Have you ever willingly paid for… nothing? Or at least, something completely useless? And no, I’m not talking about buyer’s regret – I’m talking about buying something that you know you would have absolutely no need for even at the time of purchase.
This may come as a shock, but millions of people worldwide do just that every day, albeit not through conventional means like gambling or lotteries. Instead, they’re drawn into a digital realm where the allure of virtual rewards sometimes outweighs the importance of making rational use of one’s finances – the digital world of “gacha” games.
What is gacha? The term “gacha” is derived from the Japanese word “Gashapon”, which is the name of a toy vending machine commonly found throughout Japan. These vending machines dispense a random toy or trinket encased in a small capsule, and “gacha” is an onomatopoeia of the sound made when cranking the toy dispense lever.
Row of gashapon machines in Hong Kong. By Mk2010, CC BY-SA 3.0, via Wikimedia Commons
These machines typically have a colourful poster on the front, advertising all the possible prizes to attract potential customers. But here’s the catch – you don’t get to choose which item to get, and none of the prizes are guaranteed to appear. This means that one may potentially buy dozens of capsules without ever getting their desired item. Gacha games refer to games that employ a similar mechanic where characters, equipment and other resources can be obtained by ‘pulling’ from a ‘banner’ showcasing all the possible rewards.
The introduction of gacha into games, with its elements of uncertainty and anticipation, has revolutionised the gaming industry. Games with zero up-front cost or subscription fees, also known as F2P (Free-to-Play) games, have become a norm. Developers and publishers can easily recoup a game’s development costs and create constant revenue streams by turning their games into lucrative platforms for players to shell out large amounts of money in a bid to obtain their desired item.
In fact, this business model has become so successful that it has resulted in a paradigm shift in the gaming industry, especially during the 2010s when gacha games started to gain prominence following the release of the first notable gacha game, “Dragon Collection”. This shift has not only reshaped player expectations but has also fuelled the rise of microtransactions and loot box systems in various gaming genres over the past decade.
Today, F2P games with gacha or loot box mechanics generate an estimated 117.7 billion US dollars a year, which is almost 30% of the entire global video games industry market cap, making them a dominant force in the gaming market.
With a clearer picture of what gacha games are, you may be wondering: “So what makes these games different from just… gambling?” While both are forms of entertainment, there are significant distinctions between the two. Casinos, for instance, are a long-standing industry with established regulations and practices. Studies have shown that most people only gamble for fun as opposed to having gambling addictions, and that recreational gamblers often have strict loss thresholds they are not willing to cross. Coupled with the fact that casino chips often display their real-world currency value, allowing gamblers to effectively keep track of their spending.
In contrast, gacha games operate within a relatively new and less regulated landscape. Some of the top-grossing gacha games feature immersive storytelling and compelling characters that deeply engage players on an emotional level. These narratives can create a sense of attachment and investment in the game world, driving players to spend more time and money in pursuit of their in-game goals.
For many players, gacha games offer more than just entertainment; they provide a form of escapism where they can assume different roles and experience a sense of achievement through in-game progression. The allure of escapism, where players can temporarily distance themselves from real-world stressors and immerse in fantastical adventures, further amplifies their engagement with the game.
The psychological rewards of overcoming challenges, unlocking new content, and building relationships with virtual characters can be deeply fulfilling, and these are just some of the tactics that gacha games will use to lead players into investing significant time and resources into their gaming experiences.
Being a gacha player myself, I know all too well the emotional roller coaster that accompanies gacha pulls. That said, I was eager to hear about how other gacha game players’ experiences differed from mine. To that end, I interviewed “Johnnie”, a third-year university student.
I first learned of Johnnie after hearing about the time he spent over S$2,000 on a single character in Genshin Impact, the highest-grossing gacha game of today developed by China-based game company miHoYo. This is an astronomical amount to spend on a video game for most people, which made me all the more interested in his perspective.
