Genshin Impact Authors Fined $20M, Ban Lootbox Sales to Kids

Cognosphere, the US publisher behind the popular game Genshin Impact, has agreed to a $20 million settlement with the U.S. Federal Trade Commission (FTC) following charges of deceptive practices. The company has also pleaded guilty to the FTC's accusations, which include violating the Children's Privacy Act and misleading players about the value and probability of obtaining rare in-game items. As part of the settlement, Cognosphere is now barred from allowing minors under the age of 16 to make in-game purchases without parental consent.
The FTC's allegations highlight that Cognosphere deliberately deceived players, particularly children and teenagers, leading them to spend significant amounts of money on items with a low chance of acquisition. Samuel Levin, Director of the FTC's Bureau of Consumer Protection, emphasized that companies using dark patterns to mislead consumers, especially young players, 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's version 1.4 update, "And the Starfall came," released in July 2024, saw a record-breaking $8.6 million in daily player spending on mobile devices. According to AppMagic, Zenless Zone Zero has amassed over $265 million in total revenue from mobile platforms. The latest update introduced new agents like Hoshimi Miyabi and Asaba Harumasa, along with new locations, game modes, and enhanced mechanics, all of which have spurred increased player spending.
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