As a game designer I would not punish failure too harshly in an applied game, unless there is a reason to drive home the need not to fail. In general, failure in a game means starting over, but failure in an applied game could also it becoming a statistic. This can create motivational issues especially if these records are displayed as percentages.
Micah Hrehovcsik, Senior Lecturer, HKU: University of the Arts Utrecht, 8 yrs
Added by: Micah Hrehovcsik, Senior Lecturer / Game Design Researcher