Gacha Games - Enjoyable Toy Collection, or a Darker Undertone?
Enthralling and bursting with life, Gacha games enchant their audience with an assortment of vibrant characters, desirable in-game items, and a myriad of awards and rarities.
While most of these goodies are granted through unforeseen drops, which require actual money for activation, we must inquire whether this Gacha mechanism could potentially serve as a passageway towards more severe gaming habits.
What are Gacha Games?
Perhaps you've never heard of them, but Gacha games are a sort of interactive entertainment where players trade in-game currency for unpredictable digital items. The term originates from Gachapon, those Chinese toy capsule vending machines famous in Japan. Similar to those, when shelling out money for a chance in a Gacha game, your outcome is rarely guaranteed.
You could score a high-value playable figure – which is the holy grail for some fans – but you might also obtain a mediocre item or, even worse, something you own already. Regardless of your haul, it'll cost the same amount of money.
Most notably, because Gacha games are primarily free-to-play mobile games, this pay-to-play system provides an incentive for users to keep spending real-life greenbacks steadily. The financial accumulation could skyrocket, surpassing the revenue developers would earn from a one-time payment to purchase the game.
The Birth of the Gacha Craze
The very first instance of the Gacha mechanic popped up in the 2004 MMORPG, MapleStory, where gamers spent a paltry $1 USD each for Gachapon tickets. Even though the prizes were merely cosmetic and could be used to spice up their in-game look, the casual nature didn't hinder MapleStory from becoming an early pioneer in the field.
In 2007, Zhengtu pushed the envelope further by launching a free-to-play mobile game funded exclusively by Gacha gamble rolls that awarded extra perks and enhanced options. Despite receiving criticism for its invasive methods, Zhengtu remains a grand triumph, amassing $15 million USD in a single month after its release.
Zhengtu paved the way for the Gacha model's ascent to fame, particularly in Japan, where the trend has become part and parcel of mobile gaming culture.
Gacha Games: The Worldwide Phenomenon
Make no mistake, Gachapon toy vending machines, MMORPGs, and Zhengtu seem strange terrain for western folks. However, the truth is, Gacha games have swarmed almost every nook and cranny of the global gaming sphere. From Facebook to FIFA, Gacha mechanics are lurking in all manner of gaming mediums.
Take FIFA, for instance. Their Ultimate Team game mode tantalizes players by offering packs filled with random players, collectibles, and special power-ups. These *packs bring in more than a billion USD in revenue annually to EA, the game's masterminds, from the trading of microtransactions.
Another example is Gwent – a F2P app made by CD Projekt Red, creators of the well-known Witcher series – which invites players to collect cards and create decks. Gwent lets users invest real cash in kegs containing a random mix of regular, rare, epic, and legendary cards. Similarly, they can also exchange their money for "meteorite powder," which can be swapped for high-level cards or sought-after items.
To Gacha, or Not to Gacha?
The use of real-world dollars to acquire elusive rewards through a randomized process poses some potentially shady ethical issues.
If you're spending cold hard cash to receive a randomized result, are you not essentially diving into the world of gambling?
As always, opinions are divided.
Gacha Games as a Form of Gambling: The Case For
The gambling angle of Gacha games has become a burning topic, as critics claim the system is designed to keep users hooked and persuade them to splurge their money on boosting their experiences. [The rest of the text is the same as the original.]
One of the more stealthy aspects of Gacha games is the presence of social currency. A survey by Statista found that in Q1 2021, of the top 20 percent of RPG apps, 88% were using this feature.
This social currency has two main purposes:
On one hand, using an imaginary currency makes transactions feel less real, often prompting players to spend more than they would with real money. This tactic is similar to the use of betting chips in a casino.
Second, offering social currencies allows developers to add an extra step between the purchase and the part of the process that could be considered gambling. Players aren't spending actual money on a random prize - they're buying $40 worth of tokens, which can then be used on Gacha rolls. Initially, they're getting what they paid for.
Another aspect to consider is how these Gacha rolls or drops are presented. Card kegs explode and crackle, while loot box lids shoot off to reveal dazzling rays of light emanating from the rewards inside. All these visual and audio distractions help players mentally disconnect from the money they're spending - money that, once exchanged for social currency, cannot be returned.
The Counter-Argument for Gacha Games
On the other hand, there are numerous arguments that Gacha games should not be considered gambling.
