How much spending of disposable income on loot boxes is too much?

The answer is more nuanced than this sub-heading can allow for.

Love ‘em or loathe ‘em, loot boxes are a constant in video games, and seemingly here to stay. The latest episode of Jeremy ‘Junglist’ Ray’s podcast, grokludo, continues a series focused on the mechanic, this time lasering in on loot box spending vs psychological distress.

Speaking with Junglist — a friend of the site, and known to Aussies as a former host of Good Game and former editor of Kotaku Australia — University of Tasmania associate professors Aaron Drummond and Jim Sauer discussed the psychological impact of loot box spending, specifically when taking disposable income into account.

Looking at loot box spending by itself leaves too much ambiguity – it’s unclear if high spenders are being harmed or are simply wealthy enough to splash some cash. In their recent study, Drummond and Sauer normalised loot box spending against disposable income to provide more clarity. The results are nuanced, which they explain in the interview.

The researchers also discovered that some individuals were spending more than their entire disposable income on loot boxes, which Sauer argued was “quintessentially financial harm.”

Aside from the main study discussed, Drummond and Sauer also mentioned a study from one of their PhD students which found a strong and consistent link — in every spending tier — between high spending and problem gambling symptoms.

“In every income category, it’s always problem gamblers who are spending the most,” Drummond explained, challenging the myth of the ‘whale’—a wealthy gamer who spends large amounts without harm.

“We know that there are these characteristics that are positively associated with spending,” Sauer clarified, “and we have in our data evidence that some people are reporting spending more than they have.”

Beyond financial harm, the study explored the psychological consequences of loot boxes, which operate on intermittent reinforcement schedules, similar to those used in gambling, and can foster compulsive behaviour.

“You buy a loot box, you may or may not get the shiny thing you want… that promotes that behaviour,” Sauer said. This cycle can lead to over-engagement, which may affect emotional well-being and social relationships.

“It’s probably the most replicable finding I’ve ever seen in psychology,” added Drummond, who also emphasised that, “we’re not trying to confect a moral panic.”

 “We want people to have all the information at their fingertips to make informed decisions,” he said.

We’ve barely scratched the surface of the 45-minute conversation; if it’s of interest to you, you can watch this episode of grokludo above, or subscribe to grokludo wherever you listen to your podcasts.

This article was written in consultation with Jeremy ‘Junglist’ Ray, who editor Steve Wright is friends with, and a fan of. While this isn’t a direct endorsement of the grokludo podcast, he reckons it’s worth a listen yourself so you can see if it’s a good fit for you.