Japan?s DeNA Appears Unfazed By Gaming Mechanics Ban As Profit Is Up 20%

At least for the time being, Japan's multibillion dollar gaming giant DeNA appears to be unaffected by the government's recent inquiry into 'gacha' gaming mechanics. Profits were up 20 percent year-over-year to 10 billion yen ($127.3 million). Overall revenue was up 37 percent to $605.9 million. Japanese gaming companies have faced some headwinds in the early part of this year as the country's consumer affairs agency cracked down on a gambling or 'wishing well'-like gaming mechanic called kompu gacha that randomly awards players prizes (kind of like a slot machine). The biggest mobile gaming companies in the country like DeNA and GREE have stepped back from using them, which has put downward pressure on their share prices. DeNA removed these mechanics from its games in May (or two months into the quarter).?The company said that increased spending on virtual currency offset the loss of these mechanics, although we'll only see the real effects perhaps in the next quarter.

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