games and influence your behavior . We

0:54

will also discuss how you can be more aware

0:56

and conscious of your spending habits and

0:58

avoid falling into the traps of compulsive

1:01

gaming . But

1:04

before we dive into the topic , let me

1:06

remind you that you can support this podcast

1:08

by subscribing , reading and

1:10

reviewing it on your favorite platform . You

1:13

can also follow us on social media and

1:16

join our Discord server , where you can chat

1:18

with other listeners and share your opinions

1:20

and feedback . Thank

1:22

you for your support . Now

1:26

let's talk about video game monetization

1:29

. What does it mean and

1:31

why is it important ? Monetization

1:34

in games refers to earning revenue from games

1:36

, often through in-game purchases , ads

1:39

or subscription models . It

1:41

is a delicate balance that involves providing

1:43

valuable content to players while encouraging

1:46

them to spend on optional in-game items

1:48

. To

1:51

unlock the potential of monetization , game

1:54

developers must understand player psychology

1:56

and motivations . By

1:59

aligning monetization strategies with player

2:01

preferences , developers can create

2:03

a win-win situation for players and

2:05

themselves . There

2:09

are many models of monetization in video

2:11

games and no one-size-fits-all

2:13

approach exists . Some

2:16

of the most common ones are the

2:20

Pay-to-Download Model . The Pay-to-Download

2:22

Model , also known as the Premium

2:24

or Pay-to-Play Model , involves players paying

2:27

an upfront fee to download and access

2:29

the game . In this model

2:31

, developers typically set a fixed price

2:33

for the game and once players make the

2:35

payment , they gain full access to

2:37

all the game's content and features . No

2:40

additional in-game purchases are required

2:43

to progress or enjoy the game entirely

2:45

. This model is often

2:47

used for high-quality games with a strong

2:49

brand recognition and loyal fan base

2:51

, such as the Grand Theft Auto , the

2:53

Witcher or Call of Duty series . Free-to-play

2:59

Model . The Free-to-Play Model has gained

3:01

immense popularity recently , particularly

3:04

in mobile and online gaming . In

3:06

this model , the game is free , allowing

3:09

anyone to download and play without any

3:11

initial cost . However

3:13

, developers generate revenue by providing

3:16

various in-app purchases , iaps

3:18

, or virtual goods within the game

3:20

. These can include cosmetic

3:23

items , power-ups , in-game

3:25

currency or other enhancements players

3:27

can buy to enhance their gaming experience

3:29

. This model is often

3:31

used for casual , social or

3:33

competitive games that rely on network

3:35

effects and viral marketing , such

3:37

as Candy Crush , fortnite or League

3:40

of Legends . Pay-to-win

3:44

Model . The Pay-to-Win Model is a controversial

3:46

monetization approach that has garnered criticism

3:49

from players and gaming communities . In

3:52

Pay-to-Win Games , players can purchase

3:54

in-game items , upgrades or

3:56

advantages that significantly impact gameplay

3:59

, giving them a distinct advantage over

4:01

those who choose not to spend money . This

4:04

model can create an imbalanced and unfair

4:06

gaming environment , as players who invest

4:09

money can progress faster , defeat opponents

4:11

more efficiently or access exclusive

4:13

content that non-paying players can't

4:15

. Pay-to-win Models are

4:17

often seen as paying for success , frustrating

4:20

players who prefer skill-based challenges

4:22

and a level-playing field . This

4:25

model is often used for games that target

4:27

a niche or hardcore audience that is willing

4:29

to pay for competitive edge , such

4:31

as Clash of Clans , fifa Ultimate

4:34

Team or Star Wars Battlefront 2

4:36

. These

4:39

are just some of the examples of how video games

4:42

can monetize their products and services

4:44

. There are many other ways

4:46

, such as advertising , sponsorship

4:48

, merchandising , crowdfunding

4:50

or licensing . The

4:53

choice of monetization model depends on

4:55

many factors such as the type , genre

4:57

, quality and target audience of

4:59

the game , as well as the market trends

5:01

, consumer behavior and legal

5:03

regulations . But

5:07

how do these monetization models affect

5:09

the players and their decisions ? How

5:12

do they persuade them to spend money on things that

5:14

are not essential for the game ? What

5:17

are the psychological mechanisms behind these

5:19

techniques , and how can

5:21

players be more aware and conscious of their

5:23

spending habits and avoid falling into

5:25

the traps of compulsive gaming ? To

5:30

answer these questions , we need to look

5:32

at some of the theories and concepts from behavioral

5:35

economics , psychology and

5:37

neuroscience that explain how humans

5:39

make decisions and how they can be influenced

5:41

by external factors . In

5:43

the next segment , we will explore some of

5:45

these concepts and see how they apply to

5:48

video game monetization . Before

5:53

we delve into the fascinating world of behavioral

5:55

economics , psychology and

5:57

neuroscience , let's take a moment to

5:59

enjoy a short musical interlude . When

6:02

we return , we'll explore these concepts

6:04

and their application to video game monetization

6:07

. Stay tuned .

8:16

Music , music

8:19

, music

8:24

, music

8:31

, music

8:41

, music , music

8:52

Music

8:58

.

