Game publishers are well aware of the risks that loot boxes pose in terms of regulatory fines and litigation costs. However, loot boxes have become too ingrained in gaming culture to simply eliminate them. While governments around the world continue to struggle with how to regulate the sale of loot boxes, the video game industry would do well to consider some self-regulation.

Abstract:

Video games are ubiquitous and wildly popular. They can be played alone, in competition against other gamers, and on teams. Users can access them via dedicated consoles, personal computers, and—contributing to their ubiquity—on smartphones and tablets. The industry generates nearly $100 billion in the United States alone and continues to grow. In addition to selling hardware and subscriptions, a great deal of revenue is derived from players paying for various types of upgrades. Some of these are seen as necessary to win, and some winnings come in the form of “loot boxes,” a virtual item that can be redeemed for other virtual items, like a new look for your avatar or a new virtual weapon. If you must pay to win, is that gambling? If so, shouldn’t it be regulated as such? And even though the average gamer is said to be 35 years old, the popularity of games among children and teenagers is well known. In this article the author explores the history of loot boxes, their impact on gaming culture, and the prospects for their global regulation.