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 will prohibit minors under the age of 16 from making in-game purchases without parental consent. The company also entered a guilty plea to the FTC's allegations.

The FTC accused Cognosphere of deceiving players about the true value of in-game purchases and the odds of obtaining rare items, as well as violating the Children's Privacy Act. These deceptive practices led to children, teenagers, and other players spending 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 employing "dark patterns" to mislead players, especially young ones, about the value of in-game transactions would face repercussions.

Meanwhile, another game from HoYoverse, Zenless Zone Zero, continues to dominate the mobile gaming market. Following the release of the version 1.4 update, titled "And the Starfall came," the game set a new record by generating $8.6 million in daily player spending on mobile devices. This surpassed the previous peak set during its July 2024 release.

According to AppMagic, Zenless Zone Zero has now 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, all of which have spurred increased player spending.