real-money-transactions
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Bungie talks Destiny, evades RMT question
Bungie's latest Mail Sack column is up, and the bulk of the conversation centers on its upcoming open-world sci-fi shooter, Destiny. Revealed (or clarified) in the post: fireteam sizes (three), total player allowances for public events (a lot, but not too many), and which month the team is most looking forward to in 2014 (the one in which Destiny comes out). Also discussed were real-money transactions, though the response from Bungie is about as PR-fluffy as it gets. When asked to what degree real-life money will be used in the game, this was the response: What we can tell you right now is that the rewards you will gain by playing Destiny – and playing it well – will be earned. You will carve them from the hides of your enemies, after you stomp them into the ground of your favorite destinations. It makes sense that the folks at Bungie would play that one close to the chest; Destiny is still in a pre-alpha state and anything could change about the game at any time.
Congressional report says you 'may' owe taxes on your WoW income
If you're a World of Warcraft or Diablo 3 player, the federal government would like to have a word with you. Congress's U.S. Government Accountability Office (GAO), at the request of Senators Max Baucus (D-MT) and Orrin Hatch (R-UT), just wrote and filed a 23-page report on the tax implications of earning gold in MMORPGs. Seriously. The report, titled "Virtual Economies and Currencies," focuses on buying, using, and selling virtual currencies like WoW gold. The key takeaway for World of Warcraft players is that the in-game economy is a "closed-flow system" -- because you can't exchange your gold for U.S. dollars, you don't need to worry about claiming those 26 gold pieces from completing a quest on your 2013 income taxes. If, however, you decide to sell your accumulated WoW items through a third-party exchange (Don't do it! It's against the Terms of Service and could get you hacked!), then you "may have earned taxable income from the sale of these virtual goods."
The Summoner's Guidebook: Is League of Legends' grind too much for a competitive game?
League of Legends has had one of the most meteoric ascensions of any current e-sport. From the first tournaments of season one to tomorrow's MLG Summer Arena, LoL has made a bigger splash in the e-sports community than any title launched since StarCraft II. However, the long grind to get to summoner level 30 poses a difficult barrier of entry for players looking to someday join the pros. It isn't necessary to grind levels to unlock +3 infantry weapons in StarCraft, so gating runes and masteries behind a grind seems a bit ridiculous. I've thought that the forced grind was excessive since I started playing LoL. I'm not opposed to having a grind at all, but I've always thought it was silly that levels and runes can't be purchased with real money. Are levels and grinds bad for a competitive game like League of Legends, or does the grind actually improve the quality of player skill at the higher levels?
Diablo 3 auction house now has gems and other commodities for real money
Blizzard has pushed patch 1.0.3b live in Diablo 3, and in addition to a few random bugfixes with General chat and the tutorial sequences, the patch brings another wrinkle to real-money spending with the game. You can now buy various in-game commodities (including gems, dyes, and crafting and leveling materials) with real money, which means Blizzard has turned an unofficial black market for items in Diablo 2 into a very official real-money market in Diablo 3.Gold sales still aren't live, but Blizzard says it hopes to enable real-money purchasing of in-game gold in the future. In the meantime, however, you can now put money into your Battle.net account and buy away, or try to sell your in-game items for real money. For better or worse, it's game on.
Guide to microtransactions in WoW and the Diablo 3 Real-Money Auction House
Since the advent of gold sellers, players have discussed the ethics of buying gold with real currency, as well as what would if Blizzard started selling gold. Then came the Guardian Cub, and suddenly Blizzard was allowing gold buying and selling via a vanity pet. Later, Blizzard hit us with the announcement that Diablo III would have an auction house that uses real money. Now that the Real-Money Auction House has been launched, the debates have heated up. This guide is to help you decide, debate, or deliberate about real money in Blizzard games. Real-money transactions for WoW The implications of a real-dollar auction house What WoW can learn from other transaction models, part 1 and part 2 Guardian Cub pros and cons WoW's immune system and the gold selling virus Blizzard responds to Guardian Cub controversy Guardian Cub pet available for purchase How much is a Guardian Cub worth? Guardian cub taking a bite out of third-party gold sales
Diablo III pulls trigger on NA real-money auction house
While Diablo III released weeks ago, Blizzard's held off from launching the game's controversial real-money auction house in North America for its own reasons. All must be good on the studio's end, however, because the auction house has gone live in the game as of today. Unlike the traditional in-game auction house, the real-money variant deals in actual currency (such as USD). Players can sell their hard-won goods for cash, which can then be either spent on the auction house, sent to their own personal PayPal accounts, or converted to Battle.net Balance credit. The real-money auction house requires additional setup if the players have not attached a PayPal or authenticator to the account. Blizzard does take its cut, and business must be good: There are reports of items going for over $200 already.
