Asia
Japan’s Loot Boxes face bleak future

The increasingly stringent regulations over loot boxes all over the world are having their impact on Japanese gaming industry.
Japan’s gaming industry, the global leader in the electronic gaming industry for nearly five decades, is facing the heat following the global clamp down against loot boxes.
Japan’s game makers have pioneered the practise of ingame purchases through tis popular gaming applications such as Monster Strike and Puzzle & Dragons. The yearly revenue contribution of these games is estimated to be around $55 billion.
While loot boxes and other in-game purchases contributed to the Japanese economy, they have come under increasing amounts of criticism. Many countries have accused companies of peddling gambling to underage children. Countries request for the removal of loot boxes and other in-game purchases for games marketed to children and young adults.
Japan’s loot boxes and games have been victims of their own success. The companies spent money on expensive licensing fees rather than spending money on innovation and creativity. For example, one company licensed big names for their mobile games like the Star Wars franchise, which cost them millions. The company’s game tanked and they were out $7 million.
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