Why Graphics Matter and How Microtransactions Work

I explain why Graphics are incredibly important to games and are actually a vital part of why Microtransactions work as well as how we can fix them. Microtransactions are massive industry but how they work is not always immediately obvious as they take advantage of a lot of psychology to figure out better ways to make money. I show some of the methods as well as how we can fix even if it would require a massive paradigm shift.

Sources/References/Bibliography/Notes:

//Psychology shizz

//I should make it clear in the academic articles I'm reading the abstract and maybe skimming the rest/ conclusion if I need more direct information/examples.

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9006671/

/*

Loot boxes are tied to gambling especially heavy use of them in “risky” ways. Responsible use of loot boxes vs irresponsible use is tied directly to gambling habits, perhaps implying that the way someone handles loot boxes might be an early sign of someone being able to develop a gambling addiction. Adolescents using loot boxes can increase their chance of gambling addiction.

*/

https://www.tuw.edu/psychology/psychology-behind-microtransactions/

/*

Focuses on Pay to win (P2W) which is typically used in mobile games. Brings up arcade machines as a root. Significantly more players and likely more money in the change to free to play. 6% of players spend money on free-to-plays (FTPs) while still generating millions. In game currencies serve to obscure the actual cost of something. Fake deals, and opportunities. P2W mechanics. Pay to continue. Makes use of impulse buy. Look more into Impulse buys. When a player is unhappy, suggest a way to make them happy. Loss aversion exploitation to lead a player into an impulse buy like when they have a high score. Much of business is based on psychology.

*/

https://www.frontiersin.org/articles/10.3389/fpsyg.2021.708801 

/*

Students who made planned purchases ended up mostly fine. Unplanned purchases resulted in spending more than their amount of income. Useful statistics on each group.

*/

https://medium.com/@tew.social2023/exploring-the-psychology-of-microtransactions-in-video-games-e8ada3459ff4 

/*

In game currencies speaks on P2W mechanics. Impulsive spending as a result of wanting improvement. Makes the argument of Loot boxes being gambling and speaks on how casinos must follow specific rules with gambling. Immediate reward, gambler's mentality with winning eventually, and impulsive decisions. 

*/

http://platinumparagon.info/the-psychology-of-loot-boxes-and-microtransactions/ 

/*

5 different cognitive fallacies upon losing all of which result in spending more for the win state understating losses and overstating wins. Entrapment effect can result in the player spending more time on these things.

*/

https://www.sciencedirect.com/science/article/pii/S0747563222000413 

/* Loot boxes are gambling they are connected */

https://lnu.diva-portal.org/smash/get/diva2:1762673/FULLTEXT01.pdf 

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Purchase intention is affected by whether the results are random or defined

*/

https://research.tilburguniversity.edu/en/publications/the-hidden-cost-of-microtransactions-buying-in-game-advantages-in

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Other people don’t like P2W players cosmetics are less looked down upon. Benefiting multiple players is less likely to be perceived negatively.

*/

https://www.nature.com/articles/s41598-022-20549-1

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Loot box users are nearly 2x as likely to have severe psychological distress. Psychological harm outside of gambling symptoms. 

*/ 

https://digital.library.adelaide.edu.au/dspace/bitstream/2440/133209/1/JarradAR_2021_Hons.pdf 

/*

Internet gaming disorder is a term lord christ. Symptoms of this are linked with additional spending. Time restricting does result in more pressure to buy. 

*/

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9006671/ 

/*

Loot boxes are the most harmful, though as i am researching i believe it's like saying cigarettes are the most harmful but ignoring how harmful vaping is. More spending, more chance of gambling addiction. 

*/

https://intenta.digital/game-design/psychology-of-loot-boxes/ 

/*

Games are using gambling mechanics. Games lock items behind loot boxes (big surprise). Insane statistics about loot box uses in android and iphone games. Get around gambling law by exchanging for virtual goods. P2W Loot Boxes exist and are a problem.

*/

http://platinumparagon.info/psychology-of-loot-boxes/ 

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Loot boxes generate billions for various companies. There are strong ties between gambling and loot boxes. Unhealthy amount of income is expended on them. Shame of defaults. 

*/

https://pubmed.ncbi.nlm.nih.gov/31129456/ 

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More support for there being strong ties and longer sessions related to loot boxes

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https://www.lboro.ac.uk/news-events/news/2022/november/loot-box-report-emotional-financial-harm-children/ 

/*

It is too easy for kids to spend money on games. It shares a personal story and anecdotally I know at least 3 people who have spent 1000s on Microtransactions. At least 1 of which was fully from a relative who was unaware of what or how much they were spending.

*/

//Business shizz

https://bootcamp.uxdesign.cc/what-is-microtransactions-business-model-product-managers-take-c6f05fd79425

/*

Explains the different types I’ve already outlined for the most part in others. Very cheap initially. Seems to take advantage of the foot in door I noticed within microtransaction or perhaps slippery slope either way it's easy to get entrapped within microtransactions with granting immediate but short term gratification. 

*/

https://marriottstudentreview.org/weekly-blog/microtransactions-redefining-revenue-in-the-video-game-industry/

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Designed to addict. Look further into Stress and release. Games are encouraged to piss off the player so they spend more money. 

