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Losing in-game progress is as real as losing real life progress. No, I will not starve if I lose game credits (regular credits, not microtransacrion credits), but games are a transaction. For any progress, real or virtual, you're spending time and effort to get a reward back. Having fun while earning credits is like having fun while learning how to build/repair something. If you fail at the end, you've invested time with little or no payoff. The game credits are there to get you better equipment and such, making your future play better in some way. As I've gotten older and busier, my limited play time is more valuable, and I want to progress. If I don't or can't, then the game doesn't provide as much reward, and the game loses entertainment value despite a fixed monetary cost.
All to say if progress is at risk in MMOs, I stick to solo modes or non-PvP groups so I can remain the main character who rarely dies
There are some cases where there's a balanced zen to it. Take the Dark Souls series. It's rewarding not because you accomplished a task, but because you overcame a seemingly impossible obstacle, which can feel very rewarding. I'm on a level 1 run of Elden Ring, and it's profoundly punishing, but I'm halfway through the expansion, and seeing my progress fills me with joy.
Not sure I understand fully. You mean in a resource collection/allocation capacity?
If this wasn't a possibility, it wouldn't be a game. That defeats the purpose of a game. The alternative is just an interactive story.
Imagine you're a painter. Painting watercolor landscapes is a hobby of yours. Shenanigans ensue and a partially completed painting ends up kicked through, it's ruined. That painting wasn't important, you weren't going to sell it, nothing depended on it, and you can start again.
Losing progress in a video game is often like that.
Agreed on the transaction part. Too many times I've seen game devs giveth and taketh away willy nilly like people aren't PAYING THEM FUCKING MONEY. Sadly, it seems as though this brainrot is spreading into other industries instead of being corrected at the source, which checks out for the Roaring 20s.