Video Games Addiction and Monetization

Elements of Addiction and Monetization in Video Games: A look at what influences addiction in
gamers

Summary

It is without question that gaming has become an addiction for millions of players around the world. The evolution of video game development and sales has changed much over its lifespan. Developers and publishers have capitalized on this by pushing new forms of monetization and addictive elements to captivate players and ensure they spend as much time and money as possible on their products. While the price of consoles has dropped over time accounting for inflation, the amount spent on games has gone up. Consoles are not the only platform to play games either. New titles across mobile, PC, and even handheld devices have changed and adapted to new formats and monetization.

The known elements
of what makes players addicted to games are similar to that of gambling.
Successful games elicit the response of challenge and reward and give the
player a sense of accomplishment. There is also a great sense of being a part
of a group in multiplayer games. This effectively makes players feel surrounded
by people in the game world without the need of physical human interaction in
the real world. There are still many unknowns about addiction however. Examples
include how some people are more susceptible to addiction, why specific
elements may make certain players addicted, but not others, and effective
identification of those who are addicted from those who are not.

While researching
and understanding the dozens of factors that go into game design, the
conclusion that I have drawn is that the mobile gaming market is currently the
most lucrative. It has the lowest barrier of entry, and a higher chance of
success given the popularity of mobile gaming. Many gaming apps bring in tens
and hundreds of millions of downloads due to the popularity of Android and
iPhone devices. It is extremely rare to find people who still do not own a
smartphone. The amount of exposure that mobile games get far outweighs that of
other platforms. For a new company, there is a better chance of establishing
credibility and success than the alternatives. Offering players the choice
between ad-based rewards and paying for in-game currency is the current best
form of monetization. The developer’s choices of genre, game elements, and
target audience are secondary. Following the formula from successful mobile games
will increase the chance of success for the company overall.

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1.1 Intro to Problem

It is important to
address the challenge of understanding your audience. Monetization and player
feedback is important to any modern game development company. Gaming has taken
a shift from the origin days of home consoles in the late 70s through 80s. Many
developers have opted to maximize profits by enticing players to spend more. In-game
currency, downloadable content (DLC), and cosmetic items are all effective monetization
strategies. Developers and publishers want players to keep playing. Gameplay
mechanics such as reward based challenges and replay value invoke emotional
responses. This is a stark difference from the origin days of gaming. Several
years ago, most games sold for $50. Gamers would play the game up to a point
that they no long enjoyed it anymore. After that, they would move on and look
for a new game to buy. Modern AAA games (games with high budgets) cost $60 and usually
have DLC. It is now commonplace to see games with DLC amounting to $60 or more
on top of the retail price to own the game. This means games can cost over $120
for the full experience. It is true that retail prices of games are cheaper now
than they were in the past due to inflation. Yet the added hidden costs far
surpass the price of any retail game that existed in the 80s. The biggest
difference now is the sale price of consoles. Consoles are much cheaper now
than they were 30 years ago. But consoles are not the only way to play games
anymore.

It is now possible
to play games on several devices. Smartphones, tablets, desktop computers,
laptops, consoles. Even hand-held devices like the Nintendo 3DS and PS Vita.
This gives players several options beyond the consoles and computers of the
past. The forerunner console companies have stayed about the same for the past
20 years. Sony, Microsoft, and Nintendo control the market. Companies like
Apple, Samsung, or LG manufacture smart phones and other devices. Yet they do
not develop gaming apps. Instead, third-party developers create mobile games.
They generate revenue by ads or player purchases within the game. Likewise,
computer games have thousands of different developers, many of which are independent.
Known as Indie developers, they are usually small teams that look to generate a
buzz. While it is up to the developer or publisher on how to monetize their
game, there has been a paradigm shift. Companies now want to generate the most
amount of revenue possible through addicting game mechanics.

This will be a look into how the addictive qualities in games have changed. Examining the most popular games and genres and what makes them so popular. Analyzing how people can become addicted to playing games and how it becomes more than a hobby. Finally, how companies apply addicting game elements into modern titles.

