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[strange headache]

The European Consumer Organization has released a fascinating in-depth report on the predatory monetization in video games and the widespread exploitative practices in the video games industry. The report represents a joint political effort from 20 European countries to put an end to these manipulative microtransactions:

20 European consumer organisations from 18 countries (all members of BEUC)1, jointly call for more protection of European consumers and further regulation on loot boxes, asking their governments and consumer protection authorities to take action.

The report does a good job at highlighting the specific issues of lootbox monetization and how MTX are exploiting consumers through by fostering addiction and exploiting vulnerable groups:

• Exploiting cognitive biases and vulnerabilities through deceptive design.
• Using aggressive marketing practices to push sales at every opportunity.
• Meaningless or misleading transparency disclosures about the likelihood to win or lose that are difficult to assess.
• Opaque algorithms and skewed probabilities
• Using layers of virtual currencies to mask or distort real-world monetary costs.
• Very high cost of freemium and endless grinding
• Risk of losing content at any time
• Targeting loot boxes and manipulative practices at kids

Based on these issues, they present the following demands to regulators and policymakers in order to demand legislation to go forward :

1. Video game companies must be banned from using deceptive design to exploit consumers. When consumers engage in video games, companies must ensure that their decisions are not impacted to the detriment of the consumer, by the design and operation of game.

2. All In-game purchases should always be denominated in real-world currency. At the very least, real-world currency values should be provided alongside virtual currencies, where virtual currencies are used.

3. Protection of minors:

a. Games likely to be accessed by minors must not offer loot boxes, or other randomized content in exchange for real money.​

b. Games likely to be accessed by minors should not contain “pay-to-win" mechanisms.​

4. More transparency:

a. Researchers and regulators should have access to the algorithms and datasets that is are involved in the loot boxes to conduct independent research in the public interest.​

b. In cases where algorithmic decision-making is employed to influence consumer behaviour, the consumer must be explicitly informed. The disclosure must include information in plain language about what algorithms are trained to achieve and which factors are used. In addition, the consumer should have the option to use the game without algorithmically driven decision-making that aims to influence consumer behaviour.​

5. Better and more enforcement:

a. Consumer enforcement authorities must have the necessary resources and expertise to take enforcement actions, thus, protecting consumers in digital markets, including protecting digital ownership.​

b. Consumer protection authorities should ensure that existing and future consumer rights are enforced in the gaming industry as well.​

6. If other remedies do not alleviate the problems, consider a ban of paid loot boxes.

The full report is available here:

https://fil.forbrukerradet.no/wp-content/uploads/2022/05/2022-05-31-insert-coin-publish.pdf

 

[nominedomine]

Kids shouldn't have money, problem solved.

If adults are spending money on surprise mechanics they are investing in themselves, for the lesson they'll learn is invaluable.

 

[mitch1971]

 

[Damigos]

F lootboxes
F Game Passes
F microtransactions

 

[brian0057]

If a kid falls prey to these schemes, he or she needs better parents.
If an adult falls prey to these schemes, he or she gets no sympathy from me and go suffer the consequences of your stupid decisions.

 

[Elder Legend]

I don't see anything wrong with these practices. Any businesses goals is to push sales at every possible opportunity....

If you are too stupid or naive to fall for these obvious traps and you can't use your brains, then you deserve to lose out.

Also, if someone enjoys a product and has the money to spend on it. That's their full human right to spend the money earned how they want. Stop fucking judging people so fucking much when it comes to their personal finance choices.

Someone is making 6K a month and has to live off that. Then there are people who barely make 3K a month and are trying to survive.

Then there are people who make 20-30K+ a month, are you seriously going to tell those people to stop buying $20 Fortnite skins ? Fuck off.

 

[Guilty_AI]

I don't see anything wrong with these practices. Any businesses goals is to push sales at every possible opportunity....

If you are too stupid or naive to fall for these obvious traps and you can't use your brains, then you deserve to lose out.

