The gaming industry may be on the verge of a major transformation, as the European Union (EU) is pushing to regulate in-game currencies like COD Points, V-Bucks, and Robux. New pricing clarity guidelines have already been sent to developers, marking the beginning of a regulatory shift that could impact gamers worldwide.
Much like how China’s loot box laws forced developers to disclose probability rates globally, the EU’s crackdown on digital currencies could lead to broader industry changes beyond Europe. In this article, we’ll break down the issues surrounding in-game currencies and how the EU plans to fix them.
The Problem: Obscuring Real-World Prices
For decades, video games have used virtual currencies to obscure real-world costs, making it harder for players to track their spending. This practice is designed to encourage more purchases while reducing the consumer’s ability to calculate true costs easily.
Example 1: Call of Duty and COD Points
Call of Duty’s operator bundles cannot be bought with real money directly; instead, they must be purchased with COD Points. These points, however, are sold in variable bundles, making it difficult to determine their exact value. For instance, buying a small package of COD Points offers the worst exchange rate, while purchasing a large $100 bundle includes bonus points—creating a psychological incentive to spend more.
Moreover, game developers set prices for skins and other content at awkward amounts, ensuring that players always have leftover currency, nudging them toward purchasing additional points.
Example 2: Teamfight Tactics’ Multi-Currency System
Riot Games’ Teamfight Tactics takes this practice to an extreme. Players must buy Riot Points with real money, then use those points to acquire another currency (e.g., Blue Essence or Realm Crystals), which can then be spent on loot boxes. The process is intentionally convoluted, making it nearly impossible for players to calculate the real-world cost of in-game items. Some rare skins can cost between $500 to $600—yet, without breaking it down manually, most players won’t realize the full expense.
The EU’s Plan for Transparency
To combat these deceptive practices, the European Commission has introduced new guidelines aimed at bringing transparency to in-game purchases. Here’s what will change:
1. Clear, Real-World Pricing
Developers will be required to display real-world prices alongside in-game currency values. For instance, instead of just listing an item as “1,400 COD Points,” the game must also display “$18.75.” This ensures that players immediately understand how much they’re spending.
2. Transparent Currency Exchange Rates
If a game has multiple in-game currencies (e.g., exchanging points for premium currency), the exchange rate must be clearly displayed with a real-world price equivalent. This will prevent developers from hiding true costs behind layered conversion systems.
3. Avoiding Multi-Currency Schemes
The EU is recommending that developers move toward a single digital currency system per game. This will prevent companies from forcing players to convert between multiple types of points before making a purchase, which often leads to wasted currency and additional spending.
4. Easier Subscription Cancellations
Many game subscriptions, including battle passes, are notoriously difficult to cancel—similar to gym memberships that make you jump through hoops. The EU’s new guidelines require that canceling a subscription be as simple as signing up, with just a few clicks.
5. Stronger Consumer Protection, Especially for Children
A significant portion of these regulations focuses on protecting vulnerable consumers, particularly children. The EU wants to ban exploitative marketing tactics aimed at kids and prevent games from psychologically manipulating young players into spending more money.
6. No More Pay-to-Play Models
The new rules aim to ensure that core gameplay remains separate from monetization. Pay-to-win mechanics, energy limits, and systems that restrict gameplay unless money is spent are being discouraged.
What This Means for Gamers Worldwide
While these regulations are being introduced in the EU, their effects will likely reach gamers globally. Implementing different financial systems for different regions is expensive, and many developers may choose to adopt these standards worldwide rather than create separate versions of their games.
This mirrors what happened with China’s loot box laws. When China mandated that loot box odds be disclosed, developers applied these transparency measures globally rather than maintaining separate versions for different regions.
Will the U.S. Follow Suit?
Unlike the EU, the United States has shown little interest in regulating in-game monetization practices. Despite growing concerns about the effects of manipulative game design on children, U.S. lawmakers have yet to take significant action. American consumers, in general, are less aware of the impact of these systems, allowing game publishers to continue exploiting dark patterns for profit.
Final Thoughts
The EU’s push for greater transparency in in-game purchases is a huge step forward for consumer protection. By requiring real-world pricing, preventing manipulative currency exchanges, and making subscriptions easier to cancel, these regulations aim to make gaming fairer for everyone.
If successful, these changes could reshape the industry, forcing game publishers worldwide to abandon deceptive pricing models in favor of more transparent systems. For gamers, this means a better, more honest purchasing experience—one where you know exactly what you’re paying for.
As these regulations roll out, it will be interesting to see how developers respond and whether other regions, including the U.S., decide to follow the EU’s lead.
