Genshin Impact Authors Banned from Selling Lootboxes to Kids, Fined $20M
Cognosphere, the U.S. publisher of the popular game Genshin Impact, has accepted charges brought by the U.S. Federal Trade Commission (FTC). In a significant settlement, Cognosphere has agreed to pay $20 million in damages and has committed to prohibiting minors under the age of 16 from making in-game purchases without parental permission. This decision comes after Cognosphere entered a guilty plea to FTC charges that included violating the Children's Privacy Act and purposefully deceiving players about the true value of in-game purchases and the likelihood of acquiring rare items. These deceptive practices led children, teenagers, and other players to spend hundreds of dollars on items they had little chance of obtaining.
Samuel Levin, Director of the FTC's Bureau of Consumer Protection, emphasized that companies using dark patterns to mislead players, especially children and teenagers, about the true value of in-game transactions will face repercussions. This case serves as a stern warning to other gaming companies to ensure transparency and fairness in their monetization practices.
Meanwhile, another game from the same developer, HoYoverse, titled Zenless Zone Zero, continues to dominate the mobile gaming market. With the release of its version 1.4 update, "And the Starfall came," the game achieved a remarkable record of $8.6 million in daily player spending on mobile devices alone. This surpassed its previous peak set during its July 2024 launch. According to AppMagic, Zenless Zone Zero has already amassed over $265 million in total revenue from mobile devices. The 1.4 update introduced new agents, such as Hoshimi Miyabi and Asaba Harumasa, along with new locations, modes, and enhanced game mechanics, all of which have further encouraged player engagement and spending.
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