On April 4, 2024, the CFPB released a report examining the growth of online video games and financial transactions in virtual worlds. The report, titled “Banking in Video Games and Virtual Worlds,” focuses on the growth and size of the industry, the risks to consumers, and the evolution of gaming and virtual worlds into online markets. When the CFPB released its report, it announced that the markets it monitors to ensure compliance with federal consumer protection laws include video games and virtual worlds.
According to the bureau, global video game revenue is expected to reach $321 billion by 2026, and Americans will spend nearly $57 billion playing games in 2023, including hardware, software purchases and in-game transactions. It is said that it was spent on (for example., convert dollars into virtual currency or other gaming assets). The report shows that the most profitable games increase their profits through in-game microtransactions (small, optional, one-time payments), and most games include in-game marketplaces where you can buy, sell, or trade assets. It is pointed out that there is.
This report examines the evolution of the gaming industry and in-game transactions. We will also discuss the systems that allow fiat currencies to be used in games and virtual worlds, and how fiat acts as an electronic platform on which players can store and transfer valuable assets. The CFPB identifies trends and risks associated with gaming assets, including:
- Gaming products and services are similar to traditional financial products. Valuable assets such as in-game currency and virtual items (for example. cosmetic skins and collectibles) are stored and transferred, and companies are incorporating products and services such as their own payment processors and money transfer machines to support transactions.
- Some (but not most) gaming companies allow players to “cash out.”: Some games offer “fiat top-up” by allowing purchases with dollars, but most games currently do not allow players to withdraw fiat (“cash out”). Is not … Fiat currency is typically converted into in-game currency that can be used to purchase goods and services within the game. Third-party systems are emerging that facilitate the conversion of gaming assets into fiat currency. Many games do not allow you to convert game assets back into fiat currency without going through third-party websites.
- Cryptoassets, including non-fungible tokens (NFTs), are used in some games. The report notes that the virtual world of crypto assets is less popular and popular than the world of virtual games such as Roblox and other popular games, but it is gaining attention because users can exchange crypto assets in the virtual world for fiat currency. points out that it is important to do so. Publishers in the virtual gaming world have expressed growing interest in crypto assets that can be traded outside of games.
- Gaming companies provide little customer support when consumers suffer financial harm. Consumers report that they have little recourse from gaming companies if they suffer losses due to phishing or account theft, or if their games or accounts are closed. In addition to the monetary value of a player's account, some games allow assets to be converted into cash, increasing vulnerability to this type of attack.
- Gaming companies collect personal and behavioral data. Consumer data collected includes financial data, purchase history, spending thresholds, and VR headsets may also collect biometric data. According to the report, “[g]Successful companies use behavioral, biometric, and personal data to manipulate the price and availability of goods and services at a highly personalized level. ”
- The emergence of gaming-specific services similar to traditional financial products: The report states:[t]The role of banks and consumer finance products in gaming is evolving, but there seems to be a trend toward introducing services similar to traditional consumer finance products that rely on the value of gaming assets and digital transactions taking place on gaming platforms. is. ” Products and financial services being developed to operate in the digital world include wallets, virtual cards, and loans.
The report said the risks identified in the report are heightened for young people whose financial habits are still forming. The CPFB says it will monitor this market and look for ways to protect consumers from scams and scams.
Similar to traditional consumer financial services products, the CFPB allows game manufacturers to hide the true cost of game assets from players by bundling currency purchases (often at discounts) and using different exchange rates for in-game currencies. I am concerned that there are currency. Although the examples provided are somewhat novel, the main takeaway from this report is that video game makers recognize that the CFPB will scrutinize financial products and services in the virtual world in the same way it does in the real world. I'm saying that.
