The Evolution of Loot Boxes: From Surprise Mechanics to Regulatory Crackdowns

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Loot boxes are now a popular part of video games, but they haven’t always been around in their current form. Just like the gaming industry itself, loot boxes have changed over time with new technology and rules. Let’s take a look at how they’ve developed, focusing on the key moments in their history.

First, What Are Loot Boxes?

Loot boxes are virtual items in video games that players can open to get a random selection of in-game rewards. These rewards can range from simple cosmetic items to customize a player’s character, to powerful items like weapons and armor that affect gameplay.

The problem with loot boxes is that they’re designed to make money. Players can buy them directly, or they can buy ‘keys’ to open the loot boxes they’ve earned or received.

Loot boxes first became popular in online role-playing games and free-to-play games. Game developers started using them to make money and keep players engaged by regularly offering new items and cosmetic upgrades as rewards.

Similar to how online casinos use no-deposit bonuses to encourage players to spend real money, free-to-play games draw players in with the promise of extra features and experiences they can buy. Just like with casino players, those who purchased loot boxes in these games gained advantages like improved gameplay and faster progress.

Early Beginnings Around the World

The idea of loot boxes started with a feature called “Gachapon tickets” in the Japanese game MapleStory in June 2004. Players paid 100 yen for each ticket, which then gave them a random in-game item.

Loot boxes first appeared in games a bit earlier with the 2007 Chinese free-to-play game, ZT Online (also known as Zhengtu). Their popularity in Asia is often linked to specific preferences among players in that region.

Many gamers in Asian countries can’t afford to buy expensive games. Instead, they often play at internet cafes (like PC bangs) or use unofficial methods to access games without paying.

Instead of completely changing how they made money, Asian game companies like ZT Online started using loot boxes to earn extra revenue beyond the initial game purchase. When ZT Online saw a large profit from this after just one year, other game companies were encouraged to add similar small purchases to their own games.

Starting around 2009, free-to-play games on Facebook, such as those from Zynga, began offering in-game purchases. Players could buy ‘loot boxes’ to speed up their progress, a feature known as micro-transactions. This became common in North America and Europe.

Team Fortress 2, a game created by Valve Corporation, featured one of the earliest examples of loot boxes in Western gaming. Starting in September 2010, players could earn random crates and use keys to open them, revealing the contents inside.

It was awesome to see a few years later that so many MMOs and MOBAs started going free-to-play! And honestly, it really worked for them – they got way more players! I remember a bunch of free games popping up around then, like Star Trek Online and Lord of the Rings Online, and they started using loot boxes as a way to make money, which seemed like a smart move at the time.

Loot Boxes Become Popular Amid Regulatory Oversight 

By the mid-2010s, loot boxes had become a standard way for video games to make money. Games like Overwatch gained huge popularity thanks to these optional purchases. However, later games took the idea even further, leading to increasing criticism by the end of the decade.

The game Star Wars Battlefront II received criticism because players who bought loot boxes had an unfair advantage, creating a “pay-to-win” situation. Concerns arose that this could lead to unofficial online betting on in-game items. As a result, governments began to regulate loot boxes as a form of gambling. Others have argued that loot boxes are harmful to consumers, particularly when included in games that already cost money.

Despite increasing concerns, several games began updating their loot-box systems, starting in August 2013 with titles like Counter-Strike: Global Offensive. CS: GO introduced “weapon cases” that players could buy starting in May 2014. Call of Duty: Advanced Warfare also featured “supply drops” containing random items like character customizations, experience boosts, and weapons.

Overwatch’s popular use of loot boxes led other games, such as FIFA 17 and Gears of War 4, to add similar features starting in 2016 and 2017.

By the late 2010s, popular, high-budget games like NBA 2K18, Middle-earth: Shadow of War, and Forza Motorsport 7 started including loot boxes in different forms. While this added some variety to the games, it also led to criticism and attracted the attention of government regulators.

After receiving a lot of criticism, some game developers and publishers started taking loot boxes out of their games. Early examples of this included popular franchises like Forza Motorsport 7, Star Wars Battlefront II, and Middle-earth: Shadow of War.

As a gamer, it’s been kinda annoying seeing some features disappear or games not launch in certain countries. For example, I couldn’t buy FIFA Points in Belgium because of their laws against loot boxes, and Diablo Immortal skipped Belgium and the Netherlands entirely because of how they handled their loot chests. Basically, the rules in those places forced developers to find other ways to make money from their games, which means less content or different ways to progress for us players.

Conclusion 

While loot boxes are still common in games, new ways to make money, like the challenge-based battle passes popularized by Fortnite, have emerged. There’s no question that battle passes have significantly changed how players experience games, impacted gaming series, and left a lasting mark on video game history.

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2025-12-16 12:08