Japan's Consumer Affairs Agency is to investigate companies including social gaming giants GREE and DeNA over claims one of their business practices violates sales law in the region.
As detailed by Bloomberg, the body is looking at the 'complete gacha' mechanism.
This charges players small sums - around ¥300 or $4 - for virtual items that can be converted into a rare item when combined. It's considering whether this violates the law through what's described as "unjustifiable premiums and misleading representations."
Gacha gag
A total of six companies are caught up in the investigation, with both GREE and DeNA claiming they will comply fully with the Consumer Affairs Agency to resolve the issue.
It's reported the body might resort to banning the method all together, owing to the suggestion is draws customers into paying excessive fees.
"The situation remains severe" for both Gree and its rivals, Mitsuo Shimizu, a market analyst at Tokyo-based Iwai Cosmo Securities, told Bloomberg.
"Their profitability is at risk, depending on the governments decision."
Bloomberg claims one user amassed a bill of ¥4 million (around $50,000) across two months, all generated using the complete gacha method.
Analysts quoted by the site claim a ban on the practice could hit GREE's net income by 18 percent and DeNA's by 6 percent.
"Even if the 'complete gacha' is abandoned, it won't rock the foundation of Gree," retorted Ryutaro Shima, head of GREE's corporate division.
"We will consider introducing new services to spur sales."
The companies' share price has also been hit, with GREE down 25 percent and DeNA down 20 percent on the news.
[source: Bloomberg]
News
With a fine eye for detail, Keith Andrew is fuelled by strong coffee, Kylie Minogue and the shapely curve of a san serif font.
Related Articles
Top Stories
Feature
1 hour, 45 minutes ago
Hot Five: AppLovin revenue surges 48% Y/Y, Plarium and Big Fish up for sale, and a look inside Merge Mansion's growth
Feature
3 hours, 33 minutes ago
55 top mobile games in soft launch: Squad Busters, Battle Guys: Royale, Plants vs. Zombies 3, LEGO Hill Climb Adventures, and more
Events
Digital Dragons | Europe | May 19th |
GamesBeat Summit 2024 | North America | May 20th |
Mobidictum Meetup Tallinn May 2024 | Europe | May 21st |
Nordic Game Spring 2024 | Nordic | May 21st |
Impact 2024 - Indie Games | May 23rd | |
MomoCon 2024 | North America | May 24th |
Morocco Gaming Expo | Africa | May 24th |
Unreal Fest Gold Coast 2024 | Australasia | May 29th |
Popular Stories
Feature
3 hours, 33 minutes ago
55 top mobile games in soft launch: Squad Busters, Battle Guys: Royale, Plants vs. Zombies 3, LEGO Hill Climb Adventures, and more
Interview
May 13th, 2024
"Web3’s promise of decentralisation offers a fresh perspective on how games can be developed, played, and valued"
Feature
May 14th, 2024