real-money-trading
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The dangers and allure of real money trading in MMOs
It's been one of the longest-running debates in the MMO industry: whether or not real money trading (RMT) helps or hurts players and the game worlds they inhabit. The Ottawa Citizen shed some light on the subject by showing how the games industry at large has dealt with the subject, from players dealing in grey market trades to studios overseeing RMT in the hopes of keeping players' bank accounts safe while lining the studios' pockets with additional income. Two examples were given of players engaging in illicit -- and ill-advised (Massively disclaimer) -- RMT activities. One player said that he made $7,000 in 2001 by purchasing EverQuest characters from bored players and reselling them to others, even though this was against the game's EULA. He likened it to real-world corporate practices: "It was kind of like buying a company and breaking (it) down and selling off all its assets, and flipping it for more cash." Another player admitted to spending $50 in hopes of gaining 2,000 gold in World of Warcraft, but the third-party company simply took his cash and never delivered the gold. The article notes how games like Second Life and companies like Sony and Microsoft are embracing RMT even as the issue remains taboo in many MMOs.
TERA implementing chronoscrolls to combat gold farming
TERA isn't releasing in North America for several months yet, but the folks at En Masse are already taking steps to curb the inevitable tide of gold farmers sure to be washing up on Arborea's beaches in 2012. A new dev blog released over the weekend outlines the introduction of chronoscrolls, and those of you who are familiar with EVE Online's PLEX system will probably see several parallels between the two mechanics. "If you've never purchased gold, and you're wondering why this new chronoscrolls system is a good addition to the game, consider this: Whether chronoscrolls exist or not, other players are buying gold from real-money traders. By creating the opportunity for players who already buy gold to purchase it legitimately, we help eliminate the incentive for real-money traders to target TERA," says producer Patrick Wyatt.
Enter at Your Own Rift: How gold farming really hurts the economy
Recently, Trion Worlds CCO and RIFT Executive Producer Scott Hartsman talked to Gamasutra about how gold farming is a much bigger threat than we assume, particularly because of the large amount of credit card fraud. Those who played RIFT at launch probably recall the large wave of hacked accounts early on. According to Hartsman, the hacking attempts were so quick and so intense that the game could have been "denial-of-serviced off the internet" when it launched. As I was browsing the Auctioneer the other day, I was reminded of Scott's statement because gold farming has sucked a lot of the fun out of in-game economies in virtual worlds. Markets early on were lively, unpredictable, exciting, and full of freedom but very vulnerable because of the growing illegal trade of in-game currency for real money. In an effort to combat the rising real-life value of gold, games like RIFT have moved away from gold toward a system of non-tradeable tokens. But while these tokens have helped to curb the value of gold and reduce the demand for third-party RMTs, they've also removed a lot of the freedom from players. After the cut, we'll take a closer look at how exactly that's happened and why it hurts the economy.
North Korea employing MMO hackers to fund government
What's a dictator to do when his third-world economy is wheezing along on its last legs? Hack some video games, of course! According to a report in the New York Times, North Korea's Kim Jong-il unleashed an army of young computer crackers on popular South Korean online gaming portals to find ways to make quick cash. South Korean authorities claim that a squad of approximately 30 hackers operated from a base in China and were given the mission of breaching online gaming servers (including those of the immensely popular Lineage) to set up bot factories and automated farming collectives. The digital booty was then sold to gamers for a reported $6 million over two years. Chung Kil-hwan, a senior officer at South Korea's International Crime Investigation Unit, says that the hacker group "reports to a shadowy Communist Party agency called Office 39, which gathers foreign hard currency for Mr. Kim through drug trafficking, counterfeiting, arms sales, and other illicit activities."
