A feature key to games like PUBG, Fifa, Apex Legends and many more of the world's biggest games could be banned under new US legislation. A Senator has proposed a complete ban on "loot boxes", a feature that forms a central part of some of the most popular mobile and console titles. Critics argue that the feature is a way of allowing children to take part in legalised gambling, and that it profits from people's addiction to games. Developers say the feature is a fair way of making more money from players, despite widespread backlash from both consumers and legislators. Loot boxes allow people to pay sometimes considerable amounts of real cash for access to mystery rewards within a game. Players have no idea what might be in those packs before they buy them, meaning that players pay the same amount for either considerable rewards or practically nothing. Numerous watchdogs have argued that such a feature constitutes gambling, since players are encouraged to spend money and allow luck to decide how much they should get in return. Gadget and tech news: In pictures Show all 25 1 /25 Gadget and tech news: In pictures Gadget and tech news: In pictures Gun-toting humanoid robot sent into space Russia has launched a humanoid robot into space on a rocket bound for the International Space Station (ISS). The robot Fedor will spend 10 days aboard the ISS practising skills such as using tools to fix issues onboard. Russia's deputy prime minister Dmitry Rogozin has previously shared videos of Fedor handling and shooting guns at a firing range with deadly accuracy. Dmitry Rogozin/Twitter Gadget and tech news: In pictures Google turns 21 Google celebrates its 21st birthday on September 27. The The search engine was founded in September 1998 by two PhD students, Larry Page and Sergey Brin, in their dormitories at California’s Stanford University. 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March 19 2018 Getty Gadget and tech news: In pictures A humanoid robot gestures during a demo at a stall in the Indian Machine Tools Expo, IMTEX/Tooltech 2017 held in Bangalore Getty Gadget and tech news: In pictures A humanoid robot gestures during a demo at a stall in the Indian Machine Tools Expo, IMTEX/Tooltech 2017 held in Bangalore Getty Gadget and tech news: In pictures Engineers test a four-metre-tall humanoid manned robot dubbed Method-2 in a lab of the Hankook Mirae Technology in Gunpo, south of Seoul, South Korea Jung Yeon-Je/AFP/Getty Gadget and tech news: In pictures Engineers test a four-metre-tall humanoid manned robot dubbed Method-2 in a lab of the Hankook Mirae Technology in Gunpo, south of Seoul, South Korea Jung Yeon-Je/AFP/Getty Gadget and tech news: In pictures The giant human-like robot bears a striking resemblance to the military robots starring in the movie 'Avatar' and is claimed as a world first by its creators from a South Korean robotic company Jung Yeon-Je/AFP/Getty Gadget and tech news: In pictures Engineers test a four-metre-tall humanoid manned robot dubbed Method-2 in a lab of the Hankook Mirae Technology in Gunpo, south of Seoul, South Korea Jung Yeon-Je/AFP/Getty Gadget and tech news: In pictures Waseda University's saxophonist robot WAS-5, developed by professor Atsuo Takanishi Rex Gadget and tech news: In pictures Waseda University's saxophonist robot WAS-5, developed by professor Atsuo Takanishi and Kaptain Rock playing one string light saber guitar perform jam session Rex Gadget and tech news: In pictures A test line of a new energy suspension railway resembling the giant panda is seen in Chengdu, Sichuan Province, China Reuters Gadget and tech news: In pictures A test line of a new energy suspension railway, resembling a giant panda, is seen in Chengdu, Sichuan Province, China Reuters Gadget and tech news: In pictures A concept car by Trumpchi from GAC Group is shown at the International Automobile Exhibition in Guangzhou, China Rex Gadget and tech news: In pictures A Mirai fuel cell vehicle by Toyota is displayed at the International Automobile Exhibition in Guangzhou, China Reuters Gadget and tech news: In pictures A visitor tries a Nissan VR experience at the International Automobile Exhibition in Guangzhou, China Reuters Gadget and tech news: In pictures A man looks at an exhibit entitled 'Mimus' a giant industrial robot which has been reprogrammed to interact with humans during a photocall at the new Design Museum in South Kensington, London Getty Gadget and tech news: In pictures A new Israeli Da-Vinci unmanned aerial vehicle manufactured by Elbit Systems is displayed during the 4th International conference on Home Land Security and Cyber in the Israeli coastal city of Tel Aviv Getty Such a feature is a key part of games like Playerunknown's Battlegrounds and Fifa, which both give in-game advantages to players who spend money to get hold of mystery packs or boxes. But it has received considerable criticism from players. Some titles, such as Star Wars Battlefront II, changed its policy on loot boxes after intense criticism following its reelase. Now US Senator Josh Hawley – who has in the past attacked a wide variety of technology companies – has proposed new rules that would outlaw the feature. He said the new rules would stop the exploitation of children by developers. He also called for a ban on "pay-to-win" games, where players might be allowed in for free but then forced to spend money if they actually want to progress within the title. He pointed in particular to Candy Crush, which encourages players to buy a $150 upgrade to help them progress in the game. “Social media and video games prey on user addiction, siphoning our kids’ attention from the real world and extracting profits from fostering compulsive habits. No matter this business model’s advantages to the tech industry, one thing is clear: there is no excuse for exploiting children through such practices," he said in a statement. “When a game is designed for kids, game developers shouldn’t be allowed to monetize addiction. And when kids play games designed for adults, they should be walled off from compulsive microtransactions. Game developers who knowingly exploit children should face legal consequences.”<doc-sep>The growing scrutiny over random chance ‘loot boxes’ in video games has reached an almost inevitable flashpoint in the United States after Josh Hawley, the Republican senator for Missouri said he was going to introduce legislation proposing to ban the practice. “Social media and video games prey on user addiction,” said Senator Hawley. “Siphoning our kids’ attention from the real world and extracting profits from fostering compulsive habits. No matter this business model’s advantages to the tech industry, one thing is clear; there is no excuse for exploiting children through such practices.” “When a game is designed for kids, game developers shouldn’t be allowed to monetise addiction. And when kids play games for adults, they should be walled off from compulsive micro transactions. Game developers who knowingly exploit children should face legal consequences” The statement comes with overzealous rhetoric and has a whiff of a headline-grabbing publicity stunt, particularly given that Hawley has built a reputation on criticising big tech companies such as Facebook and Google. But it is hard to argue that video game publishers have not left themselves open to this kind of government intervention by letting loot boxes and microtransactions run rampant. Self-regulation has apparently not worked and now the US government has decided it needs to step in. And the underlying principle is sound enough. Hawley’s legislation is targeting loot boxes, digital packages with mystery items that can be paid for and many argue constitute gambling, and ‘pay-to-win’ microtransactions which can send players into a loop of paying to progress in a game.<doc-sep>Thursday, May 9, 2019 Sen. Josh Hawley (R-MO) sent shockwaves through the video game industry this week when he formally announced that he intends on introducing new legislation that would regulate the use of loot boxes and “pay-to-win” microtransactions in video games. If such a bill were to be introduced and become law, it would be the first law in the United States to specifically regulate the use of loot boxes and microtransactions in games. The Current State of Loot Boxes: Loot boxes are digital mystery boxes or packages containing in-game items or rewards — often randomized — that are sold for money or in-game currency. Typically, players purchase loot boxes to obtain new characters, animations, and cosmetic items that do not affect gameplay. Some microtransactions, by contrast, involve purchasing items or characters that do affect gameplay, sometimes even providing a competitive edge, thereby earning the characterization “pay-to-win.” Game developers and publishers have been introducing loot boxes with increasing frequency in recent years as an alternative form of game development and funding. Prior to this announcement, the market for loot boxes was on pace to grow as large as $50 billion by 2022. Increasingly, the use of loot boxes in games has been viewed as an unauthorized form of online gambling and an addictive predatory practice, particularly as it relates to children playing games. Game developers and industry groups like the Entertainment Software Association have historically rejected these claims on the basis that the player always gets something in return, as opposed to a slot machine, and by restricting the transferability of any items granted via loot boxes. Demonstrating the differing views on regulation, some countries have banned loot boxes entirely, or regulate them as a form of online gambling, whereas others have stood back to allow time for the industry to regulate itself. In some cases, that has forced game companies to change the way in which the loot box mechanic works in some games, or remove them from games entirely. In the United States, there is no legislation currently in place to regulate this practice. In November 2018, Sen. Maggie Hassan (D-NH) issued a letter that implored the Federal Trade Commission (FTC) to