Hello, I am a psychologist and game designer, so I thought I might try to weight in about the reason loot councils often have issues from the angle of player psychology.
I think there are 3 main issues that make using a loot council a bad idea for 99% of raiding guilds in WoW. The top 1% of progression guilds could probably make an argument that everyone is dedicated enough to make it an okay system for them. Otherwise here are the 3 points:
1. Control: We generally want to feel like we are in control of our own fate. Most of the happiest people in the world are focused on what they can change and can control in their lives, while the majority of stressed out people are focused on all the things that happen to them and feel like they have very little or no control. Loot council removes the player’s ability to feel like they can control when they get gear. This generally increases tension and stress and makes people feel bad.
In game design, when a bad thing happens to you that you could not control we call it a random pain point, and while they can be useful (such as an enemy critical striking you) when it comes to progression, random pain points tend to make people feel like their effort was worthless and that makes players want to stop playing, generally speaking. SO when loot not being assigned to you feels random, that hurts.
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Projection: Projection is our concepts being put onto another person. So in this case, if I suspect that an officer does not like me, I am going to project onto that officer that they are arguing against me getting loot. Since transparency is often an issue in loot councils, my idea that I am being overlooked or purposefully ignored can fester because I do not see what happens in the council, but I DO see that I did not get the loot. Then I am left to draw my own conclusions, which is not helpful for morale in most cases.
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Hedonic Treadmill: This is the idea that you keep getting new stuff and you have fun doing it, but that you then are looking forward to that next item. MMOs are built around this grind. You are always improving and your work feels like it pays off. Intermittent reinforcement is when you are sometimes rewarded but not always and is also a major driver of behavior. In Raids, getting one upgrade every couple of raids is an excellent incentive to keep coming back.
A loot council often messes this natural cycle up in 2 ways at the same time:
A: Some players may go a very long time without getting gear. This may happen in any loot system but because the council decided it, that feels like the player is not earning anything. In a DKP system the player can feel like they are still making progress toward their next item, whenever it drops. They are likely to lose interest or feel frustrated when the player has no idea how close they are to their next item and does not sense they are progressing toward it.
B: The player who gets a lot of gear quickly via the loot council is likely to similarly feel a lack of interest in playing, because the game is a bit too easy and they do not have as many drops to look forward to. In many cases people get all their gear and then stop showing up for that raid.
For one final point, if people are running DPS and HPS meters and a loot council is not giving people toward the low end of the meters gear, those people are going to look even worse than they are and then potentially be left out of progression raids in the future, and it will FEEL like there was nothing they could have done to prevent this. I hope this post made sense, and I welcome your comments.
So do yourselves a favor, guild leaders. Ditch the loot councils!