Microsoft, Nintendo, Sony to Force Games to Disclose Loot Box Odds

Microsoft, Nintendo, and Sony will require video games sold on their platforms to disclose the odds for paid loot boxes, according to the Entertainment Software Association (ESA).

Top console makers will implement the new policy some time in 2020. "These required disclosures will also apply to game updates, if the update adds new loot box features," the ESA wrote in a blog post.

The industry's major lobbying group announced the plan as the US Federal Trade Commission is holding a workshop examining whether loot boxes pose a threat to consumers. It also comes as lawmakers express concern that loot boxes are a form of gambling. In May, Sen. Josh Hawley (R-Missouri) introduced legislation to ban loot boxes in video games directed at children, claiming they can promote gaming addiction.

Loot boxes offer buyers a slot machine-like chance to obtain valuable in-game items. Theoretically, buying more boxes should give you a higher chance of collecting the desired reward. But in the past, many games refrained from disclosing exact odds.

The ESA argues that loot boxes are an optional purchase, and that games have parental controls to prevent children from making such purchases. Nevertheless, the lobbying group said many game developers plan to or are already disclosing the odds on loot box purchases in their games, including Activision Blizzard, Bethesda, Bungie, Electronic Arts, and Ubisoft, among others.

"Many other ESA members are considering a disclosure," the ESA added. "The disclosure will apply to all new games and updates to games that add such in-game purchases and will be presented in a manner that is understandable and easily accessed."

Google and Apple have also forced developers to disclose the loot box odds on games sold on their app stores.

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