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France bans Twitter, Facebook mentions on TV, in the name of market competition
The words "Facebook" and "Twitter" are now verboten on French TV, because France thought it'd be a good idea to follow its own laws. Last week, the country's Conseil Supérieur de l'Audiovisuel (CSA) ruled that TV networks and radio stations will no longer be able to explicitly mention Facebook or Twitter during on-air broadcasts, except when discussing a story in which either company is directly involved. The move comes in response to a 1992 governmental decree that prohibits media organizations from promoting brands during newscasts, for fear of diluting competition. Instead of inviting viewers to follow their programs or stories on Twitter, then, broadcast journalists will have to couch their promotions in slightly more generic terms -- e.g. "Follow us on your social network of choice." CSA spokeswoman Christine Kelly explains: "Why give preference to Facebook, which is worth billions of dollars, when there are many other social networks that are struggling for recognition? This would be a distortion of competition. If we allow Facebook and Twitter to be cited on air, it's opening a Pandora's Box - other social networks will complain to us saying, 'why not us?'" It didn't take long for the US media to jump all over the story, with many outlets citing no less objective a source than Matthew Fraser -- a Canadian expat blogger who claims, in ostensible sincerity, that the ruling is symptomatic of a "deeply rooted animosity in the French psyche toward Anglo-Saxon cultural domination." Calling the ruling "ludicrous," Fraser went on to flamboyantly point out the obvious, stating that such regulatory nonsense would never be tolerated by corporations in the US. But then again, neither would smelly cheese or universal healthcare. Apple, meet orange. Fueling competition via aggressive regulation may strike some free-marketeers as economically depraved, but it certainly won't kill social media-based commerce. Facebook and Twitter have already become more or less synonymous with "social networks" anyway, so it's hard to envision such a minor linguistic tweak having any major effect on online engagement. That's not to say that the new regulation will suddenly create a level playing field -- it won't. But it probably won't put America's social media titans at a serious disadvantage, as some would have you believe. Rather, these knee-jerk arguments from Fraser and others seem more rooted in capitalist symbolism and cross-cultural hyperbole than anything else -- reality, included.
Men outspend women on mobile social games
Ladies (or gentlemen), is your man a gamer? If so, you may finally have a worthwhile retort for the next time he scoffs and rolls his eyes at that $10 non-combat pet you just had to have. A recent study by MocoSpace surveyed 1,500 "mobile social gamers" about their spending practices within social games. The results? "While 53 percent were male, and 47 percent female, 69 percent of men were buying virtual goods, while only 31 percent of females did." Venturebeat adds: "On top of that, those male gamers are responsible for 90 percent of virtual goods that are purchased inside the games." The article goes on to note the recent practices of selling in-game items for real-world currency in World of Warcraft and EverQuest, though no numbers are available regarding the gender parity of those who purchased such items. For the full article -- which naturally could not resist one not-so-subtle stab at the SOE network outage -- click on over to MSNBC's Technoblog.
Global rare earth supply deficit should turn into a surplus by 2013, Goldman Sachs says
It looks like rare earth elements are getting slightly less rare. According to a research note released by Goldman Sachs today, the world's rare earth supply deficit will probably reach its apex this year, before converting into a surplus by 2013. Goldman's analysts constructed their projections based on evidence that many Western companies have begun building their own mines, in response to China's overwhelming market dominance. Today, the People's Republic produces about 90-percent of the world's rare earth minerals -- a group of 17 elements that are used to manufacture many of the flat screen TVs, hybrids and cellphones we've come to know and love. Over the course of the past few years, China has only consolidated its hold on the industry, thanks to economic policies aimed at nationalizing private mines and implementing restrictive export quotas. As a result, global rare earth prices have skyrocketed, forcing mining companies in the US and elsewhere to look inward and harvest their own deposits. The only downside, however, is that even if global supply spills into a surplus within the next two years, prices probably won't cool down until 2015. But at least the horizon looks brighter than it has in recent months.
CCP releases EVE Quarterly Economic Newsletter
It's time for another in-depth look at New Eden's thriving economy, and as you'd expect in a game built around interminable conflict, business is booming. CCP's resident economist, Dr. Eyjólfur Guðmundsson, is back with the latest EVE Online Quarterly Economic Newsletter (QEN), and while it's a bit on the old news side for those lucky enough to attend last month's Fanfest where it was initially presented, the trends, observations, and raw data are still relevant for the rest of us. In a nutshell, keep killing your friends and neighbors, as the constant bloodletting is integral to New Eden's economic well-being. "Warfare and the EVE Online economy thrive on each other. Without warfare there is very little consumption in EVE Online and without a strong economy (and lots of personal wealth) wars can't be won," Guðmundsson explains.
