Connect with us
https://tickernews.co/wp-content/uploads/2023/10/AmEx-Thought-Leaders.jpg

Tech

‘Literally just child gambling’: what kids say about Roblox

Published

on

‘Literally just child gambling’: what kids say about Roblox, lootboxes and money in online games

Roblox is one of the world’s most popular online platforms for children, offering a variety of “experiences” including games and virtual spaces. Most of the experiences are free, but offer upgrades, bonuses and random items in exchange for cash.

What do kids make of it? In new research, we interviewed 22 children aged seven to 14 (and their parents) from November 2023 to July 2024. Some 18 of the 22 played Roblox.

In the interviews, we gave children an A$20 debit card to spend however they liked, to help us understand children’s decision-making around spending. While four children purchased non-digital items with their debit card (such as bicycle parts, toys and lollies), 12 children made purchases in Roblox.

We found children greatly value their Roblox purchases – but complain of “scary” and complex transactions, describe random reward systems as “child gambling”, and talk of “scams” and “cash grabs”, with the platform’s inflexible refund policy providing little recourse.

What is Roblox?

Created in 2006, Roblox bills itself as “the ultimate virtual universe that lets you create, share experiences with friends, and be anything you can imagine”. There are 380 million monthly active users globally.

Around 42% of Roblox players are under 13 years old. In 2024, a study found Australian players aged four to 18 spent an average 137 minutes a day on it.

Roblox has come under fire in recent years, particularly for the prevalence of grooming and child abuse on the platform. Despite parental controls, many feel that it’s still not doing enough to protect children.

Much of Roblox’s US$3.6 billion revenue in 2024 was generated via in-game microtransactions, particularly through purchases of its virtual currency Robux.

Free to play – but plenty to pay for

Screenshots of an account with a birthday in 2013 and a game screen showing a popup reading 'Buy Big Gift for $199 each?'
Researchers created a Roblox account with a listed age of 12, and could immediately purchase random reward items in the Adopt Me! game.
Roblox/Hardwick & Carter

It’s free to play Roblox. But Roblox and Roblox creators (people who make the platform’s “experiences”) make money via in-game purchases.

In Roblox experiences, players can purchase all sorts of things – cosmetic items to change the appearance of player avatars, functional items to use in games, and passes which give access to games or VIP experiences.

Some Roblox games also offer random reward mechanics such as lootboxes, which offer players a chance-based outcome or prize (sometimes via monetary purchases).

Lootboxes were banned for users under 15 in Australia in 2024. However, we found many of Roblox’s most popular games still have random reward mechanics for sale to accounts under 15 years of age.

In response to questions from The Conversation, a Roblox spokesperson wrote:

As a user-generated content platform, we provide our developer community with tools, information and guidelines that apply to aspects of gameplay within their games and experiences, including the recent classification update relating to paid random items. We take action on reports of developers not following guidelines or not using our tools properly to meet local compliance requirements.

Concerns about children’s digital game spending often focus on the idea that engaging with random reward mechanics might later lead to problem gambling.

While this remains the subject of ongoing research, our research shows Roblox’s spending features already harm children now. Children already feel misled or deceived.

Random rewards and ‘child gambling’

Many of Roblox’s most popular games, such as Adopt Me!, Blox Fruits and Pet Simulator 99, include random reward features. Players can purchase items of random rarity, and can often use or trade these items with other players.

One child in our study explained that playing these games is “literally just child gambling”.

Random reward mechanics are confusing for children who may not have a strong understanding of statistics or risk. This caused conflict in the families we spoke to, when children were disappointed or upset by not receiving a “good” reward.

Our research echoes earlier work identifying harms to children from monetised random reward systems.

‘Scary’ virtual currencies

Roblox also uses virtual currencies, which must be purchased using “real” currency. For instance, A$8.49 or US$5.00 will purchase 400 Robux to spend in games.

Some popular Roblox games then have their own virtual currency. Players must first convert real-world money into Robux, then convert the Robux into a game’s currency of “diamonds” or “gems”.

Some children we spoke to had sophisticated ways to handle these conversions – such as online Robux calculators or mental maths. However, other children struggled.

An 11-year-old described navigating nested virtual currencies as “scary”. A 13-year-old, when asked how much they thought Robux cost in Australian dollars, said, “I can’t even begin to grasp that.”

Virtual currencies make it difficult for children to discern the true price of items they want to buy in digital games. This leads to children spending more than they realise in games – something that concerns them.

Children referred to many of these in-game spending features and outcomes as “scams”, “tricks” and “cash grabs”. Although children value their in-game purchases, and parents use in-game spending to teach values around saving and spending money responsibly, these features ultimately harm children.

