There generally three separate debates concerning Crown Crates and loot boxes in the video gaming industry as a whole. The first, which is generally the only question corporate boards have any interest in, is whether this revenue strategy can be implemented legally or not, or if the venture has perhaps entered the realm legal ambiguity, which more often than not can be used effectively for a limited period of time, awaiting the day the lethargic legislative branch and judicial system catch up. The second debate is philosophical, whether such practices are ethical or not, a question that can differ greatly from one person to another in the arbitrary nature of our world. The third debate is fundamental to the world of bioethics, psychology and medicine. That is actually where I would like to begin as reasoning in this area is less arbitrary than conflicting philosophers and as this is a worldwide forum, the laws of gambling and what defines it are nearly as variable.
There have been a number of clinical studies concerning gambling addiction and negative health repercussions, some of them more recent.
https://www.begambleaware.org/sites/default/files/2021-03/Gaming_and_Gambling_Report_Final.pdf
A notable except from the above, itself a review of several different studies:
Financial harm
Headlines stating: ‘One teenager spent nearly £3,000 on his addiction’ and ‘I blew my parents’
savings on Fifa’, are inconsistent with a review of the academic evidence. Here, the sums of money
tend to be rather modest: from all the survey evidence presented in the last section, the average
monthly spend on loot boxes is typically less than £20. Why the discrepancy?
The key point is that the distribution of spend is highly skewed. Whilst most loot box purchasers spend
modest amounts, there is a small number of high-level spenders, sometimes referred to as whales.
Here, there are industry insinuations that these big spenders are simply high-earning individuals,
those who can afford the recreational outgoings. However, others have argued that this group of
players may instead be over-represented by people with gambling problems
.
To investigate this issue, we conducted a secondary analysis of six open access datasets of loot box
surveys, aggregating data where authors made their data freely available
. The combined dataset
comprised of 7,771 loot box purchasers, and our analysis confirms that a disproportionate amount
of revenue is derived from high-level spenders (see Figure 6). For example, around 5% of loot
box purchasers in our dataset (those spending more than around £70 ($100) per month, or local
equivalent) generate around half of industry revenue from loot boxes. Similarly, around a third of
revenue is derived from the top 2% of purchasers**.
Moreover, these players have considerably higher scores of problem gambling symptoms (see Figure
6). For example, with the 5% of gamers spending over £70 / $100 per month, almost one third fall into
the ‘problem gambler’ category. Conversely, there is no evidence in our dataset that higher loot box
spend is correlated with higher personal earnings. Others have reported similar results, estimating that
almost half the top 5% of loot box spenders are people who gamble problematically
Overall, the results establish that whilst most individuals spend modest sums on loot boxes, there
are a minority of high-spending individuals (i.e. hundreds of pounds per month). Such patterns of
spending mirror those observed with gambling revenues. These people, our analysis reveals, are
much more likely to be experiencing problematic gambling.
Whilst our analysis did not investigate problem video gaming, it has been established that
associations between loot box purchasing and problem video gaming are, on aggregate, larger
than associations with problem gambling. It is therefore possible that a similar proportion of high
spenders might also be classified as people who have problems with their video gaming.
Games developers, unwittingly or not, appear to be generating outsized loot box profits from at-risk
individuals, likely to include both those with disordered gambling and disordered gaming – but not
from wealthy gamers, as they claim.
What our aggregated data analysis cannot reveal, however, is the degree to which such spending
translates into downstream harm, such as distress or poorer psychological wellbeing.
Psychological harm
The history of video gaming research is dogged by controversies around issues of ‘psychological
harm.’ There is a large body of research built up over decades, for example, investigating whether
violent video games increased aggressive behaviour. But as scientists implemented more robust
approaches, it has turned out that any associations were of negligible magnitude. Eventually, the
American Psychological Association summarised there was ‘scant evidence’.
Given this history, any links between loot boxes and wellbeing or psychological distress should be
interpreted cautiously. After all, something like wellbeing is influenced by a myriad of personal, social,
and lifestyle factors, and any effect of loot boxes will be difficult to disentangle from other aspects of
gaming behaviour, swamped by other influences.
