Scott McCloud On Micropayments And Gaming
Thanks to Game Girl Advance for its discussion of a lecture by comic creator Scott McCloud at EA's Redwood Shores campus, during which he floated "the idea of using micro-payments for online gaming, which he analogizes to feeding quarters into the arcade machines of yore." The article's author muses: "Would you pay 25 cents for 100 credits of Bejeweled? What about a dollar for six hours on EverQuest? How about a virtual penny arcade that let you play multiplayer Joust or Gauntlet II online with people from around the world? No monthly subscriptions, just pure pay-to-play." We've previously covered McCloud's hands-on interest in micropayments on Slashdot.
I suppose I need to get a change slot installed in my home so I can send my quarters down the pipe and have them pop out at pop-cap games.
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While I'm sure this is a great idea for content providers, the farther the fee structure gets from a flat-rate system the less popular it will be with the customers. Games like EverQuest have conditioned gamers to expect monthly billing (or no billing at all, if you look at Diablo II), so anything more frequent than that will be seen as an irritation. A linear cost per time billing scheme also makes products substantially more expensive for heavy users, who are a primary source of word-of-mouth advertising. They must be kept happy. Furthermore, consumers respond very unfavorably to volatility in the amount they pay from one bill to the next ("My cell phone bill is WHAT??"), and a micropayment system would only exacerbate short-term fluctuations.
If micropayments ever become popular and easy to implement, I think we'll start seeing the old "salami slicing" hack again. When a lot of stuff you do online costs a nickel here, a penny there, a dime elsewhere... you can rack of some pretty serious numbers of transactions just browsing around. After all, if loading that New York Times article (free reg required) linked to from Slashdot is only 2 cents, who cares, right?
But perhaps some clever fraudster will see an opportunity here. Wouldn't it be easy to steal 1 cent a month from 1,000,000 people who use micropayments? After all, who's going to notice a line item titled "News article ----- $0.01"? So there's $10,000/month that nobody's really going to miss.
And for a single penny, would most people take the time to make a phone call or write an email to request clarification on where that charge originated? Even if all you make is a pitiful $3.60/hour, that one penny takes a mere 6 seconds to earn, far shorter than the time it would take to investigate. And is the micropayment company going to investigate your 1 cent dispute? Likely they would ignore you or even just automatically refund your penny without much thought.
CMDRTACO CHECK YOUR EMAIL!
I'm not cool with micropayments until the credit infrastructure sees some serious revision. With all of the transactions that are going to be happening "real soon now" with micropayments, there's bound to be a huge opportunity for massive fraud on a microscopic level. As it stands now, Visa seems more concerned handling fraud cases as they happen, rather than taking more initiative in stopping them at the root level.
A micropayment system would require some sort of public key infrasturcture. You'd put money in your micropayment account (probably with a credit card, but only when you needed to top it off), and then every time you did something that cost you money, somebody's use your public key to verify that you were who you said you were, and a few pennies would be debited from your account. The whole transaction has to be very simple to work.
Yeah, I know what you thinking. Big opportunity for ripoffs -- steal one penny from one million people, and you've got a big haul. But that's a problem with any payment system.
The really big problem is that there's no public key infrastructure to support micropayments. Which, come to think of it, is also why spam is such a problem -- there's no way to identify people so you can say, "I don't know who this bozo is, but I don't want any more email from him." Hmm, I smell a business synergy....
McCloud's hands-on interest in micropayments
read:
McCloud's hands-on obsession with micropayments
Just what we need. Single player pay-per-play video games. Um, no-thanks. Asside from the lack of a cap on the total price, suddenly your favorite game would stop working when it wasn't profitable to run the billing server anymore.
While I'm thinking about it, micropayments for online games is a bad idea too. The concept seems fine, but it would turn into a way for publishers to disguise price increases.
