What are gacha games? Mechanics, monetization & growth explained

Gacha games, a genre built around randomized rewards inspired by Japanese capsule toy machines, have become a major presence in mobile gaming. Famous for their engaging collection mechanics and free-to-play (F2P) accessibility, they’re also the subject of ongoing debate, particularly around fairness and monetization. Despite this, the model has been widely adopted and is behind top-grossing titles like Genshin Impact, Honkai: Star Rail, and Fate/Grand Order— titles that blend immersive storytelling and gameplay with chance-based systems that keep players invested. By 2033, the global gacha games market is projected to reach between $626 million and $1 billion.

In this blog, we break down what gacha games are, how their core mechanics and monetization work, and where they’re most present. We also take a close look at both the appeal and concerns, from how the format drives long-term engagement, to why questions around transparency, player spending, and global regulation continue to shape the conversation. Whether you’re evaluating their impact or planning your next launch, we’ve got you covered.

The word gacha stems from the snap noise of Japanese gashapon (toy dispensers), while the game mechanic itself is based on the randomness of the prize. Gacha games are (almost always) free-to-play and rely on “pulling” or “rolling” for prizes to acquire new characters, items, or upgrades. Players get the chance to play for these rewards by spending in-game currency. They can also convert real money into premium currency to speed up progression or participate in time-sensitive events.

Rather than offering fixed progression or direct purchases, gacha mechanics are based entirely on random number generation (RNG). Players may choose to grind for currency through gameplay or pay to gain quicker access to high-value rewards or more rolls/random pulls—an approach that can blur the line between fair progression and pay-to-win, depending on the game’s economy and design. This unpredictability is a deliberate design choice, crafted to fuel anticipation and keep players emotionally invested with each pull—win or lose.

Gacha games are often likened to loot boxes, which are randomized reward systems traditionally and most often seen in premium console and PC games, but the similarities are mostly surface-level. Loot boxes tend to offer cosmetic or supplementary content, whereas gacha is typically central to mobile F2P titles, shaping how players progress, collect, and compete. Some formats, like Kompu gacha—a now-banned variation in Japan that required players to collect item sets for a reward—have prompted regulatory scrutiny, highlighting the importance of thoughtful, transparent design. 

The gameplay loop is consistent across most titles. Players collect currency, spend it on randomized pulls, receive rewards based on rarity tiers, and use what they’ve drawn to upgrade characters, shift strategies, or expand their collections. Limited-time banners and seasonal events refresh this loop, creating ongoing incentives to return and engage. Monetization is also built into the core game loop, influencing everything from character acquisition to event participation. 

Today, gacha mechanics appear across a wide range of genres—from anime RPGs and card battlers to rhythm and lifestyle apps. For many developers, however, gacha isn’t just a feature, it’s the foundation of their gameplay model, designed to drive long-term engagement, retention, and monetization.

Gacha mechanics operate by randomizing rewards, shaping how players acquire characters, items, and upgrades. While individual implementations vary across games, most systems center around a combination of pulls, rarity tiers, and event-driven reward structures that influence player behavior over time.

Pull mechanics: Single vs. bulk

Pulls, the core of gacha gameplay, can be made individually or in bulk (multi-pulls), usually from themed reward banners. Most titles offer both single and bulk pulls (often 10 at once), with bulk pulls incentivized through discounts or guaranteed bonuses. This approach boosts perceived value and encourages players to commit more resources per session.

A pull, draw, or wish is when a player spends in-game or premium currency to receive a randomized reward—usually a character, item, or upgrade.

Rarity tiers and drop rates

Each reward pool is structured around rarity tiers—a ranking system that groups rewards based on their scarcity and perceived value. These tiers are often represented by stars (e.g., 3-star to 5-star or higher), with higher-tier items offering greater power or appeal but much lower odds of appearing. Drop rates for top-tier rewards can be as low as 0.5%, creating a strong sense of anticipation and driving player engagement. To improve transparency, many games now publish official drop rates, especially in markets with regulatory requirements.

Over time, developers have introduced several variations of the gacha mechanic to shape how players experience progression and rewards. While all rely on randomized pulls, these systems differ in structure. Below are some of the most common formats seen in top-performing gacha games today: 

• Package gacha: In this model, the reward pool is finite and items are removed as they’re pulled. This increases the likelihood of receiving high-value rewards over time and gives players a clearer sense of progress. Since duplicate items are eliminated from the pool, players can make more informed decisions about whether to continue pulling.

