Someone that can't get into something, I guess. Or someone that has a shallow understanding of a medium they claim to like. I'm not sure how I'd describe it. I guess normal people? People that suck at games? And they are seen as bad because they bring the standard of quality for video games down, usually affecting high difficulty games or good, less accessible games. Though as long as you stay away from AAA trash, you're fine, so I don't know why they're seen as a widespread problem of sorts.
I've been playing video games since I was 2 in the late 80s and am more than competant mentally and physically so I'm very good at a lot of genres. But since I'm older now and for the past few years I'm mostly interested in games that can be enjoyed casually, because I don't have nearly as much time or focus to dedicate to video games.
So, for example, while I slowly progress through some long games, my backlog badically piles up at a rate of 100 unplayed to 1 played or worse. I just as often play games that can be picked up and enjoyed "casually" like Rocket League, because there's a high skill ceiling, but basically if you're not retarded you can have fun with it (be satisfied by achieving goals through video game skill) the first time you play it.
Come to think of it, most NES games back in the day were treated as such since they lacked a save feature. You played as much as you could before yoy had to turn it off, and often played and enjoyed the first level hundreds of times.
Casuals are people that might enjoy but don't consider it a hobby or place it below their main hobby's.
There is nothing inherently wrong with casual, however video gaming is huge and has a large casual audience and developers want to rake in the money. Publishers are forcing developers to change the game design to cater towards this audience.
This issue doesn't affect most other hobby's, for example people that like to casually build models, the manufacturers aren't like "make these models easier, I don't want to see any more then 15 parts".
People who buy cheap and easy games OR only buy/play one game a year, funding them over quality games with real time and effort put into their development cycle.
Angry Birds is cheap and gets pumped out yearly, and for expensive games, people buy CoD just because everyone else has it. Because it's a popular online franchise and they only play a couple games a year, they buy CoD because at least the ONE game they got for the year will be active and their friends will be on it.
Essentially, the term "casual" would correspond to the people who partake in gaming solely either for the sake of fulfilling a social norm (That being the trend of playing video games) or those people who seldom play out of genuine interest and fandom and rather do so to satisfy temporary boredom.
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