Following a landmark settlement with the Federal Trade Commission (FTC), HoYoverse, the developer of Genshin Impact, has implemented unprecedented transparency measures revealing that obtaining a single character in the game can cost players up to $475. This disclosure marks a significant shift in how gaming companies communicate microtransaction costs to consumers.
The settlement, which includes a substantial $20 million payment from HoYoverse, addresses long-standing concerns about the game’s monetisation practices, particularly regarding loot boxes and their impact on younger players. The developer must now implement stringent age verification measures for players under 16 to prevent unauthorised purchases.
In a groundbreaking move for the gaming industry, Genshin Impact now displays the actual monetary cost of in-game purchases in real currency. Players can see that obtaining a sought-after 5-Star character or weapon requires an investment ranging from £1.98 to £475.20, providing unprecedented clarity about the financial implications of their gaming decisions.
The regulatory intervention stems from the FTC’s investigation into HoYoverse’s previous practices, where the company failed to adequately disclose the odds of winning characters and their associated costs. This lack of transparency led to instances where players, particularly minors, accumulated significant expenses without fully comprehending the financial implications of their actions.
These changes represent a pivotal moment in the gaming industry’s approach to microtransactions. The new disclosure requirements serve as a protective measure for consumers, ensuring they make informed decisions about their in-game spending. The implementation of age verification systems particularly addresses concerns about underage players accessing potentially costly game features.
The settlement’s implications extend beyond Genshin Impact, setting a precedent for the broader gaming industry. As regulatory bodies worldwide increasingly scrutinise loot box mechanisms and in-game purchase systems, other developers may need to adopt similar transparency measures to maintain compliance with consumer protection standards.
The gaming landscape is witnessing a fundamental shift towards greater accountability in monetisation practices. This transformation suggests a future where clear cost disclosure becomes standard practice, potentially reshaping how games implement and present microtransactions to their player base.
As the industry adapts to these new standards, the impact of the FTC’s action against Genshin Impact may herald a new era of consumer protection in gaming. The requirement for explicit cost disclosure could influence game design and monetisation strategies across the sector, prioritising transparency and responsible gaming practices.
Source: GamesRadar
