Forum: Stronger steps needed to protect young gamers and their families

As a former player of Genshin Impact, I was interested to read about Singapore-based Cognosphere’s US$20 million (S$27 million) settlement with the US Federal Trade Commission (FTC) over allegations of violating children’s privacy laws and misleading marketing practices (Genshin Impact publisher to pay $27m to settle US charges of violating children’s privacy, Jan 18).

While I commend this step towards accountability, I believe it underscores a larger issue with predatory monetisation strategies in gaming.

For those unfamiliar, Genshin Impact is a free-to-play game with a “gacha” system – essentially loot boxes – where players use in-game currency to “wish” for characters and items.

This is problematic because the odds of obtaining these coveted characters are very low, while limited-time banners add urgency, pressuring players to spend money before the opportunity disappears.

This leads to a dangerous cycle known in the gaming community as “whaling”, where players – often children or vulnerable individuals – spend exorbitant amounts of money chasing rare rewards.

I have seen first-hand how easy it is to get caught up in this spiral. While I set a strict budget for myself, many of my peers did not. Some spent hundreds, even thousands, of dollars trying to acquire limited characters, spurred on by the game’s design and flashy marketing.

What makes it worse is that the game often obscures real costs, burying the equivalent value of in-game currency behind unfamiliar conversion rates.

For a child or teenager, the consequences can be devastating, leading to regret, financial strain or, worse, addiction-like behaviour.

The FTC’s intervention to prohibit in-game purchases by children under 16 without parental consent is a good starting point, but I believe it should go further.

Transparency about the odds of winning rare items should be mandatory and prominently displayed. Gaming companies need to stop exploiting psychological tactics to prey on their most loyal players.

Moreover, there should be stricter age restrictions for games with gambling-like mechanics and greater parental control tools.

Gaming should be a source of joy and creativity, not a financial trap disguised as entertainment.

As more games adopt the gacha model, we need stronger consumer protections to ensure that young players and their families are not manipulated or harmed. Let this settlement serve as a wake-up call to the industry – and to all who enjoy gaming responsibly.

Samantha Lim