Study suggests one in three gamers has purchased virtual goods
Let's say you're playing an MMO with two of your mates. They could be online friends, real-world friends, or some combination of both. According to a new study conducted by PlaySpan and VGMarket, one of you has used real-world money to purchase virtual items. The research was compiled last month and samples a pool of 1,000 gamers drawn from a VGMarket database. While the one-in-three statistic is interesting in its own right, even more compelling is the evidence that suggests 57 percent of participants purchase virtual items on a monthly basis. You might think that social networking games are responsible for the lion's share of these percentages, but VGMarket's data show console games with online play accounting for 51 percent of the purchases, with social titles claiming second place at 30 percent (MMOs came in third, if you're curious). The study presents quite a number of curious factoids despite its relatively small sample size, and you can check out all the findings at the official PlaySpan website. It's also worth noting that downloading the full study requires providing PlaySpan with your personal info via a web registration form.
Blizzard strikes gold sellers with Paypal notices
Last week, Blizzard sent out strongly worded complaints to Paypal, accusing many gold-selling companies and resellers of "intellectual properties violations" for selling World of Warcraft goods. After receiving these complaints, Paypal sent notices off to the gold sellers Blizzard had complaints against, stating that if these activities continued through their websites and the Paypal service, Paypal would revoke their ability to use the popular payment site as a payment option. Here is Paypal's letter to the gold sellers: You were reported to PayPal as an Intellectual Properties violation by Blizzard Entertainment Inc. for the sale of World of Warcraft Merchandise. If you feel your sales do not infringe upon the intellectual property rights of the Reporting Party, please complette the attached Objection to Infringement Report by January 21, 2011. The completed form should be faxed to the attention of the Acceptable Use Policy Department at [number removed] or emailed to [email removed]. Should you choose not to object to the report, you will be required to remove all World of Warcraft Merchandise from the website [url removed] in order to comply with the Acceptable Use Policy. What's very interesting is that Blizzard is claiming intellectual property violations in the face of the most recent decision in the Glider case. Where Blizzard lost on intellectual property concerns under the EULA, they could have a better shot over their game assets being sold, if somehow it ever went to court. Still, Paypal is the easiest route to go for Blizzard's plan of attack against gold sellers, since most of them are run outside of the country. Suffice to say, it's nice to see some action being taken against gold selling.
EVE Evolved: The RMT problem
Of all the problems that plague MMOs, RMT (real money trading) is perhaps the most disruptive to normal gameplay. By design, almost every MMO has some form of tradable currency that can be collected through normal gameplay. The time it takes to collect that currency has an inherent value, which varies from player to player as not every player values his free time at the same level. It's inevitable that cash-rich players who value their time highly will often want to shortcut normal gameplay by buying the currency directly for cash. The negative impact of RMT and its associated problems is felt in every popular MMO, and EVE Online is no exception. The direct balance issues inherent in allowing players to buy ISK with cash are just the tip of a very unpleasant iceberg. Players who buy ISK from shady websites and services are the reason that the rest of us have to put up with spam-bots in popular chat channels, rampant account hacking, and macros taking up a disproportionately large cut of EVE's in-game resources and server load. In this week's EVE Evolved, I look into the problems caused by RMT, why macro-farming operations have become so wide-spread, and what CCP has done to combat this growing problem.
Korea rules that virtual currencies can be exchanged for real money
The odd thing about us gamers is that we seem to think of the various doodads in our games as being real -- even more to the point, as being ours. We think and act as if we're owed some compensation if we're deprived of them. Which is silly, really -- after all, that Monster Signa isn't a real staff, that Deputy Chain Coat isn't a real coat, and all that gold isn't real money. Except that now, in South Korea, it is. A ruling by the nation's supreme court has stated that virtual currency is the equivalent of real-world money. Even more sweeping are the details of the case that led to the ruling, in which two men were on trial for exchanging a large amount of Lineage II Adeena for cold, hard currency. For those of you who might not be drawing the link, the core there is that selling in-game currency for real money is essentially just an exchange of currency and perfectly legal in South Korea. This could have sweeping implications for RMT operations the world over, not to mention free-to-play games and... well, online games in general. The official story is available online from both the Korea Times and JoongAng Daily.
Are subscription game item shops the third Trammel?
