TechDigits

Tech news
Saturday, Dec 14, 2024

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."

Newsletter

Related Articles

TechDigits
0:00
0:00
Close
FTX's Bankman-Fried headed for jail after judge revokes bail
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Musk announces Twitter name and logo change to X.com
The future of sports
TikTok Takes On Spotify And Apple, Launches Own Music Service
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
UK Crypto and Stablecoin Regulations Become Law as Royal Assent is Granted
A Delaware city wants to let businesses vote in its elections
Alef Aeronautics Achieves Historic Milestone with Flight Certification for World's First Flying Car
Google Blocked Access to Canadian News in Response to New Legislation
French Politicians Advocate for Pan-European Regulation on Social Media Influencers
Melinda French Gates Advocates for Increased Female Representation in AI to Prevent Bias
Snapchat+ gains 4 million paying subscribers in its first year
Apple Makes History as the First Public Company Valued at $3 Trillion
Elon Musk Implements Twitter Limits to Tackle Data Scraping, but Faces Criticism for Technical Misunderstanding
EU and UK's Slow Electric Vehicle Adoption Raises Questions About the Transition to Green Mobility
Top Companies Express Concerns Over Europe's Proposed AI Law, Citing Competitiveness and Investment Risks
Meta Unveils Insights on AI Usage in Facebook and Instagram, Amid Growing Calls for Transparency
Crypto Scams Against Seniors Soar by 78% in 2022, Experts Urge Vigilance
The End of an Era: National Geographic Dismisses Last of Its Staff Writers
Shield Your Wallet: The Perils of Wireless Credit Card Theft
Harvard Scientist Who Studies Honesty Accused Of Data Fraud, Put On Leave
Putting an End to the Subscription Snare: The Battle Against Unwitting Commitments
The Legal Perils of AI: Lawyer Faces Sanctions for Relying on Fictional Cases Generated by Chatbot
ChatGPT’s "Grandma Exploit": Ingenious Hack Exposes Loophole in AI, Generates Free Software Codes
The Disney Downturn: A Near Billion-Dollar Box Office Blow for the House of Mouse
A Digital Showdown: Canada Challenges Tech Giants with The Online News Act, Meta Strikes Back
Distress in the Depths: Submersible and Passengers Missing in Titanic Wreckage Expedition
Mark Zuckerberg stealing another idea: Twitter
European Union's AI Regulations Risk Self-Sabotage, Cautions smart and brave Venture Capitalist Joe Lonsdale
Nvidia GPUs are so hard to get that rich venture capitalists are buying them for the startups they invest in
Chinese car exports surge
Reddit Blackout: Thousands of Communities Protest "Ludicrous" Pricing Changes
Nvidia Joins Tech Giants as First Chipmaker to Reach $1 Trillion Valuation
AI ‘extinction’ should be same priority as nuclear war – experts
×