Love and Deepspace, the mobile romance game from Chinese developer Papergames, saw its monthly revenue collapse to US$10.3 million in July 2026 — a 73% drop from the US$38 million it earned in June, according to revenue data cited by GameSpot.

The game had been consistently pulling in US$30–60 million per month before the decline. The cause, per GameSpot's reporting, traces back to a single character: Valko, who was meant to become Love and Deepspace's sixth love interest — a new romantic lead designed, the publisher hoped, to open fresh monetisation opportunities and boost player spending (GameSpot).

Valko never made it into the game. Fans reacted badly to the announcement, and Papergames cancelled the character's debut in response to the backlash. An update shipped on July 9, 2026 — the one intended to introduce Valko — arrived with his content simply removed, rendered blank where his story should have been.

Then the Chinese government stepped in. A representative of China's Ministry of Public Security News and Media criticised Valko's promotional slogan, saying the content "disregards public order and morality, crosses legal boundaries, and may endanger public safety," as reported by GameSpot. Following that criticism, Love and Deepspace characters and storylines were pulled and are now being re-certified. The government framed the action as a warning to other studios: any content that "deliberately blurs the lines of illegality, glorifies dangerous behaviour, or undermines public safety" will face removal.

Papergames also pulled its booth from BilliBilli World 2026, one of the largest anime and gaming conventions in Asia — a visible retreat from the public eye at a moment when scrutiny was intensifying.

The financial impact is stark. Love and Deepspace is a gacha game — players spend real money for chances to unlock characters and story content. Adding a new love interest like Valko would typically drive a surge of spending as players race to unlock and romance him. Instead, the cancellation removed that revenue stream entirely, and the government-ordered content cuts disrupted the game's live-service model, where regular updates keep players engaged and spending.

For fans, the situation means a game they've invested time and money in is losing content rather than gaining it. Re-certification leaves characters and storylines in limbo, with no confirmed timeline for their return.

The fallout extends beyond one title. The Chinese government's warning signals that romance and character-driven games — a fast-growing segment of the mobile market — face the same regulatory pressure as action and strategy titles have in recent years. Studios building their revenue around provocative characters or edgy promotional campaigns now have a concrete example of what can happen when regulators decide a line has been crossed.

Meanwhile, the gacha revenue charts shuffled elsewhere in July 2026. Zenless Zone Zero, HoYoverse's action title, climbed from 15th place to third — a shift that suggests players displaced from Love and Deepspace may be spending elsewhere, though the data alone doesn't confirm where the money went.