It’s easy to blame players, but gambling compulsion is a known psychological phenomenon that can bypass the reasoning of some particularly susceptible people. The law quite often leans towards it not being players’ fault they’re so addicted, hence no ads for casinos.

Honestly, we kind of need the law to catch up - on sports betting too.

Whales are largely a myth told by video game (and gambling) companies to hide the truth of who they're actually targeting and to keep you blaming the wrong people.

They want you to blame the dude with more money than the church and not enough brains to know the difference between cents and sense, but the truth is that the vast VAST majority of money made through lootboxes and other forms of gambling comes from 3 sources:

Kids aged 15 and under, people with addiction issues, and people with mental health issues like depression or neurodivergent conditions like ADHD.

Game companies hire psychologists to develop the most effective ways to exploit the way the human brain functions in order to maximize the amount of money that they can squeeze out of people, and all 3 of these groups suffer from the same issues that they exploit: poor impulse control and difficulty with keeping track of how much they're actually spending. Kids because their brains aren't physically developed enough yet, addicts (and people with ADHD to a lesser extent) because their brains are literally wired that way, and people with mental health issues have reduced capacity for both and are more likely to seek out things that promise quick access to dopamine and serotonin (think "retail therapy" or self medicating). Also of note is that researchers suspect that kids who grow up spending money on lootboxes and micro transactions in general are more likely to develop addictive personality issues later in life - basically being groomed into gambling addicts.

That's also why they never let you buy stuff directly with money and use fake currencies that don't have a 1 to 1 translation - it makes it 10 times harder to track how much you actually spent. It's also why you can never buy the exact amount you need for an item: if you have currency left over, you're more likely to buy more so that it isn't "wasted".

Tell us how you really feel.

I don't have the data to back it up, but I disagree. By the time that lootboxes and micro transactions appeared, the video game industry was already in competition with Hollywood for profits - if not already making more.

One of the largest costs for the industry historically has been manufacturing the physical media. It costs a lot to produce all the cartridges and packaging, and to have that shipped around the world. As technology improved, however, those costs began to drop on a per unit basis from the cartridges of old to the cds and dvds of the 2000s, allowing for a higher profit margin on a per unit basis. But the biggest kicker was the development of digital storefronts. Suddenly, you didn't have to make a single piece of physical media in order to sell a game, and companies suddenly began to make back a lot more of that $60 directly instead of having it spent on manufacturing. They make the game once, and then each copy they sell after the first costs effectively $0 to manufacture since it's the exact same copy as the first. Then you also have every game selling a "digital deluxe edition" for as much as $100 (or more!), often for just some exclusive cosmetics.

Micro transactions and live service is what they call the "long tail" of a game - you already made the product and sold it, but it continues to bring in money after the fact. Companies don't have to spend huge sums to make a brand new game when they can just trickle out incremental updates and skins and rake in the money.