This will be a long post, my apologies in advance!

Gacha games

A little over a month ago marked Genshin Impact’s 3rd year anniversary. Just a couple of months earlier, Apple’s CEO, Tim Cook, paid a visit to miHoYo’s headquarters in Shanghai, where he met with one of its co-founders, Liu Wei [1]. Remember this name; it will become significant shortly. Before Genshin Impact, gacha games were a niche, at least in the Western gaming market. The astounding success of Genshin shocked the gaming industry [14], and the full repercussions may take many more years to materialise. But how exactly did Genshin achieve this and at what cost?

I am pretty sure that most of you who are reading this post are already familiar with the tricks used by mobile gaming companies to extract as much money as possible from players. In 2016, Torulf Jernström delivered his now infamous “Let’s go Whaling!” presentation [2], inadvertently shedding light on those practises. Therefore, it comes as no surprise that Genshin has employed nearly every one of these strategies, ranging from creating scarcity to building an economy worth tens of thousands of dollars and leveraging the concept of social proof. After all, even Western studios have increasingly gravitated toward the microtransaction monetisation model. For example, here you can find a 2022 statement by our beloved former EA and current Unity CEO, John Riccitiello. It’s important to clarify that this post does not aim to defend such questionable practices, but it does raise the question of what sets gacha games apart and makes them particularly concerning.

Gambling

In order to obtain characters in Genshin, you have to summon via the “wish” system. This system essentially functions as a lottery-like mechanism with an added guarantee feature that activates after a certain number of attempts or pulls, known as “pity”. As Jernstrom-sensei puts it:

Gachas are great both for monetisation and retention because people like the lottery part of it… It’s really a lot more exciting and you get more content…

The lottery-style system of Genshin plays a pivotal role in both its appeal and economic success. The desire to “wish” is further strengthened by the presence of limited-time banners, showcasing the most powerful characters in the game. In fact, certain characters may not reappear for nearly a year, as exemplified by the 1st and 2nd banners of the meta character Ganyu back in 2021-2022 [3].

Genshin Impact, similar to many other gacha games such as Goddess of Victory: Nikke and Honkai: Star Rail, is rated 12+. Therefore, it’s crucial to examine its potential impact on adolescents and the associated gambling concerns. Dr. Timothy Fong, co-director of the UCLA Gambling studies programme, tells ABC news [4]:

Teenagers and young people are significantly at higher risk of developing gambling disorder than adults. In part because their brains are not fully developed, their ability to evaluate risk, their ability to handle loss, isn’t as secure as an adult.

Research further supports this claim. Multiple papers published in peer-reviewed journals [5, 6, 7] highlight the neurobiological susceptibility of adolescents to gambling. The psychological impact also appears to be more severe [8].

But an ardent gacha defender will argue that gachas are not gambling since they do not offer a monetary reward. Research specifically targeting gachas is quite limited since gacha games were a niche before Genshin. However, studies like this [9] have already started associating gacha games with problem gambling.

Make no mistake, gacha games are gambling, and the perceived value entices thousands to spend more money than originally intended. The author of [7] concludes:

We need to extend the definition of gambling to include not only monetary incentives but also handouts of value relative to that particular gambling environment.

Indeed, envisioning profit margins akin to those mentioned in [10] becomes challenging without considering the gambling element. But allow me to point out another aspect that does not receive the attention it deserves.

Sexualization - Preying on Loneliness

“Waifu” and “Husbando” are terms frequently encountered in the gacha gaming community. While certain gachas, such as Genshin, tone down the sexualization elements to avoid backlash over their teen rating, other games go all in. For instance, Goddes of Victory: Nikke, a 12+ shooter gacha game, prominently features this asspect, and ass expected, has been quite successful [11].

In comparison, Genshin animation style appears so innocent and cute, but a closer examination reveals a very different picture. I’m certain many of you will be surprised to know what miHoYo’s current president, Liu Wei, said during a 2011 entrepreneurship competition [12]. As he explained, miHoYo’s goal was to create virtual idols that otakus would love through the game, “saving” them from their loneliness. Furthermore, it appears he had meticulously studied the specific preferences of otaku, claiming that a 16-year-old otaku might prefer an 18 to 20-year-old tsundere girl, but a 30-year-old otaku would like a 16 to 18-year-old loli girl better(!?).

For your consideration, lolis typically do not appear to be older than [13]. This is not a coincidence; while the youthful characters in Genshin differ from the overtly sexualised ones in Nikke, the underlying intent remains consistent. Genshin is simply more adept at concealing it.

Epilogue

This post isn’t intended to cast blame on those who play or stream gacha games. Adults have the freedom to engage in whatever entertainment they choose, provided they are fully aware of the concealed risks.

Nonetheless, it remains crucial to acknowledge that gacha games blatantly prey on gambling predisposition and exploit the absence of emotional bonds, amassing billions from unsuspecting players. They often use their teen ratings and cartoony character designs as a facade. Gacha games should be rated 18+ and players should be aware of their predatory gambling nature. If you find the time, I highly recommend checking out an excellent Reddit post titled " A Whale of a Tale" that could not have put gacha addiction any better.

Thank you for taking the time to read this post :) The post also exists in a video form on Youtube.

P.S. This post/video was not funded by anyone, and I have no affiliations with any gaming studio/company.