Scott wants to find a pet industry to use as a R&D department to build his micropayment dreams for him. The trouble is, once the infrastructure is there, all sorts of advertisement supported and fixed price media will start costing fractions of a cent per use. Don't think for a second that means the ads or the up front fees will go away either. If he wants micropayments so badly, he's apealing to the wrong crowd. The users aren't going to rally to his side, because from the user's perspective micropayments are a genie best kept in the bottle.
If you try to apply this to games like Quake or Unreal Tournament where it's $.25 for each match then you quickly lose your casual fan base. Even if it was a fraction of that, I'd still be out $50 on the Unreal Tournament 2K4 demo right now. It gets worse with RPG games. Pay a few extra cents for a fancy hat, a few dollars for that ring of regeneration. Twenty-five cents each time you descent into the Dungeon of Dispair! You'll end up with a situation just like at the arcades when one friend runs out of quarters and can't play.
"Dude, a bunch of us are going down to attack the Red Dragon in the Dark Dungeon. C'mon!"
"Sorry, after spending $4.32 in the expansion area to get my Crystal Sword, I can't afford it."
Those that can afford their gaming habits now have an unfair advantage. Arcade games used to offset this with skill allowing you to continue on one quarter, today's games often have killzones designed to make the player shove in more quarters. Online games would surely go down the same route.
I also can't think off the top of my head of an instance where a product went from a flat rate back to a hourly/micropayment rate. Even long-distance and cell phones are edging towards a flat-rate with unlimited calling time.
What's wrong with selling/giving the server software to the people who buy and play your games, like Epic does for Unreal Tournament?
Sure, at first there's a gazillion servers to choose from, with ping times all over the spectrum, but eventually things settle down and you can weed out the good from the bad, or even form closed servers (eg clan servers).
Anyone know where I can find an online (Java/Flash/Shockwave) version of Joust? I miss that game...
Raging in an online forum won't do anything for the world around you. To see change, you must take action.
Don't cast that spell yet! I'm in the middle of auctioning off my kid's liver.
People have been pontificating about micropayments for like five or ten years, yet nothing ever comes of it.
Why? Nobody wants it but webmasters and tech types looking for a solution to a problem that doesn't exist.
Face it, if anyone on the web comes up with a high-volume, pay per use application -- why would they want to join a micropayment consortium and share the revenue? Being a member of a "micropayment network" would actually expose customers to competing services as well!
They would rather license additional content and sell a higher dollar value "unlimited" subscription -- look at Yahoo Games as an example.
Conformity is the jailer of freedom and enemy of growth. -JFK
I like McCloud's stuff, but after reading this I feel like he's a creepy guy in a trenchcoat following me around waiting for me drop a coin. Enough with the micropayments already!
Why? Because if I drop a quarter in an arcade cabinet, the quarter serves as physical proof that I dropped a quarter in there. Now, if I were actually in a real arcade (which is darn near impossible anyway), I can go to the arcade employee and tell him that the machine "ate my quarter," (another modern impossibility since the game would have cost no less than four quarters) but the fact remains that I've dropped a physical quarter in the machine. The machine just can't take a quarter out of my pocket without me looking.
But online payments reverse this. The power of the transaction is now firmly in the grip of the payee, not the payer. With micropayments, Scott McCloud's dream machine can take quarters from my pocket whenever it feels like making an error. I understand that there are checks and balances with the credit card companies, but what if some 10 year old kid uses his mom's debit card? How do I know that the game didn't charge me for 11 games when I only played 10? Who's going to go over their credit card statement to compare how many times they've played a certain game? Moreover, with a physical arcade, when I place the quarter into the machine it is physically me placing it a machine. Using a credit card for gaming micropayments across the internet is like giving someone all your quarters, telling him to pass to the next guy and so forth until someone is close the machine, have him to put one quarter in and then kindly hand back all the other quarters you didn't use. Repeat 5 times an hour, more if you suck at the game, each time, of course, becoming yet another opportunity for someone you don't trust to interupt that line and snag a quarter.
It should come as no surprise that McCloud pushes micropayments, and it should come as no surprise that someone at EA Redmond probably has several whiteboards full of micropayment ideas by now. They're content producers so, as I've illustrated, micropayments place power firmly in the grip of the producer.
