The idea of paying to get an upper hand in games

Posted by Yuli Hines on May 30th, 2018

While video gamers in the West might frown in the Idea of paying to get an upper hand in games, many of the Chinese counterparts find the practice perfectly acceptable.

Video game companies will want to take note of the difference.

Such ethnic elements Influence how businesses can make money in the increasingly aggressive -- but increasingly rewarding -- business, stated Tom Wijman, a consultant with market research firm Newzoo.

Noting that the practice of "pay-to-win" in video games is"generally not approved by Western gamers," Wijman contrasted that to how many in China accept matches that sell progress rewards or in-game boosts.

The difference in gamer attitudes toward these Practices could stem from a difference in cultural norms that have developed as a result of the paths taken by the countries' gaming markets.

Those businesses in the East (with the exception of Japan) and West started at very different points, together with legislation and purchasing power playing a role in what matches become favored by kizi gamers.

The early days of gaming in the West began with watershed moments like the creation of Atari's"Pong" arcade machine in 1972 And the company's subsequent release of"Space Invaders" on its 2600 console. While those names ushered in a new era of video gaming in the house, medium has played out quite differently in Asia.

On Occasion, gambling Consoles were not legally recognized by the country and were only available on the black market, as was the case in China from 2000 to 2013, said Lisa Cosmas Hanson, managing partner at Niko Partners.

After the ban was formally lifted At 2015, the cost ended up being too high for most Chinese consumers, rather than many AAA-titles -- even blockbuster games -- were released in the country, she added.

Rather than playing house

"In Asian lands Such as South Korea and China, the conventional consumption model has been via the PC and originally internet cafe pre-paid kizi game time or subscription," said Piers Harding-Rolls, manager and head of matches research at IHS Markit.

Since most of the Consumers in those markets were accustomed to paying recurring prices to game, they have"largely migrated to free games with micro trades" today, Harding-Rolls added.

Micro transactions are In-game sales made out of real cash in exchange for additional features such as improved abilities, content or characters.

In contrast, he said, Heritage markets like the U.S., Western Europe and Japan often get a business model which is more blended in nature, with micro transactions gradually gaining traction.
Micro trades in the spotlight

As video game micro trades have grown in prominence, they've also attracted more criticism.

Things came to a head in 2017 when 2 of this year's most anticipated video game titles, Electronics' "Star Wars Battlefront II" and Warner Brothers'"Middle-earth: Shadow of War," confronted backlash from gamers due to the inclusion of micro transactions in exchange for so-called loot boxes. 01:10
The gaming sector's trade association, loot boxes are"a voluntary characteristic in certain video games which provide players with a different way to obtain virtual items that can be used to enhance their in-game experiences"

The resulting backlash was so powerful that EA saw .1 billion of its shareholder value wiped out On the stock market less than fourteen days after the launching of"Battlefront II." The pressure was powerful enough for the company to announce changes to the match in March this year, together with all the permanent removal of loot boxes.

Sometime after, Warner Bros. declared that it had been removing micro transactions from its blockbuster, admitting that the choice"risked undermining" the heart of the game.

Despite the uproar, However, micro trades remain commonplace in today's video game market.

That haul will only grow more notable as the business is poised for growth.

A current report In 2018 alone, 2.3 billion players throughout the globe were expected to invest 7.9 billion on games, the market research firm stated.

Looking ahead, several analysts Predicted that cultural distinctions between gaming populations will begin to subside.

"The difference (between East and West) is becoming less conspicuous every year," Wijman explained.

While acknowledging that There'll probably remain differences in what's accepted , Wijman projected the industry will shift toward a free-to-play or even free-to-start model which is ultimately funded through in-game sales.
Harding-Rolls explained:"Under the surface there may be particular genres of content and approaches to monetization that are widespread in particular regions, but on the very top line I think the differences between regions will continue to slip away."

"Users obviously wind up Spending more money than they'd otherwise when they get to select What they want to pay for," said Cosmas Hanson.