Revised : 03 November 2019
Gambling is completely forbidden for kids under the legal age of their
own country due to the addiction it procures. Kids are not supposed
to be mature enough to control this kind of addiction. Therefore, since the
advent of online gaming what so-called “loot boxes” have created a rift in the
definition of gambling.
But first do you know what a “loot box” is?
For non-initiates a loot box is a term created to define a virtual item
(usually a chest) in which you can get a randomized object/feature or whatever
in a videogame. You can compare a loot box with what you can find in capsule
toys (gacha balls) or in card boosters such as: baseball card games, Pokemon
trading card games, YU-GI-OH trading card games ...
What is the current situation of online loot boxes ? To what extent has it influenced the business/customers relationship ? What kind of future has been predicted for it ?
It is preferable for companies not
to say that loot boxes are related to gambling. According to the gaming structure
Millenium (1) the game “Overwatch” has generated over $1 billion in
revenue from loot boxes since July 2019. Additionally, according to the
Telegraph (2) the football game “Fifa Ultimate Team” developed by EA games
generated over $800 million in revenue from loot boxes in 2017. By implementing
in-game loot boxes the gaming industry has found a goldmine.
Loot box purchases are stimulated by earning new cosmetic or playable content that can lead to “pay-to-win” meaning: “you can pay to become stronger” or driving you to a certain arrogance toward those who purchased nothing. Furthermore, a lucky player who received a very rare or rare item in a loot box automatically influences other players to buy a loot box as much as a winning lottery ticket can convince others to buy one.
Marketing Managers know how to
influence you and do not hesitate to use sophisticated behaviour-manipulation techniques borrowed from the
gambling industry and elsewhere on the internet to let you buy some
randomized virtual items. Cf. The Guardian (3).
Additionally, games tend to use their own virtual
currency instead of a real one for in-game purchases creating a disconnect between
the real economy and a blurring the game economic system that most players don’t fully
understand.
However, the peaceful life of loot
boxes is now over due to the rising protest toward them.
Some parents complain about how their children got addicted to this new
type of micro-transaction and how it ruined their life. In the UK over 55,000
11-to-16-year-olds children are considered as problem gamblers for some of
them they started their gambling life by playing online games according to the
BBC (4).
Consequently,
the controversy about loot boxes is now debated all over the world.
For the Belgium Gaming Commission, the problem has
been solved by banning loot boxes in Belgium. According to the BBC (5)(6)
Belgium's Minister of Justice, Koen Geens said that the mix of gaming and
gambling is: “dangerous for mental health” whereas video game companies that
implement loot boxes such as EA games disagree saying it’s only a “surprise
mechanics” that loot boxes are like Kinder Eggs and arguing that some loot
boxes can also be won as rewards in games.
The issue is still debated in the UK but on the
UK’s parliament website, section 121-123 “Random Rewards” (7) the
government seems to be aware that random rewards in games are highly addictive
and resemble gambling. In general gamers and government agree to say that
this system must be changed.
The GREF (Gaming Regulators’ European Forum) in their press release published on September 30, 2019 (8) about micro-transactions in video games defines loot-boxes as a mechanic relying on chance, when chance is a persistent element in the definition of gambling. As a result, loot-boxes are considered by consumer associations to contribute to gambling addiction.
In conclusion, we can see that consumers and
even governments are beginning to dismantle the use of loot boxes in
videogames mostly to protect children and regulate online gambling laws that companies
succeeded to exceed. I think that loot boxes will become a burden for videogame
companies who must find another way to make long term profit.
Author: Niels. H
And you, have you ever experienced loot box? What’s your opinion about it?
Let me know in the comment
section bellow!
Sources:
(1) Millenium,
Idril, “Overwatch: loot boxes generate $1 billion”, 25 jul 2019 (accessed : 29/10/2019)
https://www.millenium.us.org/news/3498.html
- (2) The Telegraph,
Hoggins.T “Electronic Arts eye revenue boost with upcoming Fifa 19 release”, 24
Sep 2018 (accessed : 29/10/2019) https://www.telegraph.co.uk/gaming/news/electronic-arts-eyes-revenue-boost-upcoming-fifa-19-release/
- (3) The
Guardian, Bedell.G “The games industry shouldn’t be ripping off children”,
15 Sep 2019 (accessed : 29/10/2019) https://www.theguardian.com/commentisfree/2019/sep/15/games-industry-shouldnt-be-ripping-of-children
- (4) BBC,
“how my son went from gamer to compulsive gambler”, 8 Oct 2019 (accessed : 29/10/2019)
https://www.bbc.com/news/stories-49941610
- (5) BBC,
“videogame loot boxes declared illegal under Belgium gambling laws”, 26 April
2018 (accessed : 29/10/2019) https://www.bbc.com/news/technology-43906306
- (6) BBC,
“gaming loot boxes: what happened when Belgium banned them ?”, 12 Sep 2019 (accessed
: 29/10/2019) https://www.bbc.com/news/newsbeat-49674333
- (7) Parliament.uk official web site, immersive and
addictive technologies “the role of data, design and business models”,
random rewards section. (accessed: 29/10/2019) https://publications.parliament.uk/pa/cm201719/cmselect/cmcumeds/1846/184607.htm#_idTextAnchor049.
- (8) Arjel’s
press release “Micro-transactions in social gaming and video games”
September 30, 2019 (accessed : 29/10/2019) http://www.arjel.fr/IMG/pdf/20190930CPEN.pdf
This comment has been removed by a blog administrator.
ReplyDeleteHi Niels
DeleteThank you for sharing your thorough analysis on this very intriguing topic.
As an eSport enthusiast and casual gamer, I'm quite familiar to loot boxes and well-aware of their ever-growing popularity among the gamers' community.
Thus, I was even more surprised to learn that the Belgian government banned gambling in video games (dealing a potentially fatal blow to loot boxes there).
You also mentioned the whole "addiction" issue surrounding loot boxes
and the gaming industry in general. I would like to know what your personal
thoughts about this controversy are.
Moreover, I know that the French government's position (regarding loot boxes)
is not yet entirely clear. Thus, do you think that the Belgian case could also encourage other western countries' governments such like the French one to follow their steps and put an ultimate ban on gambling in video games?
Looking forward to your response ;)
Leander G.
Hello Leander
ReplyDeleteThank you very much to pay attention to the article I wrote and thank you for your questions.
To respond to your first question, I think that loot boxes are a burden for the videogame industry. Of course, I agree when game developers use loot boxes you can unlock just by playing the game and when you can freely obtain as many loot boxes as you want. But in most games, loot boxes are being used for the sake of profit.
In order to make profit most companies using loot boxes must play on the phenomenon discovered by the neuroscientific Old and Milner in the 50’s “the reward system”. To briefly summarize their research, they noticed that when at a random time you deliver food to an animal trapped in a cage with only a button the consequence is that, the animal will spam the button to receive more food because he’s thinking that the button can deliver food on demand. In the end, If you apply this theory to human beings you’ve invented the lottery but also loot boxes.
I think companies abuse players by using this reward system and by playing on their weaknesses. The worst is that this new lottery system reaches young individuals that are not aware of addiction problems. So, loot boxes shan’t be used to make profit and must be banned.
To respond to your second question, I think what the Belgium government has voted for is going to have a huge impact on the videogame industry in all Europe. If other European countries follow the lead, I’m almost 100% sure that the French government is going to pass a law too.