China outlines new rules banning log in rewards, loot boxes and other in-game spending
New rules have been set by regulators in China that aim to reduce the amount of money gamers spend on video games.
If Reuters reports thisThe rules were announced today (December 22) and will make changes to the way games can reward their players for logging in and making purchases, in addition to limiting how much players can top up their digital wallets.
For example, online games will be banned from giving players daily login rewards. They are also prohibited from offering rewards for subsequent releases or for first releases. Additionally, games will phase out luck-based draw mechanisms (such as loot boxes) for minors, who will also be unable to participate in virtual item auctions.
In case you're not familiar with the term, loot boxes in games essentially provide gamers with random in-game items (often cosmetics, such as skins or emotes). For example, the lootbox mechanic is widespread in the FIFA (now EA Sports FC) games, and the first Overwatch game before the free-to-play sequel was released. While they can often be earned for free just by playing, loot boxes are usually also available to purchase with real money.
As such, loot boxes remain a source of controversy within the games industry. Earlier this year in Great Britain, a trade association for the games industry UKIE has made eleven recommendations to limit these restrictions. While not legally binding, they call for “increasing player protection and transparency,” with recommendations such as giving players “clear likelihood disclosures” so they know what odds they face if they buy a loot box.
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