Genshin Impact Looted: $20m Penalty for Child Lootbox Sales

Cognosphere, the US publisher of Genshin Impact, has agreed to a settlement with the U.S. Federal Trade Commission (FTC). The settlement includes a $20 million penalty and a stipulation prohibiting in-app purchases by children under 16 without parental consent. Cognosphere pleaded guilty to FTC charges alleging deceptive practices regarding in-game purchases and violations of the Children's Online Privacy Protection Act (COPPA). The FTC accused Cognosphere of misleading players, particularly children and teens, about the value and probability of obtaining rare in-game items, leading to significant, often unnecessary, spending. FTC Bureau of Consumer Protection Director Samuel Levin emphasized that companies employing deceptive "dark patterns" will face repercussions for misleading players, especially minors.

Meanwhile, HoYoverse's Zenless Zone Zero continues its strong performance in the mobile gaming market. The recent 1.4 update, "And the Starfall Came," saw a record-breaking $8.6 million in daily player spending on mobile devices alone, surpassing even its July 2024 launch peak. AppMagic data reveals Zenless Zone Zero has already accumulated over $265 million in mobile revenue. The update's introduction of new characters (Hoshimi Miyabi and Asaba Harumasa), locations, game modes, and enhanced mechanics are credited with boosting player spending.