1.2 Background/Brief History of Gaming

Most
games in the late 70s made popular by Atari and ColecoVision focused on
arcade-style gameplay. The goal was not to beat a game, but to see how long you
could survive and score the most points. This was by far the most common
element of games in arcades at the time. The reason behind this was that it
meant people would have to spend a quarter every time they lost. At first, the
transition to home consoles was booming. Atari sold millions of consoles and
games for several years after its release. However, this booming market did not
last forever. After years of games using the same formulas and a wealth of home
consoles, people lost interest. There was an extreme over saturation in the
market, and millions of people lost interest in gaming. A few years later, the
Nintendo Entertainment System (NES) revolutionized the scene. This led to a new
generation of games and game mechanics. Elements of video games released today
still rely on metrics established in the 80s. There are several examples of changes
that the NES made popular. There were now menus, pausing, saving, password systems.
Games had more advanced controls, newer graphics, and more dynamic gameplay.
There were even story elements, and an introduction to a new range of genres in
video games. It changed everything people knew about gaming, and revitalized
the industry.

Gamers of the 80s
are now the parents of a new generation. The average age of a gamer is now 35
years old. [9] Older gamers get to share their love of gaming with their
children. What was once a culture deemed only for social outcasts or nerds has
turned into a phenomenon. The NES was one of the most influential consoles of
the mid-1980s. It reinvigorated the gaming world after the video game crash of
1983 in North America. The primary focus of game development during this era
was creating new challenges. It embarked players on adventures that would
absorb them into a fantasy world. Classic games such as Mario and Zelda had unique
stories and gameplay. It made players invest more time in the world and its
lore. This led to kids discussing it at school and with friends. Which in turn lead
to more parents buying the console and games for their children. If a game was
good, it became popular which meant more sales.

1.3 Popular Modern Examples

Stepping into the
21^st century, things have changed. There are games like Grand Theft
Auto, Minecraft, and the Madden series. There is also League of Legends, the Call
of Duty (CoD) series. There is even The Sims series, and World of Warcraft.
These titles have generated billions of dollars in combined revenue. Many of
these games are part of a series that have been successful for years. If they were
not successful, then they would no longer exist. When we look at the most
popular genres of games, it is clear why. The most popular genres are shooters,
action, role-playing, strategy, and casual games. Computer games lean more
towards strategy, role-playing, and casual markets. [9 pp. 10] While these genres
are the most popular, there are still sub genres that exist. Companies that get
lucky may even monopolize them. Steam is a platform for PC, Mac, and Linux
users. Millions of gamers use it daily. One such example on steam is farming
simulator games. There are dozens of simulators on the Steam gaming platform. If
you look at the store, the same developer has created every farming simulator
on Steam. [10] If a company monopolizes on a specific genre, they own the
market for that genre. Very few companies have attempted to surpass companies
who control these monopolies. So what is it that makes so many people play
these games?

With the amount of
content available to gamers, popularity plays a major role. The games that
attract the most attention have the most players. Great examples of this are
mobile games such as Clash of Clans and Candy Crush. Both titles have had
extensive advertising campaigns. Following their advertising, they have
generated millions in revenue every day. [7] If a company can then sustain that
player base and make a name for themselves, they have greater potential. This
is true for companies that manage Massively Multiplayer Online Role Playing
Games (MMORPGS). A survey found players more loyal to a company that supports
privacy and improves their enjoyment. In turn, they are more likely to stay
loyal to said company. [5] But when we look at these games at an individual
level, what makes them so popular? Is it because of specific mechanics that
attract more players? Alternatively, it may be because there is no other game
that attempts to do what their game does. The Call of Duty series has been
around for 14 years now, and there have been hundreds of other shooters since
then. So why has the CoD series stayed so popular? A lot of it is brand
recognition, but people are still addicted to the formula. People know they
will get their money’s worth out of playing the multiplayer side of the game. Players
are not worried about spending $60 or more every year on something they except
to enjoy. While it is repetitive, they found a formula that works.

2.1 Addiction in Video Games

It should come as
no surprise that video games have turned into an addiction for millions of
players.  

“It is a cliché to state that computing, the Internet and gaming are now ubiquitous elements of daily life for most if not all people, particularly the young. The power and reach of the WWW most probably far exceeds any technology in humanity’s short but eventful history… In many ways, Internet Overuse/ Addiction is the ultimate post-modern affliction for the 21st Century.” [6]

In 2007, a Harris
Poll found 8.5% of minors aged 8 to 18 addicted to gaming. [11] The poll asked
gamers questions based on merits for gambling addicts. Unfortunately, very few
studies are assessing addiction of players in the United States. A tremendous
amount lot has changed in the 10 years since. As the population increases, so
has the number of addicts.

