New Study Raises Concerns About Loot Boxes in Video Games, Cites Resemblance to Gambling

Concerns have been raised by a recent study regarding loot boxes in video games, highlighting their similarity to gambling and the supposed lack of transparency surrounding them.

Loot boxes are virtual items that players can buy in video games. They are typically offered as optional microtransactions, allowing players to spend real or in-game currency to obtain these boxes.

The contents of a loot box are randomized, meaning that players do not know what items they will receive until they open the box. These items can range from cosmetic enhancements for characters or in-game items with varying levels of rarity and usefulness.

The concept of loot boxes draws inspiration from the idea of opening a surprise package or a mystery box, creating an element of anticipation and excitement. However, the randomized nature of loot boxes has raised concerns because it introduces an element of chance or luck that closely resembles gambling.

Players may purchase loot boxes hoping to obtain rare or desirable items, but there is no guarantee of receiving those items.

This has led to criticism that loot boxes operate similarly to gambling mechanics, where players spend money hoping to get valuable rewards.

The chance-based nature of loot boxes has sparked debates about their potential impact on players, particularly younger individuals who may be more susceptible to developing gambling-related behaviors.

Potential Conflict of Interest

In contrast to China, where the law mandates the disclosure of loot box reward probabilities, other countries, such as the United States, depend on self-regulation within the gaming sector.

Nevertheless, the study draws attention to the potential conflict of interest inherent in self-regulation and raises doubts about its effectiveness in adequately safeguarding consumers.

The study investigated the extent of loot box inclusion in the highest-grossing iPhone games in the United Kingdom during mid-2021. The results unveiled that loot boxes were present in approximately 77% of these games.

However, when it came to adhering to the industry's self-regulation regarding the disclosure of probabilities, the compliance rate in the UK was notably lower at 64.0%, in contrast to the observed rate of 95.6% in China.

Additionally, the study revealed that disclosures provided by UK games were often insufficient and challenging to access, both within the games themselves and on official game websites.

In the case of official websites, a mere 21.3% of UK games provided the disclosed probabilities, while the rate stood at 72.5% in China.

Similarly, when it came to in-game disclosures, only 1.3% of UK games automatically displayed the probabilities on the purchase page, which is widely acknowledged as the most impactful means of disclosure.

Transparent and Accountable Approaches

Drawing on these findings, the study proposes that policymakers should consider more transparent and accountable approaches to industry self-regulation or consider the implementation of direct legal regulations.

Implementing these measures would effectively safeguard consumers who participate in loot boxes within video games.

The study is slated for publication in the journal PLOS ONE, and a pre-print version of the paper is presently available for online access.