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California Man Spent $1 Million On Game Of War Which Has An Annual Average Income Of $550 Per Gamer


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#1 XxXAbsolutZeroXxX

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Posted 13 December 2016 - 03:24 AM

A 45-year-old California man pleaded guilty in federal court Thursday to ripping off $4.8 million from his employer. Notably, the man admitted to spending $1 million of that bonanza on Game of War.

The mobile-phone game is developed by Machine Zone and heavily advertised by model Kate Upton. It's one of the top-grossing mobile games in the world, according to Adweek. And now we know why, at least in part.

Kevin Lee Co admitted in Sacramento federal court that,from May 2008 to March 2015, he embezzled nearly $5 million from his controller job at a heavy-equipment company called Holt California. He admitted in his guilty plea (PDF) to spending "approximately $1 million" on Game of War. He also admitted to getting plastic surgery and buying season tickets to the San Francisco 49ers and the Sacramento Kings. The record also showed Co bought "luxury cars" and a golf club membership.

We've read reports about players spending thousands of dollars on Game of War, which bills itself as "the world's largest multiplayer strategy game." It's raking in more than $1 million daily, but we've never seen a personal tab this high to date.

The strategy game sees players building empires with soldiers and attacking other players who are doing the same. The deeper you go, the more likely you'll shell out cash. VentureBeat said that Game of War's paying players spent an average of $550 on the game last year:

Quote

A $550 annual average is insane, but Machine Zone has definitely mastered certain aspects of getting people with a lot of money to part with huge chunks of it. A big part of this, as analytics firm ThinkGaming points out, is that Game of War has a lot of depth for big spenders. The app has a multitude of systems that players need to engage with to ensure they have an army prepared for the next big multiplayer battle. But those systems are slow, and players can speed them up by spending cash. Of course, a lot of games do stuff like this, and part of Machine Zone’s success is that other studios haven’t figured out how to duplicate its money-making techniques. It’s also likely that Game of War has a disproportionate number of whales compared to those people who put just a few dollars in. The game heavily favors big spenders, and the top whales are a hundredfold more powerful than the common player who puts little or no cash intoGame of War.


Cracked, meanwhile, did a piece last year entitled "5 Reasons I lost $9,000 On An iPhone Game." One reason is that players don't get to keep what they buy in Game of War.

"But, here, you're spending money on troops and other expendables that can be lost in combat. I was casually browsing the map at work recently and came across a guy who must have spent at least 7,000 Euros. He wasn't around to defend himself, so we attacked. We wiped out about 2,500 Euros. Two-and-a-half grand, gone in five minutes," according to Cracked. "It's like gambling, but with no possibility of winning."

For Co, the convicted embezzler, money was no object with Games of War. After all, he was gambling with his employer's money in additional ways. Co now faces a maximum 20-year term when sentenced in May.

http://arstechnica.c...ng-game-of-war/

Edited by I Zeratul I, 13 December 2016 - 03:25 AM.


#2 Bud Crue

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Posted 13 December 2016 - 03:30 AM

Addiction is a b i tch.

That being said, you want to succeed in this here f2p business on a mobile platform or otherwise? Consider taking some notes.
That and/or consider actually spending some time finding out what draws your paying customers in and what keeps them paying? Just a thought.

#3 El Bandito

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Posted 13 December 2016 - 03:54 AM

"Micro" transactions indeed. It would be a cold day in hell before I let my children get addicted to any freemium games.

Edited by El Bandito, 13 December 2016 - 03:55 AM.


#4 Elessar

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Posted 13 December 2016 - 03:58 AM

View PostI Zeratul I, on 13 December 2016 - 03:24 AM, said:

...

"But, here, you're spending money on troops and other expendables that can be lost in combat. I was casually browsing the map at work recently and came across a guy who must have spent at least 7,000 Euros. He wasn't around to defend himself, so we attacked. We wiped out about 2,500 Euros. Two-and-a-half grand, gone in five minutes," according to Cracked. "It's like gambling, but with no possibility of winning."

...

http://arstechnica.c...ng-game-of-war/


This reminds me of 2 early SciFi 4X MMO-Browsergames I played along time ago:
"War of Galaxy"(WOG) and "SOL" (on freeport.de)

Both had this concept of being vulnerable to attacks all the time
In WOG you would be informed about arrival time enemy fleets several hours in advance, meaning that often you would know that an attack is coming during the night, resulting in you "having" to get up in time before the attack, in oprder to raise planetary shield (or get defending fleets from neighboring star systems on the march, so they arrive just in time before the attack (but still would have to log on right in time for their arrival, because the fleets would only "arrive" when you were logged on at the time of their arrival (else they would arrive on your next log on after their official arrival time).
Caused a lot of sleepless nights for me, especially when my Alliance (the Kilrathy) had a major alliance war with another alliance.