Another serious
look at gaming addiction is addiction treatment centers in China. They have
created boot camps designed as a last-resort for addicts. In one camp in the
Shandong Province, they use electroshock therapy on adolescents. More than
6,000 addicts now live at this addiction treatment center. [8] The purpose of
the camps is to get adolescents away from the internet and gaming. The techniques
they are using are questionable and causing China to step in. The Chinese
government is now trying to regulate these camps. Their methods of reform are
questionable and may even have negative effects. One of the patients killed
their mother due to the abuse they received at the camp as an act of reprisal.
They are also trying to pass legislation that imposes a curfew on the hours
gamers could stay up playing. The law would prohibit them from playing anywhere
from midnight to 8am. [8] While addiction in China is no doubt a major issue, perhaps
their solution needs improvement.

When looking at
the elements of what makes gambling an addiction, themes start to overlap with
gaming. Gambling is the act of taking weighted risks. In return, you win or
lose. That could mean money, prizes, or other valuables. Often times the odds are
usually stacked against you. If you then look at gaming, you start to see overlap.
Challenging games rely on overwhelming the player with difficult enemies or
greater numbers to defeat them. MMORPGS often need dozens of players to
complete difficult tasks that would otherwise be impossible alone. They also
usually contain auction houses, where players can buy, sell, and bid on items.
If you compare this to stock market, they are extremely similar. All of these
elements have some connection with gambling. It is true that gambling is more
addicting as it involves greater risk and reward. Gaming does not usually
involve wagering real money. It is in a virtual fantasy world where less is at stake;
yet the same functions still exist in both addictions. Of course, many other
factors may get players addicted. Sometime it is simply the joy of winning or collecting
better items. Others enjoy grinding (the act of leveling a character), or just
interacting with other people online. What games gaming addiction unique is how
it affects every player differently.

2.2 Comparing Heavy Internet Usage with Self-Reported Addiction

Researchers are
still trying to assess addiction in video game players the same way they are
trying to understanding internet addiction as they are very closely related. By
attempting to understand the best ways of identifying said addiction, they will
be better able to handle the problem in the future.

The primary focus
of this study was to compare the differences found between heavy use over time
(UOT) and self-reported addiction scales (AS). Each group received questions
based on their internet and gaming habits to see accurately each question
reflected their life. A previous study suggested that UOT was better than AS to
check for addiction disorders in gamers.

Their findings
suggested a moderate overlap in the results found between UOT and AS, addiction
scales had more correlation to comorbidity factors than UOT. [1] This means
that self-reported addiction scales had a higher chance of showing two or more
disorders or mental illness in resulting addiction than heavy use over time,
and only had a moderate overlap in resulting data. These findings help to
suggest that addiction is not simply the act of playing games for a longer
amount of time. If that were the case, there would have been greater overlap
and UOT would have accounted for a greater chance of comorbid disorders the way
that AS did. Both assessments proved useful in identifying addictive behaviors
in adolescents.

2.3 Gaming Addiction Identification Test (GAIT)

With there still
being so few studies and tests trying to detect gaming addiction, a Swedish group
has attempted to create such a test that specifically targets elements of
addiction in gamers. Internet Gaming Disorder (IGD) covers nine specific criteria
that GAIT assesses. While it still requires more testing and revaluation, the
results are positive.

The test includes
15 different questions with five levels of agreement for each question, asking
the participant how they would assess their gaming habits over the past 12 months.
[2] Parents were also given the same test (GAIT-P) and asked to answer
questions based on their knowledge of their child’s habits. Each question is
targeting a specific element of addiction such as, “I often feel that I ‘have’
to play” and, “It often happens that I play more than I had planned.” These
questions are purposely targeting aspects of addiction in people by trying to
understand why someone is playing a game. If their answers seem to relate to
entertainment purposes only, it is not definitive that addiction is the primary
reason. Conversely, elements that would suggest addiction in an individual
would be the feeling of necessity or urgency to play constantly.

