The pushback against microtransactions and predatory in-game monetization via lootboxes has been getting more heated over the last year or so. The controversy surrounding Star Wars: Battlefront 2 was massive, and for the most part, the fallout of it has been a little encouraging for consumers. EA have vowed to not repeat the same mistakes with games like Battlefield 5 and Anthem, while even Shadow of War recently removed all microtransactions, while Turn 10 also went back on the microtransactions that were originally included in Forza Motorsport 7, which caught a lot of flak from widespread audiences.

That’s all happened, ultimately, because these policies have received a great deal of criticism from people who purchase these games- the age old argument goes that full-priced AAA games have no business featuring such monetization options, especially when they’re of the pay-to-win variety rather than being limited to just cosmetic items. At the same time, the other side argues that video game publishers are businesses, and they need to find ways to maximize their profits.

Recently, we sat down for a chat with 704Games’ Sean Wilson, executive producer of the upcoming racing sim NASCAR Heat 3, and asked him for his own two cents on the issue- and he mostly seems to fall in line with what the consensus on this is. Cosmetic microtransactions are acceptable to some degree, he says, but when it comes to pay-to-win mechanics, he can “understand the frustration” of consumers.

“From a straight-up business perspective, I understand why companies have included microtransactions,” Wilson said while speaking with GamingBolt. “They’ve been successful in generating extra revenue, plain and simple. And for better or worse, game companies are businesses, and businesses will always look for ways to increase their bottom lines.”

“If it stays about cosmetic content, and ideally if that content is created after the game is submitted (and therefore required an extra expense to create), then the microtransaction model is probably okay,” he continued. “But it’s a tough pill to swallow when someone asks me to pay extra for content that is already on the disc, or even worse, requires that I pay extra to win or be competitive. That crosses a line, and I understand the frustration.”

The approach of limiting microtransactions to cosmetics is one that has proven to be successful- and widely so. Fortnite makes a ridiculous amount of money from such monetization options, while Fallout Shelter has been doing very well for itself too. Granted, those are free-to-play games, but there’s no reason to believe that similar practices can’t prove to be successful in AAA full-priced games as well.

Microtransactions have become a sort of hot topic in full priced AAA games of late, thanks to controversies surrounding loot boxes in games such as Star Wars Battlefront 2, Shadow of War, Forza Motorsport 7, Destiny 2, and many more. With public outcry over exploitative monetization, and actual game rating bodies such as the Entertainment Software Association (ESA) doing the bare minimum to properly try and educate customers on potentially abusive in game monetization, a website has cropped up that takes matters into its own hands.

Microtransaction.zone (via PCGamesN) is a new site that aims to give its readers a rundown of exactly what sort of monetization scheme the games they’re looking for might employ. It has a number of badges and tags that it uses to convey this information at a glance. The database appears to be fairly extensive already, and even with some deficiencies present in the site at the moment, it is clear that this is an admirable initiative that will grow over time.

And maybe this additional awareness it imparts to customers will serve to make publishers even warier of trying to pull a fast one on their customers ever again…

It seems like it is a response to the controversy surrounding loot boxes and microtransactions- but ESRB has announced its intention to start having labels for any games with in game purchases with real world money going forward. Ostensibly, this should help customers make informed decisions about what kinds of monetization a game might have, but-

Well… it seems like the label applies to any game that allows anything purchasable in game with money. So, something like Shadow of War with its egregious lootboxes gets put on the same level as The Witcher 3, Horizon Zero Dawn, or Breath of the Wild, which don’t have any microtransactions, but do allow for full fledged expansions and campaigns to be purchased. Since just about every game these days gets some form of paid post launch content, that makes this label spectacularly useless.

Speaking to GamesIndustry, ESRB president Patricia Vance explained the reasoning behind this decision. “I’m sure you’re all asking why we aren’t doing something more specific to loot boxes. And I’ll tell you we’ve done a lot of research over the past several weeks and months, particularly among parents. What we learned is that a large majority of parents don’t know what a loot box is, and even those who claim they do don’t really understand what a loot box is. So it’s very important for us to not harp on loot boxes per se, but to make sure we’re capturing loot boxes but also other in-game transactions,” she said.

