Genshin Impact Authors Banned from Selling Lootboxes to Kids, Fined $20M

Cognosphere, the US publisher of the popular game Genshin Impact, has accepted charges brought by the U.S. Federal Trade Commission (FTC). As part of the settlement, Cognosphere has agreed to pay a hefty fine of $20 million and implement strict measures to prevent minors under the age of 16 from making in-game purchases without parental consent. The company has also entered a guilty plea to the FTC's allegations.

The FTC's charges against Cognosphere include violations of the Children's Privacy Act and accusations of misleading players about the actual value of in-game purchases and the odds of obtaining rare items. The FTC alleges that Genshin Impact manipulated children, teenagers, and other players into spending significant amounts of money on items with a low probability of acquisition.

Samuel Levin, Director of the FTC's Bureau of Consumer Protection, emphasized that companies employing dark patterns to deceive players, especially children and teenagers, about the true value of in-game transactions will face repercussions.

Meanwhile, HoYoverse's other title, Zenless Zone Zero, continues to dominate the mobile gaming market. The game set a new record with the release of its version 1.4 update, "And the Starfall came," generating an impressive $8.6 million in daily player spending on mobile devices alone. This surpassed the previous peak achieved during its July 2024 launch.

According to data from AppMagic, Zenless Zone Zero has amassed over $265 million in total revenue from mobile platforms. The 1.4 update introduced new agents, such as Hoshimi Miyabi and Asaba Harumasa, along with new locations, game modes, and enhanced mechanics, all of which have encouraged increased player spending.