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Video Game Industry Must Address The Loot Box Controversy, IGDA Boss Says

IGDA chief Jen MacLean calls for self-regulation.

41 Comments

Yet another video game industry group has come out to say government control of loot box regulations is a bad idea. International Game Developers Association (IGDA) CEO Jen MacLean released a statement this week where she called on developers and publishers to take this issue seriously to avoid a scenario where politicians get involved and put forth legislative action that could impact games with loot box mechanics.

"By not taking significant action as an industry and global game developer community to self-regulate how loot boxes are used, we run the very real risk that governments around the world will take that action for us, and perhaps create significantly restrictive laws that could impact any random reward elements in games," she said. "I offer my strongest advice to game developers and interactive entertainment businesses on this matter: addressing how loot boxes are used is both the right thing, and the smart thing, for the global game development industry to do."

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MacLean's statement comes in response to the news this week that the US Federal Trade Commission may launch an investigation into loot boxes. Australia's government has also called for a "comprehensive review" of loot boxes to determine what might be done. The IGDA backs up what the Entertainment Software Association has already said: the industry should self-regulate when it comes to loot boxes. Politicians, meanwhile, will argue that laws are necessary to ensure that something is being done to protect young people from falling into dangerous gambling habits. Self-regulation may be a good idea in theory, but actual laws or regulations would put more pressure on developers and publishers.

In her statement, MacLean--a former executive at Curt Schilling's controversial defunct Rhode Island developer 38 Studios--said loot boxes with real-money mechanics "run the risk of triggering gambling laws."

As an industry, MacLean said she advises the following three steps be taken immediately to avoid a situation where the government gets involved:

  • Affirm an industry commitment to not market loot boxes to children
  • Clearly disclose the odds of different rewards when purchasing loot boxes (as many games already do to comply with Chinese law)
  • Launch a coordinated education campaign that boosts awareness of the parental controls that are available to appropriately limit how players engage with games

A politician from Hawaii, Democrat Chris Lee, is trying to make a law that would limit the sale of video games with "gambling-like mechanisms" to people under 21. Lee told GameSpot that he was aware of ESA lobbyists being flown to to Hawaii to try to stop the conversation about loot boxes from happening.

"We have to try and stand up for what is right," Lee said earlier this year. "I think it is inevitable that, whether it was spurred by Battlefront or some of the recent big-title games just being so ridiculously exploitative of the player base, there is enough of generational transition in politics and positions of authority around the country and the world, that you have people who understand what the industry is doing and are willing to stand up and take action and do something about it. Inevitably, the industry will have to change.

"Because more and more jurisdictions are going to start protecting their citizens from the kinds of exploitive and predatory practices that the industry has been employing lately. Inevitably, that means a better industry for everybody and better games for everybody."

Conversation around loot boxes heated up at the end of 2017 in the wake of EA's Star Wars: Battlefront II. For a brief period of time, before the game's official release, the title was set to allow players to spend real money on loot boxes that could potentially include items that impact gameplay. Some said this made Battlefront II effectively a slot machine where players could pay for the chance to get something they wanted. EA removed loot boxes from Battlefront II on the eve of the game's public release, though it appears the controversy negatively impacted the game's sales. Battlefront II re-introduced microtransactions in 2018, but only for cosmetics. EA's newest shooter game, Battlefield V, features no loot boxes at all, while microtransactions aren't turned on yet. Other games, such as Overwatch, continue to use loot boxes as an extra method of monetisation.

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trust2112

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While you all are crying about lootboxes, no one wants to talk about SWTOR's Nar Shaddaa's actual gambling. A casino where you use in game tokens too play a slot machine... Yes, this is very real, and yes it would absolutely be considered gambling, and yes, kids were involved.

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BDRTFM

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These people are greedy. It will take governmental regulations because they cannot help themselves. As long as people are willing to spend money on and in games that use these methods, companies are going to keep using them until forced to stop.

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HUYI12

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@bdrtfm: they will never stop, that is the thing, they would even continue when caught red-handed, nothing will stop their greed.

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Jako998

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Edited By Jako998

I just believe that if a game is $60 there shouldn't be any microtransactions/loot boxes

at all. $60 is already to much now.

If game developers want to make a lot of money then actually make a good game and word will spread out.

