Love and Deepspace loses $27.7 million in July 2026 over Valko controversy

In brief

• Love and Deepspace saw its revenue fall to $10.3 million in July 2026, down 73% from June.
• The controversy around Valko, a character that was announced and then cancelled, has split the community.
• Papergames withdrew from BiliBili World 2026, underscoring how serious the situation has become.

GAME-scanner analysis

Love and Deepspace’s financial situation is worrying, especially given its earlier monthly revenue range of $30 million to $60 million. The dramatic drop to $10.3 million in July 2026 is not only a sign of a financial crisis, but also of a breakdown in communication with players. The announcement of Valko, a character described as a “tough tech CEO and werewolf clan leader,” sparked intense debate within the community. While some players were excited about the addition, others strongly opposed it. This kind of division can seriously hurt a game, especially in a competitive market where titles like Genshin Impact and Honkai: Star Rail dominate.

Papergames’ decision to pull its booth from BiliBili World 2026 points to the seriousness of the situation. It signals that the developer is aware of the negative impact the controversy is having on its image and financial health. The question now is how they will handle the situation and whether they can win back players’ trust.

What does this mean for players?

For players, this means the future of Love and Deepspace is uncertain. The huge revenue drop could affect future updates and the development of new content. Players hoping for an improved experience may be disappointed if Papergames cannot stabilize the situation. The community will also have to wonder whether its voice will be heard in future developer decisions.