Loot Boxes On the Outs?

Just a couple weeks ago I gave a TED Talk (for my RCL class) about the rise of loot boxes in video games (this article gives a nice overview on loot boxes).  Loot boxes are mechanisms whereby players can spend real world money to open a box which produces one of an array of items.  The chances of getting any given item varies based on the item’s rarity, which usually correlates with how desirable the item is.  Some items might only drop in 1/1000 boxes. This prevents players from having any guaranteed way of obtaining the in-game items they want; instead, they have to keep putting money into the game in the hopes to eventually get what they want.  

In my talk I discussed how loot boxes are effectively unregulated gambling mechanisms used to squeeze money out of young players who are especially susceptible to the psychological manipulation that gambling in general and loot boxes in particular employ.  I argued that the use of loot boxes is unethical and should be stopped. Even so, loot boxes have infected the whole gaming industry, from mobile game like Clash Royale, to huge AAA titles like Call of Duty.

Unfortunately, there has been very little legal action as state governments have moved very slowly to regulate loot boxes.  Today, however, there was big news that the Federal Trade Commission (FTC) has plans to investigate loot boxes. Watch this video for the announcement.  This is awesome for the gaming community because the gaming industry has made it clear that they have no intentions of regulating themselves.  Even the Entertainment Software Rating Board (ESRB), which puts ratings on video games, has refused to harshen the ratings on games that include loot boxes.  They claim that because players are guaranteed to get some loot, loot boxes cannot be considered gambling. If the FTC decides to force stricter ratings on games that include loot boxes, then this would push games out of many retail stores which cannot sell games with more mature ratings.  This is also apparently the reason why the ESRB refuses to classify loot boxes as gambling. Importantly, the FTC is a federal organization which will make any ruling on loot boxes national rather than the state-level action which has been taken thus far.

The investigation into loot boxes was requested by Senator Maggie Hassan (D-NH) and was agreed to with a simple yes.  She cited several important concerns with loot boxes, particularly how they affect children. An FTC investigation will hopefully result in stricter regulations on loot boxes, but the fact they are investigating it at all, and put up no protest to the investigation, is very important.  Even if this doesn’t keep games with loot boxes out of kids’ hands or even better, loot boxes out of games, then it could at least allow parents and gamers to be better informed about loot boxes. Here is a more detailed article which discusses the particulars of Sen. Hassan’s concerns and the industry’s response.  

Needless to say, I am very excited by this news.  I want to see loot boxes removed from games, either directly or because loot boxes are regulated to a point where they are no longer a solvent business strategy.  There are many more ethical ways to fund video games, and publishers should be forced to explore them instead of using psychological manipulation to squeeze every drop out of the players that just want to enjoy their games.