9:03

Music , music

9:10

, music Music

9:19

Music

9:28

, music , music

9:37

, music , music

9:48

, music

9:56

, music , music

10:05

, music

10:09

, music , music

10:19

, music , music

10:28

, music , music , music , music , music , music . Players

10:30

need to make a commitment and investment before

10:32

they can access the game Free

10:36

to play games , on the other hand , offer

10:39

a low value proposition upfront , as

10:41

players can download and play the game for

10:43

free without any risk or obligation

10:46

. However , they also

10:48

face a low barrier to entry , as

10:50

players can easily switch to another game

10:52

if they are not satisfied or engaged

10:55

. Pay-to-win games offer

10:57

a mixed value proposition , as players

10:59

can play the game for free , but also

11:01

have the option to pay for additional benefits

11:04

or advantages that can enhance their gameplay

11:06

or performance . However

11:09

, they also face a trade-off between

11:11

fairness and competitiveness , as players

11:13

who pay more can gain an edge over those

11:15

who don't . The

11:19

value proposition is not static , but

11:21

dynamic . It can change

11:23

over time depending on the player's experience

11:25

, feedback and expectations

11:28

. For example , a

11:30

player who initially enjoys a free-to-play

11:32

game may lose interest or satisfaction

11:34

if the game becomes too repetitive , boring

11:37

or frustrating . Alternatively

11:39

, a player who initially dislikes a paid-to-download

11:42

game may gain interest or satisfaction

11:44

if the game offers new content , updates

11:47

or challenges . The

11:49

value proposition can also vary

11:51

across different segments of players , depending

11:54

on their demographics , psychographics

11:56

and behaviors . For

11:58

example , a casual player may value

12:00

a game that is easy , fun and

12:03

social , while a hardcore player may

12:05

value a game that is challenging , immersive

12:07

and competitive . To

12:11

optimize the value proposition , game

12:14

developers need to understand their target audience

12:16

and their needs and wants . They

12:19

also need to design their games and monetization

12:21

strategies in a way that aligns with the

12:23

value proposition and creates a positive

12:26

feedback loop . A positive

12:28

feedback loop is a process that reinforces

12:31

itself through a cycle of actions and

12:33

outcomes that increase the value proposition

12:35

and the player's engagement and loyalty

12:37

. For example , a

12:39

game that offers a rewarding and satisfying

12:42

gameplay experience can increase the player's

12:44

enjoyment and motivation , which can

12:46

lead to more playtime and spending , which

12:48

can lead to more rewards and satisfaction

12:50

, and so on . However

12:55

, creating a positive feedback loop is

12:57

not enough . Game developers

12:59

also need to avoid creating a negative

13:01

feedback loop , which is a process that

13:03

undermines itself through a cycle of actions

13:06

and outcomes that decrease the value proposition

13:08

and the player's engagement and loyalty

13:11

. For example , a

13:13

game that offers a frustrating and unfair

13:15

gameplay experience can decrease the player's

13:17

enjoyment and motivation , which can

13:19

lead to less playtime and spending , which

13:21

can lead to less rewards and satisfaction

13:24

, and so on . One

13:28

of the ways that game developers can create

13:30

a positive feedback loop and avoid a negative

13:32

feedback loop is by applying the principles

13:35

of gamification . Gamification

13:37

is the use of game elements and mechanics in

13:40

non-game contexts to motivate and

13:42

engage users . Gamification

13:45

can enhance the value proposition of a game

13:47

or a purchase within a game by making

13:49

it more fun , meaningful and

13:51

rewarding . Some

13:55

of the common game elements and mechanics that

13:57

can be used for gamification are goals

14:00

. Goals are the desired outcomes or

14:02

achievements that a player pursues in a game

14:05

. Goals can provide direction

14:07

, focus and challenge to the player

14:09

, as well as a sense of progress and

14:11

accomplishment . Goals

14:13

can be intrinsic or extrinsic , depending

14:16

on whether they are driven by the player's own

14:18

interest or by an external reward . Goals