Nonetheless, numerous academic commentators have stressed the potential negative impacts of
loot boxes on player mental health and wellbeing. Preliminary evidence has linked loot box
engagement with higher levels of psychological distress, albeit a finding that is indirect or of a small
magnitude, and cautiously interpreted by the authors. In fact, in one of these studies, loot box
spending seemed to be correlated with both negative and positive moods.
Such findings indicate that relationships with mental wellbeing are likely to be complex. Gambling
research has shown that ‘psychiatric disorders can represent both as a precursor and as a
consequence of problem gambling’. It is therefore plausible that loot box purchasing could be both
a cause and a consequence of mental distress. Furthermore, additional comorbid conditions – just like
gambling – could further contribute to both heavy loot box engagement and psychological distress.
It remains to be established whether relationships between loot box purchasing and problem
gambling translate into psychological harm, and more research is required to further unpack complex
relationships between gaming, gambling, spending behaviour and financial/psychological wellbeing.
The next stages of our own research, currently being conducted, aim to use novel survey approaches
to investigate these questions more fully.
This is journalistic article citing the above for those inclined to that format:
https://www.bbc.com/news/technology-56614281
Additionally, these are some articles I read a couple of years ago, noting gambling has been linked to higher rates of suicide and suicidal ideation:
https://knowtheodds.org/blog/problem-gambling-suicide-ideation/https://www.theguardian.com/society/2019/mar/13/problem-gamblers-at-15-times-higher-risk-of-suicide-study-finds
I also especially recommend this one, its medically reviewed, concise and not terribly long:
https://www.verywellmind.com/what-is-gambling-disorder-22015
And an excerpt:
Although gambling problems may seem trivial on the surface, in reality, they are anything but. One of the reasons that gambling disorder has become recognized is because of the severe consequences for individuals and their families.
Not only do some people who develop gambling disorder literally gamble away everything they own, and end up in crippling debt, but far more of them become suicidal than would be expected in the general population.
In treatment populations, about half of those with gambling disorder have suicidal ideation, and about 18% have attempted suicide.
And, finally a newer March 2022 publication from Reasearchgate. In addition to a brief extract there is a full text for those lapsed teacher's pets among us or anyone who might otherwise be inclined to spend far more on Crate themselves.
https://www.researchgate.net/publication/359610457_Loot_boxes_and_problem_gambling_Investigating_the_gateway_hypothesis
Now with that out of the way, for my proposed solution the problem of Crown Crates.
Whenever a new season of Crown Crates is advertised Apex and Radiant Apex mounts are generally front and center in beckoning would be buyers. There are some who would argue these crates are not actually a form of gambling, or at the very least they are mechanically but not legally so. Naturally this depends on the country or subdivision of a country, in which one resides. At this point I must mention that the odds of winning a Radiant Apex mount off the bat, excluding any additional gem prospecting or endeavor grinding (the latter of which I have no opposition to), is roughly 1 in 1,000 which is equivalent to winning the primary payout on a Pick 3 Lottery ticket.
I propose a simple Crown Crate replacement, instead of highly skewed odds for the often more desirable item, all rewards should lay within a single tier at 1:1 odds. If a Crown Crate contains 80
rewards the likelihood of successful acquisition of any single prize is 1.25%. For those wondering what we have now please view the results of the popular addon's website: crowncrates.com
By enabling 1:1 across all items we ensure even odds whilst allowing the alluring novelty and random fun of a mystery box system to continue. Naturally that begs the question, if it becomes easier to acquire rewards will Zenimax lose income on a reduced volume of Crates sold? Likely it would. I would suggest adjusting to price upward to compensate this. How much would be necessary to break even against current revenue numbers I'm not quite sure, but Zenimax could easily find out by experimenting with this method for one Crate season, it would produce more than enough data to make such a determination. It would not be dissimilar to Lego's Collectible Minifigure blind bags, which while a bit expensive, consumers have roughly even odds of getting any one particular minifig.