Background

GalGame (Japanese: ギャルゲーム, Romanized as Gyaru Gēmu, also known as “Bishoujo games”) is an electronic game that allows players to interact with animated female characters.

GalGame emerged shortly after the introduction of personal computers and gave birth to a wave of classic works in the 1990s. It experienced a period of glory in the early 2000s but has gradually faced market contraction in recent years due to various factors, leading to the closure of some companies.

Rise

The rise of GalGame is closely associated with the characteristics of its time.

In the early 21st century, as personal computer performance improved and the internet became more prevalent, GalGame became the mainstream of the Japanese computer game market. Its unique narrative style enables players to interact with in-game characters and influence the progression of the story. Initially targeting male players, GalGame expanded its reach to include otome games designed for female players from around 2000 onwards.

Prosperity

Around the year 2000, a plethora of classic works were created, many of which continue to be cherished by GalGame enthusiasts. However, alongside the market’s flourishing, certain underlying issues gradually surfaced.

GalGame distribution predominantly relied on physical CDs, with developers largely overlooking the untapped potential of overseas markets. Limited channels, a narrow customer base, and widespread piracy severely limited the profitability of these companies.

Decline

After 2010, the GalGame market began its steady contraction. The decline of Otome games and GalGames did not occur simultaneously, with a time lag of nearly 10 years between them. However, the underlying reasons for their decline share striking similarities.

GalGame itself is a niche market, with a significantly smaller audience compared to anime, manga, and novels.

As user entertainment preferences shifted from PCs to mobile devices, GalGames remained predominantly confined to PCs (with some later expanding to platforms like PS4 and Xbox).

The content market became increasingly saturated with novels, manga, and anime, gradually replacing GalGames.

Fragmented entertainment consumption patterns made lengthy GalGames, often comprising millions of words, less compatible with prevailing leisure habits.

The traditional distribution model confined the market primarily to Japan.

Piracy issues persisted.

The vicious cycle of high pricing leading to low sales, which in turn compelled developers to increase prices.

Another intriguing phenomenon unfolded in the Otome game market. The distribution channels indirectly influenced the fate of game developers. In 2014, when the PSP announced its discontinuation, Otome game developers faced the choice of migrating to new gaming platforms or continuing to release games on the discontinued PSP. As game device iterations accelerated thereafter, the decisions regarding migration, porting, and whether to do so became increasingly critical. Following the release of the Switch in 2017, Otome game developers collectively adopted a wait-and-see approach. It wasn’t until 2018, when Switch sales surpassed six million units, that they cautiously began porting their games. However, the initial ported titles experienced dismal sales, exacerbating hesitations among other developers. As a result, the market continued to languish, leading to the closure or bankruptcy of several companies.

So, are we inevitably approaching the conclusion that GalGames, and possibly even Otome games, will eventually meet their end?

Not necessarily.

First and foremost, it’s important to acknowledge that while GalGames are referred to as games, they have a different focus compared to mainstream mobile games and place less emphasis on gameplay. This is why the term “Visual Novel” is used in the West to describe such works, rather than GalGames.

The core of a GalGame lies in its content and themes, with the narrative techniques determining what is presented to players/readers. Creating a GalGame requires relatively low costs and technical barriers, allowing interest groups, individual creators, and small studios to enter the market (although the completion rate is not necessarily high).

Many remarkable works initially emerged as GalGames. Titles like “Tsukihime,” “Fate/Stay Night,” “Steins;Gate,” “AIR,” “Higurashi When They Cry,” and “CLANNAD” were adapted into anime series and received widespread acclaim.

From a player’s perspective, a captivating GalGame often features extensive textual content, intricate branching storylines, and well-rounded character development. Beautiful artwork, music that complements the story, and nuanced voice acting all contribute to an immersive experience.

