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Exploring the Game-Of-Chance Elements in F2P Mobile Games - Insights of Player's Emotions from Qualitative Analysis

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Exploring the Game-Of-Chance Elements in F2P Mobile Games - Insights of Player's Emotions from Qualitative Analysis 【Paper】 Exploring the game-of-chance elements in F2P mobile games - Insights of player's emotions from qualitative analysis - フリーミアム型モバイル・ゲームの確率変動要素の考察 ―定性分析によるユーザーの感情に着目して― Koeder, Marco Tanaka, Ema Mitomo, Hitoshi Graduate Student, GSAPS, Waseda University Visiting Associate Professor Professor, Waseda University Free-to-play (F2P) mobile games are based on a business model which allows the majority of players to play the game for free while only a small percentage (2-5%) is actually paying for the game (mostly through the purchase of virtual in-game items). Monetization is done through so called micro-transactions within the game where players can acquire virtual items and tools. To grow revenue and profit, game makers must motivate the limited amount of paying players to purchase more or to convert non- payers into payer. This is done by combining an attractive game-play with settings/elements that entice players to make in-game purchases. Especially, the above monetization mechanism could be boosted by the introduction of“game-of-chance” elements, or Gacha in F2P mobile games in Japan. Gacha can lead to irrational overspending among some part of paying players since game developers deliberately (mis-)use its mechanics to increase their revenue and profit with these players. This paper first outlines a basic framework of Gacha, its different mechanics and elements as well as its core issues based on literature research and interview research on players and developers. A special focus is on the emotional involvement of paying players and on learning from game developers and game expert about the role of this involvement for revenue generation. There are previous studies related to above F2P games but less focusing on its mechanism and its emotional elements. Artful combination of game design and monetization is especially effective for Gacha which can be found in the most profitable F2P mobile games in Japan. The overall business model is questioned in terms of its sustainability as it depends on limited percentage of payers. This was also confirmed by several developers and analysts who were being interviewed. Keywords: Gacha, freemium, mobile games, price discrimination, behavioral economics 1. Introduction*1 even though the price is affected by chance depending on With the increased penetration of smartphones, mobile the setting of winning percentage by mobile game providers. gaming apps have been on the rise globally. The mobile free- This is different from typical Western F2P games, where to-play (F2P) games space accounts for the major revenue virtual items can be purchased directly through in-game within the global mobile apps economy. However, despite the currency with a fixed price. Japanese games often feature a popularity of these games, only 2% of users actually make “Gacha” in the form of a refined lottery system where users in-game purchases (Swerve, 2016). Within the global mobile choose to pay for a chance to enter a real-time“lucky draw” game market, Japan occupies a leading position in terms to acquire these items (See Figure 1). In fact, the behavioral of revenues, generating $6.2 billion dollars in 2016 and in impact of Gacha upon Japanese game players has been so terms of spending per player, where it ranks first in the world significant, that several controversies have erupted between (SuperData Research, 2016). It has been suggested that developers, players and regulators in Japan because of its one of the main drivers of revenues in the Japanese free- perceived relationship to over-spending. The Japanese F2P to-play mobile apps market is“Gacha”, a game-of-chance game market and Gacha have been only briefly analyzed based in-game payment mechanism. Gacha seems to in English-language academic literature. (Askeloef, 2013; motivate players to spend more money in mobile F2P games. Kanerva, 2015; Yamakami, 2012b, 2013a, 2013b, 2014; (Teramoto, Shibuya, & Akiyama, 2014). It means that Shibuya & Teramoto, 2015). payers of Gacha accept a kind of price discrimination in F2P Figure 1: Difference between Western and Japanese F2P monetization: Adding the game-of-chance element to virtual item acquisition DHU JOURNAL Vol.05 2018 ｜ 16 2. Research Question regulated Gacha through the Law for Preventing Unjustifiable Extras or Unexpected Benefit and Misleading Representation. From the game publisher side, it seems natural to adopt The law was enacted in 1962 to protect consumers from Gacha as a mechanism for price discrimination allowing misleading labeling of goods and services (CAA, 1962). them to maximize revenues for certain mobile game titles. Gacha mechanisms work well and they are deeply intertwined within Japanese mobile game design. From the user’s 3.2. What is Gacha - a lottery system of virtual items as prize / premium