An insight into the weaponised behavioural economics of free-to-play games

"Coercive monetisation". Now there's a sinister phrase.

Ramin Shokrizade writes on Gamasutra about the various tricks used by developers of free-to-play games to get your money:

Skill Games vs. Money Games

A game of skill is one where your ability to make sound decisions primarily determines your success. A money game is one where your ability to spend money is the primary determinant of your success. Consumers far prefer skill games to money games, for obvious reasons. A key skill in deploying a coercive monetization model is to disguise your money game as a skill game.

King.com's Candy Crush Saga is designed masterfully in this regard. Early game play maps can be completed by almost anyone without spending money, and they slowly increase in difficulty. This presents a challenge to the skills of the player, making them feel good when they advance due to their abilities. Once the consumer has been marked as a spender (more on this later) the game difficulty ramps up massively, shifting the game from a skill game to a money game as progression becomes more dependent on the use of premium boosts than on player skills.

Note that the difficulty ramps up automatically for all players in CCS when they pass the gates I discuss later in this paper, the game is not designed to dynamically adjust to payers.

If the shift from skill game to money game is done in a subtle enough manner, the brain of the consumer has a hard time realizing that the rules of the game have changed. If done artfully, the consumer will increasingly spend under the assumption that they are still playing a skill game and “just need a bit of help”. This ends up also being a form of discriminatory pricing as the costs just keep going up until the consumer realizes they are playing a money game.

As with gamification, the world of free-to-play games is a fantastic example of the weaponisation of behavioural economics. There's a whole group of people for whom books like Daniel Kahneman's Thinking, Fast and Slow are something between an instruction manual and their own version of The Prince – and they're making video games.

The tactics listed are why I've found myself increasingly suspicious of F2P games where the purchases have any effect on gameplay at all. For instance, I loved Kingdom Rush, a fun little tower defence game for my iPad. But the sequel introduced payments for one-off bonuses as well as new heroes which you could buy. Now, whenever I fail a level, there's the sneaking suspicion that the level was designed to be impossible to finish without splashing out. Who would have thought that we'd be nostalgic for the days of paying for a game and then playing it?

The logo for Candy Crush Saga. Photograph: King.com

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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The big problem for the NHS? Local government cuts

Even a U-Turn on planned cuts to the service itself will still leave the NHS under heavy pressure. 

38Degrees has uncovered a series of grisly plans for the NHS over the coming years. Among the highlights: severe cuts to frontline services at the Midland Metropolitan Hospital, including but limited to the closure of its Accident and Emergency department. Elsewhere, one of three hospitals in Leicester, Leicestershire and Rutland are to be shuttered, while there will be cuts to acute services in Suffolk and North East Essex.

These cuts come despite an additional £8bn annual cash injection into the NHS, characterised as the bare minimum needed by Simon Stevens, the head of NHS England.

The cuts are outlined in draft sustainability and transformation plans (STP) that will be approved in October before kicking off a period of wider consultation.

The problem for the NHS is twofold: although its funding remains ringfenced, healthcare inflation means that in reality, the health service requires above-inflation increases to stand still. But the second, bigger problem aren’t cuts to the NHS but to the rest of government spending, particularly local government cuts.

That has seen more pressure on hospital beds as outpatients who require further non-emergency care have nowhere to go, increasing lifestyle problems as cash-strapped councils either close or increase prices at subsidised local authority gyms, build on green space to make the best out of Britain’s booming property market, and cut other corners to manage the growing backlog of devolved cuts.

All of which means even a bigger supply of cash for the NHS than the £8bn promised at the last election – even the bonanza pledged by Vote Leave in the referendum, in fact – will still find itself disappearing down the cracks left by cuts elsewhere. 

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.