investigate the use of loot boxes in games, which the FTC promised to do without detailing its position on the matter. In response, the Entertainment Software Rating Board (ESRB) announced that it would add an “In-Game Purchases” label to alert purchasers of games that allow for these types of microtransactions. Several states, including Hawaii, Washington, California, and Minnesota, also introduced bills last year to regulate the use of loot boxes in games, but all failed to pass. The Proposed New Loot Box Bill: Against this backdrop, the announcement of Sen. Hawley’s proposed bill is noteworthy for any business in the video game industry. Called “The Protecting Children from Abusive Games Act,” the bill would specifically seek to protect minors by focusing on games either targeted at, or played by, consumers under the age of 18. Determining what games are targeted at minors would apparently be based upon a number of factors, including the game’s subject matter, visual content, and other indicators similar to those used to determine the applicability of the Children’s Online Privacy Protection Act (COPPA). For games that meet the bill’s criteria, the legislation would prohibit “several forms of manipulative design.” In particular, the announcement identifies that the legislation would prohibit loot boxes, defined as “microtransactions offering randomized or partially randomized rewards to players.” Further, it would outlaw “pay-to-win” game designs, including both (1) attempting to induce players to spend money to quickly advance through game content that is otherwise available for no additional cost; and (2) manipulating the balance in competitive multiplayer games to give players who purchase additional microtransactions a competitive advantage over other players who do not pay the additional fees. The proposed legislation would be enforced by the FTC through its authority to curb unfair and deceptive trade practices. In addition, the proposed legislation would empower state attorneys general to file lawsuits against game makers to enforce the act. If passed, this new U.S. loot box bill would likely have a significant impact on game design and implementation, particularly as many games now rely heavily on in-game transactions. For those who want to learn more about loot boxes and their impact on the game industry, we encourage you to check out the LAN Party Lawyers Podcast episode on this topic: All-In on Loot Boxes.<doc-sep>
EA In the wake of EA announcing to investors and shareholders during their financial report yesterday that they will continue to pursue live-services and in-game subscriptions moving into the next year, Republican Senator Josh Hawley revealed his intentions to introduce “The Protecting Children from Abusive Games Act” to the U.S. senate. The proposed bill would see loot boxes and pay-to-win microtransactions banned in video games that are “played by minors”. The law itself is admittedly vague and broad at the moment (as it isn't yet official legislation), targeting releases aimed at children under the age of 18, but also companies “whose developers knowingly allow minor players to engage in microtransactions.” In particular, Hawley is taking aim at the cycles of addiction developers use to encourage players to pony up more cash. The specific game he name dropped was Activision’s Candy Crush, and specifically the “Luscious Bundle” of in-game items that costs a whopping $150. It’s an obvious target to pick; not only is it immensely popular, but it’s also easily accessible on any mobile device, with its addictive nature appealing to casual players of any age. While there’s no guarantee the bill will pass, the fact that opposition is mounting in the Senate against these practices will keep the pressure on publishers and continue to maintain the negative connotations associated with phrases like “pay to win” and “microtransactions”. Publishers like EA and Activision will continue to fight their corner, especially considering how much they make from these in-game purchases (with them making up a huge chunk of the latter company's $8 billion yearly intake). Industry lobbyist group The Entertainment Software Association has provided a statement in response to Hawley's proposition to outlets, reading: “Numerous countries, including Ireland, Germany, Sweden, Denmark, Australia, New Zealand, and the United Kingdom, determined that loot boxes do not constitute gambling. We look forward to sharing with the senator the tools and information the industry already provides that keeps the control of in-game spending in parents’ hands. Parents already have the ability to limit or prohibit in-game purchases with easy to use parental controls.” Advertisement Though they are correct that these systems don't technically or legally fall under the umbrella of "gambling", it's undeniable that they're built around similar structures of addiction. Who eventually comes out on top in this battle won't be known for a while yet, but it's clear the loot box controversy isn't going away anytime soon.