In today's mobile-first world, gamers of all ages are hooked on their favorite games, and for many, the thrill of loot boxes is a major draw. But behind the scenes, a concerning trend has emerged: many top-selling mobile games are failing to disclose the presence of these addictive in-game purchases, leaving players – and parents – in the dark.
According to a recent investigation, only two out of 45 top-grossing games on the Google Play store follow the rules set by the Advertising Standards Authority (ASA), which requires clear disclosure of loot boxes in game advertisements. This lack of transparency is particularly concerning given that critics argue loot boxes are nothing more than "exploitative" and "foster addiction".
Dr. Jane Rigbye, CEO of Young Gamers & Gamblers Education Trust (Ygam), echoes these sentiments: "In the absence of robust regulation in gaming, it's essential for games to provide clear and transparent information about their features, allowing both parents and gamers to make informed decisions." However, some argue that the ASA lacks the teeth to effectively regulate the industry.
So, what exactly are loot boxes? These digital items contain random rewards that can only be revealed through gameplay or, more controversially, by making a payment. Game developers have defended them as being akin to a chocolate egg containing a plastic toy, but critics say they're nothing more than a form of gambling, exploiting consumers and fostering addiction.
Despite the controversy surrounding loot boxes, the UK government has resisted pressure to regulate them, citing self-regulation within the industry. However, in July 2023, trade body Ukie published guidance requiring game developers to disclose loot boxes prior to games being purchased – but over a year later, many major mobile games containing loot boxes are still failing to comply.
Adrian Hon, head of game developer Six to Start, speaks out against the lack of transparency: "Many people, including children, struggle with overspending on loot boxes. We know they're deliberately designed to be 'habit-forming', and it's an indictment of their priorities and lack of care towards vulnerable players."
The findings are alarming, but perhaps not surprising given the industry's track record of "conveniently ignoring or forgetting regulations that might interfere with their ability to sell to players". As one researcher notes, around 90% of games containing loot boxes fail to disclose this in their ads.
As concern grows over the normalization of gambling-like activities for children, it's time for the mobile gaming industry to take a closer look at its practices and prioritize transparency.