Gamification: does it make business more fun, or is it just exploitationware?

Game elements could be a method of self-improvement, but may in fact be a tool for control.

Touted as a software update to fix a bug in human motivation, packaged into a salvo of talking points for the “insight industry”, gamification has been marketed as a miracle cure; a cheap and wholesome tonic to galvanise the listless and uninspired. But since then, it seems to have gone the same way as all hucksterism, and left us with a product whose only real fans are those making money from it.

It may be that marketing will be the only real sector to benefit from gamification, despite the initial excitement about how game mechanisms might help in the classroom or office. Both environments were thought of as ripe for adaptation: they already included features such as a roster of players (students or workers), a series of challenges (tests or work-assessments), and tiered reward systems (grades or salaries).

People like Seth Priebatsch (a founder of social gaming site SCVNGR, whose goal is to “build the game layer on top of the world”) argue that schools are already just poorly executed games, ones for which we must strengthen the “rules” in order to properly motivate the players.

But studies have shown that the type of prizes that games award – mainly externalised prizes like trophies and XP – can actually be harmful to individuals’ intrinsic motivation (the pleasure we feel when doing something is its own reward). External rewards signal to individuals that the task is undesirable in and of itself. Otherwise, why offer a prize at all?

These are not new observations, and they don’t only apply in the classroom. The work of psychologists Edward L. Deci and Richard M. Ryan (as popularised in Dan Pink’s book Drive) has shown that it is not rewards that are the most powerful motivation for employees, but feelings of “autonomy, mastery and purpose”. A 2011 paper by Krystle Jiang titled “The Dangers of Gamification” (pdf) makes similar points, also noting that in the workplace “extrinsic motivators” are found to decrease the capacity for innovation and creativity. Google’s famous “20 per cent time” is a great example of how to fight this. The company allows employees to spend one day a week focusing on their pet-projects, with the results including some of Google’s most successful ventures like Gmail and AdSense.

These examples show that gamification’s attempts to revivify the classroom or workplace are really just working from – or more often ignoring - established observations of behavioural psychology. The newcomer has simply got the marketing makeovers necessary to be sold as an innovation. As Danah Boyd, a senior Microsoft researcher, has said:

[Gamification is] a modern-day form of manipulation. And like all cognitive manipulation, it can help people and it can hurt people. And we will see both.

But while gamification is of little use in the workplace or classroom, the “modern-day manipulation” has been put to far greater effect by advertisers. P.J. Rey, a sociologist at the University of Maryland, has positioned gamification as a technique of capitalism which “expands capitalist production into new contexts”. Rey suggests that gamification allows capitalism to appropriate our time for leisure and play as a new arena from which to extract value.

On the whole it seems that as consumers, we’re too canny for this – we soon learn to ignore new styles of advertising after their novelty has worn off. Who now even registers the appearance pop-up adverts on the internet? Most of us swat them away like flies.

Although gamification promises to deal with this problem by actively engaging the consumer, the profits of companies that have relied on it to sell their product seem unsustainable. Stock in games company Zynga (the creator of mouse-clicker FarmVille) has fallen 75 per cent since its December IPO (£) whilst GroupOn (a company that used game-mechanisms such as countdown timers and bonuses for inviting friends to encourage sales), has had comparable losses despite recent investment.

The problem with gamification seems to be one of hype. The games-designer and critic Ian Bogost has attacked the concept on similar lines, arguing that it is the rhetoric and marketing of gamification that has given it power.

Bogost observes that when we use the language of “ify-ing” something we are indicating that we will put that thing it in a particular state (eg, to beautify or humidify something). The term “gamification” thus promises a transformative process that has measureable and predictable results, whereas the reality is very different: the mechanisms that make games engaging and enjoyable cannot be transferred to just any situation.

So what’s left? Well, actually, quite a lot.

Although gamification may be unusable in some scenarios and just plain annoying in others, there are still times where it can make a difference. The site FoldIt is one example. Users participate in biochemical research by folding proteins, a process that helps us to understand their structures better. FoldIt works because it already involved game-like elements (the puzzle solving of folding proteins) as well as intrinsic rewards (the feeling you’ve helped improve medicine). It was a big success, with the sites users solving in 10 days a problem that had stumped scientists for 15 years. The gamification simply put those challenges and rewards in a more approachable context.

Elsewhere, the frameworks behind gamification have been more helpful. Zynga honed its addictive products through repetitive A/B testing: changing a single element in infrastructure for one group of users with another group as a control, and then seeing which version is more attractive. Memrise, an online education tool based around flashcards, does exactly the same. Using its records of when users stop visiting the site, Memrise tweaks its layout and system of reminders to encourage long-term engagement, ideally helping individuals around the world to learn better.