I mean, your argument can be used to legitimize any money-making scheme under the sun. I could use the same argument to defend pyramids, or drug dealing.

 

[SmokedMeat]

Are loot boxes still much of a thing? Seems like everyone moved to microtransactions.

 

[Chukhopops]

What’s required imo is some kind of self-exclusion procedure like what exists for online and physical casinos (although it’s still flawed).

If you say it’s the customers’ fault you’re technically right but don’t understand how the human brain works.

 

[nush]

he European Consumer Organization has released a fascinating in-depth report on the predatory monetization in video games and the widespread exploitative practices in the video games industry.

It took them 7 years to watch any Jim Sterling video of the time?

 

[Saber]

Its astonishing that nothing matters for some players when the term "free" is used around.
Battlefront 2042 out of nowhere started catching interest of some people when there were suddenly rumors about being free or going to GP(which is not free), as if all its problems dissapeared.

Its like people are already brainwashed with this exploirative strategy.

 

[Bernd Lauert]

F lootboxes
F Game Passes
F microtransactions

Something like 70% of the entire gaming industry is microtransactions. There's no going back. Next up: NFTs.

 

[nominedomine]

F lootboxes
F Game Passes
F microtransactions

When you put it like that Game pass is a lot like a lootbox, you pay in advance and hope they'll include something you like in the next batch of announcements and that they'll deliver on the promises some day.

 

[STARSBarry]

Something like 70% of the entire gaming industry is microtransactions. There's no going back. Next up: NFTs.

Unless it becomes illegal to operate using them...

Then they kind of have to, that's sort of what this is all about. In the same way real life gambling had to adapt as new laws come into effect to limit the odds and minimum payout rates.

They will have to find something else, however the current status quo would have to move back at least for a time.

 

[Bernd Lauert]

Unless it becomes illegal to operate using them...

Then they kind of have to, that's sort of what this is all about. In the same way real life gambling had to adapt as new laws come into effect to limit the odds and minimum payout rates.

When has a $100b dollar industry ever become illegal? There's just too much money involved.

 

[STARSBarry]

When has a $100b dollar industry ever become illegal? There's just too much money involved.

Multiple times throughout history

Opium trade | History & Facts

Opium trade, the traffic that developed in the 18th and 19th centuries in which Western countries, mostly Great Britain, exported opium grown in India and sold it to China. The British used profits from the sales to purchase such Chinese luxury goods as porcelain, silk, and tea, which were in...

www.britannica.com

And I think this one will resonate more with Americans.

Atlantic slave trade - Wikipedia

en.wikipedia.org

You have regulated gambling right now... it used to be unregulated... that's how regulation works.

 

[Elder Legend]

I mean, your argument can be used to legitimize any money-making scheme under the sun. I could use the same argument to defend pyramids, or drug dealing.

It's obvious we're talking about a regular business here dude and not criminal. (Although I do believe prostitution should be legalized. Then again, porn is technically that already and only reason why it's legal is because of filming and cameras being involved along with the the givement being able to tax it)

I own a personal business and make money through ad revenue and selling sponsors. Yes, I sure as hell will let people know we offer those services if there is an opportunity.

I also do freelance digital marketing and charge $250 an hour for services/consultations.

If it's too expensive for someone then it is what it is. I sure didn't start at $250 initially because I was a nobody, had no rep, no nothing. Once you build a good rep and have something to show for it then you can start to ask for more money.

If you want to talk about a real scam, it would be NFTs. I've seen a lot of the marketing for NFT projects. What boggles my mind is how people fall for it. Easiest "let's pull the rug" scheme ever.

 

[dDoc]

Let's also not forget that due to MTX, season passes, loot boxes and other such practices designed to generate more profit for the publishers, game design changed. And not for the better. Please do tell how these practices generated better gameplay experiences, I'll wait..

