Diminishing returns

Quick definition:A principle in which each additional investment of time, effort or resources produces a smaller benefit than the one before it.

Meaning

Diminishing returns describes a pattern in which each extra unit of something gives less than the previous one. In a game, raising a statistic from low to moderate may make a large difference, while raising it from high to very high barely helps. Many games hide the exact formulas, but wikis often publish them.

Designers use the principle to keep builds varied and balanced. If every extra point of speed or damage gave the same bonus, players would pile everything into the best statistic. Flattening the gains encourages mixing different strengths. Crowd control effects often use the same rule.

The idea also applies to time. Repeating the same activity may yield less experience or fewer rewards as the player does it again, discouraging grinding. Players who understand the thresholds can plan upgrades better and avoid wasting resources.

Origin:Diminishing returns is a concept from economics, describing how adding more of one input eventually gives smaller gains. Game designers adopted the idea to explain upgrades, stats and rewards that become less effective as they stack. The term is used both as a design principle and as a player's observation.
Example:Lola adds armour pieces to her character and notices that the first piece cuts damage by a fifth. The fifth piece cuts it by only a tiny fraction. Realising that more armour has hardly any effect now, she spends her coins on speed instead, where each point still matters.
Did you know?Designers use diminishing returns on purpose to stop any one stat from becoming overwhelming. Without them, a player could stack a single bonus until the game broke, so many games apply formulas that flatten the gains at higher levels.