Japanese authorities officially declared ‘kompu gacha’ social games illegal on Friday. The Daily Yomiuri, which broke the news earlier this month that the Consumer Affairs Agency was studying the virtual-card-collecting games, reported that the authorities had determined the games employed a banned sales method known as ‘cards combination’. A kompu gacha ban takes effect July 1, but Japan’s leading social game firms have already announced they would stop offering the games by the end of May.
Stateside, shares in social game company Zynga took a beating on the day Facebook shares made their Nasdaq debut. After all the IPO hype, Facebook shares closed up a meager 1% from their $38 opening price – and even that reportedly required substantial share purchases by underwriters late in the day – but Zynga fell 13% to $7.16. The shares were down 20% at one point, and trading was halted twice, although part of that involved the Nasdaq system itself buckling under the strain of all that underwriter face-saving activity.
Via This Week in Gambling