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Oct 25, 2017
15,171
We've entered the main phase.

https://www.broadcastingcable.com/news/ftc-pledges-to-investigate-video-game-loot-boxes

Joseph Simons, chairman of the Federal Trade Commission, pledged to Congress Tuesday (Nov. 27) that his agency would look into in-video game "loot boxes," which generate ongoing revenue from online games via virtual items that can be bought—say, new or more powerful weapons.

Sen. Maggie Hassan (D-N.H.) said that such revenue generators were predicted to be a $50 billion business by 2020.

She said that "loot boxes" are now "endemic" to the video game industry from smart phone apps to high-budget releases. She said children may be "particularly susceptible" to such purchases.

Simons assured [Sen. Ed Markey (D-Mass.)] that he and the agency were concerned about manipulative in-app marketing, and that it was looking into, or likely would look into, various allegations against Google and others related to kids content, including that Google's YouTube, asserted that its toy review for the kids channel was not targeted to kids and thus not subject to the Children's Online Privacy Protection Act, which Markey authored two decades ago.
 
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Cess007

Member
Oct 27, 2017
14,078
B.C., Mexico
Good. Whatever the final decision may be, there should be an investigation at least.
She said that "loot boxes" are now "endemic" to the video game industry from smart phone apps to high-budget releases. She said children may be "particularly susceptible" to such purchases.
 

HypedBeast

Member
Oct 29, 2017
2,058
Excellent. There is no two ways about it, this stuff is gambling and it is incredibly exploitative.
 

Deleted member 36578

Dec 21, 2017
26,561
Thank goodness.
It's time for some actual regulation. I really hope companies like EA and Ubi change their ways when it's all said and done .
 

chrisypoo

Member
Oct 27, 2017
3,457
Here's hoping something comes of it. This business model is gross, and it's objectively gambling and should be regulated as such. Here's hoping ESRB eventually has to put a warning on the front of boxes that this game contains gambling or something of that nature.
 

funky

Banned
Oct 25, 2017
8,527
Reaction of the ESA meeting with the FTC

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Oct 27, 2017
1,158
They should be regulated better for sure, but I don't think loot boxes are inherently bad. Loot boxes have been done well in games like Overwatch. You get a fairly steady stream of them with multiple ways to get them free as well as the in game currency for buying what you want easily. Now if only you could get the old event stuff still. As long as it's just cosmetic stuff, it's fine in my book... But seriously fuck games that have loot boxes for better gear/weapons/characters.
 

slabrock

Member
Oct 25, 2017
1,762
Maybe the greed finally caught up with the gaming industry. With a light touch they could have had a consistent revenue stream but they pushed way too hard and brought attention upon themselves.
 

Agentten

Banned
Oct 27, 2017
96
They should be regulated better for sure, but I don't think loot boxes are inherently bad. Loot boxes have been done well in games like Overwatch. You get a fairly steady stream of them with multiple ways to get them free as well as the in game currency for buying what you want easily. Now if only you could get the old event stuff still. As long as it's just cosmetic stuff, it's fine in my book... But seriously fuck games that have loot boxes for better gear/weapons/characters.

Overwatch's loot boxes are just as addictive as others
 

Trace

Member
Oct 25, 2017
4,688
Canada
If you think Trump's FTC will change anything other than "please give us more money lobbyists" you're sadly out of touch with the current state of American politics.
 

AtomicShroom

Tools & Automation
Verified
Oct 28, 2017
3,075
Oh shit things are getting serious now!

There's no way these things should be in games that aren't rated 18+, just like any type of regular casino gambling.

Eat shit, greedy corporate scumbags!
 

Kuga

The Fallen
Oct 25, 2017
2,263
They should be regulated better for sure, but I don't think loot boxes are inherently bad. Loot boxes have been done well in games like Overwatch. You get a fairly steady stream of them with multiple ways to get them free as well as the in game currency for buying what you want easily. Now if only you could get the old event stuff still. As long as it's just cosmetic stuff, it's fine in my book... But seriously fuck games that have loot boxes for better gear/weapons/characters.
Lootboxes are gambling and should be regulated as such. Cosmetic lootboxes aren't as offensive as "pay to win" designs, but the lesser of two evils is still evil.
 

GrantDaNasty

Member
Oct 27, 2017
2,981
To say lootboxes are gambling is doing a disservice to the gambling industry as far as I'm concerned. Gambling has regulations, more lax in some regions than others, but it is regulated. Lootboxes are completely out-of-control and the net result of all these companies focusing on it is in 3 years once changes are in place, half the staff of EA will be let go because their eggs are all in on this predatory basket. I guarantee it.
 

Sacul64

One Winged Slayer
Member
Oct 27, 2017
6,749
They should be regulated better for sure, but I don't think loot boxes are inherently bad. Loot boxes have been done well in games like Overwatch. You get a fairly steady stream of them with multiple ways to get them free as well as the in game currency for buying what you want easily. Now if only you could get the old event stuff still. As long as it's just cosmetic stuff, it's fine in my book... But seriously fuck games that have loot boxes for better gear/weapons/characters.

They are horrible in Overwatch and is part of the reason why I can not play the game.
 

Nanashrew

Banned
Oct 25, 2017
6,328
To say lootboxes are gambling is doing a disservice to the gambling industry as far as I'm concerned. Gambling has regulations, more lax in some regions than others, but it is regulated. Lootboxes are completely out-of-control and the net result of all these companies focusing on it is in 3 years once changes are in place, half the staff of EA will be let go because their eggs are all in on this predatory basket. I guarantee it.
Not really. And one issue with gambling regulations and their definitions is that a majority of them where created in the 70's and hardly updated since then.

