HoYoverse, the publisher behind the popular game Genshin Impact, has reached a settlement with the US Federal Trade Commission, resulting in a hefty fine of $20 million. This penalty stems from concerns regarding the game’s gacha mechanics and the management of data related to younger players. The federal government has raised allegations that Genshin Impact misled its audience, especially children and teenagers, into making real-money purchases, despite the low chances of obtaining the desired in-game items.
Genshin Impact has gained immense popularity as a mobile game, captivating a vast audience with its engaging gameplay and stunning visuals. However, it has not been without its share of criticism, particularly concerning its gacha system. This system, known as the “Wish” feature, allows players to obtain new characters and weapons by making pulls, akin to opening loot boxes. While this mechanic adds an element of excitement, it has also led to dissatisfaction among players who feel that the odds of obtaining desirable items are not favorable.
A settlement has been finalized, requiring HoYoverse to pay a hefty fine of $20 million, which will be directed to the US Treasury. The Federal Trade Commission (FTC) has raised concerns about HoYoverse’s substantial investments in promoting its Genshin Impact gacha system. One notable instance highlighted by the FTC involved a sponsored video featuring popular streamer SSSniperwolf, which was released in 2021. In this video, SSSniperwolf received a payment of $100,000 to showcase the game, during which she made 12 consecutive wishes and successfully obtained Zhongli, a highly sought-after 5-star character at that time.
FTC Takes Issue with Minors Playing Genshin Impact
The agreement also addresses claims regarding the improper management of data related to minors, particularly concerning their targeting for gacha purchases in Genshin Impact. As part of the settlement, HoYoverse has not only incurred a substantial fine amounting to millions but has also committed to a significant policy change. Moving forward, the company will refrain from allowing users under the age of 16 to purchase gacha wishes unless they have obtained explicit parental consent.
A representative from the game has addressed the recent agreement, stating that HoYoverse does not acknowledge any fault, asserting that a significant number of the claims made are inaccurate. Despite this stance, the company has chosen to accept the terms of the settlement, emphasizing its desire to maintain the confidence of the Genshin Impact community. This decision reflects a commitment to fostering a positive relationship with its players, even in the face of controversy.