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Do online games induce children to spend money? Parents do this.

01/12/2024

It has become a daily routine for children to play online games, but purchasing paid services for online games has become a concern for many parents. Did your child pay too?

A survey by a British organization found that today’s teenagers spend half of their pocket money on online games, and half of parents with children aged 12 to 15 are worried that their children will be under pressure to pay when playing games.

To expand their customer base, game companies have launched free downloadable games one after another, and then provided equipment or special functions and services that require payment to increase revenue. This has become a new business model for game companies.

In the United States, 30% of teenagers pay for online games, spending US$184 (approximately RM840) on games a year.

Payment has become an issue that parents around the world have to pay attention to.

Children all have a playful nature, especially today’s children who like to play online games. Many of these games have opened consumption channels and attract children to consume through good-looking game skins. As a result, many children have spent money to play. The phenomenon of games makes parents very angry when their children do such things, but they don’t know how to educate them.

Nara Ward, a British parent, said keeping track of how her children spend money while playing their favorite online games is a round-the-clock job.

Nora Ward lives in Barbados, an island country in the Eastern Caribbean, and has two sons, 14-year-old Finn and 12-year-old Leif.

When Leif first started playing Roblox, he started asking for “Robux” – its in-game currency that allows players to upgrade the characters they control by purchasing virtual equipment. So his grandparents gave him $200 in Apple points as a Christmas gift.

“What shocked me was that he ran out of work in a few days,” Nora Ward said. “After that, I gave him up to $10 a month in Robux. He soon found the game boring. , defeated.”

Leif switched to World of Tanks, which also requires players to use PlayStation points to upgrade weapons.

“However, this game has an option to earn points by watching ads,” Nora Ward said. “After he has used up his monthly game allowance, he will do it when he has to.” Nora Ward said her younger son has not yet learned the concepts of self-control and money. “It’s something I have to monitor from time to time.”

Nora Ward also set screen time limits and passwords to make Leif’s gaming safer.

“Everything he buys requires my password, and if he wants to add money to his account, he has to ask me. Microtransactions are annoying, but it’s a life lesson.”

Relying on micro-transactions to generate revenue

Many game companies now make money not by selling video games, but by relying on in-game sales or microtransactions to generate revenue.

Content may be sold purely for aesthetic reasons – such as certain dance moves, skins, or clothing.

Other in-game sales offer strategic advantages to gamers—extra lives, character or weapon upgrades, etc.—that give players advantages over players who don’t purchase additional content.

The industry predicts that the global online micro-transaction market value will rise from US$67.94 billion (approximately RM310 billion) in 2022 to US$76.66 billion (approximately RM350 billion) in 2023.

However, there are signs of a backlash from experts and consumers alike. Some companies are also promising to release new games without in-game sales.

Using psychology to manipulate players

Professor Sarah Mills said gaming companies use behavioral psychology to manipulate players into spending money. “The lines between gaming and gambling are becoming ‘increasingly blurred’,” she said.

Mills is Professor of Human Geography at Loughborough University. Her research found that gambling technology makes gamers spend longer and more money playing games, and drives repeat purchases.

Vicki Shotbolt, chief executive of Parent Zone, an organization that helps parents navigate their children in the digital world, got more specific about how games motivate players to spend money.

By spending money, players can “skip the grinding process” – buying some equipment in the game means that players can skip many hours of monotonous gameplay and advance to the next level.

The “pain and joy” mechanism will cause players to lose something important if they do not buy upgraded equipment.

At the same time, the concept of “obfuscation” similar to game currency makes it more difficult for people to intuitively see how much money they have spent.

Another strategy is to utilize “loot boxes.” Players buy a blind box and don’t know what’s inside. It might hold a fate-changing item—but more often than not, the prize is just some useless customization.

“Young people often feel ashamed when they think back on how much money they spent to get a piece of scarce equipment, even if they ended up winning,” Professor Mills said.

And, while many kids say they don’t like spending money on in-game purchases, spending money on microtransactions has become a reasonable expectation.

Although spending in games has increased, some argue that gaming can benefit young people and that the fears are exaggerated.

Video games are a form of gaming invented to relieve stress, help develop cognitive skills, and combat loneliness.

Friction comes from insufficient parental companionship

Yang Zheng Hua, from Colorado, USA, spent two years in the hospital as a boy.

“I used to play a lot of video games. Those single-player games made me feel like a hero. Those multiplayer games connected me to other people. I made lifelong friends all over the world.”

In 2014, Yang Zheng Hua founded “Serenity Forge”, a game company dedicated to helping others. More than 20 million people have played the company’s games to date.

“We are in an industry that expands people’s horizons.” Yang Zheng Hua said.

Serenity Forge doesn’t use microtransactions, but Yang Zheng Hua said that this may change in the future if they find that this type of transaction will lead to “meaningful and emotionally powerful games that challenge the way you think.”

Yang Zheng Hua said that the influence of micro-transactions depends on the vulnerability of the players.

“Just like credit cards can be dangerous for some people in the wrong circumstances, so can microtransactions. However, credit cards can also serve important functions, and in-game purchases can be a way for players to invest their most. An important way in the game of love.”

Yang Zheng Hua added that perhaps the most important point is to talk to your children.

“In my experience, friction usually comes from insufficient parental presence,” he said. “I now have two children. I don’t use games as a tool to supervise children. I will make sure that when they use media, I am present in their lives.”

I asked my mother before buying anything

Sarah Loya’s son Andrew is 14 years old and spends almost all of his pocket money on games. But she said that wasn’t a problem, the game made him happy.

“He plays every day, after school and on weekends. I don’t see it as a negative. He’s a smart kid and knows the difference between reality and fantasy.”

Sarah Loya lives in Texas with Andrew and his brother, 6-year-old Rex.

“My bank account is linked to Andrew’s gaming subscription, so I see if he’s buying anything without permission,” said Sarah Loya, 43, “but he always asks me before he buys it.”

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

Child accounts and parental controls can be used to prohibit purchases or set payment limits. Parents can set up email notifications to be reminded of purchases, and may also use gift cards instead of credit cards.

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