Content Table:
Real Money and the Virtual Economy
In the world of Azeroth, life may be cheap, but saving up for that much-desired epic mount can take months of labor. Welcome to the World of Warcraft, currently the world’s largest MMORPG (Massively Multiplayer Online Role-Playing Game). In World of Warcraft, the auction house offers a vast array of wonders, from fabulous swords to armor guaranteed to make you the toughest elf around. To purchase such treasures, players need gold’something that requires hours, days, or even weeks of in-game grinding. However, a quick visit to platforms like Ebay or Eye on MOGs, a price comparison engine for virtual commodities, presents an alternative: converting real-life earnings into virtual gold, platinum, ISK, or credits, depending on the virtual world your avatar inhabits.
The Rise of Real Money Trading (RMT)
The world of Real Money Trading (RMT) has evolved significantly since the early days when gamers leaving virtual worlds would sell off in-game assets on websites like Ebay. Today, RMT is a multi-billion-dollar industry. Industry insiders, such as Steve Sayler of IGE, estimate that as much as $2.7 billion changed hands in this secondary market in 2006. This lucrative business is supported by companies like MMORPG SHOP, Mogmine, and MOGS, which specialize in “farming” in-game gold and valuable items. Not only can you purchase in-game wealth, but these services also offer power-leveling to boost your character, craft skills, and even reputation within your virtual world.
The Blurred Lines Between Virtual and Real Economies
What we’re witnessing is the merging of virtual and real-world economies. There are now hundreds of companies catering to virtual commodity trading, and some virtual items are being sold for hundreds or even thousands of dollars. In fact, virtual real estate has become a new source of income for some, with stories like 43-year-old Wonder Bread deliveryman John Dugger purchasing a virtual castle for $750’more than a week’s wages. According to Edward Castronova, an economics professor at Indiana University, if Norrath (the world of EverQuest) were a real nation, it would rank 77th in the world, with an economy wealthier than that of Bulgaria or India. A visit to GameUSD, a site that tracks virtual currencies, shows that some are performing better than real-world currencies like the Iraqi Dinar.
The Controversy Around Real Money Trading
RMT is met with mixed feelings in the gaming community. Some criticize that real-world wealth can influence in-game success, providing an unfair advantage to those who can afford it. However, this criticism overlooks the fact that for many gamers, time is the real currency. The average age of gamers is 27, and about half of them are in full-time employment. For these players, keeping up with friends in the virtual world can be challenging when their real-world commitments limit playtime. For these time-strapped individuals, spending money on in-game items or leveling services can be seen as a reasonable trade-off to keep pace with their peers.
The Criticism of Gold Farming
Companies set up to farm virtual commodities, often located in low-wage economies like China, are sometimes labeled as sweatshops. While some argue that these jobs exploit workers, many of these companies offer desirable working conditions within their local economies. For example, at Mogmine, workers are provided with health benefits, vacation pay, and opportunities for advancement. Brian Lim, CEO of Mogmine, points out that many mid- and high-level managers at the company started as gamers. For those in these economies, gold farming offers a better quality of life than traditional manufacturing jobs.
The Future of Virtual Economies
Some game developers disapprove of RMT, while others have embraced it as part of their game model. For example, MindArk’s Project Entropia integrates a secondary market directly into the game’s services, while Sony Online Entertainment has introduced the Station Exchange, allowing players to engage in RMT in EverQuest 2. Upcoming games like Roma Victor are designed around real-money trading, relying on players to purchase in-game currency rather than subscribing to the game.
As the lines between real and virtual economies continue to blur, we may only be seeing the beginning of what’s possible. Advertising in virtual worlds, such as in The Matrix Online, already allows real-world companies to promote products to gamers. This may signal the dawn of an entirely new economic frontier where the real and virtual worlds meet.
As this virtual economy grows, the full potential of these developments is hard to predict. But one thing is certain: real money trading and virtual economies are here to stay.