We like to keep our ear to the blogging (under)ground here at Massively because we often find interesting ideas and perspectives on the MMO industry. For instance, Green Armadillo of Player vs. Developer (PvD) just made a bold yet insightful statement about subscription game item shops being the third Trammel. For those unfamiliar, Trammel changed the way most people played Ultima Online and could be considered a paradigm shift in the industry from "harsh" PvP-enabled MMOs to safer PvE. It's no secret that the rise of microtransactions and MMO item shops (aka real money trading or RMT) are a big change in direction from traditional subscription based MMOs. However, it now seems we're seeing the line blur between the two. Dungeons & Dragons Online, Champions Online, and most recently World of Warcraft are all subscription-based MMOs with built-in RMT. Are we witnessing the birth of the third Trammel? As for the second Trammel, PvD calls out WoW's solo quest system. Never in any previous MMO did players enjoy such easy soloability and it seems that every triple-A MMO since WoW has relied heavily upon the solo quest system. We think PvD may be on to something here.
Carrie Gouskos shares a couple WAR teasers
MMO blogger Werit recently caught up with Mythic Entertainment's Carrie Gouskos and asked her a few questions. For those of you who don't know Carrie, she's an associate producer for Warhammer Online who has worked on such things as the Tome of Knowledge, user-interface, Realm War website, and Mac client.. The interview mostly covers things she's been working on, so be sure to check it out.While discussing the Realm War site, Carrie offered this teaser: "Actually one of the unannounced Special Projects that we've been investigating since the beginning of the year is an example of an extension of the Realm WAR. I can't spoil it now, but I would keep an eye open in the next month or so for more info." We can't help but wonder if this has anything to do with EA's May 2008 acquisition of MMO social network, Rupture. Carrie also briefly mentions something about a "cards" page in the Tome. Will WAR be getting a trading card game? Does this signal an imminent RMT or free-2-play model? That's just speculation at this point but we'll keep our ear to the ground for you.
EVE Online's anti RMT operation Unholy Rage bans over 6200 accounts
Last week, Massively explained a bit about the war on real money trading (RMT) in EVE Online. The game's developer, CCP Games, has approached the problem from a few different angles. Central to their strategy of combating sellers of the game's currency called ISK (Interstellar Kredits) is to offer another way for players to exchange real world currency for the virtual in EVE Online -- "PLEX", or the 30 Day Pilot License Extension. PLEX is an in-game item that represents gameplay time and can be bought, sold, or traded on the open market in-game. PLEX has been integral in combating the numerous shady ISK selling websites in operation and CCP's dev blog last week showed how the playerbase is starting to embrace this system. After all, if this practice of outright buying in-game assets with real world cash is going to happen in EVE, as with most MMOs (and regardless of what the developers try to do to curb this) it might as well be via a system the devs can regulate. It's a slippery slope, and CCP's approach to the problem does have some critics, but thus far it's been successful. PLEX has only been one facet of their battle against the ISK spammers, sellers, and the virtual armies of macro-using operations, though. CCP's operation "Unholy Rage" is a major offensive against the RMT operations exploiting the game, and is the subject of a dev blog from EVE Online's GM Grimmi.
The fight against RMT in EVE Online
It's an unfortunate reality that most any massively multiplayer online game running has to cope with outside influences on an in-game economy because of real money trading (RMT). Game developers tackle the problem in different ways. For instance, Final Fantasy XI has an anti-RMT task force and Warhammer Online has a zero-tolerance name-and-shame approach to RMT. Other companies grab the bull by its horns and base their game around a virtual item trade they can regulate. The problem of RMT has affected EVE Online just as it has other MMO titles, if not moreso given how its player-driven economy and the Interstellar Kredit (ISK) currency is central to the game. Beyond the potential revenue lost to the black market when players pay real cash for their ships and modules or buy huge sums of ISK outright, there are also issues with players getting their accounts cleaned out by the shady companies (ostensibly) selling the ISK. When that cleverly-named player "ajakdsk" links you to his ISK selling site in a chat channel, following that link could infect your computer with a keylogger, resulting in a fire sale on whatever they find in your account. EVE Online's creators CCP Games have taken a two-prong approach to handling these issues.
