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). The company has agreed to pay $20 million in damages and will prohibit minors under the age of 16 from making in-game purchases without parental consent. Cognosphere entered a guilty plea to the FTC's allegations, which include violating the Children's Privacy Act and intentionally deceiving players about the true value and rarity of in-game items.

The FTC's investigation revealed that Genshin Impact misled children, teenagers, and other players, leading them to spend hundreds of dollars on items with little chance of acquisition. Samuel Levin, Director of the FTC's Bureau of Consumer Protection, emphasized that companies using deceptive "dark patterns" to mislead players, especially young ones, about in-game transactions will 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, titled "And the Starfall came," the game achieved a record-breaking $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 generated over $265 million in total revenue from mobile platforms. The 1.4 update introduced new agents like Hoshimi Miyabi and Asaba Harumasa, along with new locations, modes, and enhanced game mechanics, all of which have spurred increased player spending.