Current protections are not enough

Digital games have demonstrated benefits for childrens’s education, social lives and identity development. Children also value the items they purchase in digital games. However, efforts to make money from games aimed at children may have significant financial and emotional impact.

Our research does not suggest monetisation features should be barred from children’s games. But our findings indicate that policy regarding children’s digital safety should try to minimise harm to children as a result of their digital spending.

In particular, we conclude that monetised random reward mechanics and virtual currencies are not appropriate in children’s games.

Other countries have struggled to regulate lootboxes effectively. Current legislation, such as the Australian classification changes introduced last September, which ban lootboxes for players under 15, is not fit for purpose. Roblox is currently rated PG on Google Play store and 12+ on the Apple App Store, despite many of its most popular games including paid chance-based content.

Our interviews also found that parents feel lost navigating the complexities of these games, and are extremely anxious about how their children are being monetised.

Australia’s eSafety Commissioner has argued that the way forward for children’s safety online is “safety by design”. In this approach, digital service providers must design their services with the safety of users as a top priority.

In our conversations with children, we found this is not currently the case – but could be a good starting point.The Conversation

Taylor Hardwick, Postdoctoral Research Fellow in the School of Architecture, Design and Planning, University of Sydney and Marcus Carter, Professor in Human-Computer Interaction, ARC Future Fellow, University of Sydney

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Continue Reading

Tech

What Saudi Arabia’s role in the Electronic Arts buyout tells us about ‘game-washing’

Published

on

What Saudi Arabia’s role in the Electronic Arts buyout tells us about image, power and ‘game-washing

Jacqueline Burgess, University of the Sunshine Coast

Video game publisher Electronic Arts (EA), one of the biggest video game companies in the world behind games such as The Sims and Battlefield, has been sold to a consortium of buyers for US$55 billion (about A$83 billion). It is potentially the largest-ever buyout funded by private equity firms. Not AI, nor mining or banking, but video games.

The members of the consortium include: Silver Lake Partners, an American private global equity firm focusing on technology; the Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund; and the investment firm Affinity Partners, run by Jared Kushner, son-in-law of American President Donald Trump.

The consortium will purchase all of the publicly traded company’s shares, making it private. But while the consortium and EA’s shareholders will likely be celebrating – each share was valued at US$210, representing a 25% premium – it’s not all good news.

PIF acquiring EA raises concerns about possible “game-washing”, and less than ideal future business practices.

EA’s poor reputation

Video games are big business. The global video game industry is worth more than the film and music industries combined. But why would these buyers specifically want to buy EA, an entity that has won The Worst Company in America award twice?

It has been criticised for alleged poor labour practices, a focus on online gaming (even when it’s not ideal, such as in single-player stories), and a history of acquiring popular game studios and franchises and running them into the ground.

Players of some of EA’s most beloved franchises, such as The Sims, Dragon Age and Star Wars Battlefront II, believe the games have been negatively impacted due to the company meddling in production, and wanting to focus on online play and micro-transactions.

Microtransactions are small amounts of money paid to access, or potentially access, in-game items or currency. Over time, they can add up to a lot of money, and have even been linked to the creation of problem gambling behaviours. Unsurprisingly, they are not popular among players.

Current global economic stresses have affected video games and other high-tech industries. The development costs of a video game can be hundreds of millions of dollars. EA has reacted to its slowing growth by cancelling games and laying-off close to 2,000 workers since 2023. So a US$55 billion offer probably looked enticing.

Saudi Arabia’s investment spree

In recent years, the Saudi wealth fund has been on an entertainment investment splurge. Before this latest acquisition, PIF invested heavily in both golf and tennis.

It is a sponsor and official naming rights partner of both the Women’s Tennis Association rankings and the Association of Tennis Professionals rankings.

The wealth fund also helped establish the LIV Golf tour in 2022, in opposition to the Professional Golf Association (PGA). By offering huge sums of money, it was able to attract players away from the PGA. One player was reportedly offered US$125 million (A$189 million). This tactic worked; a merger was announced between LIV, the DPA (European golf tour) and the PGA (North American golf tour) in 2023, with PIF as the main funder.

PIF, via its subsidiaries, has also been acquiring stakes in other video game companies. For example, it is one of the largest shareholders in Nintendo, the developer behind Mario, and purchased Niantic (the company behind Pokémon Go) earlier this year for US$3.5 billion (A$5.3 billion)

Why does PIF want video game companies?

Live sport and video games have a few things in common: they are fun, engaging and entertaining. And being known for entertainment is good PR for a country that has been accused of human rights abuses.

