EA Fights for Loot Boxes at UK Parliament

Ever since Star Wars Battlefront 2 released, EA has been under heavy scrutiny from multiple governments; especially regarding the Loot Box system. Loot boxes have been a common premium content in many multiplayer games. Whether it is Overwatch, FIFA, or NBA 2K, many game companies are using loot boxes to make more profits.

What is bad about Loot Boxes?

Loot boxes usually contain multiple in-game items that can be difficult or slow to earn normally in games. However, there are no guarantees what you can obtain from a loot box. You could be spending money on items that aren’t very valuable. This could cause players to continue to spend money on loot boxes in hopes to obtain rare or good items in games.

EA says Loot Boxes are “Ethical” and “Fun”

Kerry Hopkins, EA’s VP of Legal and Government Affairs, stated that the company’s randomized purchases aren’t “loot boxes” but rather “surprise mechanics.” (PCgamesn) He states loot boxes are similar to Kinder Eggs or other surprise gifts. In regards to questions from the Scottish National Part, Hopkins stated: “our FIFA Ultimate Team and our packs – is actually quite ethical and quite fun, quite enjoyable to people.” Whether it is fun for players to spend countless dollars in hopes of obtaining a good player seems ridiculous. This is mostly to defend EA’s pack system as FIFA is one of their best selling titles and generates massive amounts of revenue to the player pack system. FIFA 19 sold 9.15 million units for the PlayStation 4 last year. It is the 3rd best selling game of 2018.

Hopkins and EA believe that loot boxes isn’t similar to gambling or leads to gambling addiction. Many governments believe loot boxes will lead people, especially children, to be gambling addicts. EA is hoping the government won’t make any laws to prevent the banning of the system as it generates massive amounts of revenue for the company. While many hardcore players are recognizing and complaining about loot boxes or similar systems, many other players are still purchasing them in hopes of getting their best characters, loot, or cosmetics.

I believe loot boxes should be removed from games. It creates an unhealthy habit because it causes players to spend more money then they should on a chance of obtaining their desires. If you want to just spend money on a character or cosmetic, then that’s fine. At least you know what you’re paying for but spending over $100 a month just for a chance is ridiculous. It is a smart business tactic for companies who can pray on consumers but it isn’t a healthy option in the long run.

Sources:

PC Games

Statista – FIFA stats

European Gambling Regulators Team-Up to Stop Loot Boxes

15 gambling regulators from Europe and Washington, United States will work together to identify “the risks created by the blurring of lines between gaming and gambling.”  Below are the specific participants from each country.

Signatories to the “declaration of gambling regulators on their concerns related to the blurring of lines between gambling and gaming”.

  • Austria: Alfred Hacker, Director, Federal Ministry of Finance
  • Czech Republic: Karel Blaha, Director of the State Oversight Over Gambling Department
  • France: Charles Coppolani, Chair of the French Online Gaming Regulatory Authority
  • Gibraltar: Andrew Lyman, Executive Director, Gambling Division, HM Government of Gibraltar
  • Ireland: Brendan Mac Namara, Principal Officer, Gambling Policy Division, Department of Justice and Equality of Ireland
  • Isle of Man: Steve Brennan, Chief Executive, Gambling Supervision Commission
  • Jersey: Jason Lane, Chief Executive, Jersey Gambling Commission
  • Latvia: Signe Birne, Director of Lotteries and Gambling Supervisory Inspection of Latvia
  • Malta: Heathcliff Farrugia, Chief Executive Officer, Malta Gaming Authority
  • The Netherlands: Jan Suyver, Chair of the Board of Directors of the Netherlands Gambling Authority
  • Norway: Henrik Nordal, Director Deputy General, Norwegian Gaming Authority
  • Poland: Paweł Gruza, Undersecretary of State in the Ministry of Finance
  • Portugal: Teresa Monteiro, Vice-President of Turismo de Portugal, I.P
  • Spain: Juan Espinosa García, CEO, Directorate General for Gambling Regulation
  • Washington State: David Trujillo, Director, Washington State Gambling Commission
  • UK: Neil McArthur, Chief Executive Officer, UK Gambling Commission

sweden-lootboxes-gambling

They will be targetting sites that promote gambling with video games. They will investigate sites that involve in-game skin gambling. These websites have users gambling their in-game skins rather than money. However, the skins have monetary values and can be considered gambling. The Telegraph reported over 400,00 British teens admitted to using similar websites.

