Genshin Impact Faces $20 Million Penalty for Deceptive Gacha Practices

January 19, 2025 - 01:26

Genshin Impact remains one of the most popular gacha games in the world, constantly adding new regions and characters, but now they’ve run afoul of the FTC. The Federal Trade Commission has imposed a substantial fine of $20 million on the game’s developers for allegedly misleading players regarding their spending on in-game purchases.

Concerns were raised over the game's gacha mechanics, which encourage players to spend real money for a chance to obtain virtual items and characters. The FTC's investigation revealed that the game did not adequately disclose the odds of obtaining specific items, leading many players to spend more than they intended. This lack of transparency has drawn criticism from consumer advocates who argue that such practices exploit players, particularly younger audiences who may not fully understand the risks involved in gacha spending.

As the gaming industry continues to grapple with ethical concerns surrounding microtransactions, Genshin Impact's hefty fine serves as a cautionary tale for other developers. The outcome of this case may prompt changes in how gacha games operate, potentially leading to increased regulation and greater accountability in the industry.