ESRB’s loot box warning label is about placating politicians

The Entertainment Software Ratings Board revealed a new form of self-regulation for video games today. In the “near future,” the ESRB will assign a warning label that will inform customers that a product contains “in-game purchases.” This indicator will apply to games at retail and on digital stores that include any form of purchasable bonus content, such as extra multiplayer maps, expansions, digital currency, and — yes — loot boxes.

Game industry critics are already pointing out that virtually every new game has in-game purchases, so this label will show up everywhere — and that might make it ineffective. But while the ESRB’s goal is to inform customers, it has always existed to help publishers avoid government regulation. To accomplish this, the organization needs to convince lawmakers that it is doing enough to protect consumers, but at the same time, it doesn’t want to promise too much. So the ESRB is haggling to get what it wants (no new laws) without making firm commitments to drastic changes (anything that costs money or limits the sale of loot boxes).