As a clinical psychologist, one of my main interests has been behavioural dynamics such as
neuroeconomics. For anyone interested in the process of descision making, I would also highly recommend reading the book
Thinking, Fast and Slow by Nobel Laureate Daniel Kahnemann. The book explains in detail many of the behavioural psychological phenomenon involved in descision making, which permeates so many areas of our culture, including MMORPG gaming design.
Now, why does this discussion belong on an ESO forum? In short, this is the explanation of RNG - and why it works. Browse the forum discussions, and you inevitably come across a multitude of topics regarding RNG. RNG for trait drops, for vMA weapons, for legendary material drops etc. RNG is a huge part of this game, and RNG is a topic that creates high tension and emotional responses by many people, and rightly so.
Although, RNG (Random Number Generator) is really not the term we should use for this phenomenon, the subject itself is called the Variable Ratio Schedule (VRS), and I will go into explanation on that a moment later in this post.
First of all, to see the relevance of VRS, let's see at the elements of chance that permeate ESO. As most people will know, we have a few desirable traits, namely Divines and to some extent Impenetrable and a few others, and a bunch of undesirable traits, such as Prosperous and Training and a few others (at least from an endgame perspective). This means that there is random chance associated with pretty much every item drop in the game.
Will an item drop at all? Will it be for the slot I need, or for a slot I do not need? Will it have the trait I need or will it not? This is a huge part of set farming and of vMA farming. There you also have the reason why all of this is Bind on Pickup, and why all dungeon and trial sets were made Bind on Pickup with One Tamriel update. If items were not bound, there would be a market to buy and sell, thus no VRS.
Look at crafting. Harvest a node, and you have a chance for your harvest pasisve to kick on and double the amount. Chance. You have a chance to get Nirncruxes, of the DLC styling mats, or you have a chance not to get any. Refine your materials, and the output number of refined mats is determined by chance. Even more important, the tempers, especially legendary gold tempers, are purely by chance. Fishing is chance. Filleting fish for Perfect Roe is chance. Decon an item, and the tempers and style mats you receive is chance.
Hand in daily quests, and whether you get the reward (such as set pieces or motif pieces) you need or simply trash, again chance.
Doing killings in DB gives you the style mat. By chance. The loot you get from the dead victims is also chance.
Think about loot boxes. Go to Cyrodiil or Imperial City and open boxes for your PvP sets, it's all chance.
In short, every time we play ESO, a huge part of our game is rolling the dice and praying for luck, or playing the slot machine, if you will.
In come the Crown Crates. Playing ESO before Crown Crates was a game full of chance, but at worst you could only lose the time spent (or wasted). With Crown Crates things changed. Now chance included losing real life money, and many people were in an uproar. Buying and opening Crown Crates is nothing more than playing the roulette or the slot machine. Sure, the package is nicer, more fancy, but the mechanics are exactly the same. Just like you use 'chips' in the casino in order to mask the value of - and emotions connected to - real life money, we here call them 'Crowns'. You might get lucky and get that awesome mount in your first handful of crates, or you might spend a fortune and still not get it. As clever people have shown, the average price for these mounts when you do the statistics, is dollars in the three figures.
So why do they do this? Why do they add Crown Crates to the game even with the amount of resistance it met? Why do they insist on loot boxes instead of selling items for a flat amount? Why do they insist on vMA random grinds instead of introducing a token system that people have asked for for an eternity? Why keep the random traits on gear and not be open to the idea of trait changing?
The short answer is "because it works".
In order to understand
why it works, we need to introduce the Variable Ratio Schedule, and contrast it with the Fixed Ratio Schedule.
This article does a thorough and excellent job of explaining just that.
I would recommend you read it, and thereby gain some insight into basic behavioural psychology.
Summing the conclusion form the article up, there are fundamentally only two ways of rewarding players in a video game, including MMORPGs such as ESO. A slow and steady progression towards clear set goals, which is the Fixed Ratio Schedule, or the uncertainty, and thrilling dance with Lady Luck, that is the Variable Ratio Schale.