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BDRTFM

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@jako998: Try paying $80 + 13% tax like we do in Canada. And they are talking about raising it to $90 because, why not?

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ASneakyPoptart

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Well, governments will get involved when the industry doesn't self regulate. You reap what you sow.

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bbq_R0ADK1LL

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Loot boxes make games actively worse. They often cut content out of the game to sell as microtransactions, but what is worse is that they remove customer choice. Rather than letting people buy what they want, they implement a gambling system. They exploit "whales" who are weak to these tactics, while making the game more grindy for everyone else.

There is literally nothing good about loot boxes unless you're a shareholder who doesn't care who you exploit to keep making more profits than the last quarter.

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deactivated-5dd711115e664

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I absolutely hate loot boxes. Especially after playing a lot of Fortnite and seeing how they implement unlocking loot through the battle pass. I love Overwatch but barely play it ever, other than special events, because I'm not competitive and the loot system sucks so bad. I dusted it off over Halloween so me and my kids could play the event and unlock some special skins. I played a TON of games over that whole period and unlock a couple basic skins and one more legendary skin. My youngest son barely played at all and his two loot boxes both had legendary skins in them. My older boy played a fair bit and I think he got one common skin and then a crap-ton of sprays.

This isn't fun. It is frustrating and discouraging to feel like no amount of playing or winning will make much difference. One person can play a couple games and get a couple legendary skins, and someone else can play much longer and try much harder and only end up with crap. And that is just through playing and earning loot. I can't imagine why anyone who bother spending massive money on lootboxes when the odds aren't any better. At least with fortnite you know up front how much things cost and how hard you will have to work to earn rewards in game. As much as I love Overwatch, as long as the game is using lootboxes for rewards, it will remain a game I only dust off during special events.

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iX-gamer

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politicians should implement legislation to ban loot boxes. good day.

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GooberMcDermit

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I think in the eyes of politicians they are simply seeing it as a gamble when one is purchased with real world money. You are spending $$$ on a random element where the outcome is unknown. Don't get me wrong I could care less either way, its the unknown element that is more or less the target. If you look at the definition of gambling it kind of falls in line with that,

1. the activity or practice of playing at a game of chance for money or other stakes.

2. the act or practice of risking the loss of something important by taking a chance or acting recklessly

In the end it is up to the individual, its more aiming at the age related issue to someone under the age of majority being able to do it.

Either way it does not matter in the end, you can simply no buy loot box's as its pretty much just cosmetics anyway. Everyone to their own.

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deactivated-5dd711115e664

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@goobermcdermit: This is exactly right. They are increasingly wondering how paying money for random loot boxes hoping for big win/prizes is any different from gambling through other means. And honestly, it isn't. What's the difference between someone buying a ton of bingo cards hoping to win vs someone buying a ton of lootboxes hoping to get that one rare skin they want? Nothing. What's the difference between lootboxes and those cheap pull-tab lotto tickets or scratch tickets? Nothing really. You are gambling that spending a certain amount of money will allow you to win your prize.

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Rufus_the_rat

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Edited By Rufus_the_rat

Think how rotten our world would be without any governments. For all of their faults, they're the only thing standing between the consumer and these lying rotten thieves. And the threat of government regulation is the only thing that ever compels the entertainment industry to put in place policies for the benefit of the consumer, which they could easily afford but choose not to as they would rather wring every ounce of blood from us. European and Australian governments are why Steam offers refunds now.

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deactivated-5dd711115e664

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@Rufus_the_rat: well, to be fair, loot boxes exist because people are stupid enough to spend a ***load of money on them hoping to get cosmetic items which do literally nothing. Not even government can protect people from their own stupidity. The best way for lootboxes and microtransactions to go away is for people to wise up and stop supporting them. But the exact opposite has proven to be true. People seem to LOVE dumping tons of money into loot boxes and microtransactions. Hell, look at how much money the free-to-play Fortnite makes each month. The crap they sell is EXTREMELY over priced and totally unjustified. But clearly people are spending hundreds (and hundreds) to get cosmetic items that are awesome until the next one comes out. I'm not some free market capitalist or libertarian. I'm all for government looking after the public. But the reality is these things exist because companies know it works. And it is hard to lay all the blame at the feet of companies for something that is 100% optional for people to support or not. Clearly people support it and support it a lot and that is why it continues. Government can step in and correct it a bit...but the problem is us and that means companies will just find some other way to capitalize on our desire to throw money away on vanity and ego.