Is it just me, or are McCloud's micropayments remeniscient of the old Office Space-a-roo, only legal?
With the proliferation of cracks/hacks to online gaming cheats, imagine a clan that developed a way to skim $0.01 from each member of the [fill-in-game] community.
OR, what if you could combine "on-line gambling" with pay-per-play on-line games. Imagine a scenario where your PayPal account is credited $0.05 foe each head shot kill, or deducted $0.10 for each death you experience attributed to being killed by a head shot. Not really gambling, but you get the lightbulb.
Can you suggest other cool pay-per-play (or get paid for performance) micro-incentives?
This one gang kept wanting me to join cause I'm pretty good with a bo staff.
See, I'm not big on MMORPG's. I like playing FFXI and SWG's. They're both fun, hours at a time hack and slashers.
I am not however, interested in playing them fo 10 hours per day in order to be at a very high level and keep having fun. I'm not a instant high level kind of guy.
However, whats stopped me from playing both of them recently are two factors:
#1: Both charge a flat, montly fee, which I do not get the good end out of.
#2: Both delete your character off of the server after a month of a cancelled account. There is nothing you can do to keep the character from being deleted.
If I could pay, say, 5$ a month, and and only expect to get 10 hours of play time, and anything over that gets be the premium 12:50$ a month, I'd probably never cancell my account.
This is why I've given up on PC online RPG's by the way. The developers use the helpfullness of server side characters to completely screw players into paying money. If I could drop a dollar or so whenever I started playing until I logged out, then hey.
X
Here
The Braying and Neighing of Barnyard Animals Follows.
Check the news post for that strip for more commentary.
If I play Gauntlet II online, how will I push my teammate away from his controls so I can steal the food before him? (Believe it or not, my friends and I actually do that when we play only to have someone "accidently" shoot it)
If anyone DOES contest their payments, even one person, you investigate the company that made the transaction (as the micropayment company that receives the complaint). See if it's legit, first of all. That doesn't take long. If multiple people are complaining about the same company, they probably have a problem with their billing, your own software, or are trying to run a scam.
Everyone doesn't have to complain. As soon as a few do and the MP company investigates and finds a scam, everyone who was charged fraudulently could easily be refunded whether they noticed originally or not.
And finally, it's a fucking penny, who gives a shit? I wouldn't even get mad at bleeding a whole quarter a month, so hell, I'll chip in on feeding 25 scammers until they get caught, ok?
Well, two things:
1) Of course most people wont pore over their credit card statement to verify that they're not being scammed... but some people will. And they will complain to their credit card company. And the credit card company will, if enough people complain, investigate the game company to see if their customers are being screwed. And if they find something, the game company is going up the river.
2) Your quarter analogy is not a great one, because how does the arcade manager know that you actually put a quarter in the machine and it didn't work? If there are 500 quarters in the machine, and the machine has recorded that it has been played 500 times (even if a bug made that 500th game unplayable), then there is no proof.
Of course, since the arcade has a reputation at stake and few people would have the desire/patience to go around scamming arcades for quarters, he's probably going to give you a free game, something sneaky online providers will not. But the physicality of the quarter doesn't make anything more certain.
But yes, I do see your point that you have to take an active role in placing the quarter into the slot, which is a somewhat different action than just going to a website. But still, wouldn't you have to activate the website to work with your micro-payment anyway?
[SIG] It's like putting a moose in the blender -- a recipe for disaster!
http://slashdot.org/comments.pl?sid=78407&cid=6955 981
Every time Scott McCloud says the word 'micropayment', he has to pay me a quarter
Every time Scott McCloud comes up with a 'uniquely inventive' way of using micropayments on the internet, he has to pay me a quarter
Every time Scott McCloud tries to convince us that micropayments are the wave of the future and can work, he has to pay me a quarter
Then, once I have few hundred thousand dollars, maybe I'll buy him a 'clue'.
