The macro problem of microtransactions:The self-regulatory challenges of video game loot boxes

McCaffrey, Matthew,(2019), The macro problem of microtransactions:The self-regulatory challenges of video game loot boxes. , Business Horizons, UNSPECIFIED

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The video game industry has ignited a global controversy surrounding microtransactions in gaming, especially the use of loot boxes: randomized rewards with potential real-world value. Consumers and legislators are calling for the regulation of these revenue models on the grounds that they are unfair, predatory, or could be considered gambling. This article examines the controversy from a management perspective. First, I outline current regulatory responses to the controversy and what they mean for business practices. Then, I explain ongoing industrylevel and firm-level attempts to self-regulate as a way to placate consumers and governments. These tactics highlight a wide range of broader strategies that game developers and other stakeholders can pursue in order to improve customer relations and, more publicly, signal their commitment to self-regulation and avoiding consumer harm. These practices can be applied more broadly to firms that offer controversial products or services that do not yet fit within current regulatory frameworks
Keywords : Video games; Microtransactions; Loot boxes; Government regulation; Self-regulation; Electronic arts, UNSPECIFIED
Journal or Publication Title: Business Horizons
Volume: 62
Number: 4
Item Type: Article
Subjects: Manajemen
Ekonomi Pembangunan
Depositing User: Endhar Priyo Utomo
Date Deposited: 26 Dec 2019 05:55
Last Modified: 26 Dec 2019 05:55

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