The European Commission's new Digital Fairness Act could change monetisation in games forever - and not just in Europe

The European Commission has released its proposed Digital Fairness Act, which could significantly impact how video game monetisation works globally. The draft of the Act, leaked recently, appears to be largely unchanged according to a games business expert, George Osborn. The Act specifically mentions video games, acknowledging their growing societal importance and the readiness of policy-shaping bodies like the European Commission to address them seriously.

The key provisions of the Act concerning video games pertain to loot boxes and virtual currencies, particularly those affecting minors. For minors (under 18 years old), paid virtual currencies must be disabled by default but activated after parental or guardian approval. Paid loot boxes should not be offered to minors at all. The Act also requires games to allow for the complete disabling of paid loot boxes and to clearly display the probability of obtaining items from them.

These changes could potentially revolutionise the way loot boxes function worldwide and even influence companies' decision to use them at all. Osborn, an expert in the video game industry, believes that major gaming companies such as EA, Xbox, Activision Blizzard, and PlayStation will be concerned by these regulations. Implementing these changes would require significant design adjustments and potentially even a complete overhaul of how games are structured.

For instance, companies might need to find ways to age-gate specific game modes or disable entire aspects of the game that rely on paid loot boxes.

The Act also introduces new requirements for clearly displaying the cost of items in a game's local currency when purchased with virtual currency. This additional layer of complexity could further challenge game developers in creating compliant products. Despite these challenges, Osborn suggests that the European Union's large consumer base could drive many companies to adapt their games globally to comply with these regulations, potentially leading to a universal standard for game design.