“Parents need simple information. We can’t overwhelm them with a lot of detail. We need to be clear, concise, and make it easy for them. We have not found that parents are differentiating between a lot of these different mechanics. They just know there might be something in the game they can spend money on.”

If all of this sounds hugely unsatisfactory to you, she does at least say that this is only the first step- and that ESRB will continue to look into the matter going forward. “This is a couple of steps forward. We’ll continue to work with the industry to ensure there are effective disclosures about in-game purchases in general, and more specifically loot boxes. So if there’s more that we can do, we will.”

I’m still not a fan, especially given how strongly ESRB has been lobbying against loot box regulation, but at least this is a step- even if it is a totally ineffective one.

STAR WARS: BATTLEFRONT II

Let’s kick things off with the most obvious choice, shall we? Battlefront II’s loot crates model was panned universally, causing severe stock plummets for EA and poor critical reception for the game itself across the board, ultimately forcing EA and DICE to rethink the entire model. Progression was locked behind ridiculous paywalls, essentially making Battlefront II a pay-to-win game. And that’s really disappointing, because without such issues, this could have actually been a really good game.

DeltaDNA provides deep-data analytics and real-time player marketing for developers and publishers, thus leading to more engagement from players and increasing their investment in games. Such information is essential in the mobile and free to play space but how does deltaDNA do it? GamingBolt spoke to CEO and co-founder Mark Robinson about the same as well as his thoughts on today’s trends.

"We’ve worked with many developers including Square Enix Montreal, Bandai Namco, Wargaming, Sega and 505 Games. In terms of memorable experiences, its always great to see companies using the platform to generate killer results."

Can you tell us a bit about DeltaDNA and the services it provides to developers?

DeltaDNA is a deep-data and real-time player marketing platform which is used by game publishers and developers to help improve player engagement and lifetime values in games.

Our technology solution uses advanced data mining and predictive modeling to identify and segment different player behaviors. Through this insight, players can be targeted with real-time personalized in-game messages offering tailored experiences that increase retention and revenues.

In addition to marketing and analytics features, we also have SmartAds – our intelligent player-focused ad mediation platform which enables game makers to optimize their in-game advertising by harnessing the power of their player data. SmartAds also allows developers to see how their players interact with ads, something which just isn’t possible with a lot of ad solutions on the market.

Which developers have you worked with in the past? Any memorable experiences with regards to certain companies?

We’ve worked with many developers including Square Enix Montreal, Bandai Namco, Wargaming, Sega and 505 Games. In terms of memorable experiences, its always great to see companies using the platform to generate killer results.

For example, we recently worked with Fancy Cats, a F2P mobile match three game with a feline twist, developed by Genix Lab and published by All 4 Games, Channel 4’s publishing arm. Our platform enabled Fancy Cats to develop a targeted offers campaign around Black Friday, which resulted in a 600% increase in monetization.

What challenges have you faced in establishing the company? What progress have you seen in the two years since being established?

I think one of the biggest challenges has been around raising the profile of analytics. Five years ago developers were only using analytics dashboards to measure game performance. The use of analytics then evolved and developers would know that they had a problem with their game, but had no idea how to fix it. We’re now in the era of analytics 3.0, where advanced analytics solutions can be used to extract actionable insights and deliver real-time personalization at an individual player level.

As a result, we’ve had to do a lot of evangelizing about analytics and what can be achieved. We’ve also had to wait for the games industry to upskill around data science, with the expertise needed to understand which queries to run interpret the value of those insights.

This upskilling has gained real momentum in recent years, which has resulted in a much greater uptake of analytics platforms like deltaDNA, particularly in mobile games. As a result, we’re now able to work with the biggest names in the industry which seemed like a distant ambition when we first set-up the company.

"The unique benefit we offer publishers and developers lies in our exposure of data, which is of particular importance to games. With our platform, developers can see insights that would be hidden if you didn’t have that granularity of data."