In SOL on the other hand I had one case where my night attack on one enemy player (that devastated one of his planets) caused this player to quit SOL (actually a good thing ... he was member of a pirate alliance and, unprovoked, attacked a member of my Alliance ... and then lied to the leaders of his alliance about having been pürovoked into the attack ... well, after his alliance bosses found out about him lying to them, they denied him any assiatcne in his war against me asnd my alliance, so he would have been alone in his war against me and others of my alliance ( Good for us that he didn't know that I was trhe only member with significantg military assets ... which were all used on this one attack Posted Image ))
(actually waging war in SOL was a PITA at this time ... you had to send each single ship and combat transporter individually to the target ... which could take a lot of time, if it were 100 or more ships and ground forces)

Well, I am definitely glad that I don't play those games anymore ... a good nights sleep is much more valuable than the joy you feel if you pull up a successful night attack or defense in such 24 hour games Posted Image
(and in contrast to, as it seems, game of war, in those 2 games I mentioned there was no option/requirement to spend money on game assets ... all things you bought in game were earned in game)

Edited by Elessar, 13 December 2016 - 04:13 AM.


#5 oldradagast

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Posted 13 December 2016 - 04:19 AM

There's a reason I don't play any of that addicting trash - they are black holes for money and time. Too many people I know are addicted to games, usually mobile ones like these with constant combat and continuous worlds, where they just "have" to spend time (and sometimes money) keeping all their pixel troops alive and well. It's all meaningless and is a prime example of how people don't understand sunk costs. After somebody dumps hundreds of dollars in a game and gets their rear kicked and/or isn't enjoying it much anymore, they will still keep playing and spending because of all the money they spent.

Me, I only play games like MWO and World of Warships. Log in, blow some stuff up and hopefully have some fun, get some credits and XP, and log out. That's it. Nobody is going to blow up my ships or mechs while they are in port, and no real world money is needed, though I toss both developers a bone each year because I did enjoy the product they provided.

#6 -morituri-

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Posted 13 December 2016 - 04:32 AM

Stop the planet, ill get off.

#7 Lily from animove

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Posted 13 December 2016 - 04:33 AM

these games are all so stupid and expensive in total, i saw the jurassic world game, and ohhhh man just drawing some packs with dinosaurs for like40+$ which don't realyl advance your at all LOL.

it needs a VEEERY stupid playerbase to buy within that concept.

#8 Otto Cannon

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Posted 13 December 2016 - 04:35 AM

I'm sure there's a special place in hell for freemium mobile game devs.

Expendable assets is a big pay to win factor. In a game like MWO you can pay to get your mech without waiting, but a free player can get the exact same mech after a period of grinding and after that you're equal.

When you get expendable stuff quicker by paying, you can keep building up faster and constantly increase the power gap over free players over time. MWO could only do the same by making consumables like coolant flush and artillery essential to gameplay and also vastly more expensive to the point where free players couldn't use them and still save up for equipment and skill points. Since that (hopefully!) isn't happening anytime soon, they'll have to keep relying on Alex making mechs so sexy that we're compelled to hurl cash at the screen every time he designs a new one.

#9 Kasumi Sumika

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Posted 13 December 2016 - 04:46 AM

That's why I really avoid those generic greed over gameplay mobile games like Clash of Clans and all it's clone. They only exist to milking your money not for gameplay.

Also this is not the first one. There are someone in Japan that spend 600K Yen only to acquire his waifu in Fate : Grand Order. But then he getting chased by bank's debt collector because of that.

Then there someone who spend $6000 only to acquire his desired character in Gran Blue Fantasy after over 2200 attempts to finally get it.


Edited by Kasumi Sumika, 13 December 2016 - 05:01 AM.


#10 Tristan Winter

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Posted 13 December 2016 - 04:58 AM

While there are people with severe disorders and psychological issues who will do this sort of stuff, you also have to take into account that... some people are just really, really rich. The 1% of the 1%, they have a lot of money. I'm not saying that applies to the dude who spent $1 million. He just sounds he has issues.

I am surprised about the $550 average per gamer though. I don't understand that part. I was already ashamed about the amount of money I've spent on Star Citizen and MWO. Now I feel slightly less stupid.

But again, I don't think one should underestimate how many people are struggling with addiction, who are able to get credit cards and use credit cards to get more credit cards, and they just go on a spending spree before their life implodes.

