Game Theory in Video Game Development
https://www.researchgate.net/publication/228573564_Game_Theory_and_video_game_a_new_approach_of_game_theory_to_analyze_and_conceive_game_systems
The application of game theory and the general logic used in a payoff matrix can be applied in many fields, including the development of video games. In their paper, Guardiola and Natkin discussed how game theory—notably the payoff matrix—can be useful in predicting how the player interacts with artificial dilemmas presented to them. As they insightfully pointed out in this paper, finding the Nash equilibrium is not the goal of a game theory application but rather creating a scenario in which an equilibrium is hidden from the player. This means that the application of game theory in video game development is much more complex than the examples we’ve covered in class.
In their analysis of the game “Ninja Gaiden,” Guardiola and Natkin looked at the payoff matrix of a system of the varying enemy formation. Defining payoffs using the in-game currency “Yellow Aura,” they constructed the following payoff matrix:
The game theory relies on the fundamental assumption that players always execute the strategy with the best payoff, and this assumption translates rather poorly onto us human beings that are irrational by nature. The series of strategies mapped out allows game developers to better predict a player’s response to specific situations, but are in no way more than an analytical tool for developers. However, as Guardiola and Natkin suggested in their paper, it could be a potentially powerful tool. In combination with empirical data from playtesting, payoff matrices like this allow developers to adjust mathematical values to better systematically balance the difficulty of their game and create more engaging user experiences.
Guardiola, Emmanuel & Natkin, Stéphane. (2005). Game Theory and video game, a new approach of game theory to analyze and conceive game systems. CGAMES’05, Int. Conf. on Computer Games, Angoulème, France, January 2005, pp.166-170,.