Free Realms: Guesstimating monthly revenue using the 89/10/1 Rule
In case you haven't heard, Free Realms just broke the 3M user mark and is averaging 500,000 new users per week. With SOE's aggressive Saturday morning cartoon advertising strategy targeting kids, it may actually continue to grow at this pace. Any subscription MMO would be happy as a pig in slop at these numbers because of the guaranteed revenue stream, but what about a F2P/RMT MMO?We recently discovered an interesting tool to guesstimate F2P/RMT MMO earnings called the "89/10/1 Rule." This rule says that 89% of your players won't spend anything, 10% will spend the bare minimum, and the remaining 1% will spend extravagantly.After chatting with Massively staff who play FR, we came up with some numbers to play around with. The bare minimum in FR is $5 per month for a basic subscription. We also think the average heavy spender could easily drop $30 in a month. Let's apply the rule, shall we? 2,670,000 spend nothing ($0 total) 300,000 spend $5/month ($1,500,000 total) 30,000 spend $30/month ($900,000 total) The grand total using the "89/10/1 Rule" is $2.4M revenue per month. That fancy, made-up number isn't too shabby at all. A subscription MMO charging $15/month would need 160,000 subscribers to pull in the same amount. Now, if only we could get some confirmation (nudge nudge, wink wink)...
Live Gamer's Andy Schneider on legitimizing RMT in games and virtual worlds
Most mentions of real money trading (RMT) in massively multiplayer online games and virtual worlds conjure up images of virtual sweatshops and the resulting blitz of gold spam. Despite how loudly many protest against the idea of RMT in games, the fact remains that there is a market for this and people spend a lot of real world money on virtual goods every year. Live Gamer is a company that aims to legitimize real money trading, creating a way for players to spend their cash without the risks inherent in dealing with shady gold and item sellers. It also ensures that money spent on virtual goods is going back into the pockets of the game companies. While services such as Live Gamer don't end the debate on whether or not RMT should be permitted in the first place, it's clearly here to stay, and some game publishers are getting proactive about real money trading.
The Daily Grind: When does RMT cross the line?
This question was posed yesterday by Saylah at the Mystic Worlds blog, and we couldn't help but wonder the same ourselves. When RMT or micro-transactions are first introduced as a business model for a game, the claim is always that these items for sale are not detrimental to the actual gameplay itself. They're cosmetic, or they aid your character with convenience items like extra bag space or a faster mount. But as Saylah points out, Runes of Magic has introduced crafting items to their Item Shop recently. This allows players to purchase bundles of resources for crafting, which gives an advantage towards things like guild castles. "My first reaction is to suspect that the massive grind in this area is intentional to encourage the purchase of the resources now available in the Item Shop," she says. So what do you feel is going too far in RMT purchases? Is selling crafting resources too much, or would you only raise an eyebrow at the sale of overpowered weapons in an RMT shop? With the popularity of micro-transactions, do you think developers will edge closer and closer to that line to see what they can get away with? Let us know your thoughts!
GDC09: Applied RMT Design with GoPets and Live Gamer
Massively sat in on a GDC 2009 session this week titled Applied RMT Design which was part of the Worlds in Motion Summit. Andrew Schneider, Founder and President of Live Gamer and Erik Bethke, CEO of GoPets, Ltd. presented a case study on balancing a game's primary and secondary markets, using GoPets as an example of how it can be done. The market for virtual goods in massively multiplayer online games and virtual worlds is worth billions. Not all of this is grey market, and more games are now being designed with microtransactions in mind. Live Gamer aims to bring greater legitimacy to microtransactions through a regulated secondary market providing benefits to companies as well as the players themselves. Thus far they've worked with EverQuest II, Vanguard, and GoPets, with Acclaim's 9 Dragons on the way. Bethke and Schneider kick off their talk by explaining the fact that RMT in MMOs is inevitable, explaining how developers can be proactive about incorporating RMT into their titles rather than having it exist outside of the game. Live Gamer works with developers to create a legitimate system for trading virtual items for real money, one that's safe and secure. Of course, legitimizing RMT can also stir up controversy. %Gallery-48454%
'Gold Trading Exposed' a look at multi-billion dollar grey market in MMOs
If there are any massively multiplayer online games on the market (with virtual economies) that *aren't* overrun at times with gold spammers that multiply like cockroaches, we have yet to hear about it. While the various MMO developers and operators have their own approaches to the problem, ranging from public humiliation of spammers to an anti-RMT strike force that exists to root them out and eliminate them, a key (*the* key) part of this equation for grief is the playerbase itself. "Gold Trading Exposed" is the first in a series of articles tackling the issues surrounding RMT written for Eurogamer by Nick Ryan. Over time, Ryan will look at the multi-billion dollar trade in virtual gold through the eyes of all parties involved -- the gold traders, the developers, and of course the players themselves (many of whom deny they buy gold). Ryan points out there there's no small amount of hypocrisy from MMO playerbases which profess a hatred for the gold selling trade since, after all, there must be a reason that gold sellers thrive and multiply.
