The macro problem of microtransactions: The self-regulatory challenges of video game loot boxes

McCaffrey, Matthew

doi:10.1016/j.bushor.2019.03.001

Cited by 76 publications

(79 citation statements)

References 9 publications

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“…There is significant discussion about the appropriateness of loot boxes in non-Western countries. For example, China and Japan have recently required odds disclosure for loot boxes to ensure that users know the chances of winning any particular item, and China are reportedly considering limiting the total number of loot boxes purchasable each day [2]. Further work is needed to understand whether the relationships between problem gambling symptomology, excessive game use, and loot box purchasing are consistent across a variety of countries and jurisdictions to adequately inform policymakers in each country of appropriate policy responses moving forward.…”

Section: Limitations/future Directionsmentioning

confidence: 99%

The relationship between problem gambling, excessive gaming, psychological distress and spending on loot boxes in Aotearoa New Zealand, Australia, and the United States—A cross-national survey

et al. 2020

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Loot boxes are digital containers of randomised rewards available in many video games. Due to similarities between some loot boxes and traditional forms of gambling, concerns regarding the relationship between spending on loot boxes in video games and symptoms of problematic gambling have been expressed by policy makers and the general public. We present the first investigation of these concerns in large cross-sectional cross-national samples from three countries (Aotearoa New Zealand, Australia, and the United States). A sample of 1,049 participants were recruited through Qualtrics' Survey Targeting service from a broad cross-section of the population in Australia (n = 339), Aotearoa New Zealand (n = 323), and the United States (n = 387). Participants answered a survey assessing problem gambling, problem gaming symptomology, and how much they spent on loot boxes per month. On average, individuals with problem gambling issues spent approximately $13 USD per month more on loot boxes than those with no such symptoms. Loot box spending was also associated with both positive and negative moods, albeit with small effect sizes. Analyses showed both interactions and correlations between problematic gambling and problematic gaming symptoms, indicating both some commonality in the mechanisms underlying, and independent contributions made by, these proposed diagnostic criteria. These results provide context for dialogues regarding how best to reduce the impacts of loot box spending among those with problematic gambling symptoms.

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Section: Limitations/future Directionsmentioning

confidence: 99%

The relationship between problem gambling, excessive gaming, psychological distress and spending on loot boxes in Aotearoa New Zealand, Australia, and the United States—A cross-national survey

et al. 2020

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“…Of the 22 empirical publications, the majority (17) were surveys of gamers, including some measure of loot box behaviour, with 13 reporting associations between some combination of loot boxes, problem gambling and/or problem video gaming. A total of 6 provided open access data for both self-report monthly loot box spend and PGSI scores (Drummond, Sauer, Ferguson, et al, 2020;Zendle, 2019b;Zendle et al, , 2020Zendle & Cairns, 2018, 2019, with a subset of three papers also containing data on self-report earnings (Drummond, Sauer, Ferguson, et al, 2020;Zendle & Cairns, 2018, 2019.…”

Section: Literature Searchesmentioning

confidence: 99%

“…Mean loot box spend is routinely of a limited monthly amount (mean expenditure < $20/month (Brooks & Clark, 2019;Zendle, 2019b;Zendle & Cairns, 2018, 2019). However, the distribution is highly skewed, with small numbers of high-level spenders, referred to by the industry as 'whales'; high-earning individuals who can afford such recreational outgoings (Jernström, 2016).…”

Section: Introductionmentioning

confidence: 99%

Secondary analysis of loot box data: Are high-spending “whales” wealthy gamers or problem gamblers?

Spicer

Nicklin

et al. 2021

Addictive Behaviors

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Introduction Loot boxes are purchasable randomised reward mechanisms in video games. Due to structural and psychological similarities with gambling, there are fears that loot box purchasing may be associated with problematic gambling. Whilst monthly expenditure is typically modest (i.e. < $20), the distribution is highly skewed, with a small number of high-level spenders, sometimes referred to as "whales". It is not known what proportion of industry profits are derived from such players, and whether they are typically wealthy individuals and/or problem gamblers. Methods We used structured literature searches to identify surveys of gamers with open-access loot box data. The resulting datasets were aggregated, and correlations between loot box expenditure, problem gambling and earnings investigated using Spearman's rho correlations. Results The combined open-access data comprised 7,767 loot box purchasers (5,933 with self-report earnings). Secondary analysis of this self-report data confirmed that disproportionate revenue appears to be generated from high-level spenders: the top 5 % of spenders (> $100/month) represent half of loot box revenue. Previously reported correlations between problem gambling and loot box expenditure were confirmed, with an aggregate correlation of ρ = .34, p < .001. In contrast, there was no significant correlation between loot box spend and earnings ρ = .02, p = .10. Conclusion Our secondary analysis suggests that games developers (unwittingly or not) are disproportionately profiting from moderate and high-risk gamblers, rather than high earning customers. Such patterns of spending mirror those observed with gambling revenues, and have implications for harm minimisation and ongoing policy debates around loot boxes.

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Section: Literature Searchesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Secondary analysis of loot box data: are high-spending “whales” wealthy gamers or problem gamblers?

Close¹,

Spicer²,

Nicklin³

et al. 2020

Preprint

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IntroductionLoot boxes are purchasable randomised reward mechanisms in video games. Due to structural and psychological similarities with gambling, there are fears that loot box purchasing may be associated with problematic gambling. Whilst monthly expenditure is typically modest (i.e. < $20), the distribution is highly skewed, with a small number of high-level spenders, sometimes referred to as “whales”. It is not known what proportion of industry profits are derived from such players, and whether they are typically wealthy individuals and/or problem gamblers.MethodsWe used structured literature searches to identify surveys of gamers with open-access loot box data. The resulting datasets were aggregated, and correlations between loot box expenditure, problem gambling and earnings investigated using Spearman’s rho correlations. ResultsThe combined open-access data comprised 7,767 loot box purchasers (5,933 with self-report earnings). Secondary analysis of this self-report data confirmed that disproportionate revenue appears to be generated from high-level spenders: the top 5 % of spenders (> USD100/month) represent half of loot box revenue. Previously reported correlations between problem gambling and loot box expenditure were confirmed, with an aggregate correlation of .34, p < .001. In contrast, there was no significant correlation between loot box spend and earnings .02, p = .10.Conclusion Our secondary analysis suggests that games developers (unwittingly or not) are disproportionately profiting from moderate and high-risk gamblers, rather than high earning customers. Such patterns of spending mirror those observed with gambling revenues, and have implications for harm minimisation and ongoing policy debates around loot boxes.

show abstract

The macro problem of microtransactions: The self-regulatory challenges of video game loot boxes

Cited by 76 publications

References 9 publications

The relationship between problem gambling, excessive gaming, psychological distress and spending on loot boxes in Aotearoa New Zealand, Australia, and the United States—A cross-national survey

The relationship between problem gambling, excessive gaming, psychological distress and spending on loot boxes in Aotearoa New Zealand, Australia, and the United States—A cross-national survey

Secondary analysis of loot box data: Are high-spending “whales” wealthy gamers or problem gamblers?

Secondary analysis of loot box data: are high-spending “whales” wealthy gamers or problem gamblers?

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