Presentation
Updated 2020: Our article on new monetization methods for video game publishers
Virtual loot boxes, which first appeared in 2017, are transforming the way video games are played by incorporating this gameplay element. These are generally virtual items, presented as bonus packs, offering players a random in-game upgrade. A new mechanism stemming from the “Pay to Win” system, any player can, by paying a small amount of money—microtransactions—gain a significant advantage in their gameplay.
Presented as “ethical and fun,” a new term for this mechanism has emerged in recent weeks: “surprise mechanics.”
The success of numerous titles incorporating this mechanism and the considerable revenue generated quickly sparked controversy. Initially criticized by the gaming community, a legal argument was soon raised regarding the random nature of loot boxes.
Loot Boxes: An unregulated game of chance
These individuals point to the similarities between loot boxes and gambling, despite the fact that they are not subject to the same legal framework. Indeed, regulations concerning lotteries and games of chance are particularly strict, especially regarding minors, prevention messages, and the risks associated with such consumption.
A dispute arose between one of the major video game publishers, Electronic Arts, and the Belgian courts concerning the use of loot boxes in numerous titles. In April 2018, the Belgian Gaming Commission classified loot boxes as games of chance. The Belgian position, shared by the Netherlands, among others, led many European and American regulatory authorities to express their concerns about the phenomenon.
Loot Boxes: simple downloadable content for video games
Generating over $5 billion in 2017, many video game publishers, including the main American trade association, advocate self-regulation and oppose any attempt at regulation by public authorities. This downloadable content consists of elements that enhance the player’s gaming experience—new maps, characters, items, game mechanics, etc.—without any connection to a lottery.
Defending their new economic model, they argue that the very consumption of video games is undergoing a profound transformation, shifting it from a product to a customizable service. A player no longer buys a game, but rather access to it.
