What Are Gacha Games? In the modern gaming industry, the term “Gacha” has become increasingly prevalent. From the rise of Genshin Impact, notorious for its unforgiving Gacha mechanics, to debates over whether League of Legends can be classified as a Gacha game, the concept has embedded itself in gaming discourse. The word “Gacha” originates from the Japanese term gachapon, referring to vending machines that dispense small capsule toys at random. Players insert money without knowing which toy they will receive, making it a form of gambling. While Gacha games are often marketed as free to play, their core mechanics revolve around spending in-game currency to participate in Gacha draws—usually for rare characters, weapons, or cosmetic items. Although this currency can sometimes be earned through gameplay, it is often scarce, encouraging players to spend real money. The immense financial success of Genshin Impact—which generates at least a billion US dollars annually—demonstrates how lucrative these systems can be.

Despite their “free-to-play” label, many Gacha games lock desirable content behind paywalls, pressuring players to invest money to experience the game to its fullest. Since the release of Genshin Impact in September 2020, the popularity of Gacha games has surged. With its billion-dollar revenue and time-limited “character banners”, many developers have adopted similar monetisation strategies. Games like Honkai: Star Rail (2023), Tower of Fantasy (2022), and Arknights (2020) have followed suit, implementing Gacha-based mechanics into their gameplay. Beyond new releases, existing games have also begun integrating Gacha elements, even when they were not part of the original design. League of Legends is a notable example. While its core gameplay does not rely on Gacha mechanics, recent updates have introduced systems like “the Sanctum”, which encourages players to spend in-game currency for a chance to win skins—drawing direct comparisons to Gacha mechanics. This shift raises concerns about the growing normalisation of Gacha-based monetisation across the gaming industry. As Gacha games continue to dominate the market, their drawbacks have become increasingly evident. Much like gambling, these games can foster unhealthy player relationships, where enjoyment becomes tied to the Gacha system itself.

In Genshin Impact, accumulating in-game currency is time-consuming, and players often find that grinding for resources yields little meaningful progress. This frustration leads many to either quit out of frustration or spend real money to keep up. The time-sensitive nature of limited-time banners adds another layer of pressure. Players must acquire enough currency before the banner expires, or risk missing out entirely—further incentivising real-money purchases. Additionally, streamers and content creators often spend thousands of dollars on Gacha pulls for entertainment, unintentionally encouraging viewers to do the same. While these influencers may recoup their expenses through content revenue, many everyday players do not have that luxury, potentially leading to overspending and financial strain. Interestingly, despite its massive success, Genshin Impact has experienced a decline in revenue in recent years.

Whether this is due to dissatisfaction with the game itself or fatigue from its demanding Gacha system remains uncertain. However, it does suggest that players may be growing weary of these aggressive monetisation strategies. The success of Genshin Impact has influenced the gaming industry’s approach to monetisation, leading many games to adopt Gacha mechanics as a primary revenue model. However, this shift has also placed increasing emotional and financial strain on players, making it difficult to enjoy these games without feeling pressured to spend. The introduction of Gacha systems in games like League of Legends—which originally had no such mechanics—indicates a broader industry trend. As more developers incorporate Gacha elements, concerns about player well-being and fair monetisation practices will likely continue to grow.