The European Gambling Regulators will also identify whether loot boxes are considered gambling under national law. The laws are targetted towards parents and children. By identifying the lines between gambling and in-game items, parents should have a better understanding of their kids’ purchases.

I don’t think loot boxes will go away anytime soon but gaming companies will have to respond or adjust it before more laws are set in place.

Sources:

Eurogamer

Telegraph – 400,000 British teens lured into under-aged gambling through video games

Potential Lawsuit against EA for Loot Boxes

If there is any company that digs themselves into horrible PR messes, it has to be Electronic Arts. Following the disaster regarding the loot boxes in Star Wars Battlefront 2, EA promised fans they would cut back on loot boxes for future games at E3 this summer. But apparently, they didn’t state they would remove loot boxes from their current games.

Belgium developed a law that bans “video game gambling for profit” which includes loot boxes. Companies such as Blizzard and 2K have removed their loot boxes from their games earlier this year but EA’s FIFA games still have card packs. Card packs give players the chance to obtain certain players to develop their “Ultimate Team.”  EA’s CFO, Andrew Wilson stated that the loot boxes in FIFA are not a form of gambling.

 “Firstly because players always receive a specified number of items in each pack, and secondly we don’t provide or authorize any way to cash out or sell items or virtual currency for real money..We’re working with all the industry associations globally and with regulators in various jurisdictions and territories, [and] have established that programs like FIFA Ultimate Team are not gambling,” said Wilson (Ars Technica)

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Example of FIFA Card Pack

EA recently announced the odds of earning certain cards in July but some fan spent over $10,000 on developing his ultimate FIFA team. EA could potentially be sued by the Belgian government. There are penalties of up to €800,000 and five years in prison, which can be doubled if “minors are involved.” Considering that FIFA is rated E for everyone, the lawsuit could be a major loss in EA’s massive wallet. Whether Belgium will sue remains to be seen.

Sources:

Ars Technica

Rock Paper Shotgun – EA Odds

Eurogamer

 

 

Olympics Bans Video Games involving “Killing”

People are trying to bring esports and professional gaming to a worldwide audience as it’s becoming more popular. People and or teams are competing all around the world and are representing their sponsors similar to physical sports teams. Some teams represent their countries similar to the Olympics such as the Asian Games. Earlier this year, gaming companies such as Riot, Blizzard, Epic, and the ESL, met with the Olympic Forums to discuss potentially having esports as an Olympic competition. The hopes would be the “government to help recognize esports as its own discipline” according to the CEO of Riot Games, Nicolo Laurent. Unfortunately, the Olympics will not allow any video games to be an Olympic event that has “killing” according to International Olympic Committee President Thomas Bach.

Why did the Olympics deny video games from the Olympics?

While Esports may be in the Olympics in the future, Bach strongly stated “We cannot have in the Olympic program a game which is promoting violence or discrimination…They, from our point of view, are contradictory to the Olympic values and cannot therefore be accepted.” While people rebutted by stating some Olympic games involved dangerous weapons such as fencing, Bach said: “sport is the civilized expression about this.” Any games involved with “killing” for points/score will likely be denied by the Olympics in the near future. This would prevent popular esports titles from being an Olympic game such as Fortnite, Overwatch, League of Legends, and PUBG. 

What are the pros for having esports in the Olympics?

If esports was legitimized by the Olympics, it would benefit the players. Players would able to receive their Visas more easily to travel internationally for tournaments. Many players and team owners must pay for the visas. This can lead to potential delays that may prevent the players from competing. It would also give teams and players more sponsors for financial support. It can also lead to more television broadcasting opportunities for video games. Below are the hours viewed on Twitch and YouTube. If channels begin streaming video games, it could lead to people actually watch tv.

How do you feel about video games not allowed in the Olympics?

Sources:

Eurogamer

Gameindustry.Biz

AP News

Newzoo