Gold Capped: The effect of mega-blogs on your business
Every week, WoW Insider brings you Gold Capped, in which Basil "Euripides" Berntsen aims to show you how to make money on the auction house, and Insider Trader, which is all about professions. For Gold Capped's inside line on making money in game, check in here every Thursday, and email Basil (new address is basil@wowinsider.com; old one no longer works) with your comments, questions or hate mail! I've been called a lot of things by a lot of people. The reality is that every time I write about a specific business or tip for making gold, hundreds of people will end up trying it out, and if I write something about one of your favorite (or most profitable) businesses, you may find some of these people competing with you. The number of people participating in any specific market is going to fluctuate over time naturally, but as I've said before, the people who have the most success are the ones who hang in for the long run. That said, these people tend to have a strange relationship with each other. They're competitors and will undercut vigorously, but they tend to spend less effort on their tenacious competition than one would expect.
New EVE Quarterly Economic Newsletter discusses PvP
Four times per year, CCP's lead economist Dr. Eyjólfur Guðmundsson publishes the EVE Online Quarterly Economic Newsletter (QEN). Each report provides a snapshot of the in-game economy, with graphs showing market trends over the previous quarter and some speculation on the reasons for them. The third quarter 2010 QEN has just been released, and it contains some interesting information. This report has a special focus on PvP and death, starting off with statistics on ship kills by race and deaths as a function of skillpoints. Dr Eyjo suggests that players tend to progress from high security space, through low security space and eventually on to nullsec PvP. He goes on to suggest his data shows that an average player needs two years worth of skillpoints to be competitive in nullsec PvP. The QEN shows the effect of recent nullsec wars, with a mass exodus of players from the eastern regions of nullsec to those in the south and west. Following up on the previous report's look at EVE's ISK sinks and faucets, this quarter's report indicates that the total amount of ISK in the game has been rising steadily over the past year. Most of this can be attributed to a 16% rise in total bounties paid out on NPC ships. Dr Eyjo believes this rising trend began with Dominion as system upgrades made ratting more profitable in nullsec. The ISK sinks designed to counteract the massive influx of liquid ISK bounties provide are not adequately tackling the issue, with the top five ISK sinks combined taking only 31% of bounty income out of the game. The rest of the report contains the usual snapshots of various market items in addition to a special statistics segment on ship deaths and killing blows.
Gold Capped: Auctionator addon helps you buy, sell and profit
Every week, WoW Insider brings you Gold Capped, in which Basil "Euripides" Berntsen aims to show you how to make money on the auction house, and Insider Trader, which is all about professions. For Gold Capped's inside line on crafting for disenchanting, transmutation, cross-faction arbitrage and more, check in here every Thursday, and email Basil with your comments, questions or hate mail! This week's gold blogosphere post is Kaliope's Cataclysm jewelcrafting coverage. Auctionator is a simple, lightweight addon that allows you to do some pretty basic stuff very efficiently. I've said before that there are some serious problems with the auction house interface, and even though the last design pass left it in a better situation than it was before, it's still pretty bad for a few reasons: You can't see the price of your competition when you are listing your auctions. The default suggested price is absolute nonsense and doesn't contain a buyout. You can't see the unit price for auctions when you buy. You can't sort by anything useful when you buy. You can't save searches to avoid retyping each time. None of these are game-breaking, but they're the reason every single person with over 100,000g uses addons. I am still an Auctioneer user, but while its dev team was sitting on a nonfunctional development build when patch 4.0.1 broke the addon, I had to go elsewhere to avoid being tormented by the almost functional default interface. I discovered that of all the addons I played with, Auctionator is the one that will remain part of my toolbox going forward, simply because it has a few killer features that I find easier to use for some tasks.
Analyst: Apple's sales in China could triple in two years
Here's more good news for Apple from the Chinese front: Katy Huberty and Mathew Schneider from Morgan Stanley have released a report saying that Apple could make as much as $9 billion from China in the fiscal year of 2012, as opposed to $2.9 billion in the last fiscal year. That kind of growth would be better than the rest of the world, which means that if there are any problems with Apple's revenue in the US and Europe over the next few years, China will likely make up for them. The report says all of that growth will come from two major factors. First, Apple is expected to expand its sales network in China. Apple has already founded four major retail stores and begun device sales through China Unicom and its online store, but there will have to be more ways for Chinese customers to find and buy Apple products in the future. Secondly, as we've heard before, China is about to go through a major surge in the middle class, bringing more people than ever into the range of buying and using Apple's products. If Apple can take advantage of that upcoming rise in income over much of the country, it'll be well on the way to the $9 billion number. This isn't a huge surprise -- we've known for a while that China will be a big source of growth for a lot of consumer electronics companies in the next few years. But it's interesting to see some numbers out there about just how big Apple's business in China might get.
