When it comes to predatory revenue practices in video games, the European Union (EU) is putting their foot down. The EU is moving forward with its Digital Fairness Act (DFA).
Introduced by Commission President Ursula von der Leyen, the DFA aims to address addictive design and exploitative monetization in digital products.
How Would The DFA Affect Gaming?
The DFA would require games to display real-world price equivalents for items along with its virtual price. It would also restrict pay-to-win mechanics, loot boxes and strengthen protection for underage gamers.
Loot boxes are virtual items players can purchase with in-game currency or real life money. The rewards are chosen at random. They’re mystery boxes, where you don’t know what you’re getting until you buy and open them.
Loot boxes are very similar to gambling, triggering the same emotions you’d experience at the slot machines. The anticipation, the variation in the rewards offered to you, the need to try again when you fail to get the items you wanted.
When they’re paired with items that can give you an advantage, players will feel like they have no choice but to buy them to stay ahead. Several countries have tried to label loot boxes as a form of gambling. If the DFA becomes law, it would give European countries the power to regulate or even ban loot boxes once and for all.
Developers Are Not Happy
European developers are pushing back with claims that the DFA would be a disaster for the European gaming industry.
Jari-Pekka Kaleva from the European Games Developer Federation said if games showed the real-world price of every item, it would cause players to assume their in-game currency could be exchanged for actual IRL money. He argued that the approval requests would ruin gameplay since they would pop up every time a player buys something. Kaleva suggested that it would be better to incorporate aspects of the PEGI (Pan European Game Information) age rating system into existing law instead.
Some developers claim they’d be forced to make a separate game for Europe. It’s an expense that small to mid-sized studios and indie developers can’t afford. There’s also concerns that the DFA would only target studios based in EU countries, and not force non-EU companies to comply with the law.
European devs are trying to paint the DFA as something that would kill Europe’s competitiveness. Even going as far to suggest that some studios would relocate outside of the EU since the US, China and Japan don’t have such strict regulations.
It’s Time for a Change
Do developers really need loot boxes and pay-to-win? Or are they just being stubborn? Do they have a valid point that these predatory practices are necessary to survive in the gaming industry?
The answers are no, developers don’t need those mechanics to make money off their games. Yes, they’re being stubborn because these practices are not necessary.
When developers say the DFA will force them to redesign their games for Europe, what they really mean is “we’ll make less money if we can’t use our most lucrative tactics.”
While loot boxes are extremely profitable, there are other forms of monetization available. Subscription services, battle passes that are upfront on what you’re actually getting, selling cosmetics are good alternatives.
And no, you don’t need to rely on predatory mechanics to stay ahead in the industry. Games like Elden Ring, Hollow Knight: Silksong and Balder’s Gate 3 are good examples of games that had massive success without exploiting their players. The Digital Fairness Act is needed because the gaming industry will not regulate itself. Hopefully, if it passes, it will apply to all gaming companies, regardless of whether they’re based in the EU or not. Without strong enforcement, these predatory revenue practices will never go away.