First, players cannot lose a Gacha roll. They will always receive something for their money, and even duplicate rewards can be exchanged for other resources.
Second, buying social currency cannot be considered a random outcome. If players are exchanging $40 for $40 of social currency, they're acquiring a known quantity, which can often be used for other in-game purchases that aren't random.
From a legal perspective, many international laws require the prize to be a "thing of value" before gambling is allowed. As in-game rewards cannot be exchanged for real money, developers can circumvent these regulations by preventing players from trading them.
Another point in defense of Gacha games is that developers and some players often argue they're not buying the Gacha roll, but rather the service provided by a game that is typically free to download.
Many players support their favorite developers by spending money on microtransactions, knowing they'll get more enjoyment from the game as a result.
Weighing the Gacha Game Debate
After examining both sides of the argument, it's challenging to conclude that Gacha games don't qualify as a form of gambling.
With companies like EA and Blizzard known to employ neuroscientists and psychologists during game development, it's evident that players are subtly influenced to spend more.
Social currencies help players separate their spending from actual money, while the visually stimulating lights and sounds accompanying the opening of a loot box are meant to make them feel appropriately rewarded.
The defense, on the other hand, primarily relies on legal technicalities and linguistic subtleties, neither of which address the core issue.
How Much Revenue Do Gacha Games Generate?
It goes without saying that Gacha games are a lucrative industry. In 2012, the Japanese mobile game Puzzles& Dragons was the first Gacha title to surpass $1 billion USD in profits, and current trends suggest that other games won't be far behind.
Consider, for instance, the Chinese game studio miHoYo - creators of the popular game Genshin Impact.
As shown in the table above, miHoYo's annual mobile revenue remained relatively stable until Genshin Impact was released in 2020.
Genshin Impact, an F2P open world RPG requiring players to unlock characters by opening "wishes" that can only be purchased using in-game currency, quickly became miHoYo's highest-grossing title.
In the year following its release, miHoYo's profits jumped by approximately $500 million USD. A similar trend continued in 2021.
This significant increase in revenue was partially due to the release of Genshin Impact 2.1.
Released in September, Genshin Impact 2.1 introduced new characters, weapons, and explorable regions, many of which were time-limited rewards.
The introduction of these new features was designed to gauge players' desire for making more in-game purchases - and they were more than ready.
During the week Genshin Impact 2.1 launched, in-app purchases spiked by 387% from the previous week to a total of $151 million USD. Since then, subsequent updates have kept this trend going, making Genshin Impact one of the top-grossing mobile gaming titles worldwide.
### Do Gacha Games Pose a Threat to Young Gamers?
It might be shocking for some readers to discover that Genshin Impact, a game with a Gacha mechanic, is categorized as suitable for individuals aged 13 and above.
Taking into account the similarities between this game's Gacha element and online gambling, it's somewhat concerning that minors are permitted to spend their cash on these random chance-based activities.
A study published by the UK's Royal Society for Public Health revealed that 1 in 10 minors have accrued debts due to loot boxes, with some utilizing their parents' credit cards and others borrowing money they couldn't repay.
Additionally, a survey conducted by CQUniversity Australia involving 2,000 gamers between the ages of 12 and 24 uncovered that 93% of them had played a game with loot boxes within the preceding year.
Furthermore, within that same group, those aged 12 to 17 spent a median of $50 annually on in-game acquisitions.
Given these statistics, it's evident how young players might become exposed to other forms of gambling, a path often fraught with issues.
Disturbingly, a 2020 study of teenagers in Japan revealed that nearly 18% of 15 to 19-year-old males were currently making in-app purchases, while 20% of them were interested in doing so.
Although the figures were somewhat lower for females at 7.6% and 15.2% respectively, the conclusion remains unchanged—Gacha games are gaining traction, and stricter safeguards are needed.
The Future of Gacha Games
Considering their phenomenal success among players and the considerable income they bring in for developers, it's clear that Gacha games aren't going anywhere.
However, since they display strong addictive tendencies and their likeness to online gambling is undeniable, it's probable that regulations governing them will require revision.
To curb the tendency of minors forking over money they can't afford and to hinder problem gamblers' accessibility to Gacha games, improved measures are imperative.
The video game rating system PEGI recently incorporated a warning sign for titles featuring in-app purchases; however, a more comprehensive examination of the practices employed by developers offering these purchases is also required.
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