Genshin Impact Authors Fined $20M for Selling Lootboxes to Children

The U.S. Federal Trade Commission's charges against Cognosphere, the US publisher of Genshin Impact, have been accepted. Cognosphere has agreed to a $20 million settlement and will prohibit minors under 16 from making in-game purchases without parental consent. Additionally, Cognosphere pleaded guilty to the FTC's charges, which included violating the Children's Online Privacy Protection Act (COPPA) and deceiving players about the value and rarity of in-game items.

The FTC alleges that Cognosphere misled children, teenagers, and other players into spending significant amounts of money on items with low acquisition probabilities. Samuel Levin, Director of the FTC's Bureau of Consumer Protection, emphasized that companies using deceptive practices, or "dark patterns," to mislead players, especially young ones, about the true value of in-game transactions will face repercussions.

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

According to 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, modes, and enhanced game mechanics, driving further player engagement and expenditure.