Video games and Moloch patterns: Monetization strategies within pay-to-play video games and their impact on long-term player retention

Abstract

This study explores how Moloch patterns influence player satisfaction and long-term retention in video games. As a simplified definition, Moloch patterns in business appear when short term monetary gain is practiced at the potential expense of long-term sustainability. While extensive research has been conducted on financial performance and customer loyalty in business management and marketing, there is limited understanding of these concepts within the video game industry, specifically related to monetization strategies which may be categorized as Moloch patterns. This research aims to address this gap by investigating the impact of Moloch patterns on player retention in pay-to-play video games.To investigate this, the research utilizes a mixed-methods approach. A comprehensive review of academic literature was carried out to examine existing research on monetization models and strategies in video games, as well as player retention and satisfaction. This was complemented by case studies as well as a quantitative survey aimed at a specific sample of video game players. The survey aimed to measure levels of player satisfaction and determine which in-game purchases have the most significant impact on their decision to continue playing.The results indicate that Moloch patterns have a negative impact on player satisfaction. This, in turn, influences long-term retention in a way that could contradict the long-term sustainability of video game companies. The manifestations of these patterns vary across different genres, with some genres being more likely to be vulnerable to them than others.This research contributes to academia and the video game industry. It offers insight into how game developers, publishers, and investors may balance short-term gains with long-term sustainability. Additionally, it suggests opportunities for further research such as evaluating regulations aimed at safeguarding vulnerable players and exploring game designers' perspectives on prioritizing profits over player satisfaction and retention.