More EU Regulations May Come To Games
Manuel Olumorin & Mark Kennedy
January 20, 2023
GM GM. Welcome to Lootbox, the only place you would get loot even if they get regulated out of games.
Now, onto the gems.
- EU is exploring new regulations for the video game industry.
- Twitter Vs Instagram A Battle for NFT Users
- The Sneakies
The EU Exploring Regulation On Loot Boxes And More
The EU is shaking things up again... But this time in gaming.
What are they up to this time?
The EU (European Union) is pushing for greater consumer protection in the video game industry. It's like opening a loot box - you never know what you'll get. But in this case, it's a bunch of regulations aimed at keeping gamers, especially minors (the below-drinking-age folks), safe from harmful practices.
Let's get into the details.
The short version
The European Parliament recently voted to adopt a report calling for the European Commission to address several issues in the games industry that it believes will better protect consumers, especially young people. The report, led by MEP Adriana Maldonado López, made more than a dozen recommendations.
What the recommendations include
- Age rating and information: Harmonized rules across a single EU market to provide transparent information about video game content and systems that help parents understand and control how much time and money their children spend on games. It suggests using the PEGI (Pan European Game Information) rating system as a means of delivering transparency and potentially adding it to the EU law.
"We need to harmonize EU rules, ensuring strengthened consumer protection and with a specific focus on minors."
- Consumer protection: A common verification system to check player age and then collect data to track in-game spending, time spent, and effects on players that is presented to parliament yearly. It also suggests regulating games that allow player-generated content to protect users from illegal practices.
- Monetization: Analyze loot box sales, in-game purchases, and subscription cancellation practices. Based on findings, create rules that protect users. It also called for investigating if gold farming is linked to financial crimes and human rights abuses while ending illegal practices that allow exchanging, selling or betting on in-game and third-party sites. We don't know if that last statement is specific to skin betting or if it wants to eliminate transactions among players. If it is the latter, that's scary. Hopefully, there will be more clarity on that.
- Other: The report also called for developers to avoid designing games that feed addiction.
Our take
The EU's push for greater consumer protection in the video game industry will have a significant impact on game developers, not only Web2 but Web3 as well. Now, many of these recommendations seem reasonable. The main questions that come to mind are:
- What information burden would regulations stemming from this transfer to developers?
- How would these affect the design spaces being explored in Web3 games with free-market game economies? Can minors participate in these games? Would spending limits be needed?
- How does a developer verify players' age when wallets are used to login without KYC?
Want to go deeper, click the link below. Lootbringer recommends scrolling to the "Consumer protection in online video games: a European single market approach" section.
Twitter vs. Instagram: Who Will Dominate NFTs
It's no secret that Twitter has been the go-to spot for all things crypto and NFTs. Coin Telegraph just dropped an article about the showdown between these two social media giants causing a debate here at Lootbox, would Instagram dethrone Twitter as the social media king of NFTs?
With Meta making moves allowing NFTs on Instagram through Polygon, it's a debate worth having.
What Twitter has going for it
- Twitter has been the home of Crypto thus far, to the extent that there's a term for it - Crypto Twitter. The platform has a crypto-savvy user base that's always on top of the latest trends and developments. Twitter is the spot for the true NFT die-hards.
- Twitter's unique value proposition of being the internet's town square makes it a reliable platform for NFT communities to find their kind.
- It's much easier for a project to go viral without forking out cash on Twitter than on Instagram. That retweet button makes it so easy while Instagram has squashed the organic reach that it once had.
Hard to beat Twitter, right? Don't count Instagram out just yet.
What Instagram has going for it
- Instagram's user experience and interface are more immersive and visually appealing, making it a better platform for showcasing and buying NFTs. This includes features like galleries and a wide range of sharing options that can be used effectively for NFT integration and marketing initiatives.
- Instagram has a larger user base and higher engagement rates, meaning more reach to potential buyers and visibility for NFTs. Let's not forget its sweet sweet targeting ability that allows a project to reach users by interest with a few dollars.
- Instagram does have a roadmap for NFT integration in 100 countries and a plan for a marketplace...so there's that.
- Twitter's recent changes in management have added some chaos to its product trajectory which could be a double edge sword. Twitter could create something great for the NFT community or destroy what it's already got.
Our take
First, why does everyone forget Discord? It was ranked the number 2 app for Gen Z after TikTok. Adding to that, it's where most NFT communities live, breathe and communicate.
Lootbringer's money is on Discord, especially if they add a community discovery feature. Others have their money on Instagram being the spot to sell and display your NFTs. Move over PFPs, hello full gallery for a true flex.
What would you put your money on? Let us know by replying to this email.
The Sneakies
- Blockchain Gaming announces winners in its Blockchain Gaming Awards Ceremony 2022.
- Nefta and Gami partner to create fun and accessible Web3 games.
- Discord acquires the Gas social app, a poll-based app that allows friends to share compliments with each other.
- PLAI Labs raises a whopping $32 million seed round led by a16z to build the next generation of social platforms leveraging AI and web3. Its first entertainment experience is a game built on the platform, Champions Ascension, an MMORPG where players can port in their existing NFT characters, go on quests, trade items, fight in the colosseum, build their own custom dungeons and more.
- Ubisoft cancels its blockchain game, Project Q.
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