Why do video games have loot boxes?

These are free to download and play, but gamers are enticed to spend money on loot boxes as a means of monetization for the game. Loot boxes seem to be around every corner, promising goods to gamers in exchange for in-game or even real-world currency.

What are the benefits of loot boxes in video games?

Loot boxes aim to provide balance to games. By providing content at random, they allow players to unlock the best items even if they don't spend the most money. Loot boxes can also reveal in-game items that players hadn't considered using - helping them change tactics or strategies in the process.

Are loot boxes in video games illegal?

Are Loot Boxes Legal? Today, with a few exceptions, most forms of loot boxes remain legal and unregulated worldwide. However, proponents of loot box regulation argue that the chance and rarity mechanics make loot boxes akin to gambling and constitute predatory practices toward minors.

Are loot boxes in video games ethical?

Random rewards (both cosmetic and functional) such as loot boxes are ethically problematic, particularly if the player does not know how likely the possible rewards are. In this case, it is essentially impossible for the player to evaluate whether the purchase is worth it.

Are loot boxes good or bad?

In-game purchases such as loot boxes cause financial and emotional harm to children and young people. Children find it difficult to track their spending in-games and fail to understand the value of money, leading to poor spending decisions.

What are video game loot boxes and do they encourage gambling? | ABC News

Why aren t loot boxes illegal?

Since they employ chance-based mechanics and players can sometimes pay to unlock them, loot boxes draw comparisons to gambling. But generally, loot boxes do not fall into most legal definitions of gambling, because the “prize” – the virtual items within — cannot be said to be “something of value.”

Why were loot boxes banned?

Due to fears of them being used as a source in gray-market skin gambling, loot boxes began to become regulated under national gambling laws in various countries at the same time.

Is the US banning loot boxes?

Although there have been efforts in the United States to regulate loot boxes through legislation —and a Federal Trade Commission workshop raised the issue of loot box regulation—currently no legal consensus exists in the United States around the illegality of loot boxes.

Are loot boxes just gaming or gambling?

In almost all senses of the word, loot boxes are a form of online gambling. Their addictive nature and just-one-more effect entice gamers into spending their hard-earned money, in-game or otherwise, on an item that may or may not contain something of value.

What countries don t allow loot boxes in video games?

Loot boxes are grab bags of in-game content purchased via a specific in-game currency that typically requires real-world money. Both Belgium and the Netherlands passed laws outlawing these forms of gambling in 2018.

Are loot boxes pay to win?

Spending money in order to obtain an advantage over other players is often referred to as the pay-to-win mechanic [25]. However, loot boxes can also be acquired through effort, rather than microtransactions alone [10].

How addictive are loot boxes?

The Association of Police and Crime Commissioners Joint Addictions and Substance Misuse Lead said that certain in app gaming features known as 'loot boxes' could instill unhealthy behaviours and pre-expose children and young people to developing addictive gambling-like tendencies later in life.

What country banned loot boxes?

As of today, the only European jurisdiction where loot boxes are explicitly banned is Belgium, where the Gambling Commission declared loot boxes to be "in violation of gambling legislation" back in 2018, although a recent study showed that the Belgian regulator is struggling with enforcing the ban.

What percentage of gamers buy loot boxes?

Buy loot boxes: 44.2% of gamers (66.54% bought daily, 26.84% once a week).

Is buying loot boxes gambling?

The commission said that: Where in-game items obtained via loot boxes are confined for use within the game and cannot be cashed out it is unlikely to be caught as a licensable gambling activity.

Who started loot boxes in video games?

Researchers trace the first loot boxes back to the Chinese free-to-play MMO ZT Online, released in 2006, where players opened virtual treasure chests. This formula mutated through various mobile games until it reached core franchises: in 2010, Valve incorporated them in Team Fortress 2.

What age group buys loot boxes?

Among gamers, 78% of adults have purchased at least one loot box [11], and 40.5% of adolescents between the ages of 16 and 18 have purchased one within the past month [12].

What is the purpose of loot boxes?

Loot boxes have been defined as “features in video games which may be accessed through gameplay, or purchased with in-game items, virtual currencies, or directly with real-world money”. They often appear as chests, crates, or card packs.

Is loot box still a thing?

While under Chapter 11 bankruptcy, it planned to continue to fulfill orders but seeks potential buyers. On October 1, 2019, subscribers were informed by email of Loot Crate's sale to Money Chest LLC., majority funded by NECA. The company now operates under a new name: The Loot Company.

What will replace loot boxes?

Blizzard formally announced that loot boxes were going away in June, replacing them with a battle pass and in-game store. The company said they wanted to give players "a lot more control over how they interact with the game and acquire new content."

What are the cons of loot boxes?

Mounting research, such as that done by the universities of Plymouth and Wolverhampton, indicates that loot boxes are linked to problem gambling, and are “structurally and psychologically akin to gambling.” Of 13 studies into the behavior of gamers who spend on loot boxes, 12 showed a clear correlation between the use ...

What are China's laws on loot boxes?

Chinese law is particularly strict and detailed on loot boxes, as they are seen as a form of gambling: Loot boxes cannot be purchased using either real or virtual currency. Loot box contents must also be acquirable through other means. Compulsion loops are not allowed.

What game popularized loot boxes?

The first known instance of a loot-box system is believed to be an item called "Gachapon ticket" which was introduced in the Japanese version of MapleStory, a side-scrolling MMORPG, in June 2004.

When did loot boxes become illegal?

In April 2018, government agencies in both the Netherlands and Belgium ruled in quick succession that randomized loot boxes were illegal "games of chance" that provided players with items that have "variable market values." Activision Blizzard was among the many companies that have made changes to games in those ...

Which country banned loot boxes first?

Back in 2018, Belgium become one of the first countries to rule that loot boxes are a form of gambling. Due to this, they were automatically banned from video games.