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How computer games encourage kids to spend cash

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Like many children, Nara Ward’s boys love gaming

Nara Ward says keeping track of her kids’ spending when they are playing their favourite computer games is a full-time job.

Ms Ward lives in Barbados with her husband and sons, Finn, 14, and Leif, 12.

When Leif started playing Roblox, he began asking for robux – the game’s currency – that allows players to upgrade their character or buy virtual items. So his grandparents gave him $200 (£159) Apple credit for Christmas.

“To my shock, he spent all of it in a matter of days,” says Ms Ward. “After that, I gave him no more than $10 worth of robux per month. He quickly became frustrated and bored with the game.”

Leif moved on to World of Tanks, which also requires players to upgrade their weaponry using PlayStation credit.

“However, this game has the option to watch ads to gain credit,” says Ms Ward. “He would do that out of desperation when he had used up his monthly gaming allowance.”

Ms Ward says her younger son has yet to learn self-control or money-sense.

“It’s something that I have to police constantly.”

Nara Ward has been shocked how quickly her sons can spend money in games

Rather than profiting from the initial sale of a video game, many of today’s gaming companies rely on revenue generated by in-game purchases, or microtransactions.

The content purchased can be purely aesthetic – dance moves, skins or clothing.

Alternatively, in-game purchases can provide a tactical advantage to the gameplay – extra lives, character upgrades or weapons – providing a lead over players who did not purchase the additional content.

The global online microtransaction market is forecast to grow from $67.94bn in 2022 to $76.66bn in 2023.

However, there are signs of a backlash from experts and consumers alike. Also, some companies are promising new releases that are in-game purchase-free.

Prof Mills says that young people can feel ashamed at how much they spend in games

Gaming companies use behavioural psychology to manipulate users into spending, says Prof Sarah Mills, and the link between gaming and gambling is becoming “increasingly blurred”, she explains.

Ms Mills is professor of human geography at Loughborough University. Her research found gambling techniques make gamers play for longer and spend more money, and drive repeat buying.

Vicki Shotbolt, chief executive of Parent Zone, an organisation which helps parents navigate the digital world for their children, is more specific about how games incentivise players to part with their money.

By spending players can “avoid the grind” – where making an in-game purchase means you avoid hours of monotonous gaming to progress to another level.

“Fun pain” is where you risk losing something important if you don’t make a purchase.

Meanwhile, “obfuscation techniques”, like in-game currencies, make it hard to see how much you’re really spending.

Another tactic is the use of “loot boxes”. Players buy a box without knowing what’s inside. It could contain a game-changing item – but more often than not the prize is nothing more than a mediocre customisation.

“Young people recalled senses of shame when they reflected on the amount they spent trying to gain a rare item, even if they were successful,” says Prof Mills.

And – despite many children saying they dislike in-game purchasing – spending money on microtransactions has become an expectation.

While spending on games has risen, some argue that playing games can benefit young people and fears are exaggerated.

Gaming as a form of play has been found to relieve stress, help develop cognitive skills and combat loneliness.

Zhenghua Yang says computer games can be beneficial to for young people

As a teenager Zhenghua Yang, from Colorado, spent two years in hospital.

“I played a lot of video games. The single-player games made me feel like a hero. The multiplayer games connected me to other people. I made life-long friends all over the world.”

In 2014, Mr Yang founded Serenity Forge, a gaming company on a mission to help others. To date, more than 20 million people have played the firm’s games.

“We are in the business of expanding people’s horizons,” says Mr Yang.

Serenity Forge does not use microtransactions but, says Mr Yang, that could change in the future if they found them to contribute to “meaningful, emotionally impactful games that challenge the way you think”.

The impact of microtransactions, says Mr Yang, depends on the vulnerability of the user.

“Like a credit card can be dangerous for someone in an inappropriate context, so too can microtransactions. However, credit cards can also serve an important function and in-game purchases can be important to a gamer engaging with their favourite game.”

Serenity Forge games do not use microtransactions – yet

Sarah Loya’s son Andrew, 14, spends almost all his pocket money on gaming but, she says, that isn’t a problem and gaming makes him happy.

“He plays daily, after school and on the weekends. I don’t really see much of a negative. He’s a smart kid and knows the difference between reality and fantasy.”

Ms Loya lives in Texas with Andrew, and his brother Rex, 6.

“My bank account is linked to Andrew’s subscription, so I would see if he purchased something without permission,” says the 43-year-old, “but he always asks me before making a purchase.”

