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Game of chance elements in free-to-play mobile games. A freemium business model monetization tool in need of self-regulation?

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  • Koeder, Marco Josef
  • Tanaka, Ema

Abstract

This paper conceptualizes “Gacha”, a lottery mechanism to win virtual items, which was developed in Japan, as game of chance elements in mobile games which is used for monetization in freemium business models. Based on the concept of Gacha, referring to previous studies, this paper also analyzes the difference of mobile game regulation between the West and Japan. Japan has a longer history and more experience in both monetization of mobile games with gambling like elements (Gacha) and its regulation including self-regulation. Specific kinds of Gacha are regulated in Japan, not because of its quasi-gamble mechanism, which is in contrast to previous study perception, but because of its misleading marketing promotion method. The Japanese regulatory approach to handle the game of chance issues is to increase the transparency of probability of winning which gives consumer better chances to consider their total amount of spending on Gacha.

Suggested Citation

  • Koeder, Marco Josef & Tanaka, Ema, 2017. "Game of chance elements in free-to-play mobile games. A freemium business model monetization tool in need of self-regulation?," 28th European Regional ITS Conference, Passau 2017 169473, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itse17:169473
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    References listed on IDEAS

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    1. Sally M. Gainsbury & Nerilee Hing & Paul H. Delfabbro & Daniel L. King, 2014. "A taxonomy of gambling and casino games via social media and online technologies," International Gambling Studies, Taylor & Francis Journals, vol. 14(2), pages 196-213, August.
    2. Lehdonvirta, Vili & Castronova, Edward, 2014. "Virtual Economies: Design and Analysis," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262027259, April.
    3. Oecd, 2013. "The App Economy," OECD Digital Economy Papers 230, OECD Publishing.
    4. Feijoo, Claudio & Gómez-Barroso, José-Luis & Aguado, Juan-Miguel & Ramos, Sergio, 2012. "Mobile gaming: Industry challenges and policy implications," Telecommunications Policy, Elsevier, vol. 36(3), pages 212-221.
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    Cited by:

    1. J. Tuomas Harviainen & Jukka Ojasalo & Somasundaram Nanda Kumar, 2018. "Customer preferences in mobile game pricing: a service design based case study," Electronic Markets, Springer;IIM University of St. Gallen, vol. 28(2), pages 191-203, May.
    2. von Meduna, Marc & Steinmetz, Fred & Ante, Lennart & Reynolds, Jennifer & Fiedler, Ingo, 2020. "Loot boxes are gambling-like elements in video games with harmful potential: Results from a large-scale population survey," Technology in Society, Elsevier, vol. 63(C).

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    More about this item

    Keywords

    Free-to-play; freemium; mobile games; behavior; regulation; Gambling; virtual goods; Japan; Europe;
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