Gameplay Design Rants (tm) - Permadeath, Game Loops and Flow

Warning! This is an essay about game design theory.
As such it is not intended as neither a request nor a critique. If you wish to participate please remember we are discussing a theory that could be only marginally related to Salem implementation.
I'll start with the premise of this video about design where it is explored the concept of motivation and habit as a part of the enjoyment of a game. Around minute 10 Zane Claes introduces the notion of "Game Loop" (do not confuse with rendering loop) as the core mechanic that induces players to come back and play the game more. Also soon after the notion of "Flow" is introduced as a way to describe what keeps a game interesting.
Game Loop
A Game Loop is basically a Feedback Loop, a sequence of actions that can be summarized with the following steps:
1) Cue: something catches the player's attention, a problem, a need, a stat is going down, a mob aggroes, etc...
2) Routine: the player responds with an action deemed appropriate, this can be viewed as the "work" part of a game
3) Reward: positive or negative feedback from the game
In principle, a game that gives interesting, comprehensible Cues as to what a player should do and then positively Rewards the player for enacting the appropiate Routine succeeds in establishing an addicting Game Loop, also said a Positive Feedback Loop. Players will come back for moar.
A lot of games today are based solely on this principle, main example is (cue) "Kill 10 rats", (routine) the player kills 10 rats and is then (reward)ed with something.
Flow
You can look more about what Flow is about here and here. Long story short, there is a sweet spot between boredom and anxiety where the task proposed by each successive Cue is difficult enough for the player to enjoy trying to beat it. This sweet spot obviously moves over time as the player gets more "Capable" of solving issues, where with capability I mean the sum of both character's skill and player's skill.

Easy example of maintaing the Flow is the same typical mmorpg where after giving the Reward of "kill 10 rats" mission the player is promptly assigned a "kill 10 bigger rats" mission, hopefully keeping him engaged.
Interesting fact is that "Maintaining the Flow" requires the player to fail sometimes. A failure increments a player's capability by giving him a chance of of becoming more skilled in playing the game. Failures also increment the Reward of successfully completing that same task satisfying the need for competence.
Of course different players will have different level of tolerance both towards Boredom and Anxiety on the Flow diagram.
Inner & Outer Loops
Most non trivial games obviously present more than a Loop. A single player RPG could have grind/combat loops in its Inner part, a Main Loop where you defeat bosses and advance with the plot and than an External Loop that encompasses the whole story. Think for example the original Diablo game where, after killing Diablo players were awarded the possibility of playing it all over again at a higher difficulty level, thus maintaining Flow.
The Weak Spot
I will dare say that the weakest spot in each Game Loop (be it the innermost or outmost) is the assesment of the reward. After successfully or unsuccessfully completing the loop, every player will evaluate if engaging in another iteration is a desirable course of action. In other words a player unconsciously decides if the game is or not in Flow.
For example if (1) at some point the player is awarded in such a way that subsequent tasks present a rate of success that is too high, for example by giving out an OP combination of gear, the game Flow will tend towards Boredom. As the difficulty decreases other Rewards also become meaningless and the player eventually loses interest in the game and quit.
An other example is (2) presenting the player with problems that are too difficult for his capabilities. After a certain number of attempts, the absence of a Positive Feedback will produce Frustration and player will quit.
The last example is that of a game where (3) with failure is associate a very harsh Negative Feedback that actually reduces player's capabilities, thus forcing to move backwards in the Flow. Here the negative feeling can be strong enough to induce Anxiety instead of interest, the player will eventually evaluate not worthy to engage in the whole Outer Game Loop again with the fear of being sent all the way down again without accomplishing much.
Permadeath
Permanent character death doesn't necessarily mean getting out of the Flow. The Game Loop that encompasses a character life however must be tailored on the possibility of permadeath in order to mitigate the Negative Feedback just enough to remain in Flow.
I would like to leave at you, intelligent reader, the possibility to identify Game Loops in Salem and explore the relation between those Loops and Permadeath. I would also like to explore how Permadeath relates to character growth versus player growth.
As such it is not intended as neither a request nor a critique. If you wish to participate please remember we are discussing a theory that could be only marginally related to Salem implementation.
I'll start with the premise of this video about design where it is explored the concept of motivation and habit as a part of the enjoyment of a game. Around minute 10 Zane Claes introduces the notion of "Game Loop" (do not confuse with rendering loop) as the core mechanic that induces players to come back and play the game more. Also soon after the notion of "Flow" is introduced as a way to describe what keeps a game interesting.
Game Loop
A Game Loop is basically a Feedback Loop, a sequence of actions that can be summarized with the following steps:
1) Cue: something catches the player's attention, a problem, a need, a stat is going down, a mob aggroes, etc...
2) Routine: the player responds with an action deemed appropriate, this can be viewed as the "work" part of a game
3) Reward: positive or negative feedback from the game
In principle, a game that gives interesting, comprehensible Cues as to what a player should do and then positively Rewards the player for enacting the appropiate Routine succeeds in establishing an addicting Game Loop, also said a Positive Feedback Loop. Players will come back for moar.
A lot of games today are based solely on this principle, main example is (cue) "Kill 10 rats", (routine) the player kills 10 rats and is then (reward)ed with something.
Flow
You can look more about what Flow is about here and here. Long story short, there is a sweet spot between boredom and anxiety where the task proposed by each successive Cue is difficult enough for the player to enjoy trying to beat it. This sweet spot obviously moves over time as the player gets more "Capable" of solving issues, where with capability I mean the sum of both character's skill and player's skill.