 

[Chukhopops]

When you put it like that Game pass is a lot like a lootbox, you pay in advance and hope they'll include something you like in the next batch of announcements and that they'll deliver on the promises some day.

 

[strange headache]

What the critics here are not realizing is that legislation is coming!

https://www.reuters.com/world/europ...xes-blamed-pathological-behaviour-2022-06-01/

Spain is set to become the first European country to have a law regulating the use of so-called loot boxes in videogames, aiming to avoid "thoughtless, compulsive or even pathological" consumer behaviour, the government said on Wednesday.

The loot boxes – digital packages of virtual items that can be purchased using real money - are an important source of developers' revenue. They give players the chance to win desirable or often randomised game-changing equipment, and allow gaming companies a stream of high-margin income.

Consumer Minister Alberto Garzon said the government will in a few weeks regulate gaming features that offer prizes with an economic value in a real or virtual market and that can be resold or exchanged, including using non-fungible tokens (NFTs) or cryptocurrencies.

This is what your boneheaded ignorance around these issues gets you... regulation.

 

[Damigos]

When you put it like that Game pass is a lot like a lootbox, you pay in advance and hope they'll include something you like in the next batch of announcements and that they'll deliver on the promises some day.

I want to believe the rest of NeoGAF understands i dont mean THE Game Pass, but season passes

 

[TonyK]

Let's also not forget that due to MTX, season passes, loot boxes and other such practices designed to generate more profit for the publishers, game design changed. And not for the better. Please do tell how these practices generated better gameplay experiences, I'll wait..

That's the worst part, how the attention in monetization design has influenced (for bad) in gameplay design. In most games, real designers behind games are the economy designers and data analysts, and the classic designers, the ones in charge of gameplay or narrative, are only there to dress what economy designers and suit executives want.

 

[chaseroni]

I haven't seen a loot box since like... 2019?
What games even have them anymore?

 

[Elder Legend]

I want to believe the rest of NeoGAF understands i dont mean THE Game Pass, but season passes

Then you should of said Season Passes. Game Passes don't exist. Only Game Pass does.

 

[nominedomine]

I want to believe the rest of NeoGAF understands i dont mean THE Game Pass, but season passes

You gave me the idea, don't put it on me now.

You take the heat yourself, I never heard of Season passes being referred as game pass. Now, if you did it on purpose, that was some quality bait and I fell for it.

You pay in advance and hope that you'll get something you like one day, come on...

Am I the bait? Was I baited? It wasn't even bait?

 

[STARSBarry]

I want to believe the rest of NeoGAF understands i dont mean THE Game Pass, but season passes

I read that and could only think of Gamepass... after all a Season pass is called a Season Pass and Gamepass is Gamepass.

Never seen the two confused before... until now by yourself.

 

[Guilty_AI]

It's obvious we're talking about a regular business here dude and not criminal.

You mean regular right now. Businesses that are currently illegal or heavily regulated weren't that way from the beginning of times either.

The exploitation of this kind of monetization is perfectly clear, and what is being proposed isn't even to make it illegal, just regulate it to make it more transparent and not target kids.

 

[Swift_Star]

Let’s hope this changes things.

 

[HerjansEagleFeeder]

Anyone who thinks this can be easily delegated to the individual responsibilities of parents or adults is completely blind to basic psychological knowledge and the possibilities of manipulating human brains, independent of age, IQ or social upbringing.

 

[nominedomine]

Anyone who thinks this can be easily delegated to the individual responsibilities of parents or adults is completely blind to basic psychological knowledge and the possibilities of manipulating human brains, independent of age, IQ or social upbringing.

The same could be said about politics.

These sort of things looked like scams too me even when I was a kid, no law is going to protect you from being a sucker. You'll have to learn the hard way.

If you are going to pay one way or the other (and without a doubt you will) it's much better to pay upfront and know what you are actually getting.

Anyone that spent money on surprise mechanics or cosmetics is going to regret it at some point. They are buying worthless garbage that aren't even a proper product.