GalGames prioritize content progression rather than gameplay skills. Players make choices in the narrative that lead to different outcomes, without requiring complex gameplay abilities. This simplicity and focus on storytelling not only make it accessible for creators, as the creative threshold for GalGames is often lower compared to anime and other games, but it also allows for the expression of diverse and rich content. Additionally, GalGames offer a high degree of freedom in crafting immersive experiences and presenting compelling narratives, fostering deep emotional connections between readers/players and the game’s characters. It’s akin to experiencing a moving dream that lingers long after waking up…

Once the content foundation is established, it serves as a solid and stable base. Building upon this foundation, a GalGame can be adapted into an anime or other media to broaden its audience. Simultaneously, the release of downloadable content (DLC), merchandise, collaborations, and the development of mobile games based on the intellectual property (IP) can all contribute to its ongoing success. A high-quality GalGame has tremendous potential, as its content foundation alone can support a vast array of derivative content and value. In earlier years, we witnessed the success of the “Fate” series, while more recently, the “Nekopara” series has garnered attention.

Certainly, the content presentation model of GalGames also has its limitations. The extensive amount of text to read and the time commitment involved filters out a significant number of potential users. Additionally, the seemingly low production costs often lead many creators to underestimate the resources required, resulting in low completion rates due to unexpected expenses and time constraints during the production process.

According to estimates, a well-crafted and lengthy GalGame can have a budget ranging from hundreds of thousands to millions of Chinese yuan. While some individual creators and doujin groups may be able to complete a work with a budget of tens of thousands or even lower, it’s important to acknowledge the labor of creators that is not factored into the production costs.

Compared to the development costs of mobile games, which can easily reach millions or even billions of Chinese yuan, several hundred thousand yuan may not be considered high. However, it’s crucial to consider the smaller potential user base of GalGames.

In the earlier years, a GalGame selling over 5,000 copies was already deemed successful, while surpassing 10,000 copies was considered a significant achievement. Breaking the 20,000 mark would position a work in the top ten annual sales, and exceeding 100,000 copies would be regarded as a phenomenon, as seen with titles like “AIR,” “Fate/Stay Night,” and “CLANNAD.” During this period, GalGames were commonly priced higher and sold in physical CD format.

