Game Business Strategy Analysis: Gacha Structure and Sustainable Revenue Model

Every time a new version is announced, the player community falls into a state of deliberation between saving resources or spending on the current banner. In version 7.0, phase two marked the return of two rerun characters, creating significant financial pressure for those who had accumulated resources for phase one. But what is truly noteworthy is not the players' decisions, but how the publisher designed the system to maximize revenue while maintaining community satisfaction. Genshin Impact is a mobile and PC title owned by miHoYo (now HoYoverse), using a gacha business model — where players spend premium currency to pull banners for a chance to obtain random characters or weapons. This system is not just a revenue generation tool but also an architecture for community building, where each spending decision is shaped by statistical probability and behavioral psychology. What I have realized after years of tracking similar systems is: players often focus on short-term results rather than understanding the long-term structure behind each banner. The core of the gacha system lies in the pity mechanism — a guaranteed layer that prevents players from falling into endless spending loops while maintaining the element of luck. In this system, each rare character or weapon has its own drop rate, but if players fail to win after a certain number of pulls, the system automatically guarantees they receive an item of that tier. This is the key point that balances player experience and publisher revenue. Data shows that the 5-star character drop rate hovers around 0.6% per pull, but the soft pity mechanism ensures that cumulative probability increases significantly after the 70-80 pull threshold. This means: on average, players need approximately 90-100 pulls to obtain a 5-star character if they unfortunately fall into the initial 50/50. This structure creates a predictable spending arc — players know roughly how many resources they need for each banner, but they do not know exactly when luck will arrive. Each game version is divided into two phases, with each phase lasting approximately three weeks. This structure is not random but the result of sophisticated business calculations, aiming to create a steady spending rhythm rather than concentrating at a single moment. Players have enough time to prepare financially for each banner, but the time pressure remains sufficient to drive spending decisions. One element often overlooked is the shared pity mechanism between same-type banners. When a rerun character appears, the resources players have accumulated from previous banners of the same type are preserved. This encourages switching between banners without losing built-up value, thereby increasing spending frequency in the long term. This is a more sophisticated player retention strategy than simply increasing content quality. The policy of not announcing a fixed rerun schedule is a typical example of FOMO (Fear of Missing Out) design in the gaming industry. When players do not know when their favorite character will return, they tend to spend immediately when the opportunity arises rather than waiting. This creates an information asymmetry that benefits the publisher — players always lack information to make optimal decisions. Although most analysis focuses on the spending mechanism, the real noteworthy point lies in the governance structure. miHoYo simultaneously serves as the game operator, the gacha rule setter, and the revenue beneficiary. This model is similar to the governance structure in esports, where the game publisher controls the ecosystem. The difference here is there is no independent third-party oversight — all rules are set and enforced by a single entity. From the perspective of players wanting to optimize resources, the basic strategy is to concentrate resources for phase one banners of the new version instead of spreading across reruns. Calculating the total pulls needed based on the 90-pull guarantee mechanism helps plan finances more accurately. However, the key factor is not the pulling strategy but determining a personal budget and strictly adhering to it. This article is not a guide for optimizing spending on a specific banner. This is an analysis of how a game business system operates — from probability structure to player behavioral psychology. The core message is: understand the mechanism thoroughly before making spending decisions. In any system with an element of luck, smart players are not those who predict outcomes, but those who make responsible decisions with specific data in hand. The gacha system is transparent about probability but creates strong psychological incentives to spend. For players who want to participate consciously, the question is not "whether to play" but "to what extent to participate and how much risk to accept". This is a data-driven approach, not emotional — and that is the foundation for every responsible financial decision in any system.