TechDigits

Tech news
Thursday, Jun 08, 2023

How computer games encourage kids to spend cash

How computer games encourage kids to spend cash

Nara Ward says keeping track of her kids' spending when they are playing their favourite computer games is a full-time job.

Ms Ward lives in Barbados with her husband and sons, Finn, 14, and Leif, 12.

When Leif started playing Roblox, he began asking for robux - the game's currency - that allows players to upgrade their character or buy virtual items. So his grandparents gave him $200 (£159) Apple credit for Christmas.

"To my shock, he spent all of it in a matter of days," says Ms Ward. "After that, I gave him no more than $10 worth of robux per month. He quickly became frustrated and bored with the game."

Leif moved on to World of Tanks, which also requires players to upgrade their weaponry using PlayStation credit.

"However, this game has the option to watch ads to gain credit," says Ms Ward. "He would do that out of desperation when he had used up his monthly gaming allowance."

Ms Ward says her younger son has yet to learn self-control or money-sense.

"It's something that I have to police constantly."

Nara Ward has been shocked how quickly her sons can spend money in games


Rather than profiting from the initial sale of a video game, many of today's gaming companies rely on revenue generated by in-game purchases, or microtransactions.

The content purchased can be purely aesthetic - dance moves, skins or clothing.

Alternatively, in-game purchases can provide a tactical advantage to the gameplay - extra lives, character upgrades or weapons - providing a lead over players who did not purchase the additional content.

The global online microtransaction market is forecast to grow from $67.94bn in 2022 to $76.66bn in 2023.

However, there are signs of a backlash from experts and consumers alike. Also, some companies are promising new releases that are in-game purchase-free.

Prof Mills says that young people can feel ashamed at how much they spend in games


Gaming companies use behavioural psychology to manipulate users into spending, says Prof Sarah Mills, and the link between gaming and gambling is becoming "increasingly blurred", she explains.

Ms Mills is professor of human geography at Loughborough University. Her research found gambling techniques make gamers play for longer and spend more money, and drive repeat buying.

Vicki Shotbolt, chief executive of Parent Zone, an organisation which helps parents navigate the digital world for their children, is more specific about how games incentivise players to part with their money.

By spending players can "avoid the grind" - where making an in-game purchase means you avoid hours of monotonous gaming to progress to another level.

"Fun pain" is where you risk losing something important if you don't make a purchase.

Meanwhile, "obfuscation techniques", like in-game currencies, make it hard to see how much you're really spending.

Another tactic is the use of "loot boxes". Players buy a box without knowing what's inside. It could contain a game-changing item - but more often than not the prize is nothing more than a mediocre customisation.

"Young people recalled senses of shame when they reflected on the amount they spent trying to gain a rare item, even if they were successful," says Prof Mills.

And - despite many children saying they dislike in-game purchasing - spending money on microtransactions has become an expectation.

While spending on games has risen, some argue that playing games can benefit young people and fears are exaggerated.

Gaming as a form of play has been found to relieve stress, help develop cognitive skills and combat loneliness.

Zhenghua Yang says computer games can be beneficial to for young people


As a teenager Zhenghua Yang, from Colorado, spent two years in hospital.

"I played a lot of video games. The single-player games made me feel like a hero. The multiplayer games connected me to other people. I made life-long friends all over the world."

In 2014, Mr Yang founded Serenity Forge, a gaming company on a mission to help others. To date, more than 20 million people have played the firm's games.

"We are in the business of expanding people's horizons," says Mr Yang.

Serenity Forge does not use microtransactions but, says Mr Yang, that could change in the future if they found them to contribute to "meaningful, emotionally impactful games that challenge the way you think".

The impact of microtransactions, says Mr Yang, depends on the vulnerability of the user.

"Like a credit card can be dangerous for someone in an inappropriate context, so too can microtransactions. However, credit cards can also serve an important function and in-game purchases can be important to a gamer engaging with their favourite game."

Serenity Forge games do not use microtransactions - yet


Sarah Loya's son Andrew, 14, spends almost all his pocket money on gaming but, she says, that isn't a problem and gaming makes him happy.

"He plays daily, after school and on the weekends. I don't really see much of a negative. He's a smart kid and knows the difference between reality and fantasy."

Ms Loya lives in Texas with Andrew, and his brother Rex, 6.

"My bank account is linked to Andrew's subscription, so I would see if he purchased something without permission," says the 43-year-old, "but he always asks me before making a purchase."

