Week 9 - New Era of Gaming - The Era of Monetisation
The gaming culture within the era of digital transformation has experienced a significant shift that goes beyond the playful characteristic.
The live streaming and monetisation
Addressed by Taylor (2018), the emergence of live streaming goes beyond esports, reflecting wider changes in gaming culture. Platforms like Twitch have transformed gaming into a shared experience, where gamers of all kinds can engage with audiences in real-time, turning private play into public entertainment with interactive features like synchronous chat windows, surpassing the capabilities of traditional video platforms like YouTube before it enabled the live-streaming feature (Taylor, 2018). This shift in gaming central to the platform’s affordance creates new space for gamers to not only interact through broadcasting to small audiences of friends and family but also attract the mass audience with profitable practice (Taylor, 2018). Specifically, Taylor (2018) indicated that participants blend gameplay, humour, commentary, and live interaction, with some aspiring to professional status through various monetization methods. Therefore, monetising has become a noteworthy aspect of gaming in this digital era.
Taking Twitch as an example, Johnson and Woodcock (2019) pointed out seven monetising methods that are mostly popular on Twitch, including:
Subscriptions: Viewers pay a monthly amount to a streamer for special username recognition.
Donations and Cheering: Viewers give money directly or through Twitch, with the platform taking a cut, but viewers receive automatic recognition.
Advertising: Streamers run adverts for corporate products on their channel.
Sponsorships: Streamers secure deals with game companies or brands for free products or promotions during broadcasts.
Competitions and Targets: Viewers are encouraged to participate in buy-ins for individual or global prizes.
Unpredictable Rewards: Drawing on the psychology of gambling, viewers donate in hopes of recognition.
Monetary "Channel Games": A gamified approach to Twitch's platform, engaging its user base with incentives for financial support.
Being one of the most prominent platforms for streamers to monetise their labour, Twitch’s position in this process is explained by the norm of Twitch’s users in which viewers consistently support their favourite streamers while aspiring streamers actively seek donations (Johnson & Woodcock, 2019). Therefore, Twitch's culture and infrastructure are deeply intertwined with money exchange, fostering a welcoming environment for new monetisation methods, and it also makes Twitch a community that fosters an audience accustomed to digital play, making them receptive to gamified approaches to monetisation.
But there is another way of monetising...
Another form of monetisation from the video game community is the in-app purchase with the potential of user exploitation. This has been addressed by King et al. (2019) stating that major video game companies have developed technical systems aimed at encouraging repeated in-game purchases, potentially in ways that could be perceived as unfair or exploitative. Specifically, these systems utilise player data to customise offers and purchasing opportunities, optimising them to incentivise in-game spending within dynamically evolving game environments, as pointed out by King et al. (2019). The example below of the 'Love Fantasy' can vividly depict how the monetisation is processed.
Figure 1: Love Fantasy's In-game purchase
As shown above, when the players lost the game, there would be a pop-up banner showing the invitation to use 900 purple gems to continue the pausing game. This is designed to be hard to win, and when the players use the gems to resume halfway through the game, it would be easier to win this level.
This, as criticised by King et al. (2019), potentially exploits player behaviour while leaving consumers with few protections and exposing them to financial risks, especially among underage players and their guardians.
Moreover, in the form of in-app purchases, free labour is also a part of it as due to their financial vulnerability, the users, especially young ones engage more in free social labour such as sending invitations to recruit gamers and sending hearts to increase usage in the example of Kakao game usage by young female users conducted by Lee and Seo (2023). The example above and given below also contain the invitation for free labour as the alternative for making the in-game purchase.
Figure 2: The Pop-up for in-game advertising in Love Fantasy
In the pop-up banner before starting to play, there is an option of 'Free Power' with a symbol of television beside it. The first picture in the example above also presents that symbol. As the players choose those options, there would be a video advertising playing around 30 seconds to one minute as shown below.
Figure 3: The In-game Advertising of Love Fantasy
Lee & Seo (2023) suggest that this free social labour is significant and often unconscious, impacting the financial dynamics significantly. As a result, to protect gamers, especially the adolescents who are more vulnerable in terms of finance and psychology as well as dedicated to gaming, from being exploited, King et al. (2019) suggested effective policies, interventions informed by psychology, and ethical game design principles are necessary to safeguard the welfare and interests of consumers.
In conclusion, the aspect of game streaming and monetisation can signify a new trend of media consumption and platformisation that media practitioners need to pay more attention to. Meanwhile, in-app purchases, despite lucrative advantages to the game producers, need comprehensive regulatory measures and ethical considerations to ensure the fair treatment and protection of consumers, particularly adolescents who are often the primary targets of such monetisation strategies.
Johnson, M. R., & Woodcock, J. (2019). “And Today’s Top Donator is”: How Live Streamers on Twitch.tv Monetize and Gamify Their Broadcasts. Social Media + Society, 5(4), 205630511988169. https://doi.org/10.1177/2056305119881694
King, D. L., Delfabbro, P. H., Gainsbury, S. M., Dreier, M., Greer, N., & Billieux, J. (2019). Unfair play? Video games as exploitative monetized services: An examination of game patents from a consumer protection perspective. Computers in Human Behavior, 101(101), 131–143. https://doi.org/10.1016/j.chb.2019.07.017
Lee, C. S., & Seo, H. (2023). Being social for whom? Issues of monetization, exploitation, and alienation in mobile social games. Journal of Consumer Culture. https://doi.org/10.1177/14695405231195711
Taylor, TL 2018, ‘Broadcasting ourselves’ (chapter 1), in Watch Me Play: Twitch and the Rise of Game Live Streaming, Princeton University Press, pp.1-23