What can you tell us about the various analytics you offer to game developers and publishers?

Our analytics tools fall within three main categories:

1. Measure

Our Measure dashboards help developers to understand engagement and retention, payment & monetization, players, missions and social engagement. They can also compare cohorts and filter dashboard views against unlimited user-defined deep data segments.

Our custom dashboards provide the KPIs for producers and developers need, all in one place. You can set-up and share dashboards for specified individuals or to cover aspects of your game’s performance. The platform contains approximately 60+ standard charts that are common to all games. They are populated from a set of common events that are added to each game when it is created. Measure charts can be filtered by event date ranges, player start date cohorts, platform, player acquisition channel and your own custom player segments.

2. Analyze

The Analyze section contains tools that run SQL analytics queries against the Vertica Data Warehouse to build custom charts and reports.

• Slice & Dice : Build custom tables and charts by dragging and dropping the event parameters and user metrics in to the query panels.
• Funnels : Build funnels to analyze user journeys through sequential stages.
• DataMining : Dig deeper in to your data with custom queries.
• Direct Access : Connect 3rd Party tools directly into your deltaDNA database.
• LTV Predictor : Optimize your marketing spend by understanding which campaigns deliver the most valuable players.
• Player Segmentation : Build highly targeted micro player segments to filter your analysis results and run targeted campaigns.

3. Engage

Engage is a highly flexible testing, targeting & real-time marketing tool-set that lets developers create sophisticated, automated multi-stage player campaigns that can target a player whilst they are playing with in-game messaging or after they have left the game with email and push notifications. You can use Engage to run A/B Tests and Campaigns to change the balance of game for defined player segments with real-time Targeting & Segmentation, or you can target lapsed players and tempt them back to the game with incentives and rewards.

Engage operates in two modes In Game and Out of Game. Each mode has two main interface components, Actions & Campaigns.

• In Game campaigns are triggered by the player, in real-time as they are playing your game
• Out of Game campaigns run on a timer. Each campaign is checked every 15 minutes to see if any new players have recently met the qualification criteria.

How are your tools benefiting game developers and publishers, compared to other similar offerings out there?

The unique benefit we offer publishers and developers lies in our exposure of data, which is of particular importance to games. With our platform, developers can see insights that would be hidden if you didn’t have that granularity of data. This granularity helps developers to effectively balance In-App Purchase (IAP) and advertising revenues while understanding how player behavior affects total monetization. We are the only tool out there that brings all of this into one place.

By unlocking their player data, developers can choose what experience players receive, based on how they play the game. This enables developers to tailor their monetization approach, and offer ads to those who respond to ads and then IAPs to those that prefer IAPs. The player life cycle in F2P games is so short and there’s really only so many chances to engage with a player. DeltaDNA helps makes those interactions count.

"We don’t see any real difference between how developers should tailor their approach on PC compared with console. What’s key is making sure the onboarding is right."

What are your thoughts on the current state of free to play gaming? What are some of the challenges it needs to overcome?

F2P gaming has come along way since its inception. Developers have gone from knowing very little about their players to knowing a lot. There’s also been a huge shift in focus from acquisition to retention. This has meant that developers now have a much greater impetus to improve the player experience, however, because they rarely have enough data to drive that change it can often be guess work, when they should be testing and revising any changes they make.

Right now, the industry is turning its attention to real-time personalization which is why we’re seeing the big studios taking notice and investing in big data as they can now realize the value. For the player, this can only be good news with player experiences set to become a whole lot more personal.

What are your thoughts on free to play audiences on PC versus consoles and should it influence how developers approach their games?

We don’t see any real difference between how developers should tailor their approach on PC compared with console. What’s key is making sure the onboarding is right.

You’ve also got to see how players engage with the game and make targeted interactions based on each individual player experience, and you need to make sure your monetization mechanics aren’t cannibalizing each other. You also need to ensure you’ve got a good core monetization loop, which is the same whether it’s a PC, mobile or console F2P game.