perspective, however, how the game-of-chance element in virtual environment affects users is not well investigated. Lottery is common all over the world. Gacha, however, has One key question here is why do some players pay more several characteristics which are different from a real world for Gacha drawing and others do not? From an Economics lottery: low cost for the production and replication of prize standpoint of view, the same virtual item obtainable by Gacha items, flexibility of probability setting and a limited scope of has a different value for different players. To answer this value restricted to the (in-game) online world. In the real question, this paper will depict the characteristics of Gacha world, there are many kind of lotteries, from government- based on Japanese mobile game market information and run lotteries to marketing promotions which offer premium related regulatory and self-regulatory measures for consumer goods for winners, which are randomly selected from the protection. Then this paper examines several analytical participants. The real-world prize is more costly than virtual approaches followed by the main part, which looks at players goods. As the prizes are real goods, the probability of and professionals insights and show issues and possibilities winning is determined by the number of participants and prize for further studies. In that sense, this paper is a preliminary goods. In virtual world, a virtual item could be tremendously one for further research on how Gacha elements, game-of- rare to obtain by setting the probability nearly zero. The chance or artificial uncertainly to obtain virtual goods, affect value of a virtual item is generally contextual. For example, a usage and payment in freemium online services. virtual game item is not usable in a different game no matter how rare and“valuable” the item is. Real world lottery and virtual world lotteries like Gacha also have similarities: The variety of offerings of chances to get 3. Gacha as a game of chance element in freemium services items. Both could be obtained through non-monetary and monetary ways. And the winning possibility is largely determined 3.1. What is Gacha - gambling or lottery/lucky draw? by the provider’s setting. Both are also often utilized as According to previous studies, Gacha in online freemium marketing promotion tools. Therefore, there are several services seems similar to either gambling or lucky draws. elements such as the selection of the winning prizes, probability Shibuya describes Gacha as“…similar in screen appearance to win and opportunity to participate in the lottery which affects to vending machines that dispense children’s toys, and the design of the mechanisms of a lottery. By combining these lucky players can win valuable gaming items this way… elements, a variety of lotteries can be created. Gacha can be played for free, however, extremely rare and/ or valuable gaming items can also be obtained through 3.3. Elements and variation of Gacha in Japanese monetary purchases of online Gacha products.” (Shibuya & mobile games Teramoto, 2015, p.3). Yamakami describes it as“Japanese Looking at the literature, actual gameplay and mobile game game vendors have made huge revenues using Gacha. analysis reports (Spicemart, 2016) Gacha can be seen as Gacha is a kind of gambling for special items.” (Yamakami, being composed of the following points (Figure2): 2013a, p.268) and also as“ …a mechanism to provide a • It is a key game element and not the game itself (1) randomly picked item, sometimes free and sometimes as paid • It is paid for using an in-game virtual currency either by items. Gacha is a great framework to introduce gambling soft or hard currency (real money) (2) spirits into mobile social games. It also obscures the high • It is game-of-chance based including varied and price to premium items because one attempt of Gacha can advanced chance mechanics and probabilities (3) be cheap.” (Yamakami, 2013b, p.738) or in more detail“The price is one or two dollars. Some of the contents come in a • It uses elaborate audiovisual experiences during the set, and therefore, users continue buying Gacha, trying their draw/revealing process (4) luck at getting a full set (Yamakami, 2012a, p.1233). • It always provides a (virtual) reward (5) Despite its similarity to gambling, Gacha could be • Plays a role in the game (decorative, functional, social) (5a) understood as a lottery or lucky draw mechanism in a virtual • Available in different levels of rarity/limitedness (5b) world*1. Gambling is about betting money or valuable assets • Non-monetary (no real money trading) (5c) to get higher return than the betting amount. Gacha is about • Is often collectable (5d) pulling a lottery to get randomly allotted items. At gambling, • There are limited edition items that are often offered player will lose when they get less than their bet. At Gacha during real time in-game events (5e) drawing, player will lose when they fail to get an item they • It is only of value within the game and it is an essential desired.
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