Microtransactions & Lootboxes in Games

(Alan, Danely, Xeon, Sriram)

As the video-game industry reached the widespread popularity it is known for today, the overall cost of developing a video game grew, both for large studios and indie-developers. To account for this, many developers started to implement ways of monetization inside their games. These purchases usually cost lower than the game, and as such are called micro-transactions. However, there are many issues that rose from the advent of micro-transactions.

One of these issues can be seen in the launch of the popular first-person-shooter game Star Wars: Battlefront II, a game released by Electronic Arts in 2017. The game, while lauded for its beautiful graphics and satisfying gameplay, came under extreme fire throughout the internet for what many saw as extreme monetization at the expense of user experience. Users have repeatedly criticized the difficulty of game progression due to the need to “grind” (spend an extended period of time to acquire in-game benefits or credits) in order to play as specific, well-known characters or simply to acquire augmenting items or abilities. In turn, players are incentivized to purchase “loot boxes” containing potentially advantageous items. This has turned Battlefront II into a “pay-to-win” game in which users willing to purchase premium currency are given a substantial advantage without a large investment of time, indirectly “punishing” non-premium users for their unwillingness to financially “invest” in the gameplay.

Another issue that stems from microtransactions in games can be seen in the concept of loot boxes in relation to gambling. Many popular games, including Overwatch, Middle Earth: Shadow of Mordor, and Counter Strike: Global Offensive, have implemented a system in which players can buy “boxes” with real money (a micro-transaction) that have a random chance of giving them some item. These items could affect a person’s gameplay (in turn making the game “pay to win”) or are purely cosmetic, but either way are conceptually similar to gambling. However, unlike gambling they are not regulated by the same laws, and as such developers are able to market to children and appeal to a person’s addiction. Gambling addiction has been classified as similar to other forms of addiction, and the RNG aspect of loot-boxes only help exacerbate it. However, many politicians are trying to change this, with just last week Belgium and the Netherlands classifying games with loot boxes as forms of gambling. 

Understanding all this, we can see how microtransactions can have a severely negative impact on consumers experiences with a game, as well as create a system where they are taken advantage of for avaricious reasons. We believe that while microtransactions are not inherently bad, as they help support developers in an increasingly saturated and competitive market and adjust to the demands of the gaming market, their implementation into gameplay up until now has been middling at best, and should definitely be a point of open discussion between gamers and the developers.

Jason. “A Video Game 'Loot Box' Offers Coveted Rewards, but Is It Gambling?” The New York Times, The New York Times, 24 Apr. 2018, www.nytimes.com/2018/04/24/business/loot-boxes-video-games.html.

Alexandra, Heather. “Star Wars: Battlefront II, Six Months Later.” Kotaku, Kotaku.com, 19 Apr. 2018, kotaku.com/star-wars-battlefront-ii-six-months-later-1825392548.