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This short video draws a connection between The Sims and 'reality' TV, pointing out how the ambiguity between what is scripted and what is spontaneous works for them both. I think it's a lot more basic than that. It occurs to me that whether it's real neighbourhood (or social media) gossip, daytime soaps about the intrigues of some fictional rich family, a 'reality' show about the ignorance of a slightly-more-real rich family, a fantasy show about families who murder one another at weddings, or virtual families of our own creation, we're going to be endlessly fascinated by social dramas. We're social animals, and knowing what's going on in a social environment was often relevant to our survival in the evolutionary past, and now the wiring works even when we know the drama is only simulated.
Wouldn't the same apply to a PvP sandbox game? Are PvP sandboxes the 'reality shows' of MMO gaming in which a bit of scripting and some spontaneity are mixed to heighten underlying social dramas? Is this ultimately an expression of our narcissism, as individuals and as a species?

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The parallel I see is economic. The dynamic that drives reality shows is (relatively) tiny production costs relative to revenues--they can be profitable without having to hope-to-God-somehow you hit a home run, else you've just sunk yourself in upfront costs.
I think there's a similar dynamic in sandbox box games in which player interactions are meant to provide content--a (relatively) tiny production cost in the world of AAA game publishing.