  Pokémon Masters EX uses this approach during its prize box events. Players can draw rewards from a fixed pool and see which prizes have already been claimed, making it easier to strategize and maximize the value of each pull.

• Step-up gacha: Designed to reward commitment, this format improves pull outcomes as the player progresses through a sequence. For example, by the fourth or seventh pull in a banner, the player might be guaranteed a rare item. This structure is especially effective for incentivizing multi-pull sessions and timed spending. 

  A popular example is Dragon Ball Legends, which features step-up summon events where players are guaranteed a high-rarity unit after specific milestones, such as the fourth or seventh pull. 

• Scratch gacha: Here, players earn points from bulk draws that can be exchanged for extra prizes, adding a second layer of anticipation. Some games visualize this with a “scratch card” mechanic that gamifies the bonus reveal, creating an experience beyond the pull itself.

  One example is Granblue Fantasy, where special campaigns occasionally include scratch-off-style bonus systems that gamify additional rewards beyond normal pulls.

• Sugoroku gacha: Named after a traditional Japanese board game, this type places rewards along a virtual path. Each pull advances the player a few steps, gradually unlocking more valuable items as they move forward. This model adds a sense of narrative and momentum to the pulling process.

• Kompu gacha (banned in Japan): Previously used in early mobile games, this format required players to collect a complete set of items from a pool in order to receive a rare bonus. It was eventually banned for its similarity to gambling, but its influence can still be seen in more transparent or limited-set gacha designs today.

With the core loop in place, the next question is—how do these games generate revenue, and why is the model so effective?

Gacha games thrive on a F2P model, where access to the game is free and monetization flows through optional in-app purchases (IAPs). While players can progress for free, many pay for faster access to rare characters, exclusive items, or limited-time rewards.

Gacha games follow a simple but powerful revenue model: players convert real money into premium currency—such as Primogems in Genshin Impact or Saint Quartz in Fate/Grand Order—which is then used for randomized draws. While this currency can often be earned through gameplay, the process is slow, nudging many players toward microtransactions for faster access, especially during time-sensitive events or limited-time banners.

One of the defining traits of gacha monetization is the wide spending spectrum among users. The model’s impact is evident in top-grossing titles: Monster Strike has earned over $10 billion in lifetime revenue, Fate/Grand Order has surpassed $7.7 billion, and Genshin Impact, launched in late 2020, has already crossed $5.8 billion globally. These figures underscore the immense IAP-driven potential of gacha game design, where long-term engagement and high average revenue per paying user (ARPPU) are fueled by a comparatively small but committed player base. 

This success is largely driven by distinct user segments with different spending behaviors:

• Whales are high-value spenders who may contribute hundreds, or even thousands, of dollars over time, often during exclusive banner windows.
• Dolphins spend more modestly, often on monthly passes, starter bundles, or selective pulls.
• F2P players engage without spending, relying entirely on earned currency. While they don't generate direct revenue, they boost retention, in-game activity, and ad impressions (in games that use hybrid monetization).

What makes this model so effective is the emotional value tied to randomness and the drive to collect. The chance to unlock a powerful or beloved character through a pull, especially during a limited-time event—drives urgency and purchase intent. Paired with systems like pity mechanics and bonus packs, even cautious spenders are encouraged to convert.

Compared to other mobile game monetization models, gacha offers a much higher ceiling for lifetime value (LTV). Unlike ad-driven games, which rely on large, low-spending audiences, gacha titles can generate significant revenue from a relatively small group of dedicated players. Subscription-based models offer consistent returns but cap potential earnings, while gacha thrives on monetization spikes, especially around new content drops, collaborations, or limited-time events. And, whereas direct-purchase games monetize upfront, gacha systems extend revenue far beyond the initial install, tying monetization closely to live-ops, player retention, and the evolving content cycle. This dynamic, event-driven monetization system is one reason gacha games often dominate top-grossing charts.

Gacha games have influenced several notable developments in mobile gaming in recent years. Here’s a quick overview of the trends shaping the genre:

AAA-quality production on mobile

Blockbuster titles like Genshin Impact and Honkai: Star Rail are raising the bar for what mobile games can deliver. With console-level visuals, expansive worlds, and deep gameplay systems, all wrapped in gacha mechanics, they prove that premium quality and monetization can scale together.

IP collaborations and character-driven events

Gacha’s collection-based structure is commonly used to support crossover content. Games like Fate/Grand Order and Epic Seven regularly launch limited-time events featuring anime, gaming, and entertainment IPs, boosting user acquisition (UA), reactivation, and revenue through character recognition and exclusivity.