In short, the Fixed Ratio Schedule provides full overview of your progression and the effort required to reach the next tier or goal. Think tokens, XP levels. When you know you have to kill X mobs to get X item, or kill X mobs to reach X level, then it's a fixed ratio.
Whenever the outcome of your effort is
uncertain, and the reward is kept behind walls of
chance and
random number generators, that is the Variable Ratio Schedule. You
might get lucky and get what you want in a couple of first tries, or you
might get unlucky and sink an awful lot of time, effort and ressources into the project, and
still not be rewarded with your prize (though we, as humans, think rather little about this possible outcome).
Now, the somewhat disheartening part of this whole post is that the Variable Ratio Schedule, i.e. chance, works. Scientific studies ever since
Skinner, back in the 60s, have shown that VRS is a powerful tool in addictive behaviour, such as repeated patterns in the hope of rewards. The FRS has a higher probability of behavior extinction - which in this context would mean quitting the game, or at leats playing something else instead.
We as humans, along with animals tested on, show a preference for the VRS as opposed to the FRS. When a goal or a level has been reached in the FRS, we know we have a long way to go to reach the next level, or next tier, and we start to lose motivation. In the VRS, however, the uncertainty principle pushes people ever onwards, driven by vague and tantilizing fantasies about possible rewards.
The people designing MMORPGs, including our own ESO dev team, is of course aware of this. The sheer number of RNG events governing the ESO experience proves clear as day that the developers had the Variable Ratio Schedule in mind when making this game, and that they adhere strictly to this principle going onwards as well, both in designing the game and in expanding their Crown Store.
This is why we will never see trait exchange (unless walled off by even more RNG events, or possibly Crown Store purchases), why we will never see vMA tokens, why we will probably see a movement towards more Bind on Pickup, and why we have seen the push for Crown Crates despite the community's distaste and dislike for this obvious gambling sham.
I have tried to present the topic of the Variable Ratio Schedule and the Fixed Ratio Schedule, and how it pertains to the fundamental design of ESO, in a somewhat sober and neutral manner. However, I will not hide my personal opinion and belief that ESO is taking this principle far too extreme. I myself am no gambler. I dislike gambling, I dislike the VRS, and I tend to shy away from most activities that rely heavily on the element of chance. In video games, there needs to be a small element of chance. There needs to be something surprising and random, to keep us engaged and to avoid too much routine. However, this needs to be a small element of the experience, this needs to be like spice, carefully applied to enhance the dish.
When you build an entire gaming experience around the element of VRS, you are playing on the basal level of human behaviour dynamics. You are little better than the tobacco industry of yore, adding chemicals and other compounds to their product to maliciously and purposely raise the possibility of addiction.
When MMORPG designers intentionally design the game in such a way as to play on all the strings in the neuroeconomical book of decision making, I feel manipulated, I feel violated and I am left with a very sour taste in my mouth. I am indeed a customer, and you are indeed a business whose primary goal is to relieve me ow as much of my money as I am willing to part with. That does not mean you have to throw every ounce of ethics out the window.
Internet addiction has already been included in the appendix of the DSM psychiatric diagnostic manual of mental illnesses in the United States. The only recognized condition alongside substance abuse and Ludomania (gambling addiction). MMORPGs are already sated with many elements that promote addiction, such as the social element, the neverending game with no clear 'Game Over' and many others. There is really no need to add real gambling into that already problematic mix, such as the slot machine mechanics of the VRS.
You, as a gaming company and as online gaming designers, have an ethical responsibility towards your customers and towards the products you provide. This ethical responsibility may also turn into a legal one, as more and more people become aware of the mental health issues involved in online gaming today. Much like the tobacco industry had to stand responsible for their abhorable and cynical business strategies before, you may face the same issues as time progresses.
And no less, much as behavioural psychology provides you with tools to exploit the human nature and the way our brains are designed, psychology also provides people with the necessary knowledge and wisdom to see through these ploys and exploitations, and hopefully make the necessary precautions in order to not get tangled up in this web of addiction and deliberate exploitation. There is also such a thing as "too much", and behavioural studies show that people, and animals, who feel cheated, punished or given paltry rewards for their sacrifices, turn to aggression and behaviour extinction.