 

[Decontamination Silo]

Loot boxes regulate themselves. It's nature really. Someone with a proclivity for gambling is bound to lose all their shit. This just hastens that. Why protect them? Let nature take it's course.

 

[STARSBarry]

Loot boxes regulate themselves. It's nature really. Someone with a proclivity for gambling is bound to lose all their shit. This just hastens that. Why protect them? Let nature take it's course.

There's a very famous book with an incredibly similair sentiment about most things in life. It was written by an Austrian fellow in the mid 1920's.

Again so vauge you could apply it to pretty much anything, why have mandatory education? Why have fire fighters? Etc, just let nature take it's course.

Surprisingly most laws are there to protect yourself from your own stupidiy, its why speeding is against the law.

 

[Craig of War]

Have you guys try not buying it? having self control is hard but still lol

 

[HerjansEagleFeeder]

There's a very famous book with an incredibly similair sentiment about most things in life. It was written by an Austrian fellow in the mid 1920's.

Again so vauge you could apply it to pretty much anything, why have mandatory education? Why have fire fighters? Etc, just let nature take it's course.

Surprisingly most laws are there to protect yourself from your own stupidiy, its why speeding is against the law.

I was thinking of the famous Kallikles in Plato's Politeia. But I guess this Austrian painter you're speaking of fits as well.

 

[nominedomine]

There's a very famous book with an incredibly similair sentiment about most things in life. It was written by an Austrian fellow in the mid 1920's.

Again so vauge you could apply it to pretty much anything, why have mandatory education? Why have fire fighters? Etc, just let nature take it's course.

Surprisingly most laws are there to protect yourself from your own stupidiy, its why speeding is against the law.

You brought up Hitler didn't you? Godwin's law got you good this time, we need a law to prevent you from engaging in this behavior again.

 

[yurinka]

So Super Mario is going to be PEGI18 now and Nintendo is going to be forced to show their algorythms to explain their random loot that may or may not appear when breaking a box?

 

[Decontamination Silo]

There's a very famous book with an incredibly similair sentiment about most things in life. It was written by an Austrian fellow in the mid 1920's.

Again so vauge you could apply it to pretty much anything, why have mandatory education? Why have fire fighters? Etc, just let nature take it's course.

Surprisingly most laws are there to protect yourself from your own stupidiy, its why speeding is against the law.

I dunno man. I think we can find some nuance in between those leaps

 

[Chukhopops]

You gave me the idea, don't put it on me now.

You take the heat yourself, I never heard of Season passes being referred as game pass. Now, if you did it on purpose, that was some quality bait and I fell for it.

You pay in advance and hope that you'll get something you like one day, come on...


Am I the bait? Was I baited? It wasn't even bait?

I really thought you were joking but if you’re serious:

- Do you get a random different outcome each time you buy a GP sub? No
- Is the outcome of buying a GP sub not predictable at the time of purchase? It is
- Do you need to buy multiple GP subs in order to achieve a specific outcome? No

Just because you don’t know what’s going to be added in the future doesn’t make it a lootbox. Otherwise Netflix would also be a lootbox and that makes no sense.

 

[nominedomine]

I really thought you were joking but if you’re serious:

- Do you get a random different outcome each time you buy a GP sub? No
- Is the outcome of buying a GP sub not predictable at the time of purchase? It is
- Do you need to buy multiple GP subs in order to achieve a specific outcome? No

Just because you don’t know what’s going to be added in the future doesn’t make it a lootbox. Otherwise Netflix would also be a lootbox and that makes no sense.

Do you get a random different outcome each time you buy a GP sub?
Yes. Depending on when you subscribe you'll get different games.

Is the outcome of buying a GP sub not predictable at the time of purchase?
It definitely is not. You don't know the games that we'll be added to it over time. Can you tell me the game that will be added in August 2022?

