It’s almost unimaginable, but merely two decades ago, the entertainment sector was drastically different compared to today’s landscape, particularly within the realm of video games.
Back then, gamers on the go were either engaged with their trusty SE K750i featuring pre-installed games like Asphalt, Gangstar, or Heroes Lore, or they found solace in portable gaming through the PSP. At home, they indulged in larger-scale projects on computers or gaming consoles.
Nowadays, the line between portable and stationary gaming has completely vanished. Although mobile gaming was somewhat separate from this blend, the arrival of Genshin Impact on consoles signified the integration of mobile games into stationary platforms, marking a new era of gaming globalization.
Interestingly, “Genshin,” originating from China, introduced the predominantly Japanese term “gacha games” into the vernacular of many CIS gamers.
For some, the term “gacha” has become synonymous with “children’s casinos,” but this concept extends significantly beyond that simplistic notion, encompassing a fascinating history. Allow me to recount that story for you.
❯ The Origins of This Unusual Name
The word “gacha” (from English “gacha”) resonates with something Japanese, and that’s no accident. Its roots are embedded in the culture of the Land of the Rising Sun, where, during the 1970s, capsule toy machines known as gachapon emerged. The name is derived from the sounds: “gacha” replicates the crank’s turning noise, while “pon” depicts the sound of a capsule dropping. These machines became a hallmark of Japanese pop culture, offering a chance to receive a random miniature souvenir — from anime character figurines to keychains — for a modest sum. Pioneering this realm was Bandai Co. (now Bandai Namco), thanks to their machines housing toys themed around famous anime.
Gachapons remain present even today. For instance, Tokyo boasts a Gachapon Street harboring over fifty different machines. By 2023, more than four billion toys had been sold.
In the early 2000s, the gacha concept transitioned into the digital domain. The first mobile games in Japan adopted mechanics reminiscent of collecting trading cards or figurines. Players spent virtual currency to “draw” random characters or items, mimicking the experience of using real gacha machines.
Interestingly, in the West, similar systems were long dubs “loot boxes”, but the Japanese term “gacha” has become the international standard due to the gaming industry’s globalization. Today, it is associated not only with a mechanism but also a genre encompassing millions of players.
❯ The Digital Evolution of Gambling
The general consensus is that the first game incorporating gacha mechanics to any extent was “Monster Rancher,” released by Temco in 1997 for the original PlayStation. As suggested by its name, the game focused on breeding and training various monsters. Evidently, microtransactions were absent back then.
The real breakthrough came in 2012 with the launch of “Puzzle & Dragons” by GungHo Online Entertainment (also known for developing the renowned Ragnarok Online). This game melded a match-three puzzle with monster collection, which could be obtained via gacha mechanics. “Puzzle & Dragons” became a blockbuster in Japan and quickly gained global popularity, showcasing the substantial commercial potential of the gacha format.
The next significant milestone was the release of “Brave Frontier” in 2013, which added RPG and strategy elements to the gacha mechanic, rendering the gameplay deeper and more engaging. “Brave Frontier” also ventured beyond Japan, becoming popular in the US and Europe. The success of these games inspired other developers, and soon the gacha mechanic began appearing across various genres of mobile games.
Nonetheless, at their core, both games are essentially mobile casual titles, lacking ambition for sustained player retention.
Over time, developers realized that to keep their audience engaged, they needed to offer more than just random rewards.
Modern gacha games often present fully-fledged Action-RPGs with intricate worlds, high-quality graphics, and sophisticated combat systems. Key examples comprise:
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“Genshin Impact” (2020) — a game with an open world and Action-RPG elements, where players explore locations, complete quests, and battle adversaries using characters and weapons acquired through the gacha system.
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“Fate/Grand Order” (2015) — a blend of visual novel and turn-based combat immersing players in the rich history of the Fate universe.
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“Arknights” (2019) — a strategic game incorporating tower defense elements and a distinctive art style.
These games illustrate how the gacha mechanic can be integrated into complex and captivating projects, rivaling even console games. This evolution has enabled gacha games to transcend their niche origins and become a significant aspect of the mobile gaming mainstream.
❯ Why These Games Generate So Much Revenue
The answer is simple — gacha games exploit principles of random rewards, which activate dopamine pathways in the brain. The uncertainty of the result — whether the player will receive a rare item or not — elicits excitement akin to that experienced in casinos. Additionally, the desire to complete character collections or gain advantages in the game motivates players to continue spending money.
Developers also successfully leverage FOMO (fear of missing out). Notice how each gacha game employs a “banner” system. In layman’s terms, a “banner” is a time-limited event featuring exclusive characters. Such events compel players to spend money “here and now.”
The manipulative techniques employed by developers often draw criticism: gacha games are frequently likened to gambling, particularly due to their impact on younger players.
❯ Are Gacha Games Ruining the Gaming Industry? It Depends on How You Define It
Today, gacha games constitute a multibillion-dollar industry. According to Sensor Tower, the top 10 gacha games generated $14.7 billion in 2022, with 60% of revenues originating from Asia. Market leaders include Genshin Impact, Honkai: Star Rail, Uma Musume Pretty Derby, and Fate/Grand Order.
Current key aspects of the gacha gaming market include:
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Moving away from aggressive monetization. Following controversies (such as loot box regulations in Belgium), developers are introducing guarantee systems and transparent drop rates.
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Genre fusion. The gacha mechanic infiltrates strategies, shooters, and even sports simulators.
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Emphasis on storytelling. Characters have become the “face” of games. For instance, Zenless Zone Zero’s narrative cutscenes are likened to anime series. Currently, many play popular gacha titles specifically for the storyline.
Of course, issues related to gambling addiction remain, with gamers spending hundreds of thousands of dollars on “pulls” in such games. Regulators worldwide (especially in the EU and USA) demand gacha games be classified as gambling, while psychologists warn of addiction risks.
Nonetheless, the industry is adapting: introducing age ratings, spending limits, and educational materials concerning responsible play.
The “kompu gacha” mechanic visually explained. To acquire one item, you need to “pull” (obtain from banners) several others.
In Japan, a 2012 ban was placed on “kompu gacha,” a mechanic where players had to collect item sets to receive a rare reward. In China, since 2016, developers have been required to publish item drop rates. Despite this, gacha games adapt: many incorporate “pity systems,” ensuring a rare reward after a certain number of attempts, minimizing player risk.
❯ Conclusion
The gacha game phenomenon began with simple mobile apps in Japan, inspired by gachapon vending machines. These have now evolved into complex, lucrative projects shaping the mobile gaming industry. Their success stems from a mix of randomness, collecting, and in-depth gameplay, coupled with effective monetization.
Despite criticisms, gacha games continue to evolve. However, their long-term popularity hinges on developers’ ability to balance profitability with player enjoyment. As demonstrated, leading industry representatives are mastering this balance.
By the way, how do you feel about gacha games, readers? Are you eagerly awaiting a new banner in Honkai: Star Rail? Delving into the world of Teyvat? Or do you utterly loathe these manipulative casinos for children? Share your thoughts in the comments!
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