Free for All: Planet Cyrene adds to the high-stakes worlds of Entropia
I'm not much of a shooter fan and probably never will be. Sure, I have as much fun blasting my way through monsters as the next gamer, but I rarely have the patience or physical stamina to overcome the pains and frustrations of shooter PvP. After all, my first rule of PvP applies especially well to shooters: There is always someone better than you. Planet Cyrene, the new world being added to the impressive portfolio of Entropia Universe, tasks players tasks similar to those found in Planet Calypso and mixes in PvP arenas that promise to frustrate (or delight) players, depending on their skill level. I sat down with Ed Robles III, lead developer for Planet Cyrene, to see just how nasty and expensive things might get. Remember, this is the Entropia Universe we are talking about, and that means players will spend real money on bullets, armor, and practically everything else. Fortunately, players can earn items that are worth real money as well. Call it gambling or whatever you want, but it still seems to be a pretty successful formula.
The Tattered Notebook: Learning from EQII's free-to-play model
What a long way EverQuest II's come! If you had said back in 2004 that the game would not only go free-to-play but have microtransactions and emerge largely intact, I probably would have run to get my pitchfork. But here we are in 2012, and EQII's website has a huge green button that says "Play Free" in big letters, with a long list of special deals on station cash and Marketplace items. In this week's Tattered Notebook, I want to look back at the evolution of EQII to see how it successfully transitioned while gauging where it's headed down the road when it comes to its payment model. The official move to free-to-play might seem like the final hurdle, but I think we still have a few more around the bend.
Battle.net Balance boots up
Diablo III may not be out yet, but that's no good reason not to be filling up your virtual coffers for the day that it hits the streets! Blizzard has thrown the switch on Battle.net Balance, activating its online payment service that allows players to charge up their Battle.net funds to purchase various Blizzard game services. The new Balance system can be used to buy World of Warcraft game time (although you can't set up a recurring subscription with it), in-game pets and mounts, paid account services in WoW such as character transfers, digital copies of Blizzard titles, and the opportunity to buy and sell items on Diablo III's auction house. It's important to note that not all regions will be able to participate in Diablo III's real-money transactions, however. Once real money has been funneled into Battle.net Balance, it cannot be converted back into cash. Blizzard does state that in some regions, players will have an option to get cash back on Diablo III auction sales via PayPal. The company also mentioned that there is a cap on how much any player can have in his or her Balance account and that there are potentially region-specific expiration dates for Balance funds.
Guardian Cub taking a bite out of third-party gold sales
The new Guardian Cub, the pet you can buy with real-world currency and exchange for in-game gold, has been available for sale on most realms' Auction Houses for a good 24 hours now. And early reports are looking very favorable for Blizzard; it is now significantly cheaper to buy gold through Blizzard than through one of the less-reputable, third-party Chinese gold sellers. The price of the Guardian Cub varies wildly by server -- a function of supply and demand. An impromptu Twitter survey suggests that the pet is currently selling for between 6,000 gold and 40,000 gold in game, depending on server size, competition, and a number of other factors. Most realms are currently seeing prices just north of 10,000 gold. Certainly, the final page of the Guardian Cub saga has yet to be written, and prices will be extraordinarily volatile in the next few days, weeks, and months. Still, even at a conservative exchange rate of $10 for a 10,000-gold pet, players can get a far better (and safer!) deal buying gold through Blizzard via the Guardian Cub than dealing with a gold seller. The difference is stark -- the same amount of gold may cost you $20 or $30 through a third-party site. And even then, you have no guarantee of getting your gold, no guarantee that your account won't be compromised, and no guarantee that your purchase isn't supporting forced labor and account theft. Will the Guardian Cub kill off third-party gold sales? Probably not, at least on its own. Interest in this new pet simply cannot be sustained long term. But if the last 24 hours of trading on the in-game Auction House are any indication, Blizzard just fired a shot into a multi-billion-dollar gray market.
