Loot Box Disclosure Fines Fall Short of Expectations

The European ratings board PEGI has fined Activision Blizzard and Plaion €5,000 each for neglecting to mention that their games, Diablo Immortal and Hunt: Showdown, contain randomized in-game purchases, commonly referred to as loot boxes. This move has raised questions about the effectiveness of the industry's self-regulation efforts and its willingness to take loot box concerns seriously. Despite the industry's claims of taking responsibility for player concerns, the fines imposed seem minimal, especially considering the significant revenue generated by these games. For instance, Diablo Immortal made $48.9 million in its first 30 days of operation. The fine of €5,000 is equivalent to a mere 4 minutes and 45 seconds of the game's revenue, based on the reported earnings. This disparity has led to accusations that the industry is not taking loot box concerns seriously and that the fines are merely a token gesture. The lack of transparency in loot box odds disclosures and the complexity of free-to-play monetization models have contributed to the confusion and skepticism surrounding the industry's commitment to addressing these concerns.