Digital games and the loot box phenomenon
Used in digital games, a loot box refers to a virtual surprise box, which gives the players rewards. Loot boxes may contain a reward for completing the game task or an occasional gift after a game session. More typically, however, players need to pay for opening a loot box. Loot boxes can be bought with real money or with money used in the game, which is either bought or earned by playing the game.
There are many types of loot boxes, and they can affect the game in various ways. By opening them, players may receive random in-game benefits from a range of rewards, including in-game currency, a virtual object, an additional power or perk. The player does not know in advance what a specific box contains. Loot box prizes can affect the player’s success in the game, the progression of the game or the opening up of new content. The term for this is ‘pay-to-win’, as the player can gain considerable benefits compared to other players by using money. The prizes can also be cosmetic, in which case they do not bring special benefits to game play. These cosmetic rewards include skins, which can be used to customise the appearance of the characters or the items they use. Various types of content are valued on the basis of their rarity, which is also connected to the probability of getting a particular prize from a loot box.
The game industry earns its highest revenue from premium content, including loot boxes, that are available in free games. Many once successful games have been transformed into free-to-play (F2P) games in order to boost their profits. This revenue model is based on the fact that the player may decide to buy premium content to make the game more varied. Premium add-ons, such as loot box, aim to maximise the player’s long-term use of money while playing the game.
Loot boxes have caused concern among the authorities and experts of game education, as they present a risk of monetary exploitation. The inclusion of loot boxes in digital games is leading to an increasing resemblance between gaming and gambling: loot boxes are connected to micropayments and their rewards are only occasional. Loot boxes bring gambling and gambling-related problems into the daily lives of underage children. Players may overspend or use someone else’s, for example their parent’s, credit card to buy loot boxes. Tackling the phenomenon with legislation is difficult since Finland has placed no restrictions on the selling of loot boxes. Although loot boxes have certain features that resemble gambling games, they have not yet been classified as such because the rewards obtained by players cannot be exchanged for real money.
Loot boxes leverage similar psychological mechanisms as gambling games. The opening of boxes is exciting, and the feeling is further enhanced with beautiful visual elements. Both desired and unwanted rewards lure the player to open more boxes and spend more time playing the game. When opening boxes, players may see rare or valuable content, which they fail to obtain. However, this type of “close call” makes the player keep trying. The allure of loot boxes is sometimes enhanced by popular YouTube videos that show how the loot boxes are opened and how people react to their content. Sponsored videos do not necessarily reflect genuine probabilities and the desired wins are easier.
It has also been pointed out that players often have no realistic understanding about the probabilities of success. This distorted mental image leads to the purchase and opening of loot boxes.
Recognition of the loot box phenomenon is part of media literacy. It is good to know how loot boxes work, how they benefit the game industry and what mechanisms they use to influence the players. Playing should be an enjoyable pastime that fosters the feeling of safety and control. When it comes to underage children, the important thing is to support families’ awareness and also to strengthen the player’s own assessment abilities and criticism and to support responsible behaviour.
For further information on playing and premium content, click the links below.
Children’s mobile game purchases, Finnish Competition and Consumer Authority (Kilpailu- ja kuluttajavirasto), KKV
Marketing aimed at children, Finnish Competition and Consumer Authority (Kilpailu- ja kuluttajavirasto), KKV
What are free-to-play games?, Kati Alha, Tampere University [English subtitles]
In support of game education
Pelisivistys ja pelikasvatus (Gaming bildung and game education), Mikko Meriläinen, Tampere University [English subtitles]
He is just playing – Educator’s guide, Media Literacy School (Mediataitokoulu), National Audiovisual Institute (Kansallinen audiovisuaalinen instituutti) KAVI
Game education, EHYT Finnish Association for Substance Abuse Prevention
Game education in families with children, The Mannerheim League for Child Welfare (Mannerheimin Lastensuojeluliitto) MLL
Text: KAVI
Image: Siru Tirronen
CC BY 4.0
The media landscape of children and young people keeps changing, with new phenomena following each other back-to-back. Providing pupils with tools for understanding and processing these phenomena is important. This learning package is part of Pathways to New Media Phenomena – Information and Exercise Materials Series. The series includes information and exercises for the teacher and the pupils. You can explore new phenomena in a meaningful way with the help of the “How to discuss new media literacy phenomena through pedagogical means?” method.