Gamification may prove to be nothing more than some advertising consultant’s meal-ticket, but this doesn’t mean that the systems that have made it possible are without their uses. It’s right to be sceptical about any fad that promises to “fix” a problem as massive or complex as motivating people, but gamification doesn’t have to be the whole solution – it can just be part of a process instead.

Ian Bogost's Cow Clicker, a Facebook satire on gamification. Photograph: bogost.com

James Vincent is a journalist and writer. He is interested in technology's impact on society.

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Leader: The unresolved Eurozone crisis

The continent that once aspired to be a rival superpower to the US is now a byword for decline, and ethnic nationalism and right-wing populism are thriving.

The eurozone crisis was never resolved. It was merely conveniently forgotten. The vote for Brexit, the terrible war in Syria and Donald Trump’s election as US president all distracted from the single currency’s woes. Yet its contradictions endure, a permanent threat to continental European stability and the future cohesion of the European Union.

The resignation of the Italian prime minister Matteo Renzi, following defeat in a constitutional referendum on 4 December, was the moment at which some believed that Europe would be overwhelmed. Among the champions of the No campaign were the anti-euro Five Star Movement (which has led in some recent opinion polls) and the separatist Lega Nord. Opponents of the EU, such as Nigel Farage, hailed the result as a rejection of the single currency.

An Italian exit, if not unthinkable, is far from inevitable, however. The No campaign comprised not only Eurosceptics but pro-Europeans such as the former prime minister Mario Monti and members of Mr Renzi’s liberal-centrist Democratic Party. Few voters treated the referendum as a judgement on the monetary union.

To achieve withdrawal from the euro, the populist Five Star Movement would need first to form a government (no easy task under Italy’s complex multiparty system), then amend the constitution to allow a public vote on Italy’s membership of the currency. Opinion polls continue to show a majority opposed to the return of the lira.

But Europe faces far more immediate dangers. Italy’s fragile banking system has been imperilled by the referendum result and the accompanying fall in investor confidence. In the absence of state aid, the Banca Monte dei Paschi di Siena, the world’s oldest bank, could soon face ruin. Italy’s national debt stands at 132 per cent of GDP, severely limiting its firepower, and its financial sector has amassed $360bn of bad loans. The risk is of a new financial crisis that spreads across the eurozone.

EU leaders’ record to date does not encourage optimism. Seven years after the Greek crisis began, the German government is continuing to advocate the failed path of austerity. On 4 December, Germany’s finance minister, Wolfgang Schäuble, declared that Greece must choose between unpopular “structural reforms” (a euphemism for austerity) or withdrawal from the euro. He insisted that debt relief “would not help” the immiserated country.

Yet the argument that austerity is unsustainable is now heard far beyond the Syriza government. The International Monetary Fund is among those that have demanded “unconditional” debt relief. Under the current bailout terms, Greece’s interest payments on its debt (roughly €330bn) will continually rise, consuming 60 per cent of its budget by 2060. The IMF has rightly proposed an extended repayment period and a fixed interest rate of 1.5 per cent. Faced with German intransigence, it is refusing to provide further funding.

Ever since the European Central Bank president, Mario Draghi, declared in 2012 that he was prepared to do “whatever it takes” to preserve the single currency, EU member states have relied on monetary policy to contain the crisis. This complacent approach could unravel. From the euro’s inception, economists have warned of the dangers of a monetary union that is unmatched by fiscal and political union. The UK, partly for these reasons, wisely rejected membership, but other states have been condemned to stagnation. As Felix Martin writes on page 15, “Italy today is worse off than it was not just in 2007, but in 1997. National output per head has stagnated for 20 years – an astonishing . . . statistic.”

Germany’s refusal to support demand (having benefited from a fixed exchange rate) undermined the principles of European solidarity and shared prosperity. German unemployment has fallen to 4.1 per cent, the lowest level since 1981, but joblessness is at 23.4 per cent in Greece, 19 per cent in Spain and 11.6 per cent in Italy. The youngest have suffered most. Youth unemployment is 46.5 per cent in Greece, 42.6 per cent in Spain and 36.4 per cent in Italy. No social model should tolerate such waste.

“If the euro fails, then Europe fails,” the German chancellor, Angela Merkel, has often asserted. Yet it does not follow that Europe will succeed if the euro survives. The continent that once aspired to be a rival superpower to the US is now a byword for decline, and ethnic nationalism and right-wing populism are thriving. In these circumstances, the surprise has been not voters’ intemperance, but their patience.

This article first appeared in the 08 December 2016 issue of the New Statesman, Brexit to Trump