REGULATION ESSAY

Discuss the impact of regulation on the production, distribution and marketing of video games.

Refer closely to examples from Animal Crossing New Horizons to support your answer.

Regulation significantly influences the production, distribution, and marketing of video games within the United Kingdom (UK), shaping industry practices and consumer experiences. Animal Crossing: New Horizons (ACNH), developed by Nintendo, serves as an illustrative example of these regulatory impacts. Applying the theoretical perspectives of Sonia Livingstone and Peter Lunt further elucidates the complexities inherent in media regulation.

Production

In the UK, the Video Games Tax Relief (VGTR) program, established in 2014, allows qualifying companies to claim up to 20% of their core expenditure, provided that the expenditure occurs within the European Economic Area (EEA). To qualify, games must pass a cultural test administered by the British Film Institute (BFI), ensuring they contribute to British culture. While ACNH was developed by Nintendo in Japan and does not directly benefit from VGTR, this program enables UK-based developers to create culturally relevant games, fostering a diverse gaming landscape. This reflects the regulatory impact on production by promoting content that aligns with national cultural values.

Furthermore, Nintendo's commitment to maintaining a family-friendly image influenced ACNH's production. The game avoids mature themes, aligning with Nintendo's reputation for producing content suitable for all ages. This approach ensures compliance with various international content regulations, including those in the UK, facilitating a smoother approval process for distribution. This demonstrates how regulatory considerations shape production decisions to meet content standards.

Livingstone and Lunt's regulation theory highlights the tension between protecting citizens from potentially harmful content and providing consumers with the freedom to choose their media consumption. In the context of ACNH, Nintendo's adherence to family-friendly content aligns with regulatory efforts to protect audiences, thereby minimizing potential conflicts between regulation and consumer choice. This exemplifies how production practices can balance citizen protection and consumer freedom.

Distribution

The UK adheres to the Pan European Game Information (PEGI) system for age ratings, legally enforced since 2012. This system ensures that games like ACNH, rated PEGI 3, are appropriately classified, guiding consumers, particularly parents, in making informed choices. The PEGI rating reflects the game's suitability for all age groups, aligning with its family-friendly content. This regulatory measure impacts distribution by influencing consumer access based on age appropriateness.

Additionally, the rise of digitally convergent media platforms has transformed game distribution. ACNH is available for digital download via the Nintendo eShop, allowing players instant access without the need for physical copies. This method complies with UK regulations on digital sales and consumer rights, ensuring that players can access and enjoy the game seamlessly. This shift in distribution channels illustrates how regulation adapts to technological advancements to maintain consumer protection.

Livingstone and Lunt argue that advancing technology and media convergence make traditional regulation more challenging. The digital distribution of ACNH exemplifies this challenge, as regulators must adapt to new modes of content delivery that bypass traditional physical distribution channels. This underscores the regulatory impact on distribution methods in the evolving digital landscape.

Marketing

Marketing practices in the UK are subject to regulations that ensure truthful advertising and protect consumer interests. The Advertising Standards Authority (ASA) oversees these regulations, ensuring that promotional materials for games like ACNH accurately represent the product. Nintendo's marketing campaigns for ACNH highlighted its interactive and social features, such as the ability to visit friends' islands and participate in seasonal events, all while ensuring that advertisements were clear and not misleading. This regulatory oversight impacts marketing strategies by enforcing honesty and transparency.

Moreover, Nintendo's collaboration with various brands for in-game events, such as seasonal updates and virtual merchandise, required adherence to UK advertising standards. These collaborations had to be clearly communicated to players to ensure transparency, aligning with the ASA's guidelines on promotions and sponsorships. This illustrates how regulation influences marketing practices to uphold consumer trust and ethical standards.

Livingstone and Lunt's theory suggests that powerful companies can sometimes evade regulation due to their resources and influence. However, in the case of ACNH, Nintendo's compliance with marketing regulations demonstrates a commitment to ethical practices, mitigating potential regulatory concerns. This example shows how adherence to regulation in marketing can balance corporate interests with consumer protection.

In summary, the UK's regulatory framework profoundly impacts the video game industry's production, distribution, and marketing practices. While ACNH is a product of Japanese development, its reception and distribution within the UK are influenced by these regulations, ensuring that consumers receive content that is appropriately classified, ethically marketed, and culturally enriching. Livingstone and Lunt's perspectives on regulation provide a valuable lens through which to understand the balance between protecting citizens and accommodating consumer freedoms in the evolving media landscape.