Loot Crate: The Rise And Fall

Summary

Loot Crate, the pioneering gaming subscription box founded in 2012, became a YouTube sensation with its geeky and nerdy merchandise but eventually faced a downfall. Despite early success, rising costs, poor item quality, and overwhelming competition led to customer dissatisfaction. By 2019, Loot Crate filed for bankruptcy, leaving behind a trail of angry customers. Today, with a tarnished reputation and numerous complaints, Loot Crate's legacy stands as a cautionary tale about the rise and fall of subscription box services. The video also highlights the creator's personal experience with Loot Crate and the struggle to maintain value in a saturated market.

Takeaways

• 😀 Loot Crate was one of the first major subscription boxes for geeks and gamers, launched in 2012, and became a dominant force on YouTube in its prime.
• 😀 Initially, Loot Crate's offerings included exclusive geeky merchandise, with a monthly box containing items like t-shirts, figurines, and random collectibles from popular franchises.
• 😀 Loot Crate quickly grew to over 200,000 subscribers by 2014, coining the term 'Looters' for its community.
• 😀 The company faced criticism in later years for sending duplicate items, underwhelming exclusives, and low-quality products, such as an oven glove that couldn’t withstand heat.
• 😀 By 2014, Loot Crate raised their prices to $25 per box, with some boxes today costing up to $75, though many felt the value no longer matched the price.
• 😀 Loot Crate used YouTubers to market their boxes by sending them free crates for unboxing videos, which served as effective, low-cost advertising.
• 😀 By 2015, Loot Crate had expanded to 27 different subscription box options, but this led to market oversaturation, making it harder for subscribers to find boxes that truly interested them.
• 😀 Problems with delayed shipments, customer complaints, and even bankruptcy in 2019 marked a major downfall for Loot Crate, which owed over $30 million in debt.
• 😀 After filing for bankruptcy, Loot Crate was sold to Money Chest LLC and rebranded under the name 'The Loot Company,' with their service continuing to experience delays and poor customer satisfaction.
• 😀 By 2025, the subscription box industry had largely fizzled out, with people choosing to buy geeky products directly from local stores rather than gamble on subscription boxes.

Q & A

What year was Loot Crate founded?

Loot Crate was founded in 2012 by Chris Davis and Matthew Aral.

What was Loot Crate's initial concept?

Loot Crate aimed to create a 'ComicCon in a box,' providing a subscription service with geeky and gamer-themed products from popular franchises.

How many subscribers did Loot Crate have by 2014?

By 2014, Loot Crate had amassed over 200,000 subscribers in 10 different countries.

What were the types of items in the early Loot Crate boxes?

The first Loot Crate box contained a greeting card, energy snacks, superhero-inspired cologne, and a Domo keychain.

Why did Loot Crate's products lose appeal over time?

Loot Crate's products lost appeal as they became repetitive, with many items like keychains and t-shirts becoming less exclusive and the overall quality declining.

What happened to Loot Crate's pricing model over the years?

Loot Crate initially cost $13.37 per month, but by 2014, the price increased to $25. By 2025, the price with shipping was around $75 for a box with limited contents.

How did Loot Crate initially market itself?

Loot Crate marketed itself by sending free boxes to YouTubers for unboxing videos, which acted as free advertising for the company.

What led to Loot Crate's financial troubles?

Loot Crate expanded too quickly, leading to financial mismanagement, employee layoffs, and an overwhelming number of subscription options, which caused customer dissatisfaction.

What was Loot Crate's fate by 2019?

By 2019, Loot Crate filed for bankruptcy, owing over $30 million in debt. It was sold to Money Chest LLC and renamed 'The Loot Company.'

What did the creator of the video do to recreate the Loot Crate experience?

The creator of the video sent their partner to a local game store with $75 to create a personalized Loot Crate, selecting items like a Naruto mug, a Kirby figurine, and two t-shirts.