Does Video Game Monetization Impact Children? Australia’s Response Explained | Games

O Over the last ten years, Dean has built a robust collection of video games, ranging from mainstream blockbusters to niche favorites. His digital library is akin to a cinematic treasure trove, allowing instant access with a simple click. Yet, his son, Sam, has set his sights on just one game: Roblox. This expansive virtual universe and video game, Roblox is the leading title worldwide.

The company reports over 97 million daily active users on Roblox, with around 40% of them, like Sam, aged under 13. In 2024, Roblox generated approximately $5.6 billion (US$3.6 billion) in revenue, mainly from purchases of “Robux,” a form of in-game currency, with the average user spending about $25 a month.

Amid concerns about children’s exposure to bullying and inappropriate content, a recent report highlights the impacts of game monetization on young users.

Experts argue that Australia’s current classification system does not adequately assist child gamers and their parents in navigating the tricky monetization landscape.

New reports from Australian researchers scrutinize the manipulative “dark design patterns” in gaming that encourage spending and confuse children with unclear cryptocurrency transactions.

One recent report from Monash University and the Center for Consumer Policy Research (CPRC) focused on players aged 18 and older, revealing that games designed with dark patterns are almost unavoidable. Of the 800 surveyed, 83% reported “negative effects” from these designs, and 46% faced economic disadvantages, feeling pressured to purchase items and overspending.

Another recent study from University of Sydney researchers sought to understand how children, who represent one-fifth of the gaming population, recognize these mechanisms and perceive the design of video games.

“Concerns about children’s interaction with digital media often lead to panic and policy decisions that overlook the actual experiences of children,” states Taylor Hardwick, lead author of the study.

Hardwick and her team interviewed 22 children aged 7 to 14 and their parents. Each child received a $20 debit card and was instructed to explain their purchases.

Among the 22 children, 18 played Roblox, with 12 spending their entire $20 on Robux. The remaining five used the funds on other games like Call of Duty, Fallout 76, and Minecraft.

Participants expressed concerns about being misunderstood and frustrated by their purchases, especially if they suddenly lost access to their accounts or items.

Sam’s father shared that Sam has spent around $400 a year on Roblox over the past four years, with a recent purchase leaving him disheartened.

Sam had used some of his Robux to buy Godzilla “skins” (digital costumes) in a popular Roblox game called Monster Universe. However, upon logging in, he found his skin had vanished unexpectedly after the game was shut down by Toho, the copyright holder. He did not receive a refund from Roblox.

One major concern raised by Sydney researchers is the impact of “random reward mechanisms” (RRMs) on children. RRMs, like loot boxes, offer players mystery items through lottery-style draws.

While children in this study accepted RRMs as part of gaming, many expressed dissatisfaction with them.

“Even if children talk about game percentages in slang, they don’t entirely grasp the risks of navigating these digital experiences,” the authors note. “Gambling-like mechanisms such as RRMs are harmful and inappropriate for children’s games.”

Recommendations include eliminating RRMs, simplifying refund processes, enhancing account protections for children, and improving transparency regarding cryptocurrency.

Christopher Ferguson, a psychologist at Stetson University, found the study interesting but highlighted the small sample size and questioned the researchers’ definition of “harm.” He argued that while children may feel deceived, the monetization aspects could be more annoying than harmful.

“It’s encouraging that researchers are inquiring about children’s perspectives on their experiences,” he said.

A USTRALIA has attempted to shield children from monetized RRMs by introducing a new classification system that was implemented in September 2024. Currently, games containing RRMs or loot boxes are not recommended for those under 15.

However, these new regulations apply only to newly classified games, and pre-existing games are not required to update their classifications.

Leon Xiao, a researcher from City University of Hong Kong studying loot box regulation, states that Australia faces implementation issues rather than legal ones. He argues that several video games were misrated after the new law came into effect, indicating flaws in consumer education.

A preliminary study by Marcus Carter, co-author of the University of Sydney research, suggests that about 20% of the top 100 grossing mobile games on the Apple App Store and Google Play Store do not comply with Australian regulations. Hardwick and Carter recently noted that Australia’s guidelines “do not fulfill their intended purpose.”

Roblox, with its extensive user-generated content, exemplifies the confusion surrounding ratings. Xiao argues, “Roblox should either be rated or not recommended for players under 15.” However, the game is rated PG on the Google Play Store.

In contrast, Apple’s App Store lists a regional age rating of over 15 years, which aligns with global ratings from Apple that set the limit at 12.

A Roblox spokesperson informed Guardian Australia that developers must use the PolicyService API to comply with jurisdictional requirements, ensuring access only for eligible users with paid random items. Due to an update rolled out to developers in September 2024, paid random items are currently unavailable to users in Australia.

“As a platform for user-generated content, we provide developers with tools, information, and guidelines applicable to various gameplay aspects within games and experiences.

“We are committed to addressing reported content that fails to adhere to guidelines or does not effectively use tools necessary to meet Australia’s local compliance requirements.”

The company strives to inform parents about their children’s purchasing habits, does not store billing information as defaults, and fails to give warnings that real money is being spent during initial transactions. Parents are also alerted via emails regarding high spending activity.

“Our parental controls enable parents and caregivers to receive notifications about their child’s spending on Roblox and set monthly spending limits for their accounts,” said the spokesperson.

Hardwick believes navigating monetization is challenging for parents, who are often busy, informed, and lack resources. She feels they aren’t equipped to manage children’s in-game spending effectively.

Dean is making every effort to guide Sam through these trends, discussing what Sam spends Robux on and why. While Dean acknowledges Sam’s disappointment over the Godzilla skin, he has encouraged Sam to explore a gardening game where he can utilize Robux to purchase new species.

*Name changed