GAIT’s results
were suitable in addressing addiction among adolescents. Spearman’s rho is the
level of correlation between data. The rho for gaming per week and GAIT scores
were .485 for boys and .478 for girls showing a moderate correlation effect. Compared
to the Gaming Addiction Score (GAS) test, there was a .834 rho, and GAIT
compared to GAIT-P had a resulting .704 rho, indicating very strong and strong
correlation values. [3]

This test showed
great promise in coming closer to understanding the difference between entertainment
users and addicted users. As mentioned before, heavy use over time did not
necessarily correlate with addictive behavior. These findings suggest that
addiction is more than just gamers who play heavily, and perhaps parents
misinterpret the signs that they might otherwise see as addiction.

2.4 Behavioral Addiction Measure–Video Gaming (BAM-VG)

A study in Canada
released in 2016 also looked at video game addiction. Its purpose was to
address issues with other addiction tests. Some examples are construct
validity, test-retest reliability, and false positives. [4] They surveyed a
sample of 506 gamers, 462 of which took the retest 1 month later). The results
found very good internal consistency, and reliability. 42.7% of respondents
indicated the main reason they played was for fun. 36.4% said they played to
escape reality. Out of the group, 7.1% of respondents indicated that they
thought they had a problem. Of those 36 people, the age ranged from 10 to 56.

While this was a
small sample size, it included a unique range of age groups and gamers. As part
of its purpose was to assess retest reliability, it succeeded in that. They
found good correlation for people who were addicts or at risk. They achieved a
level of 0.73, with one being the highest level of correlation. [4]

The purpose of
these tests is to understand how prevalent addiction is in a society. It is
also a metric for people to get help, and for companies to figure out what
works. Research is still required in understanding game addiction. Every video
game addiction test still has flaws that take time to correct. It is difficult
for some people to self-assess their addictions and be in denial. Which is why we
need new studies and tests to overcome this problem.

3.1 Applying Addictive Properties and Monetization

In order for a
company to release a successful game, it needs addicting qualities. They also
need to know what platform they plan to develop for, and who the audience
is.  An important note is that addiction
is not the same as addicting qualities. Many games may have addictive
properties that everyone can enjoy. This does not mean everyone who plays the
game is an addict. Gaming addicts are a metric for understanding how well
addictive properties work. If a game keeps someone interested for a greater
length of time, there is something unique about it. Usually the intriguing
elements get players interested in playing. Thus, the best way to go about this
is to work off principles that have already proven effective.

Games that reward
the player by completing challenges are positively reinforcing a specific
behavior. Let us look at a game like Candy Crush. Whenever the player completes
a level of performs a combo, the game rewards the player. Positive words, sound
effects, and music all give the player a sense of accomplishment. They also
make it easy to share your progress with friends on Facebook. People enjoy
being able to express what they have completed with others. Another major reason
is that the game is effectively endless. With new levels created all the time,
people can never really beat the game. [7] Other factors such as elements of
multiplayer or even the look of the game influences addiction. People respond
better to bright and colorful artwork and designs. Candy Crush has a very vibrant
color palette consisting of bright and cheerful tones of primary colors. It
makes the entire experience look very cheerful and exciting.

Once you figure
out the platform, you need to capitalize on what is popular on that platform.
Mobile games are usually very casual and often have puzzle elements to them.
Console games are broader and include sports, shooters, and other action games.
PC games are often strategic or have RPG elements. There is also a casual
market for PC users. Only after figuring out your audience, you are able to
begin to focus on designing a game.

4.1 Mobile Gaming Monetization Factors

The current most
lucrative platform to release a new game on is mobile. It is true that games on
any platforms will do better if the developer is well known. Yet the barrier
for entry is lower on mobile for two reasons. The first reason is more players.
Millions of people access the Google play store and iTunes store daily.
Focusing on the Google play store, if you click on any app, you can view how
many people have downloaded it. Popular gaming apps have anywhere from hundreds
of thousands to millions of downloads. This drastically increases the level of
awareness for a new app.

The second is
advertising as a form of monetization. Every popular app is free for anyone to
download. No one has to spend any money to play the game at any point. Yet an
effective way to get money is from people who are willing to watch ads, or pay
for currency. The term for ad-based revenue is reward based mobile advertising.
The player watches an ad, and in return receives some form of in-game currency.
The developer receives money from advertisers willing to host ads on the
platform, and the ad-hosting platform takes part of the cut. Apps can also
offer players to pay for currency in the game with their own money. You can do
this within the app and it lets people pay from their Google wallet. Very few
people spend a significant amount of money this way. People are more willing to
watch ads than pay for in-game rewards with real world cash.