Micropayments are not feasible, micropayments will never work, micropayments are a buzzword of an internet bubble that burst nearly five years ago.
Move along, nothing to see here.
Dr. Wu
Scott McCloud talked about micropayments...wait, that can't happen.
But the physicality of the quarter doesn't make anything more certain.
Well sure it does. You yourself said that he's going to probably give me a free game, and while the physicality of the quarter may not necessarily help in that situation, my own physical presence does. He knows, because I stand in front of him, that this is not the 1037th time I've tried to steal a game. But with physical presence removed and replaced with equal amounts of anonymity, the content producer has to assume that every person who wants a free claim is, in fact, doing it for the 1037th time with a script.
The same could be said of any kind of online payment system, to be sure, from McCloud's dream arcade to Amazon.com to ebay. But the difference with micropayments, and particularly in the online gaming he's talking about where there is no physical product whatsoever, is that the dangers associated with online payments are exponentially increased.
With regards to my assertion that the Pac-McCloud virtual arcade cabinet can "steal" a quarter while a physical one cannot, you're right. You would have to activate it. But after you do that, your pocket's open, right?
Micropayments won't work, and never will work. First off, they'd look for a free source. If they couldn't find it, they'd look for a similar replacement (Bejeweled is a quarter? Ok, I'll play this tetris game for free instead). Finally, if given no other option they'll pay- but only if the content is worth quite a bit to them.
If the web ever becomes micropayment based, we won't see a great surge in income for website owners. We'll just see a decrease in the use of the web.
And personally, I find the idea of pay-per-view webpages disgusting. I'll go someplace free, thanks. Or if I like your site, I may be willing to pay for additional content. I won't pay everytime I want to see an article from you. For games, I'll pay a monthly fee for bandwidtth and new content, but not a per hour fee for a game I already bought!
Lets face it- micropayments are a dead idea. Consumers don't want it, and will never accept it. Stop wasting your time.
I still have more fans than freaks. WTF is wrong with you people?
Didn't they do that in Superman?
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The problem with the internet is that it happened too fast.
...
Had it have been controlled by the telcos it would have been rolled out slowly and in a considered fashion - of course, we would still be on 9600 baud modems paying $60 per month, but we would also have a micropayment solution built into the infrastructure.
It would be something like the telephone billing system, where I can call a pay-per-minute telephone service and the charges get billed via my phone account.
Now, back to reality, I like the internet the way it is, but a good micropayment system may work if it was charged to the ISP in a similar fashion to my telco nightmare above.
In fact, pay-per-view was considered in HTTP/1.1, which has the response status code 402 Payment Required reserved for future use. Presumably it would work like HTTP authentication, popping up a dialog asking for approval. At that time, (somehow) the cost needs to find its way back to the ISP.
I'm guessing that billing-the-ISP is the hard part, but here's how I'd approach it:
0. The browser requests a pay-per-view page.
1. the server returns 402 Payment Required, plus sends back some response headers for things like Payment-Amount and Payment-Currency.
2. the browser pops up a "payment required" dialog box, similar to the "authentication required" dialog box.
3. the client has a SSL certs signed by the ISP, which provides both the proof that the purchase is OK, and a path to the ISP to charge them.
4. the server connects to the ISP (derives the 'billing server' from a DNS info record, then connects via HTTP using a new HTTP/2.0 method) with the proof of payment.
5.
6. money money money!
Hey McCloud, the 80's called, they want their pay per play idea back. In case you haven't noticed, the only gaming platform that uses this type of payment system is dying....the arcades.
Either, the cost is *very* low, so that I can ignore it, *or* it forces me to make a consient decision for every 5-minute game or every newspaper-article or whatever if this item is really worth the price. People don't like to be nickled and dimed. Witness the popularity of flatrate over pricing pr GB for dsl, even for people and usage patterns where the pr. GB pricing would be cheaper. Predictability itself has a value. Loosing the stress of managing your spendings (or you monthly GB-quota or whatever) itself has a value.
