WEBVTT - EA Alters the Deal

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<v Speaker 1>A comment on Reddit from game publisher e A broke

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<v Speaker 1>all the records for most down votes with more than

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<v Speaker 1>half a million responses. But how did gamers really fee

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<v Speaker 1>I'm Jonathan Strickland and this is tex Stuff Daily. There's

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<v Speaker 1>a lot going on with this story, so I'll take

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<v Speaker 1>it piece by piece. Reddit, an online community where people

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<v Speaker 1>share stories, tell jokes, ask questions, and linked to things

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<v Speaker 1>they find interesting, has a simple system that allows users

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<v Speaker 1>to up vote or down vote comments. It's a way

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<v Speaker 1>for the community to express approval or disapproval. A recent

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<v Speaker 1>post by games publisher e A smashed the record for

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<v Speaker 1>most down votes. At the time of this recording, there

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<v Speaker 1>are more than six hundred seventy seven thousand down votes.

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<v Speaker 1>Previously the record was about twenty four thousand. Now a

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<v Speaker 1>lot of those may come from bots and not real people,

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<v Speaker 1>but still an astounding number. Gamers were angry about, well,

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<v Speaker 1>a lot of stuff. Gamers are always angry, but in particular,

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<v Speaker 1>they were angry in the way e A had structured

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<v Speaker 1>rewards in the new game Battlefront two, which is set

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<v Speaker 1>in the Star Wars universe. A critical point was that

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<v Speaker 1>when you first launched the game, you cannot just jump

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<v Speaker 1>into any of the iconic characters from the series. You

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<v Speaker 1>have to earn that ability, either by grinding away in

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<v Speaker 1>the game for forty hours or more just to play

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<v Speaker 1>as your favorite character, or by coughing up some cash

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<v Speaker 1>to purchase the privilege of playing those characters. And this

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<v Speaker 1>is on top of paying the full price for the

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<v Speaker 1>game itself. Many players felt that this is unfair. It's

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<v Speaker 1>as if e A had published a game, charged sixty

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<v Speaker 1>dollars for it, and then locked away the most fun

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<v Speaker 1>aspects of that game until you pay them more money

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<v Speaker 1>to access it. And if you take a look at

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<v Speaker 1>the economics behind the modern approach to video game publishing,

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<v Speaker 1>you realize that's pretty much what's going on. There are

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<v Speaker 1>different terms for it in the industry. The company Woulbisoft

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<v Speaker 1>calls it player recurring investment or p r I. Publisher

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<v Speaker 1>Take Two calls it recurrent consumer spending or r c S.

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<v Speaker 1>But whatever you call it, it's all about creating an

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<v Speaker 1>environment in which players will continue to spend money playing

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<v Speaker 1>your game after the initial purchase. That might include micro transactions,

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<v Speaker 1>supplemental downloadable content that adds more gameplay elements such as

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<v Speaker 1>additional story or levels, cosmetic changes, to an existing game,

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<v Speaker 1>or various types of player awards that may or may

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<v Speaker 1>not affect gameplay, and it's a big business. Let's take Ubisoft,

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<v Speaker 1>for example. During the company's midyear shareholder call, the company

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<v Speaker 1>revealed that player recurring investment contributed fifty one of all

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<v Speaker 1>digital revenue in the first half of That means the

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<v Speaker 1>company made more from these ongoing purchases than from selling

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<v Speaker 1>digital copies of the games themselves. With that sort of

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<v Speaker 1>financial performance, you can expect to see a lot more

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<v Speaker 1>games include some form of incentive to encourage players to

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<v Speaker 1>continue pouring money into a title after it launches. Depending

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<v Speaker 1>upon the implementation, players may not care so much with

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<v Speaker 1>downloadable content or DLC. You might get new chapters of

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<v Speaker 1>a game's story or new levels to play. If you

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<v Speaker 1>really enjoyed playing a game, you may feel that another

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<v Speaker 1>purchase is perfectly fine to get more of what you like.

