Dispute over loot boxes: Apple's take on foreclosure
Recently, there's been a lot of debate about the gambling elements in gaming apps. Big corporations like Apple have taken notice and responded. Last December, Apple introduced new approval guidelines for the App Store that focused on loot box games. Since then, it's blocked several iOS updates for these types of games.
This all started in November 2017 with the 'Star Wars: Battlefront 2' loot box controversy. Chris Lee, a member of the Hawaii House of Representatives, even called it a "Star Wars online casino for kids." Now, there are calls for a ban on loot boxes in both Europe and the US. Meanwhile, people are demanding more transparency on these games from both politicians and players. So what's the issue here?
Uncertain Winnings and Luck Factors
Loot boxes are digital treasure chests found in video games. They contain various in-game items, like weapons, tools, and certain costumes. Players, often kids and teens, can buy a key to these chests for small amounts of money without knowing what they'll get. Providers are accused of promoting gambling systems because the items can only be acquired through microtransactions and rely on luck. This familiarizes kids with gambling and increases the overall addictive potential of the games.
A study from the University of Hamburg supports this theory. The study suggests that a significant portion of the multi-billion dollar revenue comes from a small group of customers, similar to gambling markets. This could hint at an addiction problem.
Forcing Transparency
Apple makes a lot of money from iOS games - they receive a 30% share of the profit from every treasure chest sold. In 2017, iPhone users spent over a billion dollars on the Apple App Store. Loot boxes for previously free games can be bought as in-app purchases, like in 'Clash of Clans,' which made 90 million dollars alone.
To avoid a potential ban from politicians, Apple is taking action against gambling in gaming apps. They've already updated their developer guidelines in the App Store, requiring game providers to be transparent about the chances of getting valuable loot box content. In recent days, they've followed through on their promise, blocking iOS updates for loot box games like 'Fire Emblem Heroes' from Nintendo, 'Final Fantasy Brave Exvius' from Square Enix, and 'The Alchemist Code' from Gumi. These games were originally available on Android in the Google Play Store. As of now, only 'Fire Emblem Heroes' has been released on iTunes.
The new Apple guidelines make developers disclose the chances of winning significant items from loot boxes. This could impact loot box regulations in Germany, where a decision is expected from the state media authorities this month. If they deem loot boxes to be a violation of appealing to children and young people to buy, it could result in a complete ban on virtual treasure chests. Wolfgang Kreißig, Chairman of the Youth Protection Commission, thinks this is a possibility: "I think it's possible that loot boxes could violate the ban on appealing to children and young people to spend money." If that's the case, Apple's attempt to save the business model through greater transparency could come too late.
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Source: www.onlinecasinosdeutschland.com
