Game Theory: Tom Nook is NOT a Crook! (Animal Crossing)

Summary

In this Game Theory episode, the presenter explores whether Tom Nook from Animal Crossing is a crook or a misunderstood businessman. They calculate the real-world value of the in-game house and island property, compare it to Tom Nook's asking price in Bells, and consider the implications of his sales tactics. The conclusion suggests Tom Nook might be using the player as a 'loss leader' to increase the island's value, making it a profitable venture for him in the long run.

Takeaways

• 🏠 Tom Nook offers a two-story house with a basement in Animal Crossing, but initially provides only a tent and charges nearly 50,000 bells for it.
• 💸 The total cost of the house and its expansions in New Horizons can reach up to 5.696 million bells, or 8.966 million bells if storage expansions are included.
• 📏 The house's size is calculated through a grid system, with the ground floor being an 8x8 grid and other rooms varying in size.
• 🤔 There's a discrepancy in the house's size estimation, with some assuming each grid square is one meter by one meter, while others suggest it's smaller based on in-game items' measurements.
• 📺 A 50-inch TV, which is actually 44 inches wide, is used to determine that one grid square is 22 inches by 22 inches, leading to a much smaller house size than initially thought.
• 💵 The value of the house in real-world terms is compared to U.S. housing prices, with the median price per square foot being $213, suggesting a more affordable price than Tom Nook's asking price in bells.
• 🌴 The house's location on a tropical island could significantly increase its value, with the Bahamas' price per square foot being over double the U.S. average.
• 💰 Tom Nook's asking price in bells is converted to real-world currency, showing that the house is a great deal compared to real-world property prices.
• 📈 The script explores the concept of inflation and how it affects property prices over time, comparing the cost of the house in the original Animal Crossing game to its cost in New Horizons.
• 🏝️ The potential risks of living on a small island are discussed, including the threat of rising sea levels and coastal erosion, which could devalue the property.

Q & A

What is the main concern expressed by Timmy and Tommy about the New Island?

Timmy and Tommy are worried that the New Island will make them go broke due to the high costs associated with it.

How does Tom Nook plan to solve the problem on the New Island?

Tom Nook plans to solve the problem by bringing in someone to fix everything, suggesting he has a person in mind to do the work.

What does Tom Nook offer to the person he wants to convince to do the work?

Tom Nook plans to make an offer to the person that they can't refuse, implying a compelling or irresistible proposal.

What is the role of Tom Nook in the 'Animal Crossing' game?

Tom Nook is a tanuki character who runs a variety of shops and is responsible for housing, making him a central figure in the game's economy.

How much does Tom Nook initially charge for a tent in 'Animal Crossing'?

Tom Nook initially charges nearly 50,000 bells for a tent on the New Island.

What is the total cost of a fully upgraded house with all storage expansions in 'Animal Crossing: New Horizons'?

The total cost of a fully upgraded house with all storage expansions in 'Animal Crossing: New Horizons' is 5.696 million bells, or 8.966 million if counting all expansions.

How does the narrator suggest that players can avoid being homeless in 'Animal Crossing'?

The narrator suggests that players can avoid being homeless by taking out a loan from Tom Nook, the same person selling the house.

What is the argument against Tom Nook's character being a crook or grifter?

Hisashi Nogami, the producer of 'Animal Crossing', argues that Tom Nook is a good guy because he doesn't add interest to loans and doesn't pressure players to pay him back immediately.

What method does the narrator use to estimate the size of a grid square in the 'Animal Crossing' house?

The narrator uses the size of a 50-inch TV, which is the same width as two grid squares, to determine that one grid square is 22 inches by 22 inches.

What is the estimated real-world value of the fully upgraded house in 'Animal Crossing: New Horizons' based on U.S. prices?

Based on U.S. prices, the estimated real-world value of the fully upgraded house is about $208,953.

How does the narrator conclude that Tom Nook might not be as exploitative as he seems?

The narrator concludes that Tom Nook might not be exploitative by comparing the in-game cost of items like the Nintendo Switch to their real-world prices and finding that the in-game currency, bells, has a real-world value much lower than initially assumed.

What is the narrator's final theory about Tom Nook's intentions with the island property?

The narrator's final theory is that Tom Nook is using the player as a 'loss leader' to improve the island's value and attract other buyers, making up for the low cost of the initial property through higher future sales.