Johnnie’s introduction to miHoYo’s gaming universe began with Honkai Impact 3rd, where he experienced moderate success without significant financial investment. However, it was the allure of Genshin Impact’s expansive open-world and dynamic gameplay mechanics that truly captured Johnnie’s attention upon its release in late 2020.
“I didn’t have any particular goals going into the game, but there was an insane amount of hype surrounding Genshin Impact, which made me want to try it out,” Johnnie recalls. The promise of exploration and adventure beckoned him into the fantastical realm of Teyvat, where he quickly became engrossed in the game’s rich tapestry of quests, characters, and challenges.
Since day one, Johnnie’s journey into Genshin Impact’s gacha realm was marked by strategic investments and evolving priorities. Initially captivated by the game’s expansive world and immersive gameplay, he opted to enhance his experience through carefully chosen purchases.
‘The Traveler’ observes Teyvat from a treestump. Genshin Impact photo mode image from Nostre NZ, Flickr.
His first foray into spending involved acquiring the Welkin Moon, a monthly subscription offering a steady influx of Primogems, the currency used for gacha pulls. This decision was driven by the undeniable value proposition presented by the Welkin Moon, which provided a significant boost in resources compared to direct purchases of Genesis Crystals.
“The Welkin Moon offered so much more value compared to just buying Genesis Crystals,” Johnnie explains. “It was a no-brainer for me to invest in something that would enhance my gaming experience without breaking the bank.”
Johnnie’s strategic approach to spending meant that he abstained from directly purchasing Genesis Crystals for gacha pulls, and instead purchased Welkin Moons and monthly battle passes known as Gnostic Hymns. This continued until the addition of Raiden Shogun, one of the seven Gods that ruled over Teyvat, into the gacha. As the name implies, her design is based on Raiden Mei from Honkai Impact 3rd, which compelled Johnnie to pull for her.
“Raiden Mei was one of my favorite characters in Honkai Impact 3rd, so when I saw Raiden Shogun in Genshin Impact, I knew I had to have her,” Johnnie admits. “I really liked her character design, and I’m a fan of the character’s voice actress as well.”
The rush
On the day of the character’s implementation, Johnnie grapples with a mix of anticipation and apprehension while waiting for the game update to end, acutely aware of the potential financial implications of his actions. The prospect of overspending looms large, casting a shadow of doubt over his decision-making process. Despite his best efforts to rationalise and budget, the possibility of being extremely unlucky in his pulls is real and frightening.
“It’s kind of a mixed feeling, there’s definitely the excitement and anticipation of finally being able to pull for her, but then I also agonise over the idea of spending more than necessary and having to eat into the rest of my savings.”
During the pull itself, a surge of adrenaline courses through Johnnie’s veins as comets streak across the screen, each shard laden with promise and possibility. With each passing moment, the tension mounts, heightening his anticipation as he awaits the outcome. When one of the comets finally turns orange, signifying that the item is of the highest rarity in the game, the dopamine-fueled rush that accompanies this revelation is almost palpable, serving as a moment of triumph amidst the uncertainty of chance.
In the aftermath of a pull, Johnnie experiences a complex array of emotions ranging from jubilation to disappointment, depending on the outcome. Securing the coveted character elicits a sense of triumph and validation. Conversely, facing repeated setbacks or failed attempts can evoke feelings of frustration and disillusionment, prompting introspection and reassessment of his approach. Yet, regardless of the outcome, each pull serves as a testament to the powerful allure of gacha mechanics, weaving a tapestry of emotions that reflects the highs and lows of virtual pursuit.
For Johnnie, the decision to spend over S$2,000 on a single character wasn’t just a financial transaction; it was a testament of his dedication to the game and the emotional bond he formed with its virtual inhabitants. As he reflects on his gacha journey, Johnnie’s story serves as a poignant reminder of the multifaceted motivations that drive players to invest in their gaming experiences, whether financial or emotional.
