CEO DATELINE - Association defends use of ‘loot boxes' in video games
CEO DATELINE - Association defends use of ‘loot boxes' in video games
- November 29, 2018 |
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Walt Williams
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The Federal Trade Commission will soon investigate whether "loot boxes" found in many video games constitute a form of gambling—an accusation the association representing the industry vigorously denies.
Loot boxes are virtual packages of randomized digital rewards video game players can purchase with real money. Some rewards are rarer than others, so every time players purchase a loot box, they have no idea what they are going to get. The use of loot boxes in games has boomed in recent years and already is a multi-billion dollar industry. Depending on the game, loot boxes might contain "skins" changing a character's appearance or other items people can use while playing.
U.S. Sen. Maggie Hassan (D-N.H.) is one of the chief critics of the practice, saying it is essentially an addiction-forming business model aimed at children. During a Senate hearing Wednesday, Hassan asked FTC Chairman Joseph Simons to investigate loot boxes, according to Business Insider. He agreed and pledged his agency would issue a report on the practice.
A few European countries ban loot boxes, saying they constitute gambling. However, that is a label the Entertainment Software Association refuted in a statement to media outlets.
"Loot boxes are one way that players can enhance the experience that video games offer," ESA said. "Contrary to assertions, loot boxes are not gambling. They have no real-world value, players always receive something that enhances their experience, and they are entirely optional to purchase. They can enhance the experience for those who choose to use them but have no impact on those who do not."
ESA also noted that many games carry now labels notifying parents about the practice. For the first time this year, the Entertainment Software Rating Board required games to notify consumers about "in-game purchases" when loot boxes and other virtual items for sale were present. https://read.bi/2Qwklz8
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