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PETERAKO

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At this point they cant self regulate. Key word, growth. They are already at critical growth levels. If they do anything to their looties, it will be a huge hit to shares.

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kgsg-19-2

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Well gov's getting involved is good news for everyone no matter what you think about this whole lootbox thing. More interference = less loot boxes which equals less loot box nonsense talk. Win win for everyone, well maybe not for the people who like loot boxes of course.

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Kezzy123

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There is a reason why Blizzard uses lootboxes to "sell" their skins instead of selling them for individual prices and let the customer choose what to buy like Riot does in League of Legends. If you cannot see why this is disingenuous, you probably should stay out of the conversation.

But there is also a reason why blizzard makes way more money out of their lootboxes for much much less quality skins than league (IE: no new sounds, no new particle effects, just repaints for the most part).....addiction manipulation.

Which is why i have and will continue to boycott blizzard.

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Kezzy123

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feelsbad. I guess devs are going to have to start working for their money again...

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Ada-Wong-Fan

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All VideoGames Rating Boards need Created New Rating only for Games with LootBox aka Gambling (Fifa 2008-)

ESRB (North America) LA aka Legal Age Rating: 21+

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Jaxith

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There's a real simple solution that no one wants to consider... Just don't sell loot boxes. Let people choose exactly what they spend their money on instead. Really simple solution, but it's never going to happen. Not unless a whole lot of people stop trying to exploit their customers and start treating them with a small amount of respect.

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deactivated-5dd711115e664

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@Jaxith: this is how Fortnite works. They have their item shop where you can spend your fake game money on various cosmetic items. The more "rare" the higher the cost, but it is a choice people make for themselves and everything is open and up front. Personally, I think fortnite prices are insane and a rip off (which is just another case for why these sorts of microtransactions are harming gaming IMHO) but at least it is transparent and people get what they want at a price they are willing to spend.

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Kezzy123

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@Jaxith: Thats what Riot has been doing with league of legends quite successfully for a long time now. In fact this is better for industry because if they make a crap skin, nobody will buy it unless they practically give it away. So their money returns are directly proportional to the value they give the customer. But hey, cant ask the new Blizzard mega greed corp to be fair now can we?

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speed45823

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I was having a discussion about this on another Youtube video and one guy said this :

"ESRB = ESA, and the members of the ESA are literally EA, Activision, Ubisoft, etc. They don't have to bribe themselves, lol. They already have full conflict of interest here. It's always been a joke attempt at them claiming they are "self-regulating" aka regulating themselves, but failing spectacularly to do so due to their own greed."

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darkelf83

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"and perhaps create significantly restrictive laws that could impact any random reward elements in games,"

Not likely. Games never had issues with random rewards. Once upon a time you worked for those cool extras and felt accomplished when you got them. Maybe showed them off a bit and either kept playing said game or moved on to something else. Once they got sniff of the crazy profits to be made off of selling people that which was once free, they just couldn't help themselves and got greedy. Honestly it's all a spill over from the garbage free to play mobile model. Never liked it, don't play, and sure won't catch me spending my money on it.

Here's looking at you EA. Thanks for getting the ball rolling with Battlefront II. The absolute greed and attempt to push pay to win mechanics in a full price game pushed gamers too far.

Also, let's not cry for the developers of these big companies. Activision-Blizzard made 4 billion on microtransactions last year and you know where that money went. Not the developers but CEO, stakeholder, etc pockets. The hard working folks don't get much or anything out of it. The ones making good games, make more than enough to pay for them and start the next project.

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ValedictorianXD

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Edited By ValedictorianXD

Anybody else find it ironic that MacLean played a significant role in the bankruptcy shenanigans of 38 Studios and yet has the audacity to tell game developers they should regulate themselves? I don't buy it. Lot of these higher ups are just in it for the money and it is about time that developers like myself get to watch the executives get their comeuppance.

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uninspiredcup

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Edited By uninspiredcup  Online

Governments should, as unrelenting greed has taken hold, bypassing any semblance of morality or responsibility.

