How computer games encourage kids to spend cash

Nara Ward says keeping track of her kids’ expenses while playing their favorite computer games is a full-time job.

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

When Leif started playing Roblox, he asked about Robux – the game’s currency – which players can use to upgrade their character or buy virtual items. So his grandparents gave him a $200 (£159) Apple Gift Card for Christmas.

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

Leif moved to World of Tanks, where players will also need to upgrade their weapons with PlayStation Credits.

“However, this game offers an opportunity to watch ads to gain credit,” says Ms. Ward. “He did it out of desperation when he’d used up his monthly player money.”

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

“It’s something I have to constantly monitor.”

Instead of profiting from the initial sale of a video game, many of today’s game companies rely on revenue from in-game purchases or microtransactions.

The purchased content can be purely aesthetic – dance moves, skins or clothes.

Alternatively, in-game purchases can provide a tactical advantage to gameplay – extra lives, character upgrades, or weapons – giving an edge over players who didn’t purchase the additional content.

The global online microtransactions market is expected to grow from US$67.94 billion in 2022 to US$76.66 billion in 2023.

However, there are signs of a backlash from both experts and consumers. Also, some companies are promising new releases that will be available without in-game purchases.

According to Prof. Sarah Mills, gaming companies are using behavioral psychology to manipulate users into spending money, and the connection between gaming and gambling is becoming “increasingly blurred,” she explains.

Ms Mills is Professor of Human Geography at Loughborough University. Their research found that gambling techniques lead players to play longer, spend more, and lead to repeat purchases.

Vicki Shotbolt, executive director of Parent Zone, an organization that helps parents navigate the digital world for their children, takes a closer look at how games encourage gamers to spend their money.

By spending, players can “avoid the hustle” – an in-game purchase means they avoid hours of monotonous gameplay to level up.

With Fun Pain, you risk losing something important if you don’t make a purchase.

Meanwhile, “obfuscation techniques” such as B. In-game currencies, difficult to see how much you are really spending.

Another tactic is the use of “loot boxes”. Players buy a box without knowing what’s inside. It could contain a groundbreaking item – but in most cases the price is nothing more than a mediocre adjustment.

“Young people recalled feelings of shame when they thought about how much they had spent to get a rare item, even when they were successful,” says Prof. Mills.

And while many kids say they don’t like in-game purchases, 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 overdone.

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

As a teenager, Zhenghua Yang from Colorado spent two years in the 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 have made lifelong friends all over the world.”

In 2014, Mr. Yang founded Serenity Forge, a game company with a mission to help others. To date, more than 20 million people have played the company’s games.

“Our job is to broaden people’s horizons,” says Mr. Yang.

Serenity Forge doesn’t use microtransactions, but according to Mr. Yang, that could change in the future if they found that they contribute to “meaningful, emotionally impactful games that challenge your mindset.”

The impact of microtransactions depends on the user’s vulnerability, according to Mr. Yang.

“Just as a credit card can be dangerous for someone in an inappropriate context, microtransactions can also be dangerous. However, credit cards can also serve an important function and in-game purchases can be important to a player engaged in their favorite game.”

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

“He plays every day, after school and on weekends. I don’t really see many negatives. He’s a smart boy 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 bought anything without permission,” says the 43-year-old, “but he always asks me before making a purchase.”

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

You can disable purchases or set a spending limit through child accounts and parental controls. Parents can set up email alerts to report purchases and use gift cards instead of credit cards.

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

“In my experience, friction arises from a lack of parental presence,” he says. “I now have two children and instead of using games as a babysitting tool, I make sure I’m present in their lives while they consume media.”

Back in Barbados, Ms Ward set up screen time limits and passcodes to keep Leif’s games safe.

“My password is needed to make purchases and if he wants to add money to his account he has to ask me. Microtransactions are annoying, but this is a life lesson.”