Recently, even the politics have taken on the loot box issue and the Belgian Minister of Justice has initiated a national and EU-wide ban, so consequences could soon arise in Germany as well.
The controversial discussion surrounding the loot box problem has not ceased following the huge shitstorm regarding Star Wars Battlefront II. One reason is the increasingly loud accusation that loot boxes are equivalent to gambling and increasingly endanger young consumers. There is talk of addiction potential.
A nationwide ban is imminent
According to research by Welt am Sonntag the Youth Protection Commission of the State Media Authorities is currently considering a ban on loot boxes in Germany. This ban is supposed to be based on a yet unpublished study by the University of Hamburg. As part of this study, the common business models and revenue figures of the gaming industry were examined, revealing the unsurprising result that video games increasingly exhibit characteristics, elements, and structures of gambling.
What could the potential consequences be?
It is now up to the State Media Authorities to further examine whether certain elements of video games could be dangerous for children and adolescents. The chairman of the Youth Protection Commission, Wolfgang Kreißig, is quoted as saying: “I consider it conceivable that loot boxes could violate the ban on purchase appeals to children and adolescents.”
If this is indeed the case, the manufacturers face an expensive fine procedure. As another consequence, loot boxes could ultimately be completely banned in Germany.
One will not have to wait long for a result. A decision is expected to be made as early as next March. How long it will take to implement the agreed measures cannot yet be estimated.
What would change for the players?
Whether and to what extent something will change mainly depends on the decision coming in March. If legal regulations are indeed to be implemented afterwards, it would be hardly possible for game manufacturers to maintain such a monetization model in Germany – while it must not be overlooked that a foreseeable EU-wide ban could follow the first national ban. At the latest then, the gaming industry would be forced to rethink – mind you, only here in Europe.
However, the current trend looks completely different. A survey conducted during the Game Developers Conference 2018 showed that most developers are working with loot boxes and other types of microtransactions in their ongoing projects and see them as an integral part of their monetization model. The rising development costs are increasingly cited as a reason, while the price of games has remained at a stable level for years.
To keep a game financially viable and profitable over a longer period, alternative sources of income must be tapped. Otherwise, it would result in an increase in purchase prices, which would in turn be passed on to the end consumer.
Even though players may not like to hear it, developers agree: loot boxes are important if games are to have a future
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