The Lawbringer: Mailbag 7.0
Pop law abounds in The Lawbringer, your weekly dose of WoW, the law, video games and the MMO genre. Mathew McCurley takes you through the world running parallel to the games we love and enjoy, full of rules, regulations, pitfalls and traps. How about you hang out with us as we discuss some of the more esoteric aspects of the games we love to play? Wow! Did you see all those cool announcements and awesome World of Warcraft news items that we are currently reporting on? Me too. I'm writing this article much earlier than BlizzCon, so you'll have to excuse my lack of foresight. How about we mailbag us some Lawbringer questions? Albert wants to know what's up with gold sellers stealing gold and why Blizzard can't just track it and remove it. Seems simple, right? Hello, love your column. I was wondering if you can explain something. When these gold sellers hack someone's account and move their gold, can't blizzard track where the gold is going and just claim it? I mean i assume they have the tools to do anything in game, they are god. Seems simple enough to do, i got hacked, see where gold went, take it back. do it for a few months and done. am i missing something? Thanks in advance, Albert Thank you for the email, Albert. It probably is not that tough to track currency moves and associated transactions, but it's really about the volume of text and transactions that go on at any given time. It must be hell to search through all the records to find this stuff, even if you know the name and server that people are on.
Nexon, NCsoft refuse to fully cooperate with South Korean MMO gambling probe
South Korean MMO makers are under the Game Rating Board's microscope for allegedly obstructing an investigation related to MMORPG gambling. The ratings board has questions regarding real-world money transactions that offer a chance at valuable in-game items, and a veritable who's who of Korean development firms are refusing to fully cooperate, according to This Is Game. NCsoft, Nexon, and HanbitSoft are just a few of the companies mentioned in the report, and while the publishers have given up item names, costs, and other details related to the transactions, the companies are thus far refusing to divulge information on payout percentages. GRB chairman Soo Keun Lee says that his organization is simply trying to determine the legality of RMT transactions using a set of gambling standards adopted by South Korea in 2008. "Game companies ask us why GRB tries to touch their business model and [they] refuse our request[s]," he said.
The Lawbringer: Q&A on Diablo's real-money auction house
Pop law abounds in The Lawbringer, your weekly dose of WoW, the law, video games and the MMO genre. Mathew McCurley takes you through the world running parallel to the games we love and enjoy, full of rules, regulations, pitfalls and traps. How about you hang out with us as we discuss some of the more esoteric aspects of the games we love to play? Since Blizzard dropped the Diablo 3 bombshell on us early Monday, I will post the second article in my series on micro-transaction models next week. For those of you who have been living under the proverbial internet rock (you are missing some awesome memes right now), Blizzard announced that Diablo 3 would feature two auction houses, one using in-game gold as currency and the other using real currency that would be deposited into a Battle.net account wallet and used from there. The whole system gets more intriguing when you take into account that sales made on the real-money auction house can make their way to your own very real wallet through an unannounced third party or deposited back into your Battle.net wallet for use on anything digital in the Blizzard store, including WoW game time. If you're a regular reader of The Lawbringer, you already know how excited I get over virtual currency. This is my wheelhouse. I feel like a master carpenter at Wood Con 2011, cosplaying as my favorite oak tree, quercus alnifolia. Pair that with real currency, and excitement levels hit the stratosphere. I may break through the atmosphere at some point. That faint sonic boom you hear will be me hurtling through the air in excitement and wonderment. Sure, the Diablo real-money transaction (RMT) auction house is not related to World of Warcraft -- or is it? Oh, it very much is. Faithful readers and not faithful alike (how could you, Debbie?) have been writing in questions via Twitter and email asking me to explain the auction house and talk about some of the potential legal and tax issues that could come around because of it. Also, many people want to know how the RMT auction house could benefit World of Warcraft, despite Rob Pardo's saying there are no plans to bring it over to WoW. Let's take a look at your questions.