EVE Evolved: ISK sinks and faucets
In EVE Online's player-run economy, the flow of ISK is a vital concept. While there are many ways to make ISK in EVE, most of them only move it around from one player to another. When you mine ore and sell it on the market, for example, the mining process doesn't introduce any new ISK to the game. Only a few game mechanics can be called ISK faucets, as the game mechanics actually create ISK from thin air. Similarly, the ISK sink mechanics destroy ISK or remove it from the game in some manner. To the individual player, the difference between something being an ISK faucet or not is largely immaterial. When you sell something on the market for a few million ISK, or get the insurance payout on a lost ship, it doesn't really matter to you where that ISK came from. Where the concept really matters is in discussions on inflation and how the game chooses to reward us in PvE. Are ISK bounties and rewards always a good idea, or could their over-use eventually lead to runaway inflation? In this week's EVE Evolved, I look at the various ways in which ISK flows in and out of EVE Online, and why we should care about inflation.
The Mog Log: Gil rules everything around me
My original plan for this week was to step back into the experiment with soloing that I started in Final Fantasy XI what feels like an eternity ago, but the recent updates about Final Fantasy XIV's market system prompted a comment that interested me. A reader noted that the auction block in Final Fantasy XI was partly responsible for the enormous gilselling issue that's plagued the game more or less since its release stateside, with the theory going that the market wards and so forth in Final Fantasy XIV were a specific response to this. It seems fitting, in light of all of the gilselling issues that we've gone through in Vana'diel, to take a look at the sordid history of the currency in the game and at how likely it is to translate to the new kid on the block. I don't think the problem lies so much with the sellers as with the environment that Square-Enix unintentionally created, as well as with the perfect storm of circumstances that devalued the currency of the game to near-worthlessness with no alternatives. That's right -- it's time to look back six years or so to the launch of the game in the U.S.
MMO market predicted to swell to $8 billion
No matter how many different games you play, follow, or even care about, the fate of the bigger MMO industry affects them all. Every game, from World of Warcraft to Fantasy Earth Zero, is playing in the same sandbox. But for our favorite genre, it looks like the size of that sandbox is only trending upward. Gamasutra reported recently on a new study that predicts the global MMORPG market will reach a total of $8 billion in worth by the end of 2010, a significant increase from the $5 billion in 2009. So what's spurring the increase? According to the study, the growth in the Western market has been slow but steady, while the Eastern market has been making great strides, led by companies such as Nexon and NCsoft. The study also predicts that the traditional subscription-based revenue model is losing steam as an aggregate, citing it as one of the causes behind the slower growth in the Western side of the industry. Free-to-play isn't everyone's cup of tea, but considering what it seems to be doing to the economic side of our hobby, it's certainly not going anywhere soon.
Latest EVE Quarterly Economic Newsletter highlights Tyrannis insurance changes
EVE Online is a game with complex economic activity that often mirrors real-world economic systems. The similarity is so pronounced that CCP even hired its own Lead Economist, Dr. Eyjólfur Guðmundsson, to examine the in-game markets in detail. Each quarter, the economist and his team of researchers publish the EVE Quarterly Economic Newsletter (QEN). The report provides a timeline of market indices and major economic changes over the past several months. This quarter's report focuses on the effect of the insurance changes that came with the Tyrannis expansion. It also has a special segment on ISK sinks and faucets, and their changes following the release of planetary interaction.
Video games industry in great health, unlike the rest of the US economy
Interested in dosing up your video game knowledge with a shot of macroeconomic data? Of course you are. The US Entertainment Software Association has delivered its 2010 health report for entertaining software and things are looking rosy. While the US economy was enjoying a steady 2.8 percent annual growth between 2005 and 2008, video game revenues were expanding by 16.7 percent a year. Factoring in the economically arid 2009 chops total US economic growth in half down to 1.4 percent, but gaming again shows its resiliency by taking a smaller dip down to 10.6 percent. That'll be welcome news to the more than 120,000 people whose employment depends on this burgeoning industry, as will the fact that the average annual compensation in the sector is just under $90,000. Good work, if you can get it.
ESA: Games industry responsible for $5 billion of US economy
A study commissioned by the Entertainment Software Association (ESA) found that the video game industry added about $5 billion to the US economy in 2009. The report, "Video Games in the 21st Century: The 2010 Report" [PDF link], claims the industry directly employs about 32,000 people in the States and indirectly employs 120,000 (GameStop employees, video game media, manufacturing and distribution). The average industry employee has an annual compensation of $89,781 -- of course, there's a wide range in that average. A whopping 41 percent, or 13,041 of industry employees, call California home. Texas and Washington are the next closest, with 3,307 and 2,987 (approximately 10 percent apiece), respectively. The annual growth rate of the industry exceeded 10 percent between 2005 and 2009, which is good -- especially when taking the last few years of bad employment news into account.
