Sunday, 30 October 2011

Micro-Transactions

I read a article that looks at the questions micro-transactions create like are they creating greedy companies? Is micro-transaction content items that have been held back from the game? and should companies care for the small minority of complaints of micro-transactions when millions still buy them? The article although doesn't pull out any strong evidenced based research it does point out a couple of different areas that effect micro-transactions relating to my research report. There was a interesting point about how EA is seen as a 'greedy' company as they sell content through the use of micro-transactions which can be earnt in the game anyways. To sum this up they are selling you content you already own. This does sound greedy but there are many factors that apply to there side as there are people who don't play enough to get the items they want.

Web link: http://blogcritics.org/gaming/article/microtransactions-in-games/

I watched this video on youtube during my research and thought that its worth mentioning as Guild Wars 2 used micro-transactions rather than using a pay-to-play fee. Games such as world of warcraft use the pay-to-play monthly business model to earn profits but this is directly want Guild Wars doesn't want as they feel that the game itself should have everything in it to begin with. You shouldn't have to pay again for items that should of been in the game. It also talks about how they have created micro-transactions that don't effect the gameplay as again they don't want to people to pay again for something they should get in the game from the start which would hopefully please the audience and keep them playing. It hints at micro-transactions work well creating profit when its only adding personality rather than in game enhancements. The micro-transactions could then be almost a gift in return as they are only buying because they are happy they are not playing to keep up with the game.

Interview originally from g4tv.com with colin johanson.

Video link:http://www.youtube.com/watch?v=6xoKixTkm1I

Another video i viewed was an old episode of the Extra Credits series. Extra Credits is a online based video series that look at teaching and reviewing games as art, game structures and the games industry. Created by Daniel Floyd and written by James Portnow, the show has a large gaming audience and has worked well with the independent games industry. I viewed their episode about 'Micro-transactions'. They discussed everything from how it has been used in the industry and how it should be used to achieve a greater effect. The main focus of this episode was teaching what micro-transactions are in games from the first recognised micro-transaction in the games industry and how do you make good use of micro-transactions in games. they mention about Elderscrolls Oblivion , were you could buy a different coat for your horse, although this didn't effect the game, thousands still bought it. Which lead to many companies taking on the concept. They talk about the effect on the industry how they see it as they mention about how its aiming at the consumers that want to spend little money to the ones willing to spend a lot meaning they are getting the most out of there audience. I found one part of the video very rememberable at that was 'People are Content' in player based games. This means that without people you have no content and that means companys need to remember that when it comes down to micro-transactions.

Video Link: http://penny-arcade.com/patv/episode/microtransactions

Other Websites of interest:
http://profy.com/2008/01/22/micro-transactions-as-a-business-model/ : EA’s website pogo and other game profit statistics using micro transactions.
http://digitalbrandmarketing.wordpress.com/2009/11/12/success-stories-for-the-micro-transaction-business-model/ has great info on zyanga
http://www.gamasutra.com/view/feature/4207/what_gamers_think_about_.php : histroy: what do people think of micro transactions.
http://www.industrygamers.com/news/ea-ceo-consoles-now-only-40-of-games-industry/
http://en.wikipedia.org/wiki/Micropayment

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