2000

1. AIR Key/VA 102080

2. 猪名川でいこう! Leaf/aquaplus 74525

3. Natural2-DUO- F&C 58781

4. エルフオールスターズ脱衣雀 ELF 58752

5. 夜勤病棟 Mink 56412

6. GREEN～秋空のスクリーン～ Jellyfish 56225

7. まじかる☆アンティーク Leaf/aquaplus 53039

8. ロマンスは剣の輝きⅡ F&C 47891

9. 恋姫 ELF 42510

10. DARCROWS AliceSoft 36813

2001

1. 鬼作 ELF 96617

2. Pia・キャロットへようこそ!!3 F&C 75542

3. 誰彼-たそがれ- Leaf/aquaplus 60289

4. 大悪司 AliceSoft 57420

5. 夜が来る!-Square of the Moon- Alicesoft 50056

6. 同窓会again F&C 48244

7. 君が望む永遠 age 46119

8. みずいろ ねこねこソフト/戯画PB 42767

9. 銀色～完全版～ ねこねこソフト/戯画PB 38247

10. あしたの雪之丞 ELF 34248

2002

1. 妻みぐい AliceSoft 68292

2. うたわれるもの Leaf/aquaplus 58498

3. ねこねこファンディスク ねこねこソフト/戯画PB 47530

4. 超昂天使エスカレイヤーDVD版 AliceSoft 43417

5. いきなりはっぴぃベル テリオス 40725

6. D.C. CIRCUS 38525

7. DALK外伝 AliceSoft 37736

8. 水月 F&C 34541

9. とらいあんぐるハート1・2・3 DVD版 JANIS 29182

10. らいむいろ戦奇譚 ELF 28998

2003

1. マブラヴ age 68785

2. SNOW StudioMEBIUS/VA 64526

3. 天使のいない12月 Leaf/aquaplus 58140

4. 朱-aka- ねこねこソフト/戯画PB 57640

5. LOVERS Jellyfish 53353

6. 大番長 AliceSoft 50385

7. デモンベイン nitro+ 48332

8. 妻みぐい2 AliceSoft 45708

9. ねこねこファンディスク2 ねこねこソフト/戯画PB 32250

10. 月は東に日は西に AUGUST/戯画PB 31518

2004

1. Fate/stay night TYPE-MOON 146686

2. CLANNAD Key 100560

3. SHUFFLE! Navel 54483

4. 下級生2 elf 47890

5. ラムネ ねこねこソフト 39803

6. Canvas2茜色のパレット F&C FC01 38518

7. D.C.P.C. ダ・カーポ プラスコミュニケーション Circus 37928

8. 君が望む永遠 special fandisk age 35375

9. オーガストファンBOX オーガスト 33610

10. RanceⅥ ゼス崩壊 アリスソフト 33123

2005

1. Fate/hollow ataraxia TYPE-MOON 154015

2. ToHeart2 XRATED Leaf 110393

3. 夜明け前より瑠璃色な オーガスト 68599

4. 智代アフター It’s a Wonderful Life Key 49226

5. ぱすてるチャイムContinue アリスソフト 41456

6. つよきす きゃんでぃそふと 36867

7. SchoolDays Overflow 32278

8. _Summer HOOK 30010

9. Fate/stay night TYPE-MOON 28557

10. はぴねす! ういんどみる 28370

2006

1. 戦国ランス アリスソフト 63634

2. マブラヴオルタネイティブ age 62546

3. D.C.Ⅱ Circus 54881

4. Really!Really!Limited Edition Navel 42280

5. ef -the first tale minori 40843

6. Scarlett ねこねこソフト 37453

7. Pia★キャロットへようこそ!! G.O. カクテルソフト 36510

8. 妻しぼり アリスソフト 30335

9. Circus Disk Christmas Days Circus 29452

10. みにきす つよきすファンディスク きゃんでぃそふと 28519

Another set of data comes from recent GalGames in China:

For a GalGame of decent quality, it is considered realistic to sell around 10,000 to 20,000 copies in the Chinese market. Selling around 30,000 to 40,000 copies would classify a game as a niche topic within a certain range, while reaching 50,000 copies or more would generally be regarded as a standout title of the year.

Whether in Japan or domestically, GalGames with astonishing sales figures are rare. However, there are always exceptions, such as the upcoming discussion of “Nekopara.”

Attracting a Larger Pool of Potential Users

Enumerating the limited sales of GalGames reveals several factors that contribute to this phenomenon, including strategic decision-making by the developers, inadequate marketing and promotion efforts, and being confined to the domestic market.

One series that deserves special mention is “Nekopara.”

Prior to its release, GalGames primarily focused on the Japanese market and had limited distribution channels. However, “Nekopara” broke the mold by supporting multiple languages (Japanese, Chinese, and English) from the outset. It was compatible with various platforms and expanded beyond the traditional distribution channel of DLSite, making its way onto Steam. Subsequently, it was also ported to the Nintendo Switch and PlayStation 4.

Since its initial release in 2014, “Nekopara” has consistently released sequels and, in 2021, announced sales exceeding 5 million copies.

Let’s do a simple calculation: assuming an average selling price of 2,000 Japanese yen and a channel cut of 30% (which may actually be lower), the cumulative revenue from the series alone could exceed 7 billion Japanese yen, not accounting for merchandise and other derivative income.

Regarding production costs, even if each installment had a budget in the tens of millions of Japanese yen, the overall cost would likely not exceed 100 million Japanese yen.

So, what factors contributed to the market performance of “Nekopara”?

• Emphasis on marketing and promotion efforts.

• Expansion into the global market by leveraging the Steam platform.

• Support for multiple languages (Japanese, Chinese, and English) and the inclusion of bilingual subtitles.

• Exquisite production quality combined with an affordable price point.

• Relatively shorter gameplay duration compared to other GalGames.

Interestingly, experienced GalGame users often scrutinize “Nekopara” based on traditional Japanese GalGame standards, while a significant number of players praise the game fervently.

In terms of commercial success, “Nekopara” has performed exceptionally well. However, it is somewhat poignant that the key factor behind its success lies in its appeal to a different user demographic than that of seasoned GalGame players. In reality, a substantial portion of its support comes from a large number of “outsider” players.

The traditional Japanese GalGame market continues to shrink, with notable companies closing down or ceasing operations each year. Meanwhile, the surviving companies are gradually shifting their focus to Steam distribution and expanding into international markets. They are also departing from the old model of high pricing and lengthy gameplay, embracing new approaches.

It seems like a case of “out with the old, in with the new.”