Material for the teacher
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In the video, Project Specialist Sasu Leinonen from the National Audiovisual Institute (KAVI) talks about digital games and their loot boxes. The video discusses the manner in which loot boxes introduce elements of gambling into the daily life of children and young people and how the phenomenon can be discussed with them. The video has English subtitles.
Watch the video and consider the following questions:
What should pupils know about the loot box phenomenon and why?
How could the loot box phenomenon be discussed in teaching?
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Teachers do not need to be experts and skilled at everything. Having a good control over one’s own speciality and pedagogics and being curious and enthusiastic about learning new things provide a great starting point for tackling new media phenomena. Approach to processing new media literacy phenomena encourages you to use your own expertise and competence when working with various phenomena.
Examine the model and consider the following questions:
- Based on your experience, what challenges does discussing new media literacy phenomena entail?
- What things support the discussing of new phenomena in your own work?
- How would you utilise the model to discuss the phenomenon at hand?
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Media literacy is a transversal competence, whose promotion is required by the core curriculum of basic education (2014).
The objectives based on the core curriculum have been expressed separately for each school grade in the national descriptions of media literacy (the New Literacies development programme 2021). Basic education concerns the descriptions of good and advanced competences. The descriptions clarify the meaning of media literacy and the related objectives expressed in the core curriculum texts. The descriptions have been divided into three main areas: media interpretation and evaluation, media production and acting in media environments. You can learn more about the descriptions here.
Consider the following questions:
- How is the phenomenon under discussion structured in the media literacy competence descriptions?
- What kind of media literacy skills do the pupils learn in connection with discussing the topic?
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You can refer to the materials of KAVI and the New Literacies development programme for support in the promotion of media literacy.
Media Literacy School (mediataitokoulu.fi) The Media Literacy School website brings together various learning resources and materials for the media education purposes of different age groups also in English.
The Media Literacy School – New Literacies brings together a range of materials that were created within the development programme to support the media education of basic education. The materials produced in the programme can be found on the open learning materials website at AOE.fi.
Material for the pupil
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Used in digital games, a loot box is a virtual surprise box that gives the player in-game prizes. The loot box may contain a reward for completing a task in the game or an occasional gift after a game session. Typically, the player needs to pay for opening a loot box. The loot box can be bought with real money or with money used in the game, which can either be bought or earned by playing the game.
By opening loot boxes, players get random in-game benefits, such as in-game currency, virtual items, additional powers or perks that help them advance in the game. The content may also include cosmetic rewards, which are used to customise the character’s appearance, for example. Rewards are valued on the basis of their rarity. The more unlikely players are to obtain a reward, the more desirable it is.
The premium content of free-to-play or bought games, including loot boxes, are a good source of revenue for the game industry and beneficial for business. Players may end up overspending on premium content. Loot boxes are designed to hook the player to try their luck. The opening of loot boxes involves an element of excitement and fancy visual elements. Both desired and unwanted rewards lure the player to open more boxes and spend more time playing the game. It has been pointed out that players often have no realistic understanding of the probabilities of obtaining the content they want from a box. Loot boxes introduce elements of gambling into the digital gaming of underage children.
Recognition of the loot box phenomenon is part of good media literacy. It is good to know how the loot boxes work, how they benefit the game industry and what mechanisms they use to influence the players. Healthy criticism and responsible conduct are in order when dealing with the phenomenon of premium gaming content.
Text: KAVI
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Discussion questions and exercises for the pupil
- Which digital games do you play? What fascinates you about playing?
- Have you encountered loot boxes? Where (for example, when playing, when watching gaming videos)? What experiences have you had in connection with these situations? What types of prizes did the boxes give?
- Can you name some pros and cons related to loot boxes?
- Search for information on the PEGI labels of games. Which image and text tell you that the game contains loot boxes? Can these labels be found in the digital games you play?
Text: KAVI
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First, examine the left and then the right side of the picture and the characters playing.
- Based on their expressions, what types of feelings are the characters experiencing while playing?
- What is the story the pictures convey? What is happening in the picture?
There is a roulette wheel in the middle. Why? What does it refer to in relation to loot boxes?
Text: KAVI
Image: Siru Tirronen