PIF’s investment in sport has been called “sportswashing”: using an association with sport to counteract bad publicity and a tarnished moral reputation. Video games, with their interactivity and entertainment value, represent an opportunity for game-washing.

The fact EA owns many sports games’ franchises would also be a bonus, potentially allowing for further video game and sport collaboration. And the fact the video game industry is projected to keep growing globally makes it a good investment for an oil-rich nation looking to economically diversify.

Beyond game-washing concerns, we also need to pay attention to the type of buyout happening here. This is a “leveraged” buyout, meaning part of the purchase price – in this case US$20 billion (A$30 billion) – is funded as debt taken on by the company. So once the acquisition is complete, EA will have US$20 billion of new debt.

With all that new debt to service, it would only be natural to have concerns about more lay-offs, cost-cutting and increasing monetisation via strategies such as microtransactions. Ultimately, this would result in a poorer experience for players. It seems the more things change, the more they stay the same.The Conversation

Jacqueline Burgess, Lecturer in International Business, University of the Sunshine Coast

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Continue Reading

Tech

80% of ransomware victims pay ransom, says report

Hiscox report reveals 80% of ransomware victims pay ransom, but only 60% recover data successfully

Published

on

Hiscox report reveals 80% of ransomware victims pay ransom, but only 60% recover data successfully

video
play-sharp-fill
In Short:
– Cyber attacks increasingly target businesses, with 80% of ransomware victims opting to pay ransoms.
– SMEs are often affected, with only 60% recovering data after paying ransoms amidst rising cyber insurance costs.
Cyber attacks are increasingly targeting sensitive business data, with many companies paying ransoms. A report from Hiscox indicates that 80% of businesses affected by ransomware over the past year opted to pay.The annual Cyber Readiness Report highlights a concerning trend in ransomware attacks against well-known companies, including Marks and Spencer, the Co-op, and Jaguar Land Rover.

The latter recently received a £1.5bn government loan guarantee aimed at protecting its supply chain, which includes numerous small firms.

Banner

Many victims of cyber attacks are small and medium-sized enterprises (SMEs), which often require assistance to recover. Hiscox reported that while 27% of the surveyed 5,750 SMEs faced ransomware attacks, only 60% that paid the ransom managed to recover their data.

Impact on Firms

The broader findings revealed that nearly 60% experienced some form of cyber attack, with numerous businesses attributing their vulnerabilities to artificial intelligence.

Companies face not only financial repercussions, including fines and lost revenue, but also damage to their reputations. Eddie Lamb of Hiscox warned against underestimating the severe consequences of cyber attacks on all business sizes.

Jaguar Land Rover was reportedly finalising cyber insurance when it was attacked, incurring significant losses. Industry experts note that the rising costs of comprehensive cyber insurance policies may leave many firms unprotected. The cyber insurance market is growing, responding to the high-profile impacts experienced by businesses like M&S, which anticipates recovering losses through insurance after its own ransomware incident.


Download the Ticker app

Continue Reading

Tech

OpenAI to launch TikTok-like AI video app Sora

OpenAI to launch Sora, an AI-driven social app with TikTok-like features amid TikTok’s regulatory uncertainties

Published

on

OpenAI to launch Sora, an AI-driven social app with TikTok-like features amid TikTok’s regulatory uncertainties

video
play-sharp-fill
In Short:
– OpenAI is launching Sora 2, a social media app with AI-generated videos, competing with TikTok.
– The app features a unique identity verification system and provides short video content without uploads.
OpenAI is set to unveil Sora 2, a new social media app that imitates TikTok by offering AI-generated video content. The strategy positions OpenAI to directly challenge established platforms in the AI video market.The platform has begun internal testing. Employees have reacted positively, raising productivity concerns among managers. Sora 2 features swipe-to-scroll navigation and offers personalized video recommendations.

Banner

A unique identity verification system allows users to authenticate their likeness for use in AI-generated videos. Users will be notified when their likeness is used in videos, regardless of whether these are published. Video lengths are capped at 10 seconds, with no capability to upload personal content.

The app includes typical social media features like likes and comments, with a user interface that resembles TikTok’s “For You” page.

Strategic Launch

OpenAI’s timing for this launch is strategic, coinciding with uncertainties surrounding TikTok’s U.S. operations. Recent deals aim to transfer majority control of TikTok’s American business to U.S. investors while permitting ByteDance a minority stake.

OpenAI perceives the current turbulence as a unique opportunity to introduce a competitive platform for short-form videos, appealing to users seeking alternatives during this period of regulatory scrutiny.


Download the Ticker app

Continue Reading

Trending Now