Taking it a step further, GalGame developers are venturing into the realm of mobile gaming. In February 2022, Key and Wright Flyer Studios collaborated to release “Heaven Burns Red” (ヘブンバーンズレッド). While the GalGame community may not categorize “Heaven Burns Red” as a traditional GalGame, it is undoubtedly a story-driven work that… indeed, proves to be profitable.

Whether it’s “Nekopara” with its support for multiple platforms, international focus, and emphasis on marketing, or the exploration of mobile gaming and monetization with “Heaven Burns Red” (ヘブンバーンズレッド), both demonstrate the high potential of GalGames as a content presentation model. The notion that GalGames are difficult to commercialize simply reflects the fact that the old models no longer apply in the current entertainment landscape. From a commercial standpoint, game developers must innovate, actively promote, expand their reach to readers and players, and enhance the convenience of their games to thrive. From the perspective of doujin circles, the focus is on gathering around a shared ideal and finding joy, without being overly concerned about market-related issues. Whether adhering to the traditional GalGame presentation model or exploring new approaches, creators have the freedom to choose. As for distribution channels, the lower the cost, the better.

Looking ahead, the next step for GalGames is to embrace mobile devices, tablets, and PC support, enabling online gameplay. In China, numerous explorations have already taken place, with significant efforts in manga and novel platforms leading to various adaptations. Formats such as “manhua drama” or “dynamic manga” have emerged, along with interactive text reading apps like Orange Novel Reader, Yicigeng, and Shanyi. However, the creative environment in China poses certain limitations, including commercial constraints and stringent platform policies that not only claim rights to derivative adaptations but even control the creators’ materials.

In Japan, a web-based reading platform called novelgames has emerged, primarily driven by doujin circles and individuals. However, the mobile app space remains largely untapped.

Expanding on this, let’s explore the intersection of GalGames and web3.

What can web3 bring to GalGames?

The fundamental question is: What can web3 bring to GalGames?

In terms of the user base, GalGame enthusiasts represent a small segment within the realm of anime and manga. The audience size diminishes from anime and manga to GalGames, making it a relatively niche market. However, if this model proves successful, it would serve as a testament to the viability of creator economies. Moreover, for GalGame creators, web3 has the potential to provide improved copyright protection and fairer revenue distribution. The inherent characteristics of GalGames also lend themselves well to commercialization and various forms of derivatives.

After the decline of the play-to-earn trend, we find ourselves reiterating the age-old wisdom that “games should be enjoyable.”

Essentially, the question boils down to: Should we prioritize games or finance? The former seeks to provide entertainment, while the latter focuses on profitability.

Taking a different perspective, isn’t the ultimate goal of making games to offer an enjoyable experience that players are willing to pay for? GalGame development teams have repeatedly demonstrated their storytelling and character-building skills, proving their value in the past and remaining relevant in the future.

From the standpoint of development teams, web3 can offer streamlined and flexible digital distribution.

With NFTs at the core, several potential approaches can be considered:

• A “Money-Driven” Approach: Each GalGame ending corresponds to an NFT. “Dear player, are you interested in purchasing the all-in-one 12-in-1 NFT game experience card that includes all 12 endings? Collecting all of them allows you to unlock hidden editions! The success rate for crafting regular NFTs is… and for hidden editions is…” （Otaku guys will give you a good kick in the butt.）

• A “Human Nature is Collector” Approach: Players who collect all endings in the game can forge an NFT for achieving the “Grand Slam” accomplishment! Each player will receive a unique identification number! (Commence the sharing of koi carp and hopes of forging a #.233 NFT)

• A “CG is Essential” Approach: After release, CGs can be transformed into NFTs for sale! Limited editions available! Purchase an NFT and receive physical merchandise as a bonus! (Excitement ensues as plans for DLC releases and limited edition CGs are contemplated)

From the perspective of the creative community, web3 brings significant benefits in terms of copyright protection, collaboration, and distribution.

Given the substantial amount of material and collaboration involved in GalGame production, projects often operate on a project-based model. By utilizing blockchain technology for proof of ownership and smart contracts for revenue allocation, web3 can facilitate the following:

• Sales of material packages

• Commissioning and solicitation systems

• Copyright protection for works and materials

• Automated revenue allocation through smart contracts

• Copyright transactions, derivative creations, and merchandise licensing systems

Absolutely right, this particular functionality holds great significance within the meticulously crafted blueprint devised by HumiHumi.