JUNIPER RESEARCH EXPECTS LOOT BOXES TO BE WORTH $50BN BY 2022
A new study by Juniper Research has revealed that loot boxes and skins, a previously clamped-down market, may soar to $50 billion in value by 2022. At the height of the Steam bans issued to major online portals, which facilitated the exchange of in-game goods, analysts expected that the marketplace for such goods will peter out and almost completely disappear by the same time.
Lauren Foye provided an explanation for the rising popularity of loot boxes, explaining that they were linked to skins that had an intricate value ‘depending on rarity and popularity within game communities.’
A vibrant loot box market came to a grinding halt in 2016 when game distribution platform Steam was caught in a class-action lawsuit and forced to go after third-party websites that facilitated ‘skin betting.’
While the most credible portals closed down and promised to reimburse their customers for any goods left in a state of limbo, others continued to operate, Juniper Research’s survey suggests.
Moreover, what appeared to be a thorny issue back in 2016 continues to be a problem today. The UK Gambling Commission has estimated that 11% of adolescents aged 11-16 in the United Kingdom have placed a bet involving a ‘skin,’ and the organization has called for a tougher regulation.
In terms of betting value, $1 billion will be placed in skin bets globally by 2022.