Genshin Impact developer Hoyoverse has been hit with a $20 million fine by the Federal Trade Commission (FTC) for selling lootboxes to minors. The ruling also bans the company from selling these virtual items to players under 16 without parental consent. This decision marks a significant moment in the ongoing conversation about gacha mechanics and lootboxes in video games.
Genshin Impact, a popular action role-playing game, is known for its gacha system. Players spend real money for a chance to obtain rare characters and items. This mechanic, inspired by Japanese capsule-toy vending machines, has faced criticism for its similarity to gambling.
The FTC’s ruling highlights growing concerns about the impact of these systems on young gamers. Many worry that exposure to such mechanics at an early age could lead to unhealthy financial behaviors later in life. The $20 million fine, while substantial, is unlikely to significantly impact Hoyoverse given Genshin Impact’s massive success.
Genshin Impact game developer will be banned from selling lootboxes to teens under 16 without parental consent, pay a $20 million fine to settle FTC charges: https://t.co/hGBvbvSUL6 /1
— FTC (@FTC) January 17, 2025
This decision could have far-reaching consequences for the gaming industry. Other popular games with similar systems, like FIFA and CS:GO, may face increased scrutiny. The ruling also emphasizes the need for robust parental control systems in games targeting younger audiences.
Enforcing the new parental consent requirement may prove challenging. Questions remain about how Hoyoverse and other companies will verify a player’s age and obtain proper consent. This could lead to the development of new age verification systems in online gaming.
The FTC’s action against Hoyoverse adds to a growing trend of regulatory attention on microtransactions in video games. Some countries, like Belgium and the Netherlands, have already implemented stricter regulations on lootbox systems. This ruling could potentially influence similar decisions in other regions.