14:21

can also be short-term or long-term

14:23

, depending on whether they are achievable within

14:26

a single session or over multiple

14:28

sessions . Feedback

14:32

is the information or response that a player

14:34

receives from a game or a purchase within

14:36

a game . Feedback

14:38

can provide guidance , reinforcement and

14:40

recognition to the player , as well as

14:43

a sense of competence and mastery . Feedback

14:46

can be positive or negative , depending

14:48

on whether it confirms or contradicts the

14:50

player's expectations or actions

14:52

. Feedback can also

14:55

be immediate or delayed , depending

14:57

on whether it occurs right after or sometime

14:59

after the player's actions . Rewards

15:04

are the incentives or benefits that a player

15:06

receives from a game or a purchase within

15:09

a game . Rewards

15:11

can provide motivation , satisfaction

15:13

and gratification to the player , as

15:15

well as a sense of value and worth . Rewards

15:19

can be tangible or intangible , depending

15:21

on whether they are material or psychological

15:23

. Rewards can also

15:25

be fixed or variable , depending

15:27

on whether they are predictable or random

15:30

. Challenges

15:33

are the difficulties or obstacles that

15:35

a player faces in a game . Challenges

15:38

can provide stimulation , excitement

15:40

and curiosity to the player , as

15:42

well as a sense of challenge and skill . Challenges

15:46

can be adaptive or static , depending

15:48

on whether they adjust to the player's level or

15:50

remain constant . Challenges

15:53

can also be competitive or cooperative

15:55

, depending on whether they involve other

15:57

players or not . Social

16:01

is the interaction or connection that a player

16:04

has with other players or the game community

16:06

. Social can provide

16:08

support , belonging and identity

16:10

to the player , as well as a sense of

16:12

social and cultural capital . Social

16:15

can be synchronous or asynchronous , depending

16:18

on whether it occurs in real time or not

16:20

. Social can also be

16:22

collaborative or competitive , depending

16:24

on whether it involves cooperation or

16:26

competition with other players . These

16:31

are just some of the examples of how gamification

16:34

can enhance the value proposition of

16:36

a game or a purchase within a game

16:38

. There are many other game

16:40

elements and mechanics that can be used for

16:42

gamification , such as avatars

16:44

, badges , leaderboards , levels

16:47

, quests , stories and

16:49

so on . The choice of

16:51

gamification elements and mechanics depends

16:53

on the type , genre and target audience

16:55

of the game , as well as the desired outcomes

16:58

and behaviors of the players . However

17:03

, gamification is not a magic bullet

17:05

that can guarantee success or satisfaction

17:07

. Gamification

17:09

can also have negative effects or consequences

17:12

, such as addiction , manipulation

17:14

or exploitation . To

17:16

avoid these pitfalls , game developers

17:19

need to use gamification ethically and

17:21

responsibly and respect the player's

17:23

autonomy , consent and well-being . They

17:27

also need to monitor and evaluate the

17:29

impact and effectiveness of gamification

17:31

and adjust or improve their strategies

17:33

accordingly . As

17:37

we wrap up our discussion on the powerful tool

17:39

of gamification , let's take a moment to

17:41

reflect . Enjoy a

17:43

brief musical interlude while we consider

17:45

the ethical responsibilities of game developers

17:48

and the importance of safeguarding players' well-being , when

17:52

we return , we'll continue exploring

17:54

the world of video game monetization . Stay

17:57

with us .

19:33

I think they'll be told to die as soon

19:39

as I'm gone . It will die , and

19:41

if you can't live , I will sing , and

19:46

if you can't die , I will sing , and

19:50

if you can't die , I will sing , and

20:21

if you can't die , I will sing , and if

20:23

you can't die

20:26

, I will sing

20:28

, and

20:32

if you can't die , I will

20:34

sing , and if you

20:36

can't die , I will sing

20:38

, and if you

20:40

can't die , I will sing , and

20:45

if you can't

20:47

die , I

20:49

will sing , and

21:16

if you can't die , I will sing , and

21:32

if you can't die , I will sing .

