Download This PaperGame Over, Loot Boxes: Insert Self-Regulation to Continue 10..9..8..7..
42 Pages Posted: 11 Aug 2020 Last revised: 14 Aug 2020
Date Written: April 26, 2020
Abstract
Video games incite controversy. Gaming has been blamed for school shootings, included in the International Classification of Diseases by the World Health Organization (WHO), and banned in some countries as gambling. For each accusation video game developers, the Entertainment Software Association (ESA), and the Entertainment Software Rating Board (ESRB) have fought back. Based on the increasing number of gamers and the soaring revenues, the video game industry appears to be winning. Especially now with millions of people quarantining in their homes because of COVID 19, video game profits are beating holiday sales records. Even the WHO and other former video game critics are encouraging people to play video games as a safe way to #PlayApartTogether. However, there is one aspect of gaming, where the video game industry is losing steam; loot boxes and pay-to-win microtransactions. As the threat of heavy-handed legislation looms, the video game industry has continued to back down and offer platitudes to appease legislators, parents, and gamers. This note will address three recognized concerns related to loot boxes and pay-to-win microtransactions. It will then analyze whether the Anti-Loot Box Bill proposed by three U.S. Senators, effectively resolves those concerns. As an alternative this note proposes a self-regulatory solution which would require the ESRB to include a substantial and informative in-game purchase rating to its existing content rating label. Implementing my proposed solution will give gamers and parents the information they really need, legislators a feeling of accomplishment, and the gaming industry another chance to do better for gamers.
Keywords: Loot Boxes, Microtransactions, ESRB, Anti-Loot Box Bill
JEL Classification: K23
Suggested Citation: Suggested Citation