Why do people buy virtual goods in MMOs?
Massively multiplayer online gamers spend hours -- so many hours -- working towards obtaining virtual gear. Epic armor sets, mounts, player housing, faction ships... the list goes on, and will continue to go on. Our collective fascination with these intangibles ensures our desire for them -- and for those things beyond a player's reach solely within the virtual realm, real world cash makes all things possible. This is the research focus of Ph.D. student Vili Lehdonvirta of the Helsinki Institute for Information Technology, who breaks down our buyer's impulse according to three criteria: Functional attributes, such as speed, hitpoints, teleportation. Hedonic attributes, or how the virtual gear looks or sounds, its provenance or its connection to the background fiction of the setting, and of course customizability. Social attributes, particularly the prestige accorded with ownership of a rare item. Have a look at his "Virtual item sales as a revenue model: identifying attributes that drive purchase decisions" for a thorough analysis of why many of us are so inclined to obtain something that's ultimately ephemeral, which goes beyond the simpler "useful vs. decorative" angle.
The Daily Grind: How much have you spent on your MMO habit?
Once upon a time, I sat down with a calculator and counted the months I'd spent playing World of Warcraft, multiplied by $15, added in costs for game boxes and character transfers... and came to a sum, in the end, that shocked me. (Though, considering the hours of enjoyment I've gotten from the game thus far, perhaps it shouldn't.) And that number was without spending a dime on buying characters, gear, gold, or paying for leveling. Putting the ethics of RMT aside for the moment, I must say I'm glad of it, as it means I've never had the opportunity to loose even more cash to an MMO, as in yesterday's story of an EVE player who lost $19,000 buying ISK. (Yes, you read that number correctly. It's a one and a nine followed by three zeros. Count 'em: three!) While that certainly makes my financial losses seem practically frugal by comparison, The Daily Grind is all about getting your opinions. So today, I ask: how much have you spent feeding your MMO habit?
EVE Online player loses USD 19,000 in shady virtual currency deal
The sci-fi game EVE Online is set apart from many other massively multiplayer online games by its economy. While there are currently problems with the game's market due to a serious exploit, the economy isn't getting reset anytime soon. The currency of EVE's virtual economy is the Inter Stellar Kredit (ISK). As in the real world, money can be power in EVE's 'New Eden' galaxy. Most online games built around a virtual economy will ultimately need to deal with the real money trading (RMT) issue -- either make it a bannable offense or support and regulate it in some way. CCP Games figured if RMT is happening whether they want it to or not, they may as well have some way to regulate it. EVE Online has a few legitimate ways to bring real world money into the game. Game Time Cards (EVE Time Codes) can be converted to ISK without risk of getting your teeth banhammered in by CCP Games. They offer a secure way to sell game time to players where neither party can be scammed, and more recently a way to turn game time into an item (PLEX) that can be sold on the open market in-game. When a player buys that item, he or she extends their account subscription. The upside for some players is that they can actually pay their subscription fees in the ISK they've earned in-game, for others it enables them to buy a faction battleship or a number of other virtual items.But... some people just go too far with all this, and buy ISK in huge amounts. Even worse is doing so outside of the EULA-safe methods. This was the case with an EVE player in Denmark, who paid 100,000 Danish Krones (the rough equivalent of 13,500 Euros or USD 19,000) for currency from a shady ISK seller outside of the secure system, and was ultimately left with empty pockets, even after the case ended up in court.
