I’m anti gooner but he is correct
(media.scored.co)
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I can give the simplest example, compare Overwatch to it's sequel. The amount of R34 and cosplay when Overwatch just released was mind blowing yet after dulling down the sequel, the player count dropped off with it.
It's not that sexy female characters MEAN you'll sell lots, but the PROCESS of making characters that appeal to your audience naturally puts you into the mindframe of thinking what else appeals to your audience.
Or maybe the corrolary; putting intentionally ugly characters in your game causes them to flop.
No one's going to spend their own time and money drawing art or making cosplay of uggos. You lose out on essentially free advertising from the (non-existent) fan base.