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<v Speaker 1>Many players are also fine with the concept of cosmetic purchases,

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<v Speaker 1>either buying specific assets outright or through what are called lootboxes,

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<v Speaker 1>which represent a random assortment of digital items. Many players

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<v Speaker 1>aren't so crazy about games that allow you to purchase

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<v Speaker 1>items that actually affect gameplay. The dismissive term among gamers

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<v Speaker 1>for such practice is pay to win, meaning a player

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<v Speaker 1>doesn't need to develop any skill or expertise with a game,

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<v Speaker 1>but instead pay extra to get access to high powered

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<v Speaker 1>items that give him or her an advantage within the

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<v Speaker 1>game itself. Typically, these games allow you to earn rewards

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<v Speaker 1>through actual gameplay, but at a very deliberate pace. There's

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<v Speaker 1>a delicate science to this. A game developer wants to

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<v Speaker 1>make a game that's compelling enough to convince people to play,

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<v Speaker 1>but reserve just enough interesting content to convince a percentage

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<v Speaker 1>of that game's audience to shell out some bucks to

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<v Speaker 1>get that content early. However, if you reserve too much,

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<v Speaker 1>players may feel like the base game isn't worth playing,

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<v Speaker 1>or that you're extorting them for cash, or that you're

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<v Speaker 1>sending the message that the game is only fun if

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<v Speaker 1>you're willing to keep paying for it, and if the

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<v Speaker 1>stuff you reserve has a big effect on how the

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<v Speaker 1>game plays, players will resent either having to pay extra

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<v Speaker 1>to avoid being left behind by less skilled players with

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<v Speaker 1>more disposable income, or dealing with a game where they're

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<v Speaker 1>constantly at a distinct disadvantage because they refuse to engage

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<v Speaker 1>in this economy. Meanwhile, as this drama unfolds between game

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<v Speaker 1>companies and their customers, other concerns are popping up. In Belgium,

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<v Speaker 1>a gaming commission is investigating whether lootboxes are a form

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<v Speaker 1>of gambling. If the commission decides that loot boxes count

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<v Speaker 1>as gambling, then companies that incorporate that mechanic in their

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<v Speaker 1>games would first have to pay a fine for any

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<v Speaker 1>existing games being sold in Belgium that have that mechanic,

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<v Speaker 1>and then secure a permit for any future implementations. The

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<v Speaker 1>crux of the matter is this, in these games, players

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<v Speaker 1>can earn or purchase a chance to get some supplemental

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<v Speaker 1>materials for a video game. Typically it might be a

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<v Speaker 1>new costume or prop that has little to no effect

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<v Speaker 1>on gameplay, but some games will also include new items

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<v Speaker 1>or weapons that have in game advantages. Game developers will

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<v Speaker 1>frequently compare this feature to trading card games like Magic.

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<v Speaker 1>The Gathering Magic players are used to buying booster packs

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<v Speaker 1>of cards to supplement their decks. You aren't guaranteed to

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<v Speaker 1>find anything particularly useful or rare in any given booster pack.

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<v Speaker 1>You might look out, or you might draw a bunch

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<v Speaker 1>of Dud's lootboxes, argue video game developers are pretty much

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<v Speaker 1>the same thing, and if you don't designate trading card

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<v Speaker 1>games as gambling, why would a video game version be

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<v Speaker 1>any different. Whether the Belgian Gaming Commission feels the same

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<v Speaker 1>way remains to be seen, but one thing really isn't

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<v Speaker 1>a gamble unless gamers stopped buying supplemental content entirely, we

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<v Speaker 1>can expect these practices to be the norm moving forward.

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<v Speaker 1>To learn more about video games and all other things technological,

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<v Speaker 1>subscribe to the tech Stuff podcast we published twice a week,

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<v Speaker 1>and do a deep dive on all things tech. I'll

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<v Speaker 1>see you again soon.