Do you need to buy multiple GP subs in order to achieve a specific outcome?
Yes. For example, if you expected Starfield in 2022 as but it got delayed, your sub might have run out.

I wasn't the one who came up with the analogy, I just ran with it but the more I think about it the more sense it makes. I don't like either, be it loot boxes or library rental services, ultimately both come down to obfuscating what your are really paying for, just buying games is a lot more straight forward to me.

 

[MikeM]

Fuck lootboxes. I hate that shit. Spin it however you want, but its gambling. “Surprise mechanics” lol gtfo

 

[Chukhopops]

Do you get a random different outcome each time you buy a GP sub?
Yes. Depending on when you subscribe you'll get different games.

Is the outcome of buying a GP sub not predictable at the time of purchase?
It's not. You don't know the games that we'll be added to it over time.

Do you need to buy multiple GP subs in order to achieve a specific outcome?
Yes. For example, if you expected Starfield in 2022 as but it got delayed, your sub might have run out.

I wasn't the one who came up with the analogy, I just ran with it but the more I think about it the more sense it makes. I don't like either, be it lootboxes or library rental services, ultimately both come down to obfuscating what your are really paying for, just buying games is a lot more straight forward to me.

So Netflix, Spotify are loot boxes? Buying a subscription to a newspaper is a loot box? Taking a gym membership? A train pass?

 

[nominedomine]

So Netflix, Spotify are loot boxes? Buying a subscription to a newspaper is a loot box? Taking a gym membership? A train pass?

Life is like a loot box, you never know what you are going to get.

I love that you use Netflix as an example, I'm trying to cancel it for the first time in years, exactly because I can't predict if I'll be using it or not. I'm finally going back to the movies again, money better spent.

 

[strange headache]

Life is like a loot box, you never know what you are going to get.

 

[GermanZepp]

The main issue is kids are exposed to this. There is more than meets the eye in this practices. That being said, in adults is all other diferent story, i find it a shitty implementation. Pay to win, lootboxes, in game currency available to purchase with real money.

 

[nkarafo]

This is why publishers wanted everything to be online/digital. It gives them control. This allows them to pull all that shit and more.

Wait until streaming replaces local files in our systems. It's going to get a LOT worse.

 

[Jaybe]

There are steps that regulators and platform holders should implement to limit the damage of the practice.
Only real world currency should be used.
Any paid lootbox game should at least be a minimum age, 14+? Higher?
Odds made clear and auditable.
Perhaps some caps on daily spend.

 

[Elder Legend]

So Netflix, Spotify are loot boxes? Buying a subscription to a newspaper is a loot box? Taking a gym membership? A train pass?

Yeah, we are reaching for a new low here. I guess Xbox Game Pass and PS Plus now is also gambling. Time to riot. Hold on let me get a train pass for new york city Subway. Idk where the train will take me but hey at least it will take me somewhere!

Seriously though, NeoGaf should have an IQ test as you sign up and only accept people if they pass the IQ. Really getting annoyed these days at these dumb hot takes.

 

[mitch1971]

It took them 7 years to watch any Jim Sterling video of the time?

Maybe they are only listening now Jim's puts on false tits and a wig. Who am I kidding, those tits are real.

 

[Zeroing]

I don't see anything wrong with these practices. Any businesses goals is to push sales at every possible opportunity....

If you are too stupid or naive to fall for these obvious traps and you can't use your brains, then you deserve to lose out.

Also, if someone enjoys a product and has the money to spend on it. That's their full human right to spend the money earned how they want. Stop fucking judging people so fucking much when it comes to their personal finance choices.

Someone is making 6K a month and has to live off that. Then there are people who barely make 3K a month and are trying to survive.

Then there are people who make 20-30K+ a month, are you seriously going to tell those people to stop buying $20 Fortnite skins ? Fuck off.

tell me you are a developer without telling me you are a developer

 

[RJMacready73]

INSERT COIN - How the gaming industry exploits morons using loot boxes​