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

Cognosphere, the U.S. publisher behind the popular game Genshin Impact, has accepted charges from the U.S. Federal Trade Commission (FTC). The company has agreed to pay a hefty $20 million in damages and has committed to prohibiting minors under the age of 16 from making in-game purchases without parental consent. This decision comes after Cognosphere entered a guilty plea to the FTC's allegations.

The FTC accused Cognosphere of deliberately misleading players about the value of in-game purchases and the odds of obtaining rare items. These deceptive practices not only violated the Children's Privacy Act but also led children, teenagers, and other players to spend significant amounts of money on items with slim chances of acquisition. Samuel Levin, Director of the FTC's Bureau of Consumer Protection, emphasized that companies employing such 'dark patterns' to mislead players, especially young ones, about the true value of in-game transactions would face repercussions.

Meanwhile, another game from HoYoverse, 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 shattered records by generating $8.6 million in daily player spending on mobile devices alone. This surpassed the previous peak set during its July 2024 release.

According to AppMagic, Zenless Zone Zero has amassed over $265 million in total revenue from mobile devices. The success of the 1.4 update can be attributed to the introduction of new agents, such as Hoshimi Miyabi and Asaba Harumasa, along with new locations, game modes, and enhanced mechanics, all of which have incentivized players to increase their spending.