Virtual Asset Trading in MMORPGS Henrique Malvar

What the PowerPoint will cover What is virtual asset trading? How did it begin? The influence of macroing/botting How did major games respond to online trading? What is it’s effect on the economy? Who is selling virtual assets? (Who are the big players) Crazy examples Ethical Problems? What about in future MMORPGS?

What is virtual asset trading?

How did it begin?

The influence of macroing/botting

How did major games respond to online trading?

What is it’s effect on the economy?

Who is selling virtual assets? (Who are the big players)

Crazy examples

Ethical Problems?

What about in future MMORPGS?

Virtual Asset Trading The trade of virtual items for real life money Worlds are run on a virtual economy – more money translates to more power Some players feel gaining money in games takes to long, thus they opt to just purchase the virtual money with real life currencies

The trade of virtual items for real life money

Worlds are run on a virtual economy – more money translates to more power

Some players feel gaining money in games takes to long, thus they opt to just purchase the virtual money with real life currencies

Where did it all begin? Everquest – 1999 Almost impossible for casual players to keep up with hardcore gamers Gamers began to resort to buying items instead of playing for days to acquire them Asheron’s Call- 2000 No max level, thus casual players were extremely hurt First case of players macroing/botting to gain experience and money faster

Everquest – 1999

Almost impossible for casual players to keep up with hardcore gamers

Gamers began to resort to buying items instead of playing for days to acquire them

Asheron’s Call- 2000

No max level, thus casual players were extremely hurt

First case of players macroing/botting to gain experience and money faster

The influx of eBay

The influence of botting

Everquest & Everquest II Since the release of Everquest Sony didn’t allow the trading of virtual assets In January of 2001, Sony asked eBay to stop listing any auctions regarding Everquest However in July 2005, Sony launched the Station Exchange-a way to facilitate buying in-game items

Since the release of Everquest Sony didn’t allow the trading of virtual assets

In January of 2001, Sony asked eBay to stop listing any auctions regarding Everquest

However in July 2005, Sony launched the Station Exchange-a way to facilitate buying in-game items

Station Exchange A website set up by Sony to easily allow players to sell and purchase items & characters Only on two servers in the game Safe way for players to exchange goods

A website set up by Sony to easily allow players to sell and purchase items & characters

Only on two servers in the game

Safe way for players to exchange goods

World of Warcraft

Other Games Lineage I & II- Selling assets isn’t allowed, however it is not strictly enforced Asheron’s Call-Selling of characters and player housing not allowed, selling of virtual money is allowed Dark Age of Camelot- Not allowed, and strictly enforced

Lineage I & II- Selling assets isn’t allowed, however it is not strictly enforced

Asheron’s Call-Selling of characters and player housing not allowed, selling of virtual money is allowed

Dark Age of Camelot- Not allowed, and strictly enforced

Effect on economy View #1 Creates a large amount of competition within the server, driving down prices which is almost like the Wal*Mart effect Although gold farming is disreputable, it still creates a very competitive capitalistic economy

Creates a large amount of competition within the server, driving down prices which is almost like the Wal*Mart effect

Although gold farming is disreputable, it still creates a very competitive capitalistic economy

Effect on the economy View #2 Virtual Asset traders (Gold Farmers) causes inflation The value of the virtual currency goes down, thus the price needed to purchase goods goes up Extremely harmful to new players as they won’t receive enough money from quests & monsters to purchase intended items

Virtual Asset traders (Gold Farmers) causes inflation

The value of the virtual currency goes down, thus the price needed to purchase goods goes up

Extremely harmful to new players as they won’t receive enough money from quests & monsters to purchase intended items

Major Distributors IGE- Founded in 2001, IGE is the largest seller of virtual money & accounts for 11 different online games. Offices located in LA, Hong Kong & Miami Guy4game- Not as popular as IGE, but rising in popularity. Launched in 2004, Guy4game currently has 200 employees

IGE- Founded in 2001, IGE is the largest seller of virtual money & accounts for 11 different online games. Offices located in LA, Hong Kong & Miami

Guy4game- Not as popular as IGE, but rising in popularity. Launched in 2004, Guy4game currently has 200 employees

Crazy Examples 2001- A high level character named Blood is sold for $15,000 in Asheron’s Call 2004- A man paid $26,000 for a virtual island in the game Entropia Universe 2005-A man purchases a “Space Resort” for $100,000 in Entropia Universe – within eight months the player had already $100,000 on the resort by charging various fees

2001- A high level character named Blood is sold for $15,000 in Asheron’s Call

2004- A man paid $26,000 for a virtual island in the game Entropia Universe

2005-A man purchases a “Space Resort” for $100,000 in Entropia Universe – within eight months the player had already $100,000 on the resort by charging various fees

Ethical issues A new form of sweatshop Approximately 100,000 young players in China alone hold professional gaming for the purpose of trading virtual assets as a job. Factories have anywhere from 20-300 computers set up in a confined place where players play as long as 16 hour shifts without breaks http://youtube.com/watch?v=ho5Yxe6UVv4

A new form of sweatshop

Approximately 100,000 young players in China alone hold professional gaming for the purpose of trading virtual assets as a job.

Factories have anywhere from 20-300 computers set up in a confined place where players play as long as 16 hour shifts without breaks

http://youtube.com/watch?v=ho5Yxe6UVv4

A look into the Future Virtual asset trading is projected to reach a 7$ billion industry by 2009 (last year it was approximately a $2 billion dollar industry) Most new MMORPGs are following WoW example of zero tolerance Will virtual asset trading see a cross into the Xbox live marketplace and the PS3 online services?

Virtual asset trading is projected to reach a 7$ billion industry by 2009 (last year it was approximately a $2 billion dollar industry)

Most new MMORPGs are following WoW example of zero tolerance

Will virtual asset trading see a cross into the Xbox live marketplace and the PS3 online services?