Nexon-Originated Aftershock... Game Industry Steps Up Damage Control "Additional Probability Disclosure"
[Asia Economy Reporter Buaeri] The controversy over "probability-based items (loot boxes)" triggered by Nexon's popular game "MapleStory" has spread to major game companies, signaling a red alert for the game industry's management. As users leave the games and stock prices plummet, the game industry has hurriedly begun damage control by announcing plans to disclose additional item acquisition probabilities.
3N "Additional Probability Disclosure"
According to the game industry on the 31st, NCSoft is discussing expanding the scope of probability disclosure for probability-based items. An NCSoft official said, "We are also referring to the new amendment by the Korea Game Policy Self-Regulation Organization, and NCSoft itself is reviewing an implementation plan," adding, "Once the specific details are decided, we will disclose them quickly." Probability-based items are products where users cannot know which item they will obtain before purchase. They have been criticized for causing excessive spending by users due to extremely low probabilities akin to lottery winnings. As controversies over probability-based items continued with Nexon's MapleStory and NCSoft's Lineage 2M legendary weapons, the Korea Game Policy Self-Regulation Organization established a stricter self-regulation code on the 26th than the previous one. The main point is to require disclosure of probabilities for combined paid and free items, which game companies had mostly not disclosed until now.
Having faced a truck protest by users once, Nexon took a direct approach by disclosing the item crafting probabilities for 10 of its main games. Previously, Nexon's MapleStory was embroiled in a probability manipulation controversy, and it was revealed that some items had no winning probability at all, sparking user outrage. On the 25th, Nexon disclosed item crafting acquisition probabilities for 10 games including MapleStory M, The Kingdom of the Winds, Mabinogi, KartRider, and Cyphers. Lee Jung-heon, CEO of Nexon Korea, stated, "We intend to steadily carry out work that embodies the grand principle of transparent information disclosure for users."
Netmarble also took a proactive stance. Kwon Young-sik, CEO of Netmarble, explained at the shareholders' meeting that "Netmarble has already disclosed a wide range of probabilities, including paid items and enchantments (enhancements), regardless of self-regulation," adding, "We have already completed an internal full investigation." He further said, "We will sequentially disclose indirect parts as well, as long as users do not feel uncomfortable."
Flood of Regulatory Bills on 'Probability-Based Items'
As the game market grows, social interest in probability-based items in games has also increased. Last year, the domestic game market grew to a scale of 17 trillion won, and the combined annual sales of the 3N?NCSoft, Nexon, and Netmarble?whose business models rely on probability-based items, exceeded 8 trillion won. Because of this, related bills on probability-based items have been introduced one after another in the National Assembly.
Ha Tae-kyung, a member of the People Power Party, recently proposed the "Probability Manipulation National Surveillance Act," which requires large game companies to establish a "Game User Committee" to prevent probability manipulation. Lee Sang-heon of the Democratic Party proposed a "Complete Revision of the Game Industry Promotion Act" that mandates displaying the types of probability-based items and their supply probabilities by type. Yoo Dong-soo, also of the Democratic Party, unveiled an amendment banning double or triple-layered probability-based items. However, due to factors such as the Seoul and Busan mayoral by-elections, discussions on passing these bills in the National Assembly are currently slow.
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Some criticize the game industry's passive attitude of responding only when problems arise. Professor Wi Jeong-hyun of Chung-Ang University, president of the Korea Game Society, said, "Game companies should show an aggressive attitude by quickly disclosing (probability information, etc.)," adding, "The longer game companies delay additional probability disclosures, the more disadvantageous it becomes, and if they are forced to implement them under siege, they will inevitably face public criticism again."
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