Under Threat of Legislation, Sony, Microsoft And Nintendo Agree To Force Loot Box Odds Disclosure

Microsoft, Nintendo, and Sony will soon require video games sold on their platforms to disclose the odds for paid loot boxes. The move hopes to squash claims that loot boxes exploit online gambling.

If you’re like me, you’re probably asking yourself, “what is a loot box?” Wikipedia has this to say:

loot box (also called a loot/prize crate) is a consumable virtual item which can be redeemed to receive a randomized selection of further virtual items, or loot, ranging from simple customization options for a player’s avatar or character, to game-changing equipment such as weapons and armor. A loot box is typically a form of monetization, with players either buying the boxes directly or receiving the boxes during play and later buying “keys” with which to redeem them. These systems may also be known as gacha (based on gashapon – capsule toys) and integrated into gacha games.¹

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The recent announcement was made by The Entertainment Software Association (ESA), a video gaming lobbying organization, at a recent FTC workshop on loot boxes.

According to the gaming publication Outline, the three major console makers – Sony (PlayStation), Microsoft (Xbox and Windows), and Nintendo (Nintendo Switch) – are announcing a new initiative designed to ensure consumers make informed choices about their purchases, including loot boxes. According to the article, the new policies will be readily available and presented in an easy to understand format, and will:

…require paid loot boxes in games developed for their platforms to disclose information on the relative rarity or probability of obtaining randomized virtual items. These required disclosures will also apply to game updates if the update adds new loot box features.¹

The exact timing of this disclosure requirement hasn’t been determined, but the console makers are shooting for 2020 to implement the policy.

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The move is most likely in response to recent legislation proposed by Republican Senator Josh Hawley, which also has the support of Democratic Senate Minority Leader Chuck Schumer.

Despite its growing universal appeal, the mechanics of loot box have been under scrutiny for some time. One top brand of games backed away almost entirely from loot boxes after the controversy surrounding Star Wars Battlefront 2. Nonetheless, loot boxes remain necessary for most EA’s sport franchises and free-to-play mobile games.

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Many of ESA’s major publisher members are also jumping on board with the decision. According to the ESA, several of them already disclose the probability of obtaining in-game virtual items from purchased loot boxes. Other major publishers have also consented to do so by the end of 2020. These publishers include:

Activision Blizzard, BANDAI NAMCO Entertainment, Bethesda, Bungie, Electronic Arts, Microsoft, Nintendo, Sony Interactive Entertainment, Take-Two Interactive, Ubisoft, Warner Bros. Interactive Entertainment, and Wizards of the Coast.¹

Numerous other ESA members are also thinking about implementing a disclosure, which would apply to all new games and updates to games that add the related in-game purchases.

These proactive steps by gaming leaders will most likely influence future discussions about this potential legislation. However, the influence these actions will have on addictive behavior is difficult to predict.

Source:

1. Outline