Business, at its core, is the practice of exploiting human desires. This sounds sinister, but it just means that you can make money by giving people what they want. Unfortunately, what people want is not always what is good for them and, as long as the numbers keep rising, few businesses care about what is good for people.
Loot-box systems are a prime example of this. A loot-box system is a growing convention in modern video games in which players can unlock consumable virtual items often called “loot boxes,” “crates” or “cases." Loot boxes give the player alternate looks or attire for characters (like “skins”), XP (experience) boosts, or new items. These prizes can be strictly cosmetic or can give the player an unfair advantage over other players. Games with this system are called “pay-to-win” (but that’s a topic for another time). Most loot-box systems have a rarity spread, meaning the player will often get less-desirable items but has a small chance of opening a highly coveted item.
This phenomenon has striking similarities to gambling because, well, that’s what loot boxes are. Though sometimes achievable through in-game means, loot boxes can usually be purchased with "real-world" currency, which can lead down a dangerous path. Game companies know how people operate. They design loot boxes like this. Sparkling colors, clinking sounds and flashy effects make opening loot boxes satisfying and, more importantly, addicting. Pitting the low price of opening boxes (which happens to fall around $2 in the most successful systems) against the tantalizing possibility of winning an ultra-rare prize seems like a no-brainer. But remember, the house always wins. The odds of getting a rare item are extremely low in most games. But, just like gambling, you hear stories about someone who won a rare item from their first box and, in your excitement, you forget about the thousands of people who have opened hundreds of boxes and gotten nothing valuable.
In most countries, there are no age restrictions or regulations to purchasing loot boxes. Unlike real-life casinos, anyone can spin the wheel. Kids are the perfect targets for game companies. They’re already playing the games, so when the carefully designed loot boxes are introduced and their favorite YouTuber releases an obnoxious “unboxing” video, it is difficult for them to resist. Mobile games have been exploiting young kids for years, targeting them with shortcuts to skip long grinds by paying real-world money. But, the danger is growing as more popular games with higher price points jump on the loot-box train.
Loot boxes have been around since 2007 and were popularized by "Team Fortress 2" in 2010. Soon after, games like "Counter-Strike: Global Offensive" and "Battlefield 4" began to experiment with their own loot boxes. Now, more big AAA titles are beginning to realize the potential money in loot-box systems. It seems like every new game that comes out offers loot boxes. "Overwatch," the past few "Call of Duty" games, "Battlefield 1," "FIFA 17," "Halo 5," "Star Wars Battlefront II" and "PlayerUnknown’s Battlegrounds" have all implemented loot-box systems. It is quickly becoming a norm in the video-game industry.
Fortunately, governments are beginning to notice. In 2016, China passed legislation requiring the “draw probability of all virtual items” to be made public, so the player knows his/her chances of opening a box containing a rare item. In March 2017, the United Kingdom’s Gambling Commission released a paper arguing that in-game items sold for real-world currency have real-world value and thus the practice of acquiring these items should be subject to gambling laws. Per usual, the United States is the last nation to condemn exploitative business practices. However, due to the controversy over skin gambling in "Counter-Strike: Global Offensive" in 2016, newer video games are choosing to keep their in-game items from attaining real-world value.
Still, loot boxes are dangerous and unregulated. As they inevitably become more popular and successful, we can only hope governments will internationally crack down on gambling within video games.
