The popular romance gacha game Love and Deepspace has experienced its steepest revenue decline since its 2024 launch, with July earnings falling to just over $10 million according to Sensor Data. This marks a significant drop from June's revenue, which was closer to $40 million, and precedes a period where monthly earnings had consistently remained above $30 million.

The sharp downturn appears directly linked to a controversy surrounding the planned introduction and subsequent cancellation of a new character named Valko. Valko was slated to debut as the game's sixth love interest with Version 6.0 on July 9. However, his reveal in June ignited immediate backlash from a segment of the player base, particularly in China, who argued that the addition of a new character neglected demands for deeper engagement with existing ones.

Escalating fan protests, which reportedly included physical demonstrations at Papergames' offices, led to the developer announcing Valko's cancellation and a halt to future new love interests on June 30. This decision, in turn, provoked a strong negative reaction from a different faction of the player base, primarily international fans.

This group perceived the cancellation as a concession to Chinese player preferences, fueling a debate about the influence of different community segments. The hashtag "Bring back Valko" gained traction on social media, and multiple petitions emerged advocating for Valko's reinstatement, at least on international servers. During Anime Expo 2026, fans even organized a memorial for the character.

Adding another layer to the controversy, Chinese government officials issued a statement criticizing Valko's storyline. The government's post targeted the character's narrative for allegedly glorifying sexual assault and home intrusion, claims that had also been voiced by some Chinese players prior to the cancellation. The statement warned that games blurring the lines of legality would face removal.

While Papergames has not commented further on Valko's potential return, the ongoing dispute and player dissatisfaction appear to have driven a significant number of users away from Love and Deepspace, directly impacting its financial performance. The game's worst-ever month financially underscores the challenges of balancing diverse community demands and navigating sensitive content issues.