Product design and psychology: Unpacking the Phenomenon of Loot Boxes in Video Game Design

Milijana Komad
5 min readAug 22, 2023

Keywords: Loot Boxes, Video Gaming, Game Design, Player Engagement, Psychological Manipulation, Gambling Mechanics

Abstract:

This scholarly study explores the deployment of “loot boxes” in video games, seen as a psychological manipulation technique designed to enhance player engagement and monetization. Detailed case studies illuminate the implementation and consequences of loot boxes, providing an exhaustive understanding from a senior product designer’s standpoint.

Introduction:

The gaming industry has witnessed various monetization strategies, one of which is the controversial “loot box” system. These virtual grab bags, which provide randomized in-game items, have been a subject of scrutiny due to their similarity to gambling. This paper will delve into the complexities of the loot box system, its use, and its effects on players. The evolution of the gaming industry has introduced an array of monetization tactics, among which “loot boxes” have notably garnered substantial attention and controversy. As part of the intricate fabric of video game design, these virtual containers, alternatively referred to as “loot crates” or “prize crates,” furnish a randomized assortment of in-game items. The contents may vary from cosmetic modifications, denoted as “skins,” to character enhancements, power-ups, and a plethora of elements poised to amplify the gaming experience. Despite the prevalent use of these systems, the underlying resemblance to gambling activities and potential implications for addictive behaviour has spurred considerable debate. This manuscript seeks to dissect the structural nuances of the loot box system, the reasons behind its usage, and its consequent impact on the gaming community.

Explanation:

At the core of the allure of loot boxes lies the element of uncertainty. The revelation of the enclosed items post-transaction engenders a rush of suspense and exhilaration, analogous to that induced by gambling. These items, classified according to their scarcity, further contribute to a continuum of potential outcomes; players may procure commonplace objects or, less frequently, exceedingly rare and sought-after ones.

The deployment of loot boxes, despite their capacity to enhance the thrill of video games, has ignited significant controversy. This contention primarily originates from the structural similarities between loot boxes and gambling activities, their ability to foster addictive tendencies, and their availability to minors. The psychological underpinnings that fuel the appeal of loot boxes, including the unpredictability linked to ‘unboxing,’ the thrill derived from acquiring rare items, and the incentive to make in-game purchases, are potent drivers of player engagement. However, these same mechanisms have instigated regulatory interventions in jurisdictions like Belgium and the Netherlands, where legislative measures or outright prohibitions on loot box usage have been implemented, underscoring their intimate relationship with gambling.

In the broader gaming landscape, loot boxes materialize as digital containers purchasable in games, often with real-world currency. They embody the thrill of chance, as their contents remain concealed until post-purchase, paralleling the excitement associated with gambling. The encapsulated items, sorted by rarity, offer gamers the possibility of obtaining either ordinary or exceedingly rare and valuable items.

The use of loot boxes in popular games, though undoubtedly contributing to their allure and enhancing the visual aesthetics, has concurrently kindled considerable debate, attributed to their semblance to gambling, potential promotion of addictive behaviours, and accessibility to a young audience. The psychological dynamics in action, encompassing the exhilaration of unveiling the unknown and the desire to amass rare items, have prompted certain regions, such as Belgium and the Netherlands, to enforce regulatory measures or outrightly ban the use of loot boxes in video games.

Loot Boxes in Gaming: Conceptualization and Design

Loot boxes are virtual items that players can buy with real-world currency or in-game achievements, containing randomized rewards. The uncertainty and anticipation surrounding their opening make them a potent tool for psychological manipulation, exploiting the same reward system mechanics found in gambling.

Case Study: Overwatch

Blizzard Entertainment’s Overwatch provides loot boxes that can be purchased or earned through gameplay, containing cosmetic items of varying rarity. The random nature of the rewards keeps players engaged, instilling a “just one more” mentality similar to slot machines.

Case Study: Star Wars Battlefront II

Electronic Arts’ Star Wars Battlefront II was initially released with a loot box system that had a significant impact on gameplay, prompting extensive criticism and leading to a complete overhaul of the game’s progression system. The controversy also spurred legal and regulatory discussions about the ethical implications of loot boxes and their resemblance to gambling.

Case Study: FIFA Ultimate Team

In this mode of the popular FIFA soccer games, players can buy packs of cards (essentially loot boxes) containing random soccer players to add to their team. These packs can be purchased with coins earned in-game or with “FIFA points,” which are bought with real-world money. The randomness of pack contents and the potential to pull highly-rated players can make this an addictive, and potentially costly, aspect of the game.

Case Study: Overwatch

Blizzard’s team-based shooter Overwatch uses loot boxes to dispense a variety of cosmetic items. Players can earn these boxes through gameplay or purchase them with real-world money. Each loot box contains four items which can be player skins, emotes, voice lines, or sprays. The rarity of these items is tiered, with the rarest items being the most coveted.

Case Study: Counter-Strike: Global Offensive (CS: GO)

In CS: GO, players can purchase or earn loot boxes called “weapon cases.” These cases contain random weapon skins that change the appearance of the player’s in-game weapons. The skins are purely cosmetic and do not impact gameplay, but rare skins can be highly sought after by the game’s community.

Implications for Game Design

While loot boxes can increase monetization, they also pose ethical and design challenges. Their gambling-like characteristics can lead to problematic gaming behaviours, particularly among younger audiences. Designers need to weigh these considerations carefully, as they might lead to reputational damage and legal issues, as seen in the Battlefront II case.

Conclusion:

The loot box phenomenon, as a method of psychological manipulation in video gaming, presents a complex intersection of design, psychology, and ethics. As video game designers, we must consider these factors and strive for responsible and sustainable monetization models that value player experience and satisfaction. Future research on loot box impact and regulation will undoubtedly continue to shape the gaming industry’s landscape.

References:

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Milijana Komad

Senior Product Designer | UX/UI Lead | Ph.D. in Digital Arts | Product, UX and UI Design Consultant