WASHINGTON POST: Video game ‘loot boxes’ are going away and it could crush Rocket League’s black market

Press/Media: Expert comment

Release date: 27/8/2019

Description

Matthew McCaffrey, 34, is an assistant professor at the University of Manchester and wrote a paper on the challenges regulating micro-transactions in video games. He said the statement by the ESA shows the industry leaders know they need to “win back their customers.”

“It’s a question of: how to increase the revenue that can be generated through games without infuriating your customers,” McCaffrey said. “So, that’s the challenge.”

[How a Star Wars video game faced charges that it was promoting gambling]

Companies that walk away from loot boxes will most likely see short-term losses, McCaffrey said, but they could find themselves with a stronger customer base and potentially a new model that is even more profitable.

Developers will continue to test micro-transaction models, McCaffrey said, especially ones that involve an “element of risk” so customers come back. It’s a “giant experiment” by the gaming industry as the costs to develop triple-A titles continue to rise.

Media contributions

TitleVideo game ‘loot boxes’ are going away and it could crush Rocket League’s black market
Media name/outletWashington Post
Media typeWeb
CountryUnited States
Date27/08/19
DescriptionMatthew McCaffrey, 34, is an assistant professor at the University of Manchester and wrote a paper on the challenges regulating micro-transactions in video games. He said the statement by the ESA shows the industry leaders know they need to “win back their customers.”

“It’s a question of: how to increase the revenue that can be generated through games without infuriating your customers,” McCaffrey said. “So, that’s the challenge.”

[How a Star Wars video game faced charges that it was promoting gambling]

Companies that walk away from loot boxes will most likely see short-term losses, McCaffrey said, but they could find themselves with a stronger customer base and potentially a new model that is even more profitable.

Developers will continue to test micro-transaction models, McCaffrey said, especially ones that involve an “element of risk” so customers come back. It’s a “giant experiment” by the gaming industry as the costs to develop triple-A titles continue to rise.
URLhttps://www.washingtonpost.com/technology/2019/08/27/video-game-loot-boxes-are-going-away-rocket-league-there-was-an-entire-economy-built-around-it/?noredirect=on
PersonsMatthew Mccaffrey