In most proposed solutions you need an "aggregator", the way it'd work is something like I owe hundred different online vendors 10 cents each, but that's impractical to transfer, so instead I'd pay $10 to the aggregator, and the vendors would get one large transfer from the aggregator instead of thousands of tiny ones from individual users.
Thing is, I don't nessecarily *want* some "aggregator" sitting in a controlling position, and compiling enourmous amounts of infor about my spending-habits online. You can see everyone from Visa to MS positively drooling over getting themselves into this role. All of them prefer systems where they alone control it offcourse, a more open system with competition between different aggregators migth be better for consumers, but none of the financial powerhouses want it.
It creates barriers. Some clever person said that the value of information and services increase with the number of interconnects. Demanding money, even a single cent, is going to cut the number of interconnects *dramatically* and thus destroy value.
It's also typically poor value. Look, I'm sorry to say so, but $1 a track for music, for example, is not very impressive in a world where I can in most cases buy the CD used on ebay for less than what it'd cost me online. I realize that's not micropayments fault, but thing is, when distributors save money, I as consumer expect to save money too.
A copy of Jak-II on Ebay is $30 or something, I can play it for a month, until I'm tired of it, and probably resell it for similar price, let's say $25. So, I'm out $5 + porto. $15 a month for access to a online game is simply not good value.
I realize that companies providing "content" is drooling all over themselves at the prospect of having consumers pay for items with every use, rather than buy them once and own them, with all rigths that confer, such as the rigth to re-sell stuff you're tired of. But unless the price under such a pay-per-use is orders of magnitude lower than what is today being offered, it's simply a shitty deal for the consumer.
I really don't like the idea of micropayments. never have. I'd rather buy something all at once, and not have to worry about making dozens of tiny little purchases. in this idea, it seems to be what amounts to an online, virtual, coin-op arcade... I'd much rather shell out a bit more, and be able to play whenever I want. also: I started reading GGA right after the Rez vibrator thing, and stopped soon after. they're so pretentious, over-analyzing my favorite hobby. games can be art, yes, but I don't want to hear art students reviewing my favorite games, because they completely miss the point of what makes games good.
There is a reason arcades are not popular anymore... its that very pay to play concept.
I prefer to OWN what I pay for.
My Anime, my games, my music, my dvd's.
I don't rent, I don't wareez, I don't P2P, but I want to own what I pay for, even if its just a license.
The exceptions to that are of course my internet service, rent, bills (ick), and 2 everquest accounts, and since I play those a LOT more then the (1 dollar per 6 hours) scheme, no thats bad.
Pay to play is just another way to squeeze every last penny out of somebody before that game or system collapses.
We pay monthly fees for online games now.
Why should we step backwards to a system that will ding us every hour instead of every month? I don't think the current system of monthly fees is _that_ inefficient: I've never heard of a game going under because their playerbase spent too _few_ hours connected.
Scott McCloud may be widely respected, but I can't for the life of me figure out why. It's one thing to advocate a micropayment system for things like online comics. Granted, those comics could still make decent money with publications and merchandise...
Its another to make a suggestion to the one aspect of the MMO industry that _isn't_ a source of constant contention.
That's actually not what he wants... he wants writing comics to be a reasonable profession.
This thing with games is just another attempt to get a micropayment system jumpstarted so that comics can be profitable for more creators, thus encouraging the medium, and letting it grow into one as important as TV or movies.
Which is fine, as far as it goes. Nobody's just going to sign up for a micropayment system so that they can read webcomics.. you need bait, something people already pay for, that maybe they can save money on using micropayments instead.
But now the games on a console or a PC are better than most arcade games, so there's no incentive to pay that quarter anymore.
Maybe if there was no alternative, micropayments would work. But I can't foresee the day when every single game developer decides to stop selling games to people willing to fork over $50 per title.
Scott Mcloud is great when it comes to "Understanding Comics", but maybe he should stop trying to understand Video Games.
Somebody tell him I said that.
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