Equating lootboxes with gambling is not the end of the monetization of computer games, but a signal of the beginning of a new stage in the industry’s development.
The question about lootboxes
A report by the French regulator ARJEL says that lootboxes run counter to the state policy, but from the legal point of view they can’t be considered a form of gambling. The player gains something from purchasing lootboxes in any case, but at the same time he counts on getting a large prize. Actually this expectation of an imaginary large prize makes lootboxes gambling.
Before, lootboxes were given the same status as gambling in the Netherlands and Belgium. Popular games like Dota2 and CS:GO were banned because of it.
Alternative ways of monetization
The prohibition of lootboxes is not the end of video game monetization. According to an analyst of VentureBeat, Jeff Grubb, lootboxes will be replaced by even more refined ways of monetization. They are certainly familiar to avid gamers.
For example, the «Premium progression pass» system, which is now used in Fortnite Battle Royale. Boosting a character as one of the ways of attracting players has been around for 20 years, only now instead of pumping up a character for hundreds of hours the player can do this for money. The expert writes that such a form of monetization makes quite a large profit. Note that it has nothing to do with gambling!
By now not all players have got used to spending money in computer games, but in five years it will become an absolutely natural thing. It would be logical to use virtual money for trading game objects.
According to the founder of the game platform “Freed”, Evgeny Glariantov, the idea of creating a universal game coin has been discussed since 2000 but then the market was not ready for it.
Probably, now is the time. If paid games are still perceived negatively by many, players are already accustomed to paid account boosting. There are a few good projects which offer different variants of using the blockchain technology for computer game monetization. This is a very promising direction.
Blockchain gives gambling a chance to depart from the traditional way of monetization based on bets and start earning from interactive and collection features in games. Just how we plan to realise it in a FairWin games, I will tell you a little later.
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Computer games need blockchain badly was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.