The profits go to shareholders, bonuses for billionaire executives and to tax havens (because most major publishers pay very little if any tax). Meanwhile they routinely lay off staff and close down entire studios because the billions they make each year always has to be bettered. So they idea it is reinvested is simply false. Then they do it all again twelve months later.
As for consumers, you might not have to pay, but games are designed to make paying extra the norm. They know most people won't pay so target people that will, regardless of whether those people can afford it (children, people with gambling or shopping addictions). Kids are bullied for having default Fortnite skins. On top of that they make games worse. I think it was Shadow of War that when they removed loot boxes, because of the player outcry, they had to comprehensively overhaul the game because it had been designed to be a massive grind ... unless you paid for loot boxes.
They might be here to stay, or more governments might do what Belgium did and outlaw them. Although the profits will probably go to lobbying lawmakers to prevent that happening.[/QUOT