Ethical Issues in Gaming Industry: A Case Study of EA Games

Business Ethics and
Responsible Management
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Contents
PART 1-A (Report).........................................................................................................................1
1. Ethical issues...........................................................................................................................1
2. Role of business in society......................................................................................................1
3. Stakeholders.............................................................................................................................2
4. Good and bad ethics.................................................................................................................3
5. Recommendations....................................................................................................................3
REFERENCES................................................................................................................................5
PART 1-B (Theories)......................................................................................................................6
1. Description of Ethical Theories...............................................................................................6
2. Application of Ethical Theories...............................................................................................6
3. Critical Analysis of Ethical Theories.......................................................................................7
4. Recommendations....................................................................................................................8
REFERENCES................................................................................................................................9
PART 2 (Reflective Essay)............................................................................................................10
REFERENCES..............................................................................................................................12
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PART 1-A (Report)
1. Ethical issues
Technological advancements and integration of latest tech innovation such as virtual
reality and augmented reality has led to a huge growth in the gaming industry in the recent past.
Most of the games being developed by the company Electronic Arts, EA, are based on
freemium-model where any user can get a free access to the game but to get access to most of the
things or elements that make the game interesting, users are directed towards in-game purchases
to generate revenue. Recently, the concept of loot boxes has gained wide criticism due to its
unethical practice that encourages a player to make in-game purchases which in most of the
cases is not justifiable. According to the Vice President of EA, the concept of loot boxes is fun
and ethical (EA Games: Loot boxes aren’t gambling, they’re just like a Kinder Egg, 2019). Loot
boxes trigger the gambling and addictive behaviour in the children playing these games and only
due to the triggering of addiction, the concept of loot boxes actually work in the favour of these
companies to generate revenue.
It has been observed that players who spend a ton of money on purchase of these loot
boxes aren’t either happy about their existence in the game and have reported to feeling forced to
make in-game purchases due to their addiction to the game. This presents an ethical issue on
multiple grounds. Firstly, the companies designing these games deliberately makes the game
more addictive to induce purchases made by users on these loot boxes and generate revenue
which is unethical way of generating revenue. Secondly, it also promotes or encourages
gambling addiction since users spend a huge amount of money in anticipation of something
exciting that will make the game more interesting out of loot boxes (McCaffrey, 2019). There are
enough models for these gaming companies to generate revenue and the model being currently
implemented by EA comes under the spectrum of unethical business conduct.
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2. Role of business in society
Based on business ethics, it is the duty of a business organisation to contribute towards the
greater good of the society and engage in business practices which promote the social good. The
management of EA should reconsider their approach of generating revenue with the help of
current model by taking into consideration the role of a business organisation in the society.
With the current business model, an adverse impact is being created on the society and the
values. Element of loot boxes and in-game purchases triggers the gambling addiction of an
individual and moreover, the games are also build to be addictive to make the business model
more successful. It results into wasteful expenditure by kids who spend their parents’ hard-
earned money on these games. Due to the unethical business practices of EA, users are inclined
towards addictive gaming that results into poor mental health, enhancement of depression and
anxiety, cognitive functioning and social isolation. The concept of loot boxes prey on user
addiction and exploitation of children playing these games that is unethical. It is the duty of a
business organisation to maximise revenue and profits but within the scope of interest of the
society and promotion of greater good which is not being reflected in the case study of EA and
loot boxes (Velasquez and Velazquez, 2002).
3. Stakeholders
Gamers:
In the above case study, gamers who are primarily teenagers are the major stakeholder
being affected adversely due to unethical business practices by EA. Designing the game to be
more addictive and encouraging in-app purchases has a serious mental health implication on the
users. Addictive gaming leads to poor mental health, stress, anxiety and loss of sleep in the
children (Brady and Prentice, 2019). It also has a significant emotional adverse effect due to
concept of loot boxes and further purchases.
Friends and family:
Inclusion of loot boxes and the ethical issues identified in the above study has an adverse
effect on the friends and family of these children. Parents have reported many incidents of
children spending a huge amount of money on these games. It also results into social isolation
and disconnects the user from family and social gatherings which is a serious concern for many
parents and families.
Educational institutions:
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