Easy example of maintaing the Flow is the same typical mmorpg where after giving the Reward of "kill 10 rats" mission the player is promptly assigned a "kill 10 bigger rats" mission, hopefully keeping him engaged.
Interesting fact is that "Maintaining the Flow" requires the player to fail sometimes. A failure increments a player's capability by giving him a chance of of becoming more skilled in playing the game. Failures also increment the Reward of successfully completing that same task satisfying the need for competence.
Of course different players will have different level of tolerance both towards Boredom and Anxiety on the Flow diagram.
Inner & Outer Loops
Most non trivial games obviously present more than a Loop. A single player RPG could have grind/combat loops in its Inner part, a Main Loop where you defeat bosses and advance with the plot and than an External Loop that encompasses the whole story. Think for example the original Diablo game where, after killing Diablo players were awarded the possibility of playing it all over again at a higher difficulty level, thus maintaining Flow.
The Weak Spot
I will dare say that the weakest spot in each Game Loop (be it the innermost or outmost) is the assesment of the reward. After successfully or unsuccessfully completing the loop, every player will evaluate if engaging in another iteration is a desirable course of action. In other words a player unconsciously decides if the game is or not in Flow.
For example if (1) at some point the player is awarded in such a way that subsequent tasks present a rate of success that is too high, for example by giving out an OP combination of gear, the game Flow will tend towards Boredom. As the difficulty decreases other Rewards also become meaningless and the player eventually loses interest in the game and quit.
An other example is (2) presenting the player with problems that are too difficult for his capabilities. After a certain number of attempts, the absence of a Positive Feedback will produce Frustration and player will quit.
The last example is that of a game where (3) with failure is associate a very harsh Negative Feedback that actually reduces player's capabilities, thus forcing to move backwards in the Flow. Here the negative feeling can be strong enough to induce Anxiety instead of interest, the player will eventually evaluate not worthy to engage in the whole Outer Game Loop again with the fear of being sent all the way down again without accomplishing much.
Permadeath
Permanent character death doesn't necessarily mean getting out of the Flow. The Game Loop that encompasses a character life however must be tailored on the possibility of permadeath in order to mitigate the Negative Feedback just enough to remain in Flow.
I would like to leave at you, intelligent reader, the possibility to identify Game Loops in Salem and explore the relation between those Loops and Permadeath. I would also like to explore how Permadeath relates to character growth versus player growth.