While it can be difficult for parents to keep track of registered emails, passwords and payment cards across various platforms and devices – there are ways that you can protect your teen and your bank account.

Child accounts and parental controls can be used to disable purchases or set a spending limit. Parents can set up email notifications to flag purchases, and use gift cards rather than credit cards.

Perhaps most importantly, adds Mr Yang, talk to your child.

“In my experience, friction stems from a lack of parental presence,” he says. “I now have two kids and, instead of using games as a babysitting tool, I make sure I’m present in their lives as they consume media.”

Back in Barbados, Ms Ward has set up screen time limits and passcodes to keep Leif gaming safely.

“My password is needed to make any purchases and if he wants money added to his account he has to ask me. Microtransactions are annoying but this is a life lesson.”

  • If parents are worried about a young person struggling with gaming or potential gambling-related harms, please visit the Parent Hub website by YGAM (Young Gamers and Gamblers Education Trust) for support and resource.

 

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Ottawa orders TikTok’s Canadian arm to be dissolved

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The federal government is ordering the dissolution of TikTok’s Canadian business after a national security review of the Chinese company behind the social media platform, but stopped short of ordering people to stay off the app.

Industry Minister François-Philippe Champagne announced the government’s “wind up” demand Wednesday, saying it is meant to address “risks” related to ByteDance Ltd.’s establishment of TikTok Technology Canada Inc.

“The decision was based on the information and evidence collected over the course of the review and on the advice of Canada’s security and intelligence community and other government partners,” he said in a statement.

The announcement added that the government is not blocking Canadians’ access to the TikTok application or their ability to create content.

However, it urged people to “adopt good cybersecurity practices and assess the possible risks of using social media platforms and applications, including how their information is likely to be protected, managed, used and shared by foreign actors, as well as to be aware of which country’s laws apply.”

Champagne’s office did not immediately respond to a request for comment seeking details about what evidence led to the government’s dissolution demand, how long ByteDance has to comply and why the app is not being banned.

A TikTok spokesperson said in a statement that the shutdown of its Canadian offices will mean the loss of hundreds of well-paying local jobs.

“We will challenge this order in court,” the spokesperson said.

“The TikTok platform will remain available for creators to find an audience, explore new interests and for businesses to thrive.”

The federal Liberals ordered a national security review of TikTok in September 2023, but it was not public knowledge until The Canadian Press reported in March that it was investigating the company.

At the time, it said the review was based on the expansion of a business, which it said constituted the establishment of a new Canadian entity. It declined to provide any further details about what expansion it was reviewing.

A government database showed a notification of new business from TikTok in June 2023. It said Network Sense Ventures Ltd. in Toronto and Vancouver would engage in “marketing, advertising, and content/creator development activities in relation to the use of the TikTok app in Canada.”

Even before the review, ByteDance and TikTok were lightning rod for privacy and safety concerns because Chinese national security laws compel organizations in the country to assist with intelligence gathering.

Such concerns led the U.S. House of Representatives to pass a bill in March designed to ban TikTok unless its China-based owner sells its stake in the business.

Champagne’s office has maintained Canada’s review was not related to the U.S. bill, which has yet to pass.

Canada’s review was carried out through the Investment Canada Act, which allows the government to investigate any foreign investment with potential to might harm national security.

While cabinet can make investors sell parts of the business or shares, Champagne has said the act doesn’t allow him to disclose details of the review.

Wednesday’s dissolution order was made in accordance with the act.

The federal government banned TikTok from its mobile devices in February 2023 following the launch of an investigation into the company by federal and provincial privacy commissioners.

— With files from Anja Karadeglija in Ottawa

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

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Here is how to prepare your online accounts for when you die

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LONDON (AP) — Most people have accumulated a pile of data — selfies, emails, videos and more — on their social media and digital accounts over their lifetimes. What happens to it when we die?

It’s wise to draft a will spelling out who inherits your physical assets after you’re gone, but don’t forget to take care of your digital estate too. Friends and family might treasure files and posts you’ve left behind, but they could get lost in digital purgatory after you pass away unless you take some simple steps.

Here’s how you can prepare your digital life for your survivors:

Apple

The iPhone maker lets you nominate a “ legacy contact ” who can access your Apple account’s data after you die. The company says it’s a secure way to give trusted people access to photos, files and messages. To set it up you’ll need an Apple device with a fairly recent operating system — iPhones and iPads need iOS or iPadOS 15.2 and MacBooks needs macOS Monterey 12.1.

