As Square Enix shuts down gacha games, Japanese mobile developers struggle adapting to consoles
Mobile gacha game developers in Japan are finding it increasingly difficult to compete. The latest signs of distress come from Square Enix, which recently shut down Final Fantasy: Brave Exvius and Dragon Quest of the Stars. Automaton found a social media post from a Japanese game-maker who has a pessimistic view of his future.
Suemaru explains how there are fewer opportunities as a gacha game director. Analysts believe this segment of the gaming market is reaching a point of oversaturation. Publishers prefer these mobile games because they provide consistent revenue. At the same time, players have limited hours for multiple titles.
Adding to Suemaru’s dilemma, many other opportunities are in the console gaming sector. As a source highlights in the Automaton article, gacha developers may lack the appropriate skills. The industry prefers creators who can take advantage of cutting-edge visuals. Another roadblock is that Japanese companies often prioritize hiring younger prospects.
The Genshin Impact effect
Genshin Impact also set a new standard for gacha games that competitors have struggled to match. Unlike many prior mobile games, players can explore a 3D world that resembles an AAA project. HoYoverse also brought titles like Genshin Impact and Honkai: Star Rail to consoles like the PS5.
Publishers from South Korea and China have put added pressure on the already crowded Japanese gacha market. That said, the future for these free-to-play games still looks bright. Business Research Insights projects that the global market will grow from $0.53 billion in 2025 to $1.09 billion by 2034.
Gacha games are likely to continue evolving beyond the static backgrounds of older titles. Unfortunately, developers like Suemaru must either adapt or risk being left behind.
