Loot box legislation

Loot box from Overwatch.Loot boxes are subject to legislation in some countries; other countries are debating legislation.

What is a loot box? Wikipedia states:

In video games, a loot box (sometimes loot crate or prize crate, among other names) is a consumable virtual item which can be redeemed to receive a randomised selection of further virtual items, ranging from simple customization options for a player’s avatar or character, to game-changing equipment such as weapons and armor. A loot box is typically a form of monetisation, with players either buying the boxes directly or receiving the boxes during play and later buying “keys” with which to redeem them.

… Loot boxes are regulated under gambling law in China, Japan, Australia, and the Isle of Man and are the subject of investigations by the gambling regulators of several more countries. They have been criticised as being anti-consumer when implemented in full-priced games. They are a common source of the virtual items used in skin gambling.

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Recent news about loot box legislation:

[Image: By Source (WP:NFCC#4), Fair use, https://en.wikipedia.org/w/index.php?curid=55508954]

The internal economics of a popular Minecraft server

Alice Maz Minecraft above cityAlice Maz writes about how she mastered the economics of Minecraft:

I started on my server with only a rudimentary knowledge of the game itself and ipso facto zero understanding of its economy. Within six months or so, I had perhaps as detailed a mental model of it as one could get. I knew the price ranges of most of the items in the game and everything that all of them were used for. I knew how common they were on the market, who the major sellers were, what their supply chains looked like. I knew how fast they sold through, whether the price was stable or tacking a certain way, and I had tons of theories on ways to play all this to get what I needed and turn a profit while doing it, and nearly all of them were sound. Most of it I didn’t even think about. I didn’t need to contemplate why, for instance, lumber was both cheaper and more common than it should be, such that I could buy it all and hold, force the price up, corner the market, and keep it that way. I just kind of… knew, and did it. It’s a wonderful feeling, weaving a system into your mind so tight that it’s hard to find the stitches after awhile. Highly recommended.

[minecraft]

Via Boing Boing:

Alice Maz was part of a small group of players who came to have near-total mastery over the internal economy of a popular Minecraft; Maz describes how her early fascination with the mechanics of complex multiplayer games carried over into an interest in economics and games, and that let her become a virtuoso player, and brilliant thinker, about games and economics.

Maz’s long, fascinating essay about her business ventures in Minecraft are a potted lesson in economics, one that shows where financial engineering actually does something useful (providing liquidity, matching supply and demand) and the places where it becomes nothing more than a predatory drag on the “real economy” of people making amazing things in Minecraft.

[The internal economics of a popular Minecraft server are an object lesson in everything great and terrible about markets]

Top Free-to-Play Monetization Tricks

The Coercive Monetization Model: how to extract money from Free-to-play gamers:

A coercive monetization model depends on the ability to “trick” a person into making a purchase with incomplete information, or by hiding that information Candy Crush: Sweet!such that while it is technically available, the brain of the consumer does not access that information.
… putting even one intermediate currency between the consumer and real money, such as a “game gem” (premium currency), makes the consumer much less adept at assessing the value of the transaction.

… To maximize the efficacy of a coercive monetization model, you must use a premium currency, ideally with the ability to purchase said currency in-app. Making the consumer exit the game to make a purchase gives the target’s brain more time to figure out what you are up to, lowering your chances of a sale.

… A game of skill is one where your ability to make sound decisions primarily determines your success. A money game is one where your ability to spend money is the primary determinant of your success. Consumers far prefer skill games to money games, for obvious reasons. A key skill in deploying a coercive monetization model is to disguise your money game as a skill game.

[Ramin Shokrizade @ Gamasutra]

Go read the full article, it’s brimming with mark-fleecing insight.

Via Boing Boing.

See also:

Dennis Eichhorn: How Sweet It Is