Game Over : An Analysis of How Video Game Loot Boxes and Advertisements Target Children with Potential Solutions

Video games have emerged as one of the world’s fastest-growing industries. Although initially aimed at adults, video games have become an increasingly popular pastime among youth, with 90% of children playing video games today throughout the United States according to a Pew Research study (Anderson). The entertainment value of video games is one of several factors driving their popularity; other reasons include the sense of challenge and achievement they provide, in addition to social and interactive aspects. Yet this trend has many parents and experts concerned about the potential adverse impacts of such technology on children. Unlike traditional forms of entertainment, the effect of video games on young minds is relatively untested, as they are a product of the lightning pace of the technology industry.One concerning element in many video games is loot boxes, which have significantly risen in usage over the past decade. Loot boxes describe a mechanic in which the customer can buy items within a video game for real-world currency (Drummond et al.). Unlike direct purchases, loot boxes do not guarantee users specific items: one simply pays for the chance to obtain such items. While video games are profitable without loot boxes, these add-ons have allowed the gaming industry to quickly become one of the most profitable markets both in America and worldwide. Globally, loot boxes have enabled video game companies to achieve gross income levels in excess of $117 billion in 2018, a number only projected to increase as childcare becomes increasingly dependent on technology and is further integrated into the lives of youth (Smith). Despite the profitability that they can yield for video game companies, loot boxes can be problematic when viewed as a means of exposing children to a form of gambling (Wardle and Zendle). Another troublesome facet of video games as they relate to child development is targeted advertisements. Targeted advertisements have existed for decades. Yet the growth of online gaming has contributed to the integration of targeted advertising into consumers’ daily lives. Unfortunately, targeted advertisements potentially pose more harm to children than loot boxes because of their prevalence. The widespread growth of both loot boxes and targeted advertisements into children’s lives via video games elicits the need for a review of harmful practices and recommendations for improvement