As if time had rewound to 2017, the most controversial issue in the gaming world—"loot boxes" (the loot box system in games)—has once again become a hot topic. Two weeks ago, the New York State Attorney General formally filed a lawsuit against Valve, the parent company of Steam, accusing its in-game loot box system of promoting illegal gambling. Valve...A statement will be issued later.In a strong counterattack, Valve not only likened the digital loot box mechanism to buying "physical trading cards," but also countered by accusing the New York State government's demands of forcing Valve to expand the collection and violation of players' privacy data.
"Physical Card Theory": Is opening boxes just about buying decorations?
In her lawsuit, New York Attorney General Letitia James named Valve's flagship titles, including Total War: Jedi, Jedi Fortress 2, and Dota 2, criticizing their loot boxes as "addictive, harmful, and illegal," and demanding that the court permanently block Valve from promoting illegal gambling in its games and impose fines.
In response to the accusations, Valve invoked the "physical card theory" in its defense statement.
Valve emphasizes that players don't need to open these mystery boxes to play the game normally. "In fact, most players don't open any boxes at all; they just play the game. Because the items in the boxes are purely cosmetic, players who don't spend money will not be at a disadvantage in the game." Valve believes this is as normal as a child buying Pokémon cards or baseball cards in a blind pack at a stationery store.
The gray area of high-priced designs and "digital asset transfer rights"
However, the prosecutor's focus is not on the game's balance, but on the real monetary value of these virtual items "outside the game." As the lawsuit points out, players can sell the rare cosmetic items they obtain for high prices on the Steam Marketplace or third-party platforms.
In response, Valve cleverly shifted the focus from the "monetization controversy" to a discussion of "consumer rights." Valve stated, "We believe that the 'transferability' of digital game items is beneficial to consumers, giving players the right to sell or trade old items. The New York State Attorney General's proposal to deprive users of the ability to transfer digital items is a right we firmly believe should not be taken away, and we refuse to do so."
Safeguarding privacy: Rejecting compromises that are "unfriendly to users"
In addition to defending ownership of digital assets, Valve unveiled a killer feature in its statement that has garnered significant attention from the player community—privacy rights.
Valve has accused the New York State Attorney General of demanding that they collect more player data for "additional age verification" and to prevent VPN use (many players use VPNs to purchase games across regions). Privacy experts have recently issued strong warnings about such mandatory online age verification. Valve characterizes these demands as "user-unfriendly" and stated that while a settlement might be cheaper, they are determined to fight to the end to protect the privacy and rights of players in New York and around the world.
In addition, Valve also refuted the claim in the New York State Attorney General's statement that "video games encourage real-world violence," stating that it was a baseless and outdated smear and emphasizing that countless studies over the years have already proven that there is no connection between media entertainment and real-world violence.