EVE Evolved: EVE Online's not-so-free market
One of the most talked-about features of EVE Online is its player-run economy. Due to over 330,000 players living on one server, the markets have reached a critical mass where the laws of economics play out in a very effective manner. When there's a demand for something, no matter how obscure the item or low the demand, you can be sure there are dozens or hundreds of pilots trying their best to supply it. The in-game economy mirrors real-life economic situations so closely that CCP even hired a dedicated economist to analyse the market and advise CCP of any problems that arise. EVE's economy is often referred to as a pure free market, but that isn't technically true. At its heart, EVE is still a game designed and implemented by a team of developers. All MMO economies require some degree of control and intervention for the game to remain playable. In EVE, this comes in the form of careful balance of supply and demand via changes to game mechanics and drop rates. There are also a number of more direct passive influences on the market, such as NPC market orders and insurance. In this economic article, I look at a few of the influences that constrain free-market economics in EVE.
How-to: figure out the best value iPhone 4 contracts in the UK (updated)
Choices, choices. Do you get the 16GB or 32GB iPhone 4? The black one now or the white one a little later? We can't tell you which variant of Apple's next phone will hold its value best over the coming months, but we can try to clear up a bit of the fogginess surrounding price plans on offer from UK networks. Orange and O2 are the first to drop handset pricing and full contract details, but they haven't made it easy for the discerning buyer, with each carrier offering more than a dozen options. Vodafone, T-Mobile, Three, and even Tesco Mobile are set to follow suit in the coming days and weeks, but we thought we'd get the ball rolling with the pair we have now. Update: And just as we publish this, Voda has gone official with its tariffs. We've now broken them down into a more digestible format as well. Just for you. Update 2: Tesco Mobile has also outed its pricing and it's by far the best of the bunch. Check out the full chart inside the post. Update 3: Three's iPhone 4 pricing has now also been made known.
New EVE Quarterly Economic Newsletter talks wormholes and tech 3
Four times per year, CCP Lead Economist Dr. Eyjólfur Guðmundsson and his team of researchers publish the Quarterly Economic Newsletter (QEN). In addition to providing trackable statistics on EVE Online's in-game market, each issue focuses heavily on analysing one particular topic. This quarter's report focuses on wormhole systems and the state of the tech 3 market. Updated player demographics show more and more players entering wormhole space, with a drop in the number of characters in high-security space. Statistics for the number of jumps in wormhole space over the past year show a similar trend of growing activity. This QEN provides some enlightening graphs on the popularity of various tech 3 offensive subsystems and how tech 3 material costs have changed in EVE over the past year. Perhaps most illuminating is the sharp rise in the use of tech 3 strategic cruisers in locations that put them at risk. While the majority are being flown in mission hubs and market systems, over 35% were found outside the safety of high-security space. In addition to this quarter's focus on wormholes, the report contains the usual graphs tracking in-game prices, trade volumes, ships in use and other useful metrics.
Gold Capped: Market timing
Want to get Gold Capped? Watch this space every week as Basil (also of the Call to Auction podcast, the Hunting Party podcast and outdps.com writes about making gold in the World of Warcraft. Have questions, comments, or threats for him to get off your damned server? Email Basil! The prices for all kinds of things fluctuate. I talked a little about this in my post for casual auctioneers, but there is serious money to be made with market timing for very little investment. Basically, the goal is to watch prices for a few weeks, try to predict their next swing, and take advantage by buying low and selling high. Watching prices Easier said than done, like most things worth doing. You might get hundreds of items you'd like to watch, and short of a photographic memory or a manual spreadsheet, you're going to need some help keeping track of it all. Enter Market Watcher. This is a nifty addon that, once configured, allows you to scan the auction house for just the things you're interested in, and will show you a graph of their prices over time once you get a couple scans done.
Gold Capped: Buying with Auctioneer's snatch list
Want to get Gold Capped? This column will show you how, and is written by Basil "Euripides" Berntsen, also of outdps.com, the Hunting Party podcast, and the Call to Auction podcast. Auctioneer has a myriad of uses. I've covered selling, and this week, I'll be covering buying. This addon has way more functionality than most people use, but because of the incredible quantity of complex options, many people never do any of the really cool things with it. The best way to buy lots of types of items with Auctioneer is with their "snatch" search. The way it works is it goes through your most recent snapshot of the auction house, and presents you with a box that allows you to buy or bid on items you've defined as a "good deal."
Latest EVE Quarterly Economic Newsletter shows effect of Hulkageddon
EVE Online is a game that's often lauded for its sandbox style and realistic economic structures. Every quarter, CCP Lead Economist Dr. Eyjólfur Guðmundsson and his team of researchers wade through mountains of EVE usage logs to find some interesting economic statistics. In their Quarterly Economic Newsletters (QEN), CCP deliver graphs tracking in-game prices, trade volumes, ships in use and a whole host of other useful metrics. Read on for an overview of this QEN's main highlights.
