[Issue! Q&A] "Even after spending tens of millions of won, item probabilities remain 'unknown'... Users are furious"
[Asia Economy Reporter Buaeri] Nexon's popular game "MapleStory" was engulfed in a controversy over manipulation of probability-based items last month, causing accumulated dissatisfaction among users to explode. Users held a "truck protest" at Nexon's headquarters demanding transparent disclosure of probability information for game items. A petition to the Blue House also called for regulation of probability-based items. As user backlash against probability-based items, a major revenue source for domestic game companies, grows, the domestic game market worth 17 trillion won is shaking.
Q. Why are probability-based items controversial?
A. Probability-based items can be easily understood as a kind of "gacha" system. Users cannot know which item they will obtain before purchase. The low probability, comparable to lottery odds, has been criticized for causing excessive spending by users.
Game companies disclose the probabilities of general models of "paid capsule-type items" on their websites according to the self-regulation of the Korea Game Policy Self-Regulation Organization (GSOK). However, various versions of probability-based items exist within games. Information on double-layered probability-based items where items are collected to create new items, combined free and paid items, and paid enhancement probabilities is insufficient. Users express dissatisfaction that they have to spend money without knowing the probability information for expensive items that can cost up to tens of millions of won.
Q. Which games have faced issues?
A. Representative examples include Nexon's MapleStory's "Flame of Rebirth" and NCSoft's Lineage2M's "Mythical Weapon." The Flame of Rebirth is a probability-based item that allows users to acquire various options to upgrade their equipment. Users purchase the Flame of Rebirth repeatedly until the desired option appears. However, users had no way to verify the exact probability of options appearing on the Flame of Rebirth. It was later revealed that the option probabilities were not uniform from the start, leading Nexon to be embroiled in a "probability manipulation" controversy.
NCSoft's recently introduced Mythical Weapon in Lineage2M is created through a two-step probability-based item gacha process, but NCSoft only discloses the probability of the first step. To create a Mythical Weapon, users must collect 1 to 10 "Ancient History Books." To obtain these history books, users must acquire "recipes" and other items through probability-based items. NCSoft discloses the recipe probabilities but does not disclose the probability of obtaining the Ancient History Books. NCSoft's position is that since the Mythical Weapon itself is not a cash item drawn by payment, they have no obligation to disclose the probabilities.
Q. Why can't the game industry give up on "probability-based items"?
A. "Probability-based items" are a major revenue source for leading domestic game companies. They were introduced as a model instead of paid games, which users tend to reject. The game itself is provided for free, but game items are purchased for a fee. Game companies generate huge revenue by stimulating users' psychology of identifying with their game characters and their desire for display. From a corporate perspective, it is a highly profitable business model.
Game companies are breaking record sales every year with the "probability-based item" business model. NCSoft earned 80% of its revenue (2.4162 trillion won) from "Lineage." Nexon, which surpassed 3 trillion won in sales for the first time ever, also generates most of its revenue from MapleStory, Dungeon & Fighter, and The Kingdom of the Winds. MapleStory recorded a 98% sales growth rate last year.
Q. How does the government view the "probability-based item" issue?
A. The government and political circles recognize the seriousness and have pledged to regulate. Minister Hwang Hee of the Ministry of Culture, Sports and Tourism appeared at the National Assembly's Culture, Sports and Tourism Committee full meeting last month and said, "(Users) should know the probability information," adding, "It is necessary to improve unreasonable parts."
Democratic Party lawmaker Lee Sang-heon, a member of the Culture, Sports and Tourism Committee, has proposed a "Complete Revision of the Game Industry Promotion Act" in consultation with the Ministry of Culture, Sports and Tourism. According to Article 59 of the amendment, game developers or distributors must display the game's rating, game content information, types of probability-based items, and supply probability information by type when distributing or providing games to users. Violations may result in imprisonment of up to two years or a fine of up to 20 million won.
Q. What is the progress of the game law amendment?
A. Lawmaker Lee is pushing for the amendment to pass the National Assembly in the first half of the year and is preparing related public hearings. Other lawmakers are also proposing related bills. Democratic Party lawmaker Yoo Jeong-joo has proposed a similar bill, and fellow party member Yoo Dong-soo proposed a game law amendment on the 5th that bans double or triple layered probability-based items where multiple items are combined to create another item.
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However, the game industry strongly opposes the amendment, and several difficulties are expected. The Korea Game Industry Association, which includes Nexon, NCSoft, and Netmarble, argues that the amendment requires disclosure of all types and supply probabilities of probability-based items, restricting "trade secrets" as property rights, so legislation should be approached with caution.
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