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Author:

Jester Debunker

Subject:

Off Topic

Date:

04/27/18 at 4:19 PM CDT

 

 

READ: 2

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Sentiment:

Neutral

Lootboxes are back in the news

After EA's SWB2 lootbox debacle with their P2W system being the tipping point for gamer rage, multiple gaming commissions and politicans have been pressured to do something about this so-called gambling. Save the children, etc.

The Netherlands last week concluded that some lootboxes are gambling, specifically FIFA 18, DOTA 2, PUBG and Rocket League. Their main reasoning seems to be that you can cash out lootbox rewards. At least in FIFA's case that's actually a black market not supported by EA. They want changes in the games by June.

eurogamer.net/ar...mbling

This week Belgium declared some implementations to be gambling, specifically FIFA 18, Overwatch and CS:GO. Their explanation for why seems looser than the Netherlands, just calling them "games of chance". Stiff penalties are threatened, but no deadline given.

eurogamer.net/ar...llegal

I would be wary of EA and ATVI in the short term, especially EA, since these MTX are such a huge part of their earnings. The FUT lootboxes generate about 2/3rds as much revenue as EA reports in operating income. Considering that revenue must be extremely high margin, that's a huge chunk of EA's total profits. I'm sure those aren't going away. EA will likely petition those commissions, explaining how they try to restrict the black market and how small it is, and make changes to their presentation so the sugar high animation before seeing what you've won from a lootbox is used less, and perhaps slow down the rate at which lootboxes can be opened. In the end, it may not be a big deal, but it's such a huge chunk of their profits that any change to the formula brings some risk, and I'd like to see some clarity about what's going to change. Also these two countries may not be the last.

TTWO is less impacted. GTAV has MTX but not lootboxes, and RDR2 will likely have the same model. NBA 2K is riddled with MTX encouraging players to skip the outrageous grind required to unlock everything without spending more money, but again not lootboxes.

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