Loot box mechanics are the still the “number one monetisation method used in core games” globally on mobile devices, according to App Annie senior insights market manager Lexi Sydow.
The statement was made during Sydow’s talk at PGC Helsinki Digital on ‘How to Maximize the Game Economy With Ad Monetisation’, in response to a query about whether there has been any slowdown or switching to other monetisation methods from game companies in fear of criticism or legislation.
“What we’ve learned in mobile is that legislation is something you have to be ready for,” said Sydow.
“We are seeing them (loot boxes) to be the actual number one monetisation method used in core games still across most markets – Japan being the highest as far as total games using. We are seeing more diversification though, in the types of monetisation strategies but you can’t say they’re actually switching.
“As a general trend, we are seeing more leveraging of different monetisation methods alongside these. As far as what we’re seeing they’re still a dominant way of monetising users.”
Long history
Video games that utilise loot boxes have been a major topic of discussion in and outside of the industry for quite some time now. The biggest concern is that the monetisation method links to gambling addiction.
In April 2018, Belgium became the first country to declare loot boxes as gambling and therefore illegal. The UK has been investigating the method too, with the House of Lords calling for loot boxes to be labelled as a form of gambling.
US publishing giant EA most recently was served a class-action lawsuit, claiming that the Ultimate Team modes in its FIFA and Madden games break California gambling laws.
Pocket Gamer Connects Helsinki Digital is the best of our Pocket Gamer Connects conference in an online form, with an entire week of talks, meetings, and pitch events taking place from September 14th to the 18th. You can read up on all the tracks taking place throughout the week here.
