They first appeared in 2004 through 2007, and have appeared in many free-to-play games and in some full-priced titles since then. Loot box concepts originated from loot systems in massively multiplayer online role-playing games, and from the monetisation of free-to-play mobile gaming. These systems may also be known as gacha (based on gashapon – capsule toys) and integrated into gacha games.
A loot box is typically a form of monetisation, with players either buying the boxes directly or receiving the boxes during play and later buying 'keys' with which to redeem them. In video games, a loot box (also called a loot crate or prize crate) is a consumable virtual item which can be redeemed to receive a randomised selection of further virtual items, or loot, ranging from simple customization options for a player's avatar or character to game-changing equipment such as weapons and armor.
Mock-up image of opening a loot box in a video game For the subscription box company, see Loot Crate.