21:37

And if

21:54

you can't die , I will sing . And

22:06

if you can't die

22:08

, I will sing . And

22:22

if you can't die , I will sing . And

22:33

if you can't die , I will sing . In

22:37

this segment , we will look at some of the specific

22:40

techniques and tactics that video game

22:42

developers use to monetize their games

22:44

and persuade players to spend money . These

22:47

techniques and tactics are based on the application

22:50

of the psychological concepts and principles

22:52

we discussed earlier , as well as the understanding

22:55

of the player's cognitive biases and

22:57

heuristics . Cognitive

23:01

biases and heuristics are mental shortcuts

23:03

or errors that humans use to simplify

23:06

and speed up their decision making , often

23:08

at the cost of accuracy or rationality

23:10

. By exploiting these cognitive

23:13

biases and heuristics , video

23:15

game developers can manipulate the player's

23:17

perception , emotion and behavior

23:20

and increase their likelihood of spending

23:22

money . Some

23:25

of the common cognitive biases and heuristics

23:28

that video game developers use to monetize

23:30

their games and persuade players to

23:32

spend money are Anchoring

23:37

Effect . The

23:39

anchoring effect is the tendency to rely

23:41

too much on the first piece of information

23:43

offered when making decisions . For

23:46

example , if a game offers a bundle

23:48

of items for $9.99

23:51

and then shows another bundle of items

23:53

for $4.99

23:55

, the player may perceive the second bundle

23:58

as a bargain , even if the items are not

24:00

worth that much . The game

24:02

uses the first bundle as an anchor to

24:04

influence the player's judgment of the second

24:06

bundle . Availability

24:10

Heuristic the

24:13

availability heuristic is the tendency

24:15

to estimate the likelihood of events based

24:17

on how easily they come to mind . For

24:20

example , if a game shows a pop-up

24:22

message that says only 10% of

24:25

players have this item by

24:27

it now , the player may think that the item

24:29

is rare and valuable , even if it

24:31

is not . The game uses

24:33

the availability heuristic to create a sense

24:36

of scarcity and urgency for the item

24:38

. Confirmation

24:42

Bias the

24:44

confirmation bias is the tendency to

24:46

search for , interpret , favor

24:48

and recall information that confirms

24:50

once pre-existing beliefs or hypotheses

24:53

. For example , if

24:55

a player believes that a certain item or

24:57

strategy is effective in a game , they

25:00

may ignore or dismiss any evidence

25:02

that contradicts their belief and focus

25:04

on any evidence that supports their belief

25:06

. The game uses the confirmation

25:09

bias to reinforce the player's confidence

25:11

and satisfaction with their purchase or

25:13

decision . Endowment

25:17

Effect the

25:20

endowment effect is the tendency to value

25:22

something more once one owns it or has

25:24

invested in it . For example

25:26

, if a player has spent a lot of time

25:28

, money or effort on a game or

25:31

character , they may feel attached to

25:33

it and reluctant to abandon it . The

25:35

game uses the endowment effect to create

25:37

a sense of ownership and loyalty for the game

25:40

or the character Framing

25:44

Effect . The

25:46

framing effect is the tendency to react

25:48

differently to a choice depending on how

25:51

it is presented . For example

25:53

, if a game offers a choice between paying