While it can be difficult for parents to keep track of registered emails, passwords and payment cards across various platforms and devices - there are ways that you can protect your teen and your bank account.

Child accounts and parental controls can be used to disable purchases or set a spending limit. Parents can set up email notifications to flag purchases, and use gift cards rather than credit cards.

Perhaps most importantly, adds Mr Yang, talk to your child.

"In my experience, friction stems from a lack of parental presence," he says. "I now have two kids and, instead of using games as a babysitting tool, I make sure I'm present in their lives as they consume media."

Back in Barbados, Ms Ward has set up screen time limits and passcodes to keep Leif gaming safely.

"My password is needed to make any purchases and if he wants money added to his account he has to ask me. Microtransactions are annoying but this is a life lesson."

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

TechDigits
Close
0:00
0:00
Nvidia Joins Tech Giants as First Chipmaker to Reach $1 Trillion Valuation
AI ‘extinction’ should be same priority as nuclear war – experts
Prominent Hacker Forum RaidForums Suffers Substantial Data Breach
Nvidia CEO Huang says firms, individuals without AI expertise will be left behind
WPP Revolutionizes Advertising with NVIDIA's AI Powerhouse
TikTok Sues Montana Over Law Banning the App
Mobile phone giant Vodafone to cut 11,000 jobs globally over three years as new boss says its performance not good enough
Warren Buffett Sells TSMC Shares Over Concerns About Taiwan's Stability
'Godfather Of AI' Geoffrey Hinton Quits Google To Warn Of The Tech's Dangers
Vermont Man Charged with Stalking After Secretly Tracking Woman with Apple AirTag
Elon Musk Statements About Tesla Autopilot Could Be 'Deepfakes,' Lawyers Claim. Judge Evette Pennypacker Does Not Understand How Far and Advanced This Technology Became
AT&T's Successful Test of Satellite-Based Phone Call Raises Possibility of Widespread Coverage
Pulitzer Prize-winning journalist Seymour Hersh slams New York Times' pro-government stance and treatment of sources
Fox News Settles their case with Dominion Voting Systems for a staggering $787.5 MILLION
The G-7 aims to make global crypto regulations tougher
China and Brazil have signed a new deal that will allow them to trade in their own currencies, bypassing the US dollar as an intermediary
Elon Musk and Others Call for Pause on A.I., Citing ‘Profound Risks to Society’
U.S. charges FTX's Bankman-Fried with paying $40 million bribe
Fallen 'Crypto King' Who Owes Millions to Investors Was Kidnapped and Tortured
Regulators blame social media for SVB's rapid collapse: 'Complete game changer'
AOC explains why she opposes banning TikTok
Gordon Moore, a co-founder of Intel Corporation, died at 94
Donald Trump arrested – Twitter goes wild with doctored pictures
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
Russian Hackers Preparing New Cyber Assault Against Ukraine
A brief banking situation report
Elon Musk Is Planning To Build A Town In Texas For His Employees
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
Banking regulators close SVB, the largest bank failure since the financial crisis
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
It's the question on everyone's lips: could a four-day workweek be the future of employment?
Corruption and Influence Buying Uncovered in International Mainstream Media: Investigation Reveals Growing Disinformation Mercenaries
Being a Tiktoker might be expensive…
China's top tech firms, including Alibaba, Tencent, Baidu, NetEase, and JD.com, are developing their own versions of Open AI's AI-powered chatbot, ChatGPT
This shocking picture, showing how terrible is the results of the earthquake in Turkey
The desk of King Carlos Alberto of Sardinia has many secret compartments
Charlie Munger, calls for a ban on cryptocurrencies in the US, following China's lead
First generation unopened iPhone set to fetch more than $50,000 at auction.
Almost 30% of professionals say they've tried ChatGPT at work
Interpol seeks woman who ran elaborate exam cheating scam in Singapore
What is ChatGPT?
Tesla reported record profits and record revenues for 2022
Microsoft is finalising plans to become the latest technology giant to reduce its workforce during a global economic slowdown
Tesla slashes prices globally by as much as 20 percent
After Failing To Pay Office Rent, Twitter May Sell User Names
FTX fraud investigators are digging deeper into Sam Bankman-Fried's inner circle – and reportedly have ex-engineer Nishad Singh in their sights
TikTok CEO Plans to Meet European Union Regulators
U.S. Moves to Seize Robinhood Shares, Silvergate Accounts Tied to FTX
Coinbase to Pay $100 Million in Settlement With New York Regulator
×