Mobile gaming is a highly competitive industry, with new games competing for user attention daily. However, periodically, large gaming companies that dominated the mobile market from its inception re-emerge as market leaders. In this case, we witnessed Genshin Impact re-emerge in a major way, with a very impressive revenue surge of over $66 million on mobile in 30 days.

The driving force behind this resurgence is an extremely popular, much-anticipated Genshin Impact Luna IV update, which sparked renewed interest in the game from the global community of Genshin Impact players.

So, how did this update create such an impact financially and what can we learn about the ever-changing landscape of “live service” games from this?

The Lasting Strength Of Genshin Impact

After being launched by miHoYo (now referred to as HoYoverse around the world) as one of the first-ever free-to-play action RPGs to have an enormous open world, anime-style graphics, and an engaging storyline, Genshin Impact has been an immediate hit with gamers all over the world.

Like most other games offering a live service, the revenue cycle for Genshin Impact varies according to when a major update rolls out, the introduction of new character banners, and/or the arrival of seasonal events within the game. When new content is obtained following these updates, many people will then return to the game once again to experience the new content. The release of new content via Luna IV Update is allowing new users to come back to Genshin Impact with excitement.

Genshin top up and monetization models are primarily built upon its gacha mechanics, allowing players to spend in-game currency to try and unlock new and powerful characters or weapons through a random number generator (gacha). The launch of Luna IV provided several new and exciting characters with all kinds of abilities and backgrounds that players had been waiting for. With both new and existing players being able to pull for these characters using Primogems, this led to a major influx of microtransactions as players rushed to get these characters as quickly as possible.

When one of the most popular character banners from any gacha-based game comes out, it can generate millions of dollars in revenue in a matter of days after being available, and the Luna IV update was no different.

  In addition to new characters, players were also returning to the game for new story content and additional lore surrounding Teyvat. With both new and old players returning to Genshin because of new gameplay updates, they also have the opportunity to play through new quest content that expands and enriches the lore of Teyvat. Keeping the community (long-time or returning) engaged through gameplay and narrative updates will help solidify the emotional connection between developers and the gaming community.

  3. Events with Limited Timeframes that Promoted Spending

One of the main ways Live service games, such as Luna IV, monetize their players is through limited-time events. These events reward players who participate with different items that can be used for cosmetic or upgrade purposes; they also promote Social Interaction as people are encouraged to work together and play along.

Beyond this, additional Social Interaction between Players, limited-time events serve as an effective monetization tool for most Live Service games. When Players actively try to get as many rewards from limited-time event participation as possible, they often end up needing to spend money on:

  •  Character Pulls
  •  Resource Packs
  •  Battle Pass Upgrades

Limited availability creates Urgency within Player Retention by converting many returning Players into pay-to-play players.

  4. Strategic Dominance of the Mobile Market

After a major Promotional Campaign launch in Regions such as China, Japan, and the US at the same time as the Luna IV update was released, Genshin Impact has made yet another global leap up the rankings of mobile games with respect to Revenue Generated. Genshin Impact’s Mobile Players tend to use Gacha Mechanics (in very high volume), which equates to a substantial impact on Genshin’s Monthly Revenue Spikes. LootBar is a website where people can buy things online for games. They can buy gift cards and money to use in games. 

Summary 

A game like Genshin Impact has a short-term success and launch success as one part of long-term success. Through the use of these methods, developers can create an engaged audience, leading to more revenue over time and even years later, as seen with Genshin Impact’s past history at launch.