serkan AT kantan-games.co.jp

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Reaction To Impending Regulation: DeNA And GREE Shares Drop Like A Rock [Social Games]

Two days after the Daily Yomiuri, Japan’s biggest newspaper, reported that Japan’s National Consumer Affairs Agency is planning to regulate a certain lucrative mechanism in social games, shares of makers are dropping like a rock.

A few people in the industry (myself included) speculated this was going to happen, and it appears that the agency is now really ready to crack down on “complete gacha”, a sub-form of the gacha game mechanic, in particular.

At the Tokyo Stock Exchange, both Gree and Mobage operator DeNA opened the trading day ask-only today.

Gree dropped a whopping 500 yen (limit-down), or 23.2%, to 1,651 yen. Arch enemy DeNA’s stock also went down by 500 yen (limit-down), or 20.1%, to trade at 1,990 yen.

It isn’t just the platform and 1st-party game providers: Japanese and listed 3rd-party social game makers are taking a beating, too, ie Konami (-13.92%), Crooz (-16.85%), or CyberAgent (-18.26%).

The last three days were certainly not good days for Japan’s social gaming industry.

The Nikkei Index as a whole is currently down 2.54% (May  7, 1115am JST).

Serkan Toto About Serkan Toto
I am the CEO & Founder of Kantan Games, Inc., a Tokyo-based game industry consultancy focused on the Japanese market. Please subscribe to updates on this site via RSS or Email.