Live ops as a monetization engine

Rotating banners, seasonal content, and event-driven drops are now core to gacha strategy. These live ops not only drive repeat engagement, but also serve as high-converting monetization moments—especially when enhanced by cohort-based targeting and regional timing.

Global growth, local adaptation

While gacha originated in Japan, it has long been a dominant force in other Asian markets like China and South Korea. More recently, its influence has expanded into markets such as the U.S. and Europe. To meet the expectations of diverse player bases, developers are enhancing localization efforts, supporting cross-platform functionality, and experimenting with hybrid monetization models. IP-driven content and increased transparency—such as clear drop rate disclosures—are also helping broaden gacha’s global appeal.

Gacha systems are designed to tap into well-documented psychological mechanisms that can drive strong user engagement and, in some cases, excessive spending—which is why regulation and rules in the genre are so critical The randomized pull mechanic follows a variable reward schedule, a pattern associated with slot machines, which can trigger dopamine release and reinforce repeated behavior. When a rare item appears, it delivers a rush that may prompt players to keep pulling, hoping for similar results.

The genre also leverages cognitive biases. For instance, the sunk cost fallacy can encourage players to continue spending in an effort to justify previous investments. Near-miss outcomes, like situations where a desired item almost appears, can create the illusion of being “close,” reinforcing continued engagement. Limited-time banners, rarity-based rewards, and social sharing mechanics (such as posting rare pulls or ideal team setups) further amplify the sense of urgency and FOMO.

While these techniques can contribute to retention and monetization, they also raise important questions around fairness, user well-being, and ethical game design, particularly when targeted at younger audiences. For developers, understanding these behavioral triggers is crucial not just for building effective monetization, but for ensuring systems remain transparent and responsible.

To build ethical and effective gacha systems that drive engagement without relying on exploitative mechanics or crossing regulatory lines, developers can follow these four foundational principles:

• Boost longevity: Keep your player base active and invested by regularly introducing new content, seasonal events, and evolving challenges that refresh the core loop without over-relying on monetization hooks.
• Promote transparency: Clearly communicate how your gacha mechanics work, including drop rates, event odds, and guarantees. In an increasingly regulated landscape, transparency is more than a legal requirement, it’s a user trust signal.
• Value every pull: Design your economy so that every interaction, even unsuccessful ones, moves players forward. Features like pity systems and duplicate conversions ensure that F2P users still feel rewarded, reinforcing fairness and reducing churn.
• Balance monetization and accessibility: Avoid pay-to-win mechanics. Let premium purchases accelerate progress, but ensure all players can unlock powerful characters and items through effort, strategy, and time. This widens appeal and supports sustainable growth.

As gacha mechanics gain global traction, regulatory frameworks are evolving to ensure fair play and protect younger users. Japan’s Kompu gacha ban, introduced in 2012, marked the first major crackdown. Since then, self-regulatory measures have become the norm, including mandatory drop rate disclosures.

China requires developers to publicly list gacha odds and limit the number of paid pulls per day, while Belgium and the Netherlands have issued partial bans on loot box-style mechanics, classifying some as gambling. In the U.S., oversight is lighter, but app stores like Google Play and the App Store require clear labeling of randomized monetization, and the Entertainment Software Rating Board (ESRB) has introduced icons to flag in-game purchases and random items.

For developers, understanding and adhering to evolving guidelines is essential. Regulations around gacha mechanics, such as mandatory drop rate disclosures, limits on paid pulls, and labeling of randomized content, are becoming more widespread. Adopting transparency measures and fairness systems like pity mechanics is not only a matter of legal compliance, but also increasingly considered industry best practice

For app developers and marketers working in the gacha space, timing and event-based user UA strategies often play a significant role. Limited-time banners, collaborations, and seasonal content can act as natural campaign anchors, encouraging user engagement and in-game spending.

Understanding what happens beyond the install is essential to optimizing performance. This includes visibility into user behavior, such as pull frequency and spend milestones, as well as broader performance indicators like retention across the full user journey.

Mobile measurement partners (MMP) like Adjust equip gacha publishers with everything they need by offering attribution, cohort analysis, cross-channel ROI insights, and more. These tools make it possible to identify high-value user segments, tailor UA strategies to different regions or events, and better understand monetization outcomes over time. As the gacha model continues to evolve, having access to accurate data and real-time insights will allow teams to make more informed decisions—whether you're scaling a new gacha title or iterating on an existing one.  

See how Adjust can support your mobile games strategy and campaign performance with smarter insights.  Request a demo today!