Gacha Market Is Falling Apart: 70% of Japanese Projects Don’t Survive Three Years

Despite the enormous popularity of gacha and live-service mobile games, the market is so saturated and focused on a narrow set of hits that most projects in Japan don’t remain active for even three years.

A study conducted by a Japanese analyst who specializes in gacha and live-service titles found that, out of more than two thousand releases, over 70% failed to reach a third anniversary. Many titles are shuttered as early as their second year.

In an environment of severe oversupply, Japanese observers have likened gacha games to “sinking like the Titanic.” With annual production costs rising, these findings are hardly unexpected.

Even offerings from prominent publishers face challenges. Square Enix has encountered difficulties, and Akatsuki — the studio behind Dragon Ball Z: Dokkan Battle — closed Tribe Nine, from the creator of Danganronpa, before it reached its first year. Developing these games is a high-risk, potentially high-reward proposition given the large sums needed to sustain them month after month.

Moreover, Chinese studios such as miHoYo have raised the bar for mobile-quality standards with titles like Genshin Impact, placing additional pressure on gacha developers.

Source: iXBT.games