During your assessment of different companies, how do you often assist those who may excel in one category (engagement) but fall short in another? How long is the overall process?

We have a consultancy service we offer developers called Benchmark. During the Benchmark process, our game designers and monetization experts play that game to death to test and benchmark the game using our evidence-based research methodology. The fact that we have over 100m Monthly Active Users (MAU) on the platform, makes our methodology incredibly robust.

We compare each game against the best performing games in each of five crucial game design criteria: Monetization, Retention, Engagement, Social and Game Mechanics. The publisher then receives a detailed report which looks at every aspect of their game’s design, while offering practical advice based on real‐world examples in areas where their game falls short. This gives developers a clear understanding of the kind of KPIs they should be looking to achieve with a robust strategy on how to achieve them.

Benchmark is at its most valuable during the soft-launch phase, where the developer still has time to make wholesale changes and refine the monetization strategy. To Benchmark a game usually takes around 3-4 weeks.

"We’re seeing a trend these days where triple-A titles ship with micro-transactions but add new content via updates and events (see: Overwatch, Halo 5: Guardians)."

There’s often a debate on whether micro-transactions are good or bad, even if it’s not in a pay to win sense. What are your thoughts on the merits of micro-transactions, both in the free to play and commercial game space?

The thing is, you’re always going to offend some players whatever you do, which is why player segments are so important to ensure that only those who are receptive to micro-transactions are exposed to them.

In the commercial game space it’s the same. However, I think it all comes down to how reliant the developer is on the revenues from DLC. Where DLC revenues are vital, then I think micro-transactions force developers to create better player experiences, with more personalized targeting.

What can you tell us about this form of player retention and how it compares to retention in F2Ps with micro-transactions?

We’re seeing a trend these days where triple-A titles ship with micro-transactions but add new content via updates and events (see: Overwatch, Halo 5: Guardians). When talking to premium game makers they often haven’t yet a high regard for the use of data in their games.

Therefore, if this trend is going to prevail, premium developers are going to need a mindset change around what happens in their game before the option to purchase DLC happens, otherwise they can’t be sure that players reach that point to make the transaction.

This is in stark contrast to mobile F2P games, where its possible to completely personalize the player experience so that IAPs are only show to the right players at the right time.

What are your thoughts on the current console space with regards to hardware, especially with mid-generation upgrades like the PS4 Pro and Project Xbox Scorpio?

From a F2P perspective, upgraded higher powered consoles can only be a good thing because we know that the better the hardware the better the conversion rate and monetization. This is a trend we’ve particularly noticed in mobile phones, as they have evolved.

What are DeltaDNA’s future plans? How will you be expanding your services in the future?

The big focus for us moving forward is going to be around our SmartAds platform. Currently, very few developers have a clue what they’re doing they’re doing around ad mediation and IAPs, so we’re going to be evangelizing again around SmartAds and its ability to deliver a unified experience to optimize engagement in the game.

In addition, we’re also looking to build more embedded intelligence into the platform to provide more auto-generated segments, predictive models and default messages to really help developers execute best practice built up from our years of experience.

Though it’s possible to obtain boosters for Vanguard, Crucible and House of Judgment from Sterling Treasures in Destiny, Bungie has reduced their drop rate with a recent update. While Rise of Iron will bring Radiant Treasures that will also likely drop for free (along with being purchased from Eververse), it seems the boosters can just be purchased separately for real money.

This is somewhat pay to win in the sense that they allow for increased reputation gain which then allows for packages to drop faster and for players to obtain gear that will actually affect their Light level. Again, if Radiant Treasures are offered for free on a weekly basis, it might help concerns but only a bit.

The expansion will also bring some new emotes to Eververse including a jump shot emote, winded emote and foot tapping emote. New dances will also be included like Gangnam Style, MJ’s iconic Beat It and the Stanky Leg. So that’s a thing.

Rise of Iron will be releasing on September 20th for Xbox One and PS4.