*/

https://www.gamedeveloper.com/business/mobile-vs-pc-and-microtransaction-psychology

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Long time playing short play sessions. Forcing players to wait will encourage multiple smaller payments. The slow boil approach is much more profitable. PC microtransactions can be larger as players are more dedicated while mobile is much smaller due to a lack of dedication. 

*/

http://hj.diva-portal.org/smash/get/diva2:1761960/FULLTEXT01.pdf

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This paper tries to figure out how social elements play into microtransactions. When a decision at purchase is made the player is weighing how much value it gives them now and even long term against the social questions.

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https://gameanalytics.com/blog/microtransactions-games-good-bad-ugly/

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Statistics on whale rate. More people buy microtransactions than DLCs. Useful graphs.

*/

//Gamepasses vs loot boxes

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10562816/

/* Loot boxes massively affect the vulnerable */

https://www.sciencedirect.com/science/article/pii/S0306460323002551

/* Further backup of the fact that loot boxes are the major problem*/

https://www.diva-portal.org/smash/get/diva2:1776593/FULLTEXT01.pdf

/* 

instead of going directly for the wallet they go for engagement which in a way can further justify the player spending money on the game as well as making use of dark patterns which admittedly i think is the line for this video I don't have the time to go that deep nor do i believe many people would be interested that's more of the goal in a few years time to be able to get into that much detail

*/

https://www.psychologyofgames.com/2019/07/the-psychology-of-fortnites-battle-pass/

/* I'm not going to use this because this has to be bs but if that is true this is a 13th reason 75 to 150 hours!? Wtf are they smoking, upon further research that is about true christ on a bike. Creates artificial scarcity in addition to taking a large amount of time requiring a player to be committed to the game which even if indirectly makes the player more likely to “invest” into the game*/

https://www.sciencedirect.com/science/article/abs/pii/S0306460319301091

/* More support for loot boxes bad and gambling*/

//Foot in the door pneumonia

https://medium.com/swlh/why-the-foot-in-the-door-method-works-according-to-science-6e78175de8a5

/* 

Piece of shit site locks it to the first few paragraphs but summarizes it decently as getting a way in.

*/

https://www.voucherify.io/blog/the-foot-in-the-door-effect

/* 

Successful as they are viewed as going a little further not a new request it's not one new skin for 20 bucks it's getting a few more skins for forty. Reminding past behavior as can be seen in battle passes. Relevant recommendations as seen in Overwatch's shop based on heroes you play. 

*/

Side note: Shittiest goddamn sign up i have ever seen they made a typo in their sign up

https://cxl.com/blog/foot-in-the-door-technique/

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This is why things will ask you random questions that our easy to say yes to as once you say yes it is exceedingly easy to say yes more

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https://www.psychologistworld.com/behavior/compliance/strategies/foot-in-door-technique

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The effects are proven to work that clear. Because you comply to the first thing you see yourself as more open to the idea of listening and working with the person or thing that asked the first question or goal. Its a cognitive bias based on wanting to fill in what we expect social would fit with what is happening. Making me wonder if you remove the social component it would change things. I doubt it if solely because humans consider even solo used with a computer mentally social. It's trying to appear consistent even if it's just to ourselves. 


Additionally the door in face where you start with something big and work down is also used in games as with small sets costing a lot and then a bundle costing only what buying half of them separately is. It seems like a good deal. Even if it is a price set by the same person.

*/

https://www.researchgate.net/publication/273952779_The_role_of_chips_in_poker_gambling_An_empirical_pilot_study

//Last second thought to consider intermediary currencies through gambling this was the only paper I found directly looking into what I wanted to know. And yes people spend way more when it's an in-game currency than when it is directly real money.


//Just respect to https://temp-mail.org/en as a service, absolutely beautiful.


//Use overwatch as an example find the quote about not wanting to lock characters behind a paywall for the original game and how they are moving away from it now and use off season overwatch as an ideal example of how battlepasses and monetization models can work with a few caveats notably being unable to continue your membership just by playing


//Extremely minimal research exists in terms of the effects of intermediary currencies in microtransactions which is why I believe the closest applicable research would be foot in the door along with the eventual acceptance of spending increasing more in games


https://kotaku.com/dead-games-2023-delisted-servers-offline-1850083031

//Used for the list as a joke of dead games


https://youtu.be/IHZru-6M8BY

//Used for the quote on numbers of sales

https://www.polygon.com/2019/6/21/18691760/ea-vp-loot-boxes-surprise-mechanics-ethical-enjoyable 

https://www.google.com/url?sa=i&url=https%3A%2F%2Fbekmen.rs%2F%3Fi%3Dfortnite-v-bucks-how-much-do-they-cost-and-rr-561vQFG&psig=AOvVaw1-g0lgvI8wW5bZGtKWLpHJ&ust=1705111929448000&source=images&cd=vfe&opi=89978449&ved=0CBEQjRxqFwoTCLjv1ovj1oMDFQAAAAAdAAAAABAR //so ass to find the vbucks screenshot without owning the game credit to this site

https://www.rocketleague.com/news/removing-playertoplayer-trading-in-december/#:~:text=A%3A%20After%20December%205%2C%20there,to%20Psyonix%20or%20Epic%20Games

https://www.polygon.com/2017/9/7/16271520/csgo-lotto-scandal-counter-strike-betting-ftc-endorsement-guidelines