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

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

by Grace Apr 09,2025

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 brought by the U.S. Federal Trade Commission (FTC). As part of the settlement, Cognosphere agreed to pay a hefty $20 million in damages and to implement stricter controls, prohibiting minors under the age of 16 from making in-game purchases without parental consent. This action comes after Cognosphere pleaded guilty to the FTC's allegations of violating the Children's Privacy Act and engaging in deceptive practices regarding the true value of in-game purchases and the probabilities of obtaining rare items.

The FTC's charges highlighted that Genshin Impact misled children, teenagers, and other players into spending significant amounts of money, often hundreds of dollars, 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 deceive players, especially vulnerable groups like children and teenagers, about the real value of in-game transactions will face repercussions.

Meanwhile, another game from the same developer, HoYoverse's Zenless Zone Zero, continues to dominate the mobile gaming market. The release of its version 1.4 update, "And the Starfall came," saw the game achieving a record-breaking $8.6 million in daily player spending on mobile devices alone. This peak follows the game's initial launch in July 2024, which also set high revenue benchmarks.

According to data from AppMagic, Zenless Zone Zero has amassed over $265 million in total revenue from mobile platforms. 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 spurred increased player engagement and spending.