While there has been a bit of a backlash from gamers towards game companies that put microtransactions in their titles, Naughty Dog’s former community strategist Eric Monacelli has gone on record defending them. Speaking to MCV, about the post release DLC that will be added to Uncharted 4, Monacelli said that the games industry has made a number of changes of the last few years but gamers have always adjusted and come to accept those changes.

“Microtransactions tend to get a sort of negative connotation in the games industry,” he explained. “If you remember back in the day, people bristled when they sold horse armour [for The Elder Scrolls IV: Oblivion]. It’s something that has always happened. But if it’s good enough content and you want to pay for it, why not pay for it? That’s what it comes down to.”  He pointed to the original backlash when microtransactions were first introduced in The Last of Us. While there doesn’t appear to be microtransactions beyond DLC planned for Uncharted 4, there are more and more games that are bringing this kind of extra paid content.

Rainbow Six Siege developers have also said they will be adding some sort of microtransactions when that game launches. We’ll have to wait and see whether or not there will be good enough work that Uncharted 4 developers feel you should pay for extra little tidbits until March 18, 2016 when it finally releases.

Turn 10 Studios’ Forza Motorsport 6 seems to be repeating the biggest mistake its predecessor made by introducing microtransactions in the form of Forza Tokens roughly two months after the game’s initial release. These Tokens are available from $2.99 (325 Tokens) to $99.99 (20,000 Tokens) and one Token is worth 500 in-game credits.

Tokens can be used to purchase both cars and Mod Packs though there are options to disable notifications for the same in the game’s menus. It’s interesting to see Turn 10 return to microtransactions especially considering the backlash they received in Forza 5. Though it doesn’t take much effort to earn cars in Forza Motorsport 6, the very fact that other users could simply drop cash on the same without really investing any time rubs (and Turn 10 can profit off that) rubs people the wrong way.

Then again, at the end, it is the consumer’s money and they’re free to do what they want with it. What are your thoughts on Forza Motorsport 6 having microtransactions? Let us know in the comments below.

If you’ve been following Bungie’s Destiny, the shared world shooter which recently registered more than 25 million players, you’ll have likely kept track of the new Eververse Trading Company and its microtransactions. Rumours were going around that these microtransactions could mean free content in the future versus paid DLC and the recent Festival of the Lost somewhat fueled that rumour. But would paid expansion packs really be done away with?

As it turns out, no. Activision publishing CEO Eric Hirshberg stated in an earnings call today that “Destiny’s microtransactions and paid expansions are both selling well. As such, Destiny players can expect to see more of both in the future. Not one or the other, but both–and at the same time.

“I think they’re already co-existing. We had a full year of expansions to the game that have been very well received and sold quite well. More recently, you’ve seen us introduce smaller, in-game purchases that allow people to customize their experience and express themselves; those have been very well received and have sold well also. I think we’ve already shown that DLC and microtransactions can co-exist and that our community is hungry for more great content.”

As for whether the game would specifically alter its business model to favour microtransactions over paid content, Hirshberg said “As far as any shifts in strategy, I don’t have any announcements today, but I think we have a lot of options at our disposal. And the reason for that of course is that we have such great engagement with this game.”

Things could possibly change down the line but for now? Expect to be dropping another $20 on the next “expansion” when it’s out.

(Source)

It was an interesting week for Payday 2 fans, which is a nice way of saying they weren’t happy. This was due to Overkill Software introducing microtransactions into the mix through “safes” which contained random loot drops that could only be accessed by buying “drills” with real world money.

Though plenty of games are doing microtransactions, the outrage came from the fact that many of these drops actually affect gameplay and were only available with the DLC. So if you paid money for the DLC and discovered you had to pay more for a chance to get these weapons, you’d understandably be annoyed.

Overkill has responded by now allowing drills to drop in-game through random loot drops thus allowing you to access safes without paying additional cash. Also included in the new hot fix was the First World Bank heist being added to the Contract Broker’s Classics section.

Payday 2 is currently available on PS4, Xbox One, PC, Xbox 360 and PS3, though support for the previous gen consoles has been dropped.