Wedbush Securities analyst Michael Pachter spoke about loot boxes recently while telling the Video Game Bar Association that loot boxes are around “because consumers are stupid.”

The analyst is known for his comments and predictions within the gaming community with his latest statements addressing loot boxes and the regulations surrounding them. GamesBeat published a transcript of its chat with Pachter and the Video Game Bar Association audience that included some back-and-forth questions and answers where Pachter weighed in on loot boxes, esports and more.

When asked about the loot box regulations that have been discussed in Belgium and elsewhere as countries try to determine if loot boxes qualify as gambling or not, Pachter said that he sees three possible outcomes.

“There are three alternative outcomes for what’s going on with proposed regulation and legislation,” Pachter said. “Either the publishers comply and get rid of loot boxes, which I think is a low-probability outcome, or they fight, which I think is a high-probability outcome, or they withdraw from those countries and let the consumer bitch and moan, which I think is the most likely outcome.”

Pachter then moved on to why there are loot boxes in the first place, or why they’ve persisted in the industry despite a voiced opposition from gamers. Comparing the optional purchases to someone paying more for a classic car despite the car’s worth actually not being equal to the price people will pay, he said that people buy loot boxes “because consumers are stupid.”

“Why are there loot boxes? Because consumers are stupid and they’ll spend thousands of dollars trying to get that hard-to-get thing. If you put it up for sale for $500 they won’t buy it. I mean, I actually think the Chinese solution – posting the odds of getting each item – is the right way to do it. This thing has a 1-in-250 chance in the loot box, or you can buy it for $250. Then people realize, I have to buy 250 loot boxes for $600 to get it? Then they’ll just buy it.”

He also doubted that anyone in the U.S. would pass legislation to regulate loot boxes despite the ongoing discussions. Hawaii in particular has tried to pass some regulations on loot boxes and has failed to do so thus far, and Pachter had choice words for those who were behind the laws. He called them “morons” among other things and said that he doesn’t consider loot boxes to be gambling.

Posted: May 29, 2018 8:28 am
Related Forum: Gaming Discussion

Source: http://comicbook.com/gaming/2018/05/27/michael-pachter-loot-boxes-consumers-are-stupid/