I would definitely recommend everyone give this Twitchcon panel a watch about lootboxes. It's hosted by two lawyers.
https://www.twitch.tv/videos/328589889?t=1h43m21s

EDIT: One interesting highlight they bring up in the mobile space, is Big Fish Casino, a literal and 100% virtual casino. You could transfer chips between players, and the company made profit from this. It was not deemed gambling even though it had built in secondary market where you can exchange money. But just recently as a few months ago that was overturned and is now considered gambling. And this is thanks to younger and more tech savvy lawyers showing up in the field. And they didn't look to the secondary market to deem it gambling either, they looked at the free play argument that many companies gives for their F2P mobile games. Such as free play, free gems, daily bonus, etc. Earning free plays over time did not save them.

This is how messed up gambling regulation is and why it needs updates. A virtual casino can be seen as not gambling though it entirely is. Because the law for this has barely been updated to work in the internet space.
 
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Oscillator

Banned
Oct 30, 2017
1,787
Canada
Are the random toy machines in the front of stores and restaurants gambling?

They're usually clear, allowing you to plainly see the odds of getting a certain toy.

The psychology of those machines is also very different. I've never heard of a case of someone blowing huge amounts of money on them. They could be made more addictive with lights, noises, etc., but the makers are probably afraid of direct comparisons to casino slot machines.

As for trading cards, though the act of opening the packs can definitely be addictive, the young target audience is typically limited by actual cash-on-hand rather than more invisible credit card/online purchases. And being physical items, you can obtain them out-of-pack at market price, or through, well, trading.

Now claw machines, redemption machines, and midway games, there's some shit. Worse than lootboxes in some ways. I wouldn't be surprised to see the video game industry use the lack of regulation of those things as some kind of defence.
 
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gaugebozo

Member
Oct 25, 2017
2,824
They're usually clear, allowing you to plainly see the odds of getting a certain toy.

The psychology of those machines is also very different. I've never heard of a case of someone blowing huge amounts of money on them. They could be made more addictive with lights, noises, etc., but the makers are probably afraid of direct comparisons to casino slot machines.

As for trading cards, though the act of opening the packs can definitely be addictive, the young target audience is typically limited by actual cash-on-hand rather than more invisible credit card/online purchases. And being physical items, you can obtain them out-of-pack at market price, or through, well, trading.

Now claw machines, redemption machines, and midway games, there's some shit. Worse than lootboxes in some ways. I wouldn't be surprised if the video game industry will use the lack of regulation of those things as some kind of defence.
You can see all of what you can get in loot boxes, and they're generally ranked in order of common they are. You can't really tell for vending machines because most of the toys are inside the first layer.

Gambling is not defined by how addictive it is or what the potential for loss is.
 

Oscillator

Banned
Oct 30, 2017
1,787
Canada
You can see all of what you can get in loot boxes, and they're generally ranked in order of common they are. You can't really tell for vending machines because most of the toys are inside the first layer.

What's visible in a vending machine is indicative of what's in the entire machine. Lootbox odds are far less clear, and even if they were, lootbox mechanics are far more manipulative.
 

Nanashrew

Banned
Oct 25, 2017
6,328
What's visible in a vending machine is indicative of what's in the entire machine. Lootbox odds are far less clear, and even if they were, lootbox mechanics are far more manipulative.
Yep. Being fully transparent would just by itself do wonders for these systems. And it's at minimum, a regulation that I would like to see go through.
 

EmptyWarren

Self-requested ban
Banned
Oct 29, 2017
1,250
Oh shit things are getting serious now!

There's no way these things should be in games that aren't rated 18+, just like any type of regular casino gambling.

Eat shit, greedy corporate scumbags!

Rating wouldn't work. You cant legally be on a gambling floor if you are underneath the gambling age. They would have to have an actual system in place to prevent minors from accessing them at all. You wont see a 13 year old playing blackjack or pulling the lever at a casino.
 

glasiche

Avenger
Feb 12, 2018
474
Writing letters individually to the commission would have a huge impact, and I'm not talking about some online petition that governing bodies don't actually consider.

Getting all the other forums that are against loot boxes in full priced games to work together would slay this thing
 

Deleted member 2171

User requested account closure
Banned
Oct 25, 2017
3,731
Before people cape about how adding odds visibly would be a lot of work, a lot of games that are in other countries show the odds, they just turn it off for American/UK regions.
 

AtomicShroom

Tools & Automation
Verified
Oct 28, 2017
3,075
Rating wouldn't work. You cant legally be on a gambling floor if you are underneath the gambling age. They would have to have an actual system in place to prevent minors from accessing them at all. You wont see a 13 year old playing blackjack or pulling the lever at a casino.

It's a matter of principle more than anything. If developers could only put loot boxes in AdultsOnly-rated games, they'd simply stop because no one wants to make a game rated AO.
 

Nanashrew

Banned
Oct 25, 2017
6,328
Before people cape about how adding odds visibly would be a lot of work, a lot of games that are in other countries show the odds, they just turn it off for American/UK regions.
It also depends on the definitions they create for regulated lootboxes. Say this is regulated with specific things like a rare item should not be less than 5%. Any company going under could be skinned alive if it was found they were cheating costumers out of their money.
 

Phrozenflame500

The Fallen
Oct 28, 2017
2,132
Interesting. Seems like they're targeting the right things (content in mobile games deliberately marketed towards children) instead of going after AAA games which are broadly fine.
 
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