For iPhones, go to settings, tap Sign-in & Security and then Legacy Contact. You can name one or more people, and they don’t need an Apple ID or device.

You’ll have to share an access key with your contact. It can be a digital version sent electronically, or you can print a copy or save it as a screenshot or PDF.

Take note that there are some types of files you won’t be able to pass on — including digital rights-protected music, movies and passwords stored in Apple’s password manager. Legacy contacts can only access a deceased user’s account for three years before Apple deletes the account.

Google

Google takes a different approach with its Inactive Account Manager, which allows you to share your data with someone if it notices that you’ve stopped using your account.

When setting it up, you need to decide how long Google should wait — from three to 18 months — before considering your account inactive. Once that time is up, Google can notify up to 10 people.

You can write a message informing them you’ve stopped using the account, and, optionally, include a link to download your data. You can choose what types of data they can access — including emails, photos, calendar entries and YouTube videos.

There’s also an option to automatically delete your account after three months of inactivity, so your contacts will have to download any data before that deadline.

Facebook and Instagram

Some social media platforms can preserve accounts for people who have died so that friends and family can honor their memories.

When users of Facebook or Instagram die, parent company Meta says it can memorialize the account if it gets a “valid request” from a friend or family member. Requests can be submitted through an online form.

The social media company strongly recommends Facebook users add a legacy contact to look after their memorial accounts. Legacy contacts can do things like respond to new friend requests and update pinned posts, but they can’t read private messages or remove or alter previous posts. You can only choose one person, who also has to have a Facebook account.

You can also ask Facebook or Instagram to delete a deceased user’s account if you’re a close family member or an executor. You’ll need to send in documents like a death certificate.

TikTok

The video-sharing platform says that if a user has died, people can submit a request to memorialize the account through the settings menu. Go to the Report a Problem section, then Account and profile, then Manage account, where you can report a deceased user.

Once an account has been memorialized, it will be labeled “Remembering.” No one will be able to log into the account, which prevents anyone from editing the profile or using the account to post new content or send messages.

X

It’s not possible to nominate a legacy contact on Elon Musk’s social media site. But family members or an authorized person can submit a request to deactivate a deceased user’s account.

Passwords

Besides the major online services, you’ll probably have dozens if not hundreds of other digital accounts that your survivors might need to access. You could just write all your login credentials down in a notebook and put it somewhere safe. But making a physical copy presents its own vulnerabilities. What if you lose track of it? What if someone finds it?

Instead, consider a password manager that has an emergency access feature. Password managers are digital vaults that you can use to store all your credentials. Some, like Keeper,Bitwarden and NordPass, allow users to nominate one or more trusted contacts who can access their keys in case of an emergency such as a death.

But there are a few catches: Those contacts also need to use the same password manager and you might have to pay for the service.

___

Is there a tech challenge you need help figuring out? Write to us at onetechtip@ap.org with your questions.

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Google’s partnership with AI startup Anthropic faces a UK competition investigation

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LONDON (AP) — Britain’s competition watchdog said Thursday it’s opening a formal investigation into Google’s partnership with artificial intelligence startup Anthropic.

The Competition and Markets Authority said it has “sufficient information” to launch an initial probe after it sought input earlier this year on whether the deal would stifle competition.

The CMA has until Dec. 19 to decide whether to approve the deal or escalate its investigation.

“Google is committed to building the most open and innovative AI ecosystem in the world,” the company said. “Anthropic is free to use multiple cloud providers and does, and we don’t demand exclusive tech rights.”

San Francisco-based Anthropic was founded in 2021 by siblings Dario and Daniela Amodei, who previously worked at ChatGPT maker OpenAI. The company has focused on increasing the safety and reliability of AI models. Google reportedly agreed last year to make a multibillion-dollar investment in Anthropic, which has a popular chatbot named Claude.

Anthropic said it’s cooperating with the regulator and will provide “the complete picture about Google’s investment and our commercial collaboration.”

“We are an independent company and none of our strategic partnerships or investor relationships diminish the independence of our corporate governance or our freedom to partner with others,” it said in a statement.

The U.K. regulator has been scrutinizing a raft of AI deals as investment money floods into the industry to capitalize on the artificial intelligence boom. Last month it cleared Anthropic’s $4 billion deal with Amazon and it has also signed off on Microsoft’s deals with two other AI startups, Inflection and Mistral.

The Canadian Press. All rights reserved.

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