Looking For Group: Applying MMO Techniques to Learning and Business

Lee Sheldon, Assistant Professor at Indiana UniversityPlayers of massively multiplayer online (MMO) games have long known that working cooperatively and competitively within the game space has improved not only their leet gaming skillz but also real life abilities, including leadership, communication skills, creative thinking and adaptability. Lee Sheldon, assistant professor in the Department of Telecommunications at Indiana University, has taken the use of MMO design and terminology to the next level and applied it to his classroom education.

Referenced by Professor Jesse Schell in his talk at DICE, Sheldon has applied basic elements of MMOs to his classroom, including forming guilds (small groups within the classroom), quests (activities and projects – both “solo” and “guild” based), offering “Boss battles” (exams), and using XP points instead of grades. While the media has focused mostly on Sheldon’s use of a non-traditional grading system, they’re missing the bigger picture.

According to Lee Sheldon, the use of the MMO system for classroom instruction has resulted in better attendance, greater class participation and more quality coursework. By utilizing terminology that students understand, Sheldon’s ideas may help students become better prepared for the real world, having expanded their collaborative skills, adaptive thought patterns, communication abilities, and leadership.

While Lee Sheldon’s classes are specifically tailored for game design—he teaches courses in Theory and Practice of Game Design and Multiplayer Game Design—these MMO principles (and game design theory in general) could be applied to nearly any classroom situation.

It’s not so far-fetched for the workplace, either. According to IT News in Australia, companies are already adapting some of the basic tenets of good game design and applying them to the work place, even though they’re not necessarily using the terminology of “guilds,” “raids” and “questing.” Some workplace game-like offerings include clear, well-defined goals and gradual, incremental rewards, such as points for showing up on time…

Simple psychology explains the benefits of using gameplay principles in all aspects of our lives. Offer rewards, get better results; you don’t have to be Lee Sheldon to understand that.

Afterword: Later this year, Lee Sheldon will be reporting more of his findings and detailing this project in his book “Practical Game Design: A Toolkit for Educators, Researchers and Corporations.”

Micro-transactions and MMOs: The New Capitalism

Micro-transactions have taken center stage lately as a hot-button controversy in social gaming, particularly on Facebook. But the debate over micro-transactions in other genres, particularly massively multiplayer online (MMO) titles, has been going on for quite some time, even prior to the advent of Facebook. The reaction to micro-transactions as elements of game play in MMOs has often been virulent, with proponents on both sides attempting to sway the other to their point of view.

Why such strong feelings toward one game element? For many MMO players, particularly those in subscription-based games, the use of micro-transactions comes down to a concern about fairness. For the hardcore “raiding guild” players, why put in so much effort and hours of play time into a game, only to have others succeed in the game by buying their way into it? For average MMO players, incorporating micro-transactions into core game play can also create an in-game society of “haves” and “have nots,” with some the players unwilling or unable spend the cash to be a viable part of the game universe.

Auction page from Audition 2, a F2P game from Redbana
Auction page from Audition, a F2P game from Redbana

One could posit the theory that—for Western gamers at least—the issue is really not about fairness, but that micro-transactions violate the virtually sacred principle of what we consider capitalism, or at least its idealized “American Dream” version: “work hard, and ye shall be rewarded.” To many MMO gamers, micro-transactions violate that principle by offering rewards to the user who merely pays extra cash. In some ways, it could be argued that this is a more pragmatic (or realistic) view of capitalism, i.e., “pay money, get what you want.”

It’s not just the players—the micro-transaction debate is an ongoing headache / concern for game designers, particularly those in the West, who have long struggled with the dilemma. In the past, Western designers have steered clear of incorporating micro-transactions into their mass market MMOs to avoid throwing off game play balance and risk losing their loyal customers. However, free-to-play games (F2P), which are supported through micro-transaction purchases such as enhanced character customization, special clothing and weapons, have long been popular in Eastern markets like Korea and China and are now rising in popularity in the Western world. With the increased success of the F2P model, game designers are taking a closer look at this model as a new means of monetization, customer retention and attraction of new users in order to survive in a new era of gaming.

The solution to this dilemma will most likely be a combination of the subscription-based model with a judicious use of micro-transactions, enabling both the idealized and pragmatic versions of in-game capitalism to coexist to the benefit of end users. Ultimately, all successful MMOs will need to include some content in the form of micro-transactions as an additional revenue stream as well as a method by which to obtain and retain users. As an example, one has only to look at Blizzard’s juggernaut World of Warcraft, which recently introduced two vanity pets for purchase (the first micro-transaction that has been offered in this game).

Capitalism in its ideal and real forms can indeed mesh in an MMO economy; by offering convenient and cosmetic enhancements that do not impact core game play on a micro-transaction basis, developers can give gamers the opportunity to purchase items that allow them to express their individuality and personality while still enjoying the fruits of their labor. This solution works for both gamers and game designers, as enhanced content can be added relatively quickly, provide entertainment and ultimately keep the player as a long-term customer.

Slow Sales and a Larger Audience Spells Change for the Games Industry

Used Games

June NPD data showed the game industry’s sharpest decline since 2000, with overall sales dropping 31% from this same time in 2008. The sales decline contrasts sharply with the fact that 4 million new gamers have entered the industry in the past year. The rise in audience size alongside a sharp drop in sales signals an emerging trend that players are increasingly turning to affordable digital content, free-to-play online game portals and casual games for interactive entertainment.

With Gamestop openly stating that their margins are being buffered by used game sales, protecting them from the sharp decline, one has to wonder if the sales slump is a temporary trend, or a permanent change. GameStop’s stranglehold on the used game market has caused many publishers and developers to explore alternative distribution outlets via online distribution platforms and console based marketplaces, and thus the quality of digital content has increased monumentally over the past year. Continue reading Slow Sales and a Larger Audience Spells Change for the Games Industry

Chinese Online Games Market Grew 63% In 2008 [Pearl Research via Gamasutra]

Gamastura reported today that Pearl Research’s new “Games Market in China” report forecasts the online games market in China will exceed $5.5 billion in 2012. The market grew more than 63% to reach $2.8 billion in 2008. According to Pearl Research:

Many Chinese game operators continue to be optimistic in 2009, stating that the worldwide economic downturn has had little effect on their business. Games constitute a small-ticket item and users have not cut back as much on this type of discretionary spending.

The OnLive Game Service and OnLive MicroConsole™ Revealed at GDC

OnLive LogoOnLive Inc. announced their on demand video game platform at GDC this week. The OnLive service and console streams advanced video game instantly to any TV using their inexpensive MicroConsole.

The new platform is supported by many of the top names in the video games industry including Electronic Arts, Ubisoft, Take-Two Interactive Software, Warner Bros. Interactive Entertainment, THQ Inc., Epic Games, Eidos, Atari Interactive and Codemasters. According to the press release, “it typically only takes a few weeks to extend an existing version of a game to work on the OnLive service, so there is little cost incurred by developers and publishers to support the OnLive platform.”

Speaking to Edge Online, Wedbush Morgan analyst Michael Pachter commented, “We don’t expect an immediate impact [on console sales] (the service likely will be rolled out in early 2010), but think that if priced right, OnLive could favorably compete for 1-2 percent of the overall games market.”