25:55

$1.99 for

25:57

an item or watching a 30-second ad

25:59

for the same item , the player may prefer

26:01

the latter option , even if the value of

26:04

their time is higher than $1.99 . The

26:08

game uses the framing effect to make the player

26:10

perceive the ad as a better deal than

26:12

the payment . Loss

26:16

Aversion Loss aversion is

26:18

the tendency to prefer

26:21

avoiding losses to acquiring equivalent

26:23

gains . For example

26:25

, if a game offers a limited time offer

26:27

or a daily reward , the player may

26:29

feel compelled to take advantage of it , even

26:32

if they don't need it or want it . The

26:34

game uses loss aversion to create a fear

26:36

of missing out . Fomo for the player

26:38

. Reciprocity

26:42

Reciprocity

26:45

is the tendency to respond to a positive

26:47

action with another positive action . For

26:50

example , if a game gives a player a

26:52

free gift or a bonus , the player

26:55

may feel obliged to return the favor , such

26:57

as by making a purchase or leaving a positive

26:59

review . The game uses

27:02

reciprocity to create a sense of gratitude

27:04

and obligation for the player . Reciprocity

27:09

is the tendency to approve . Social

27:12

proof is the tendency to follow the behavior

27:14

of others , especially when uncertain or

27:16

unsure . For example

27:18

, if a game shows a player the number of

27:20

other players who have bought or liked an item

27:23

, the player may be more likely to buy

27:25

or like it too . The game

27:27

uses social proof to create a sense of

27:29

popularity and validation for the item

27:31

. These

27:34

are just some of the examples of how video

27:36

game developers use cognitive biases

27:39

and heuristics to monetize their games

27:41

and persuade players to spend money . There

27:44

are many other cognitive biases and

27:46

heuristics that can be used for this purpose

27:48

, such as the decoy effect , the halo

27:51

effect , the sunk cost fallacy , and

27:53

so on . The choice

27:55

of cognitive biases and heuristics

27:57

depends on the type , genre and

27:59

target audience of the game , as well as

28:01

the desired outcomes and behaviors of

28:03

the players . However

28:07

, using cognitive biases and heuristics

28:10

to monetize games and persuade players

28:12

to spend money is not always ethical

28:14

or beneficial . Cognitive

28:17

biases and heuristics can also have

28:19

negative effects or consequences , such

28:21

as deception , coercion or exploitation

28:24

. To avoid these pitfalls

28:27

, game developers need to use cognitive

28:29

biases and heuristics ethically and

28:31

responsibly and respect the player's

28:33

autonomy , consent and well-being

28:36

. They also need to monitor

28:38

and evaluate the impact and effectiveness

28:40

of cognitive biases and heuristics

28:43

and adjust or improve their strategies

28:45

accordingly . And

28:49

that's it for today's episode of FuffaWeb

28:51

. I hope you learned something new

28:53

and interesting about video game monetization

28:56

and persuasion . If

28:58

you did , please subscribe , rate

29:00

and review this podcast on your favorite

29:02

platform . You can also

29:04

follow us on social media and join

29:06

our Discord server , where you can chat with

29:08

other listeners and share your opinions and

29:10

feedback . Thank you for

29:12

your support . This is Quantico

29:15

signing off . Until

29:17

next time , keep gaming and keep learning

29:20

.