What Is the Problem with Loot Boxes?

You’re in the middle of playing a video game when you get the opportunity to purchase a loot box. The contents of this loot box are a mystery. It could be a costume that you don’t have, some special equipment that you’re looking for, a rare item that could boost your character’s defenses or a couple of health potions.

Your curiosity is piqued, and you decide to buy the loot box. You open it up, look through your loot and realize you didn’t get what you’re hoping for. You decide that you’ll just purchase another loot box and try your luck again. You’re sure you’ll get what you’re looking for this time around.

This is the insidious nature of loot boxes and how they manage to pull you in and keep you hooked.

What Is a Loot Box?

A loot box is a type of microtransaction that video games offer players. It typically involves items, costumes and weapons that can either improve the gaming experience or help customize the look of the player character. For instance, you could get a unique armor design that you can’t access through regular gameplay.

What makes loot boxes different from other microtransactions is that players don’t know what they’re getting when they make a purchase. The contents of the box are secret. You have to purchase the box to find out exactly what they are.

This is one of the many ways that video game companies trick you into spending money long after you’ve purchased their games.

What’s the Problem with Loot Boxes?

Various factors make loot boxes harmful, both financially and psychologically, and I will go in-depth with each of these problems below.

Overspending:

When you’re gaming, it’s easy to underestimate the costs of microtransactions in the moment. You’re not sitting on your couch with a calculator, checking to see what all of these little purchases add up to — you’re lost in the experience!

This can be a huge problem. What if you spend more than you can afford to while playing? What if you ruin your budget for the rest of the month? What if you don’t have enough savings to deal with an emergency expense that crops up? You could put yourself in a financially vulnerable position.

If you make this terrible mistake and need to handle an emergency expense, you still have some options. As long as your credit card balance isn’t too high, you could use it to cover the emergency expense immediately and then slowly pay down the balance later on.

Or you could try to apply for a personal loan online. Personal loans are effective solutions for handling emergency expenses when you don’t have enough savings available.

You should only use personal loans for help if you’re struggling with surprise expenses — they’re not meant for everyday expenses like groceries.

Gambling:

The other problem with loot boxes is that they’re similar to gambling. Players shell out money for the possibility of winning a prize, just like pulling a slot machine or playing roulette. This round of gambling just takes place on your living-room couch instead of a casino.

These types of microtransactions are considered so addictive that many politicians have tried to regulate the video game industry to minimize the harm that loot boxes could pose.

So far, companies continue to put loot boxes in their games, so players have to bear the responsibility to watch what they play and be extra conscious of how much they spend.

So as a gamer, you need to be careful about this feature in your games to make sure that you don’t develop compulsive gambling habits and damage your bank account.

Psychological Tricks Loot Boxes Use

Loot boxes exploit several psychological vulnerabilities every person out there has, like:

Fear of Missing Out (FOMO): If you don’t get that exclusive limited-time item, you might never get another chance (Sounds familiar?) This FOMO mechanic creates urgency and anxiety that trick you into spending some real money on a virtual loot box.

Sunk Cost Fallacy: You’ve already spent money opening five boxes, and still haven’t received what you want. But you’re sure that the next box will reward you with something great, right? (Well, most of the times not, because this is also a trick loot boxes use to make you buy more).

Peer Pressure: Seeing your friends or popular streamers getting lucky can compel you to keep trying your luck. After all, you’re competing socially, not just in-game. Just a note: many streamers actually receive in-game currency for free (or various other advantages), so they’re not spending their money, just inadvertently (or not) convincing you to.

Who Suffers the Most? Young Gamers

Loot boxes affect gamers of all ages, but kids and teens are especially vulnerable because they don’t fully understand the value of money or recognize when they’re starting to develop unhealthy habits.

Plus, their developing brains are more susceptible to addictive behaviors. And even though parental control exists, many parents don’t properly manage this behavior or know that they can.

There have been plenty of heartbreaking stories of children spending thousands of their parents’ dollars unknowingly on loot boxes, only realizing the magnitude after damage is done.

What Can You Personally Do?

Either as a parent or a responsible adult gamer, there are some things you can and should do in order to reduce the amount of money wasted on loot boxes.

First of all, awareness is your best weapon. Recognizing that loot boxes aren’t harmless fun but something that needs careful handling is already a big step – and you’ve probably made that already since you’re reading this article.

Here are some other effective strategies you can follow:

Set a Strict Gaming Budget: Set a monthly budget on how much you’re willing to spend on ALL games you play (including new purchases). Then stick to it!
Disable Microtransactions: Whenever possible, turn off or hide the option entirely.
Use Parental Controls: If you’re a parent, restrict your child’s access to loot box purchases.
Play premium games: If you know you’ll most likely spend more than you should on loot boxes, buy premium games instead. Here, you only play once, beforehand, and get the full experience. Even an AAA-title (like Remnant 2 or the likes) could end up costing less during their lifetime compared to microtransaction spending over longer periods of time.

As you can see, loot boxes may look like innocent fun, but they can be dangerous to your finances and your mental health.

Personally, as someone who has experienced how easily loot boxes can pull you in, I strongly advocate for more transparency and tighter regulation. Gaming is a hobby that should enhance our lives, not jeopardize our mental health and bank accounts.

Loot boxes might look enticing, but always remember: nothing virtual is worth real-world consequences. Be aware, stay informed, and keep gaming enjoyable.

(Featured image photo credit: RODNAE Productions via Pexels)

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Calin Ciabai

Editor in Chief at Common Sense Gamer

Common Sense Gamer’s founder and current Editor in Chief. Having a bachelor’s degree in journalism since 2007, Calin’s entire career revolves around writing about video games – something he’s been doing since 2008.