Genshin Impact Devs Fined $20M for Child Lootboxes

Cognosphere, the US publisher of Genshin Impact, has settled charges filed by the Federal Trade Commission. The company agreed to pay $20 million in penalties and implement restrictions preventing players under 16 from making unauthorized in-game purchases.

The FTC accused Cognosphere of misleading players about the actual value of in-game items and their chances of obtaining rare rewards. These deceptive practices targeted young players, many of whom spent hundreds of dollars with little chance of receiving desirable items.

"Companies using deceptive tactics will be held accountable," warned Samuel Levin of the FTC's Bureau of Consumer Protection. "This especially applies when businesses mislead younger players about in-game purchases."

Meanwhile, HoYoverse's Zenless Zone Zero continues its mobile market dominance. Its Version 1.4 update, "And the Starfall Came," achieved record daily spending of $8.6 million on mobile platforms alone, surpassing its previous July 2024 peak.

Mobile revenue for Zenless Zone Zero has exceeded $265 million according to AppMagic. The successful 1.4 update introduced new characters Hoshimi Miyabi and Asaba Harumasa, along with enhanced gameplay features that drove increased player spending.