4.2 Pros/Cons for Ad Marketing and In-Game Purchases

There are pros and
cons for both forms of mobile monetization. The leading pro for ad-based
revenue is that it usually non-intrusive. There are two types of ad marketing.
The first form of advertising exists at all times within the app. These are
most common in smaller apps. Most commonly, you can find them at the bottom or
top of the screen. Ad placement is important, as the goal is to get players to click
on it unintentionally. The second form of advertising is reward based. Certain apps
offer rewards, usually as in-game currency, for watching ad videos. Sometimes
they might also redirect players to take surveys or download other apps.
Because this type of marketing rewards the player, they are more likely to take
part.

The next form of
mobile monetization is allowing players to buy currency within the game. This
generates more revenue, but very few players actually spend a significant
amount. Only 0.15% of players generate 50% of the mobile app market revenue.
[7] While this may seem like the better choice, it is unlikely to generate much
revenue without a large player base. Some apps may also allow people to pay
money to get rid of ads. If a player finds the ads too intrusive, they may opt
to get rid of them. This usually costs a few dollars to the player.

 Ad-based solutions are good because anyone is
able to partake, and it is always an option. The negatives associated with it
are that it will likely be less lucrative. This is due to having fewer players
and lower payouts for advertisements. For a startup company, sacrifices help to
gain traction as a reputable developer. Monetization of in-game purchases is
usually very profitable. Allowing players to spend as much as they want means there
is no limit on how much they want to spend. It can also keep people playing
longer as they feel they have invested a substantial amount in the game. The
problem is very few gamers spend substantial amounts on mobile games. If you do
not attract these players, you will not see much of a return.

5.1 Conclusion

I would propose
that the best solution for a new company is to create a mobile app and to
include ads. You can then offer players to pay to remove them if they feel
inclined. Depending on the game, it may also be possible to offer players to
pay for currency or items. This would generate revenue in two ways, and give
players a choice. If someone does not care to spend any money, you can still
play the game, but will see advertisements. If they do care, they can opt to
pay and remove them, and even pay for items. The game also has to combine some
of the elements that make specific mobile games so popular. Vibrant color
pallets, rewarding gameplay, replay value, and multiplayer elements make
effective starting points. Games sold on mobile platforms generally are not a
good choice. Companies with a reputation usually do this because they know
people will buy the game.

A second proposal
would be creating a unique game that fills a niche and selling it on the Steam
platform. The reason this is risky is that timing is crucial. Steam has dozens
of releases every single day. If no one hears about the game before it comes
out, you rely on people seeing it in the store. If the game is good, it may
spread by word of mouth over the internet. The problem is it is not a reliable
solution.

It is difficult
for any company to gain much of a foothold in any market. The gaming industry
is no different. Addictive elements in games help keep people playing and
coming back for more. It also reflects back on the company, as games with poor
mechanics or style will ultimately be less popular. The elements of monetization
that work best on mobile may not work well on consoles. The mobile gaming
platform has evolved into its own unique and diverse platform, and it shows.
Therefore, as a new game development company, it is important to set up
realistic standards and expectations. Focusing efforts on what works will
ultimately yield the best results.

References

[1]  S. C. A. Baggio, M. Dupuis, J. Studer, S.
Spilka, J.-B. Daeppen, O. Simon, A. Berchtold, and G. Gmel, “Reframing video
gaming and internet use addiction: empirical cross-national comparison of heavy
use over time and addiction scales among young users,” Addiction, vol. 111, no.
3, pp. 513–522, 2015.

This was a journal going over the differences between
self-reported addiction scales (AS) and heavy use over time (UOT). The purpose
was to understand whether AS be used over UOT to assess addiction. The findings
of the study concluded that there was little overlap between the two models and
AS scales had more comorbidity factors than UOT.

[2]  S. Vadlin, C. Åslund, and K. W. Nilsson,
“Development and content validity of a screening instrument for gaming
addiction in adolescents: The Gaming Addiction Identification Test (GAIT),”
Scandinavian Journal of Psychology, vol. 56, no. 4, pp. 458–466, 2015.

