Friday, September 28, 2018

Free Games Are Expensive


From the Intelligent Economist

Economic Principle(s) I will be studying: People generally respond to incentives in predictable ways.


Overall Research Question: How do video game companies and developers create incentives for people to play their game and get people to spend extra money. 

3-4 Sub Research Questions:
1. How do developers incentivize gamers to play their game while still making a profit?
2. How do companies use pay-to-win tactics to get people to buy microtransactions?
3. How do companies make money off of “Advanced” editions and pre-orders?
4. How do publishers create incentives inside advertisements?

3-4 Sources with links embedded: 
EA making $1.3 billion off add-on content, including $650 million from ultimate team 
Governments looking at “Loot Boxes” as a form of unregulated gambling in family-friendly titles
EA under Belgian criminal investigation for refusing to stop using illegal “loot boxes”

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