The discussion on including gambling in video games persists.
Researchers at the University of Hamburg have released an unpublished study indicating that modern video games closely resemble games of chance. This issue has sparked a worldwide debate about the potential for addiction associated with loot boxes.
The video game industry's business model has undergone considerable change in recent years. Customers no longer pay a single upfront price for a full game. Instead, they receive a scaled-down version of the game for free or at a discounted price. Additional content is then sold separately. This approach benefits both customers, who can try games without a high upfront cost, and manufacturers, who can continue generating income from games with regularly updated content.
However, there are concerns that the industry might have crossed a line in its pursuit of increased profits. The increasing prevalence of loot boxes and the debate about their implications suggest this possibility. These boxes feature items with varying rarity and are sold for a fixed price. Players can potentially become addicted to the chase for virtual items, spending large sums of money. This pattern is similar to that found in gambling, where the pursuit of winnings can become all-consuming for some individuals.
According to a 19-year-old gamer, their journey into digital gambling began with smartphone apps and eventually led to PC games, where they spent $10,000 on additional content over the course of two years. But how can such massive losses occur?
Loot boxes and the psychology of spending
Microtransactions, or the purchase of small amounts of digital content, are a growing trend in the video game industry. Past full-price games, which cost around €50, have been replaced by those with lower initial costs and optional in-game purchases. The amount a player can spend is unlimited, and they can always acquire more content. While this system offers users greater flexibility, it also opens the door to addiction.
Microtransactions become problematic when they incorporate randomness and rarity, as found in loot boxes. These boxes contain a random assortment of items with varying rarity and are sold for a fixed price. While the most common items can be obtained affordably, obtaining rare ones requires cracking open numerous boxes - with a probability set by the game developers. This model closely resembles that of slot machines, where players experience short-term successes interspersed with occasional larger gains.
The appeal of loot boxes is surprisingly strong. Players spend money under the illusion that they might receive a valuable item. Due to the random nature of the rewards, they often find themselves buying numerous boxes to increase their chances of success. The indeterminate nature of the rewards makes it difficult for players to know if their investment is worthwhile. However, the psychology of unexpected wins keeps them playing.
Regulating the gaming industry
Governments worldwide are becoming increasingly aware of the issue of loot boxes and their potential for addiction. Belgium has proposed a Europe-wide ban on loot boxes, and the United States is debating how to address this content in games. In China, loot boxes have already been banned, though players must be informed of the probability of winning prior to purchasing them. This measure is in place to protect minors, who are particularly susceptible to the allure of virtual items as it often signifies social recognition from peers.
Legislating the practices of the gaming industry is proving difficult, as the legal criteria for classified gambling are not always met. In most cases, gambling entails the possibility of a monetary prize. While objects from games can be traded for real money, it is unclear whether game companies are responsible for this aspect of the loot box system. Examining each game individually and determining the specific aspects of the loot box model could help shape more informed regulations.
In Germany, resolving the issue of potentially harmful game content might take some time. The Entertainment Software Self-Regulation Body (USK) can provide age ratings for games, but they don't verify if a game involves chance elements. That's because this classification is under the control of the federal states. These states have had trouble regulating newer types of gambling for a long time. In the foreseeable future, the goal should be to help parents become aware of concerning game content, allowing them to shield their children from harm. Eventually, though, politicians must tackle this issue too. Given that loot boxes share similarities with gambling, it's hard to ignore this fact. Moreover, the gaming industry is unlikely to change its lucrative sales model without some external encouragement.
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Source: www.onlinecasinosdeutschland.com
