I like to play casual mobile games filled with microtransactions from time to time. I rarely spend a single buck, but I'm curious to understand what drives people to put so much money into them.
I can't help but wonder who the whales are who spend thousands on microtransactions and keep these titles free-to-play. In my head, these big spenders are rich tech bros or really bored middle-aged politicians. Turns out that regular people like me and you are also whales, but in another market.
A Circana study snapshot published by company director Mat Piscatella shows that only 4% of players in the United States buy games more often than once per month, while 85% of them take longer than a month to do so.
That means a small share of "price-insensitive, affluent players", around 4%, are carrying most of the spending in the video games market, effectively turning them into the whales that let companies increase prices, release deluxe editions, and more powerful versions of current-gen consoles.
The effect is quite similar to the one we see in mobile games. The reason why microtransactions in mobile games like Monopoly GO, Royal Match, and Candy Crush are so expensive is that developers set a price point based on how much the whales are willing to pay. That small share of players who spend a lot and often indirectly decide how much microtransactions will cost. After all, if people with less money won't spend anyway, why lower prices for them?
Whales are why these games have passes with several premium tiers, subscriptions, power-ups, and bonuses to the point of overwhelming those who just want to play without spending. I felt suffocated playing Archero 2 (a pay-to-win Vampire Survivors-like) because there was a myriad of premium packs and bundles for sale, all tied to time-limited content. It was easier to give up on the game than to go back to just playing normally. But I only felt that because I'm not a whale. A real whale would just buy these packs.
And it seems like the same effect is happening in console gaming, according to Circana's director. Since only the wealthy group of players are spending on video games anyway, companies can launch Pro and OLED console variants or charge $80 for a single title. The high-spending players will keep buying, and the casual customers will skip on them anyway.
There's a high chance that you're like our average reader, a dedicated gamer. If so, you're part of this whale group that's supporting the video game retail market. So, the next time you feel like you can't believe a stressed parent of two has spent hundreds of bucks on Monopoly GO, know they probably would be astonished if they saw you purchased Call of Duty: Black Ops 7 Vault Edition for $100 to play on your $750 PS5 Pro.
The post If you buy $150 Deluxe Editions and Pro consoles, you’re a whale just like mobile gamers appeared first on Destructoid.
