Incomplete Compliance: Loot Box Prevalence, Probability Disclosures, Presence Disclosures, and Compu Gacha Policy in Japanese Mobile Games

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Abstract

Background and aims: Loot boxes or gacha are bought in video games to obtain randomized rewards. Their gambling-like characteristics and associations with both gambling and videogaming disorder worry parents and regulators. As the third-largest videogaming market, Japan has a decade-long history of regulating loot boxes. Several regulations co-exist. Games must disclose the probabilities of obtaining different random rewards. A particular implementation (‘Compu Gacha’) that provides an extra reward after players pay to collect a specific combination of other loot box rewards is prohibited. We investigated loot box prevalence amongst Japanese mobile games and whether they complied with various regulations.Methods: We assessed the presence of loot boxes, Compu Gacha, and in-game probability disclosures in the 100 top-grossing iPhone games in Japan based on the first hour of gameplay from account creation. We also checked whether games disclosed loot box presence on app stores.Results: Amongst the 91 games with loot boxes, 82 games (90.1%) provided probability disclosures for at least one loot box mechanic identified, but only 38 games (41.8%) provided probabilities for all loot boxes found. Four games contained Compu Gachas.Discussion and Conclusions: Loot box prevalence is very high amongst mobile games in Japan. Most companies, including local Japanese ones, only partially complied with long-established loot box probability disclosure regulations. Rare cases of prohibited Compu Gachas were identified. App store platform-level changes significantly improved transparency, causing many companies to disclose loot box presence. Clearer and translated English compliance guidelines and stricter enforcement can contribute towards better consumer protection.

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