Gaming Addiction Identification Test. Otherwise known
as GAIT examines usage used to evaluate gaming addiction in adolescents. Asks
test taker to answer 15 different questions based on a 5-point scale based on
games played in the last 12 months.

[3]  S. Vadlin, C. Åslund, M. Rehn, and K. W.
Nilsson, “Psychometric evaluation of the adolescent and parent versions of the
Gaming Addiction Identification Test (GAIT),” Scandinavian Journal of
Psychology, vol. 56, no. 6, pp. 726–735, Jun. 2015.

This was an evaluation of the effectiveness of GAIT
and GAIT-P (Parents). Results found that GAIT is a suitable measurement in
assessing gaming addiction. More studies are required to continue evaluating
differences in sex and culture.

[4]  J. L. Sanders and R. J. Williams,
“Reliability and Validity of the Behavioral Addiction Measure for Video
Gaming,” Cyberpsychology, Behavior, and Social Networking, vol. 19, no. 1, pp.
43–48, 2016.

This test was trying to assess gaming addiction in
individuals. The focus of BAM-VG (Behavioral Addiction Measure – Video Gaming)
is to avoid false positives or negatives, have a reliable re-test result, and
limit self-diagnoses. The results were positive and found to be plausible. They
found mental stress as a possible precursor to addiction. 

[5]  Y.-P. Chang, D.-H. Zhu, and H. S. Wang, “The
Influence of Service Quality on Gamer Loyalty in Massively Multiplayer Online
Role-Playing Games,” Social Behavior and Personality: an international journal,
vol. 39, no. 10, pp. 1297–1302, Jan. 2011.

Evaluation of the average gamer’s response to company
loyalty in response to MMORPGs. Results found that privacy, effectiveness, and
entertainment indirectly affect the loyalty of gamer’s satisfaction, while
interaction has a direct effect on loyalty.

[6]  M. Breeze, “A Quiet Killer: Why Games Are So
Addictive,” The Next Web, 12-Jan-2013. [Online]. Available:
https://thenextweb.com/insider/2013/01/12/what-makes-games-so-addictive/.
[Accessed: 28-Mar-2017].

This web article discusses the definition of game
addiction, examples of what influences this behavior, whether companies are
inciting this behavior, and how to deal with such addictions.

[7]  M. Ratan, “The Psychology behind Addictive
Mobile Games [Infographic],” Super Dev Resources, 30-Dec-2015. [Online].
Available: https://superdevresources.com/psychology-addictive-mobile-games/.
[Accessed: 28-Mar-2017].

Article discusses the addictive qualities of mobile
gaming. Info graphic displays many addictive properties, brain addiction,
revenue, and percentage of people spending money. Also goes over more elements
of the most popular mobile games.

[8]  M. Ives, “Electroshock Therapy for Internet
Addicts? China Vows to End It,” The New York Times, 13-Jan-2017. [Online].
Available: https://www.nytimes.com/2017/01/13/world/asia/china-internet-addiction-electroshock-therapy.html?_r=0.
[Accessed: 28-Mar-2017].

NY times article that discusses Chinese addiction
treatments camps that are attempting to treat adolescents with military regimens
and electroshock therapy. Estimates 24 million Chinese adolescents from the
ages of 13 to 29 are digital addicts.

[9]  ESSENTIAL
FACTS ABOUT THE COMPUTER AND VIDEO GAME INDUSTRY,
1st ed. entertainment software association, 2016, [Online]. Available: http://essentialfacts.theesa.com/Essential-Facts-2016.pdf.
[Accessed: 05- Apr- 2017]                    

Dozens of data points
discussing the amount of time people play games, how many gamers there are, who
buys them, how they play, and how parents buy games for their kids.

[10]
“Steam
Search,” Steam Search. [Online]. Available:
http://store.steampowered.com/search/?developer=Giants Software. [Accessed:
05-Apr-2017].

Steam search showing how many farming
simulator titles the same developer has released.

[11] D. Gentile,
“Pathological Video-Game Use Among Youth Ages 8 to 18: A National Study,”
Psychological Science, vol. 20, no. 5, pp. 594–602, 2009.

A Harris Poll from 2007 looking to assess
how many young American’s between the ages of 8 and 18 were addicted to gaming.
It found that 8.5 of them were addicted based on questions that would assess
gambling addiction.