It can't regulate itself. They deserve the government on their backs.

""By not taking significant action as an industry and global game developer community to self-regulate how loot boxes are used, we run the very real risk that governments around the world will take that action for us, and perhaps create significantly restrictive laws that could impact any random reward elements in games,"

He's not even judging it on right or wrong. "Our moneyz might capped".

Boo-hoo you.

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phoenix1289

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Fully agree. The last thing the gaming industry needs is government shoving it's nose in and regulating anything because once they start they will use that as a base board to try to take more an more control. First it will be loot boxes and microtransactions but, then it will be violence and content they deem as inappropriate. The industry has avoided this kind of issue in the past through self regulation with the ESRB rating system and and the like but that will change if the government gets a foothold to start regulating.

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Kezzy123

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@phoenix1289:

lol

that would be the best thing that could happen to the gaming industry which is complete and pure aids right now preying on kids and people with mental disabilities (gambling addicts, completionist addicts, people with no impulse control, etc) and sacrificing quality. I shudder as soon as I see a game is "free to play" because that is now codename for terrible gameplay supported by a pay to win / pay to play format that will cost 100x more than if the game was sold at premium rate to begin with.

the gaming industry today is a disgrace. End of story.

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phoenix1289

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@Kezzy123: And then people will sing a different tune when the U.S. starts moving in a similar direction to other countries like Australia, with the government banning or censoring games for having violence or other content deemed objectionable. That is what will happen. If the government is allowed to regulate one aspect then they will eventually strive to regulate more and more.

Pushing for self regulation is the far better option, it deals with the issue while maintaining the industries seperation from government control and regulation.

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Kezzy123

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@phoenix1289: Perhaps less violence is not the worse thing in the world and this coming from a guy who enjoy some of the most gory games out there.

Though I doubt this will be an issue as long as there are ratings on games just like movies.

heck...perhaps all that changes is that lootboxes in game require the game to sell as 18+ audience which doesnt necessarily prevent kids to play but greatly restrict the market which is why some movies release pg13 with less violence to have a larger audience etc.

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Millionsedge

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How about you just sell in-game items? Pay a price and get what you want? Of course the answer is that they don't drive as much profit as a gambling model.

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sdzald

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I am sure EA is listening to the IGDA. LOL companies like EA could care less, they are in it for the short term cash cow, in fact they would welcome a government 'take over' of gaming so that all game companies produced 'cardboard' games and EA wouldn't have to compete with real game companies.

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ThatOneGuy7895

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Just let them die! There is not a single instance of loot boxes or microtransactions making a gameplay experience better for the gamers. It's just a cash grab by greedy suits. let the games be games and make money from selling good ones. Not by implementing gambling and blackmail tactics.

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ghost140

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Edited By ghost140

lol "self-regulation" if the idustury was capable of that it would not have gotten this far. Instead they squeezed and squeezed till the little piggies started to squeal. But lets be real here the "industry(ies)" have no desire to regulate themselves all they will do is lip service/bare minimum.

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MMX377

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Edited By MMX377

Are you telling me there is a chance that all games will be microtransaction-free?

*giggling gladly*

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Jaxith

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@MMX377: Not to crush your hopes, but that's not what they're saying. Best case, we lose loot boxes. More likely, they end up with a few more layers of "warning labels" and lip service. Microtransactions at large aren't really on trial here.

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deactivated-64efdf49333c4

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Doubt this will accomplish anything. At most, the ESRB will automatically rate any game with loot box mechanics "M", which, of course, won't accomplish anything.

The problem with the entire argument is that it assumes "kids" are the only audience for video games. Since that's bull, you can't in turn declare gambling practices are unfit for adults as well.

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ThatOneGuy7895

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@Barighm: I very much hope you're wrong. Loot boxes are worse for unchecked adults. People will fucking pay hundreds of dollars in one game just to get one fucking skin for one fucking character. It's predatory, it locks content behind paywalls, and the industry would be much better off if this practice was illegal, no exceptions.

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gotrekfabian

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A commendable attitude on the situation but will the industry be wise enough to take heed? If current greed is anything to go by then probably not and government intervention will be the only way that this traversty can be addressed and, eventually, overturned. Chances are though that we are still a long way off seeing this though.

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