Johnnie’s experience underscores the immersive nature of gacha games, where players become emotionally invested in the stories and characters they encounter. When asked about his motivations for spending money on gacha pulls in Genshin Impact, Johnnie’s response echoed a sentiment shared by many players: a desire to obtain unique items and enhance their gaming experience. His decision-making process when considering a gacha pull reflects the complex interplay between personal preferences, gameplay mechanics, and financial considerations. While factors like character playability and futureproofing influence his choices, Johnnie’s unwavering devotion to certain characters, like Raiden Mei, transcends mere gameplay mechanics.
The interview with Johnnie highlights the psychological rewards inherent in gacha gaming, where the pursuit of virtual treasures intertwines with a deeper longing for connection and fulfilment. For Johnnie, each gacha pull is not just a gamble; it’s a moment of anticipation, excitement, and, occasionally, disappointment.
When asked if he would pay a fixed price to get the character instead, Johnnie promptly refused. “The feeling of getting a desired character through my own luck is something I still very much enjoy.” Perhaps for the truly hardcore gacha players, or ‘whales’, the thrill of the gamble outweighs the certainty of purchase. It’s testament to the unique appeal of gacha mechanics, where chance holds an allure all its own.
However, the line between immersive entertainment and exploitative monetisation practices is a thin one. In the realm of gacha games, distinguishing between healthy engagement and excessive involvement can become difficult, especially amongst those with spending impulses or lack self-control.
Before I spoke with Johnnie, he was on a hiatus from gacha games in general to focus more on his coursework and other hobbies. Unlike Johnnie, in some players the continuous cycle of anticipation, reward, and reinforcement built into gacha mechanics can trigger addictive behaviours and compulsive spending patterns, especially among vulnerable individuals, such as children and adolescents. As players become increasingly invested in the game’s narrative and progression systems, they may find themselves more susceptible to the persuasive tactics employed by developers to encourage in-game purchases.
Safety and regulation
In some regions, governments have recognized the potential harm posed by gacha games and have taken steps to address these concerns. For instance, in Japan, regulations against certain gacha mechanics were implemented as early as 2012. The Consumer Affairs Agency deemed “complete gacha” illegal due to its exploitative nature, where players were required to obtain a full set of rewards to progress in the game (eg getting one of every single item from a Gashapon machine). This model, once popular in social games, was outlawed for violating laws against unjustifiable premiums and misleading representation.
Similarly, in 2016, China passed legislation requiring games with loot boxes to disclose the probability of receiving specific rewards, aiming to enhance fairness and transparency. Furthermore, China imposed restrictions on the number of loot boxes that can be purchased in a day, aiming to mitigate excessive spending and potential gambling-related harms.
The Netherlands and Belgium have also taken decisive action against loot boxes, with the former prohibiting certain types of loot boxes deemed to have market value, while the latter declared loot boxes to be a form of illegal gambling. These regulatory efforts underscore the growing recognition of the need to protect consumers, particularly vulnerable individuals, from the potential risks associated with gacha games and loot box mechanics.
Ultimately, gacha games are a form of entertainment, drawing players into immersive virtual worlds, but often with a more sinister side. However, concerns persist regarding addictive tendencies and excessive spending, prompting regulatory responses from governments worldwide. The ongoing debate surrounding the classification of gacha mechanics as gambling showcases the need for continued awareness and discussion within the gaming community. As the industry evolves, striking a balance between engaging gameplay and player well-being remains paramount.
In the end, amidst the glitz and glamour of gacha games, the true randomness lies in the unseen algorithms orchestrating each pull. Behind the flashy screens, from the moment the small loading icon appears after the player spends their resources, the fate of their pull is sealed, determined by the intricate mechanics hidden within the game’s code.
Each spin becomes a dance with destiny in the silent realm of algorithms, where the emotions of the players are at the whims of machines.
References
F2P gaming revenue worldwide 2024 | Statista
Most Gamblers Are Just Out for Fun | Stanford Graduate School of Business
Let’s go whaling: Tricks for monetising mobile game players with free-to-play (youtube.com)
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Gacha video games – where players pay real money for a chance at winning digital items – are a poorly regulated space that can become as exploitative as gambling
The post Are ‘gacha’ games and loot boxes merely gambling in disguise? appeared first on The Skeptic.