Real money and the virtual economy
Below is a MRR and PLR article in category Computers Technology -> subcategory Games.
Real Money and the Virtual Economy
Introduction
In Azeroth, life may be inexpensive, but acquiring an epic mount requires months of effort. Welcome to World of Warcraft, the largest MMORPG?"Massively Multiplayer Online Role-Playing Game. Here, the auction house offers a treasure trove of swords and armor, making you the mightiest elf around. To purchase these wonders, players need gold, often earned through countless hours of gameplay. However, platforms like eBay or Eye on MOGs allow players to convert real-world money into virtual currencies, whether gold, platinum, or credits, depending on the virtual world their avatars inhabit.
The Rise of Real Money Trading
Real Money Trading (RMT) has evolved from its early days when gamers sold their virtual assets for real money upon leaving a game. Today, it's a multi-billion-dollar industry. Experts like Steve Sayler from IGE estimate that $2.7 billion will circulate in this secondary market in 2006. Companies like MMORPG SHOP, Mogmine, and MOGS have developed infrastructures to farm in-game gold and valuable items. These sites not only sell virtual currency but also offer services like power leveling and reputation boosting, catering to players who wish to advance rapidly.
A New Type of Economy
The line between real and virtual economies is increasingly blurred. Hundreds of companies now cater to this phenomenon, with some virtual items selling for thousands of dollars. Virtual real estate, like a castle purchased by deliveryman John Dugger for $750, underscores this trend. Edward Castronova, an economics professor at Indiana University, highlights that if Norrath (from EverQuest) were real, it would be the 77th richest nation globally. Sites like GameUSD show virtual currency exchange rates, with some outperforming real-world currencies.
Mixed Reactions in the Gaming World
Reactions to RMT and gold farming are divided. Critics argue that real-world wealth can unjustly influence in-game status. They believe these activities disrupt the fantasy environment, offering unfair advantages to those with more money than time. The average gamer is 27 years old, often balancing a full-time job with gaming. It’s understandable that some may choose to spend money to keep pace with friends who have more leisure time. For them, spending a little real money ensures they remain competitive.
Ethical and Economic Considerations
Firms that farm virtual commodities face criticism, sometimes compared to sweatshops, especially those based in low-wage economies like China. However, working conditions in these companies often surpass those of local manufacturing jobs. Employees enjoy playing games and may receive benefits like food, accommodation, and health insurance. Companies like Mogmine provide perks such as holiday pay and advancement opportunities. CEO Brian Lim notes that many managers started as gamers and now earn competitive salaries. Within their economies, these are desirable positions.
Impact on In-Game Economies
Some argue that farming negatively affects in-game economies. Brian Lim of Mogmine maintains that his team engages with the game properly while developing effective gold generation strategies. Jonathan Driscoll points out that competition for resources is a game feature, and his farmers work in isolated instances, minimizing disruption to others. Complaints about inflation seem unfounded, especially when players with high-level characters support their lower-level alternates, impacting spending power. While some developers oppose RMT, others, like MindArk’s Project Entropia, embrace it. Even Sony Online Entertainment now facilitates RMT with their Station Exchange service.
The Future of Virtual Economies
Trading virtual goods for real money might just be the beginning. There’s potential for virtual worlds to become marketplaces for real-world products. The Matrix Online, for example, sells advertising space to real companies targeting gamers. We are witnessing a new kind of economic activity, where real and virtual worlds intersect. While it's hard to predict the future of this phenomenon, the volume of currency exchanged suggests that virtual economies are here to stay.
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