Man, the internet is a dark place.

#11 El Bandito

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Posted 13 December 2016 - 04:59 AM

Well, this account is purchasable for low low price of 999 USD. The name El Bandito is purchasable for even lower price of 998 USD. :P

#12 Vellron2005

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Posted 13 December 2016 - 05:07 AM

Hey...

Yeah.. Yeah you...

Mister embezzler guy...

Wanna buy a mech pack? Posted Image

#13 jjm1

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Posted 13 December 2016 - 05:19 AM

Yeah well, I converted $70 into 680 virtual tons worth of Marauder.

Totally stupid really, but I'll justify it by the fact I've spent even more than that on even more stupid things that don't last, like meals and booze and fuel and a bike.

Edited by jjm1, 13 December 2016 - 05:20 AM.


#14 xWiredx

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Posted 13 December 2016 - 05:32 AM

This makes the near $1000 I've spent on MWO over several years seem pretty small in comparison, and the premiums for collectors edition things for other games even smaller. I mean, with those, I even get something tangible (like the statue and other misc goodies in the Gears of War 4 one).

#15 DerMaulwurf

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Posted 13 December 2016 - 06:09 AM

Say what you want about PGI. But their chosen method of drawing revenue is pretty much the least shady I've encountered in F2P gaming.

Every time you buy mech-pack, it's both permanent and you know in advance what you're getting.

Hell, even their lockbox-lottery is comparatively fair, because the rewards aren't exclusive and you get free cash, if you chose not to participate.

#16 Aiden Skye

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Posted 13 December 2016 - 06:16 AM

1 million is a colossal waste of money in any game, even more so in a cell phone game. Guy should have quit while he was ahead with his super cars.

#17 Lily from animove

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Posted 13 December 2016 - 06:48 AM

View PostKasumi Sumika, on 13 December 2016 - 04:46 AM, said:

That's why I really avoid those generic greed over gameplay mobile games like Clash of Clans and all it's clone. They only exist to milking your money not for gameplay.

Also this is not the first one. There are someone in Japan that spend 600K Yen only to acquire his waifu in Fate : Grand Order. But then he getting chased by bank's debt collector because of that.

Then there someone who spend $6000 only to acquire his desired character in Gran Blue Fantasy after over 2200 attempts to finally get it.





The main issue is, these games aren't even good games to begin with, they are simply bad games on their own without the payment options, and they are existing like 300x just with reskinned versions to make sure there is a game for every of the possible taget audiences.

View PostW A R K H A N, on 13 December 2016 - 06:16 AM, said:

1 million is a colossal waste of money in any game, even more so in a cell phone game. Guy should have quit while he was ahead with his super cars.



wiht 1 million you could actually buy shares on a game or multiples and make profit out of it.

Edited by Lily from animove, 13 December 2016 - 06:48 AM.


#18 Bishop Steiner

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Posted 13 December 2016 - 06:59 AM

View PostBud Crue, on 13 December 2016 - 03:30 AM, said:

Addiction is a b i tch.

That being said, you want to succeed in this here f2p business on a mobile platform or otherwise? Consider taking some notes.
That and/or consider actually spending some time finding out what draws your paying customers in and what keeps them paying? Just a thought.


So... get Kate Upton dressed up in Mechwarrior garb and start doing commercials... MWO could fund the next Battletech Revolution, sponsor next gen Tesla pods.... etc.

View Postjjm1, on 13 December 2016 - 05:19 AM, said:

Yeah well, I converted $70 into 680 virtual tons worth of Marauder.

Totally stupid really, but I'll justify it by the fact I've spent even more than that on even more stupid things that don't last, like meals and booze and fuel and a bike.

or going to movies, concerts, etc?
(or dates.... talk about burning money.... even if you get to homeplate)

#19 Felicitatem Parco

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Posted 13 December 2016 - 07:28 AM

I haven't seen the word "Eve" yet in this thread...

That "losable assets" part is one particular thing that drove me away from Transverse. I will not play a game where, daily, I can lose the assets I acquire through cash transactions. But that's just me...

(This was not a comment about transverse 's failings; it was strictly a topical comment.)

#20 Wildstreak

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Posted 13 December 2016 - 07:46 AM

It was stolen money so it was never his.

For people spending their own EARNED money, worst I heard was a nurse (they make good salaries) who bankrupted herself playing Facebook games.

Worst in video is this guy complaining about spending $40K on MTGO. Still surprised I have never seen a MWO vid like this, what no one reached $40K yet?

Edited by Wildstreak, 13 December 2016 - 07:46 AM.






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