Diablo 3 to feature player-to-player real money auction house for virtual items
Diablo 3 will sport a couple of in-game auction houses to sell items from player to player. One will be run entirely with in-game gold (very similar to the current WoW Auction House), and one will let players sell and buy items with actual money. During a press event at its headquarters in Irvine, CA last week, Blizzard Entertainment showed off both the Diablo 3 beta and its associated Battle.net service. While most of the Battle.net features were pretty standard (there will be persistent friends lists, cross-game communication, and full matchmaking services for all of the game modes), the auction system stood out. Yes, Diablo 3 players will be able to spend real money on in-game items, but rather than a traditional item store, Blizzard plans to create a system wherein players sell items to each other -- the eBay of Sanctuary, if you will. Players will be able to put items up for sale in each of the game's various regions around the world (with a different real-world currency for each), and other players will be able to spend real money to buy them, with the real-world money going back to the original item owners. Blizzard will take fixed fees (as yet unrevealed, though they'll be "nominal") out of the sale price both when an auction goes up for sale and when it is actually sold. And when an item is sold, players will either be able to keep earned money in a Battle.net account for spending on Blizzard products and services, or cash out entirely, with another, percentage-based fee through a not-yet-announced third-party payment provider. As you might imagine, Blizzard's been thinking about this one for quite a while. Vice President of Game Design Rob Pardo shared a lot of thoughts with us, including why they're going with a system like this, how it will all work, and what this means for the future of Diablo 3, Blizzard Entertainment, and the gaming market at large.%Gallery-129629%
Lost Pages of Taborea: A history of Diamonds
It's been a long time since we've heard anything about Diamonds being reinstituted into Runes of Magic's auction house. Since that fateful day they were removed, a lot of new players have joined, veterans have left and some things that should not have been forgotten... were lost. Having Diamonds in the auction house is an important feature that was planned from the get-go. It allows for seamless trading and player-controlled price fluctuations that keep all items obtainable for everyone. It's about having the freedom to play multiple ways. Options are more numerous than simply paying and having everything opened up or not paying and being stuck. With RoM's cash-shop items being integrated into the title's gameplay, there's a grayscale that lets players have many more options in how they want to play. It's not an overly complex issue, but one worth looking back on. Getting Diamonds back in the auction house isn't a lost cause, but the issue has dragged on to the point that long time players may have given up all hope. This edition of Lost Pages of Taborea is all about looking back at the beginning and bringing players up to speed on diamonds in (or not-in) the auction house.
The Lawbringer: Fighting the gold fight -- how the strategy must change
Pop law abounds in The Lawbringer, your weekly dose of WoW, the law, video games and the MMO genre. Running parallel to the games we love and enjoy is a world full of rules, regulations, pitfalls and traps. How about you hang out with us as we discuss some of the more esoteric aspects of the games we love to play? Last week on The Lawbringer, I introduced you to the world as it is, a battlefield littered with the corpses of stolen accounts, inconvenienced players, and a priceless reputation on the line. This week, we look at concrete solutions to actually helping the gold selling system wind down and remove many of the hurdles that instant gratification with purchasing gold sets up for Blizzard. You might have mixed and angry reactions to what I'm going to talk about, but do give me the benefit of the doubt. I think being open-minded might win this fight. So what can Blizzard do besides selling its own currency? Here are my suggestions for the first steps that Blizzard needs to take in the new war against gold selling.
The Lawbringer: Fighting the gold fight -- the world as it is
Pop law abounds in The Lawbringer, your weekly dose of WoW, the law, video games and the MMO genre. Running parallel to the games we love and enjoy is a world full of rules, regulations, pitfalls and traps. How about you hang out with us as we discuss some of the more esoteric aspects of the games we love to play? The Lawbringer has in the past been used as a personal launching pad for some of the more out-there or esoteric ideas that I have in regards to the World of Warcraft and virtual currency in general. You guys seem to love it, and there's always plenty of great discussion about these ideas. For the next two weeks, I want to introduce you to my thoughts on how Blizzard should be attacking gold sellers and, at the same time, working to remove some of the content gates that gold has erected in the MMO we all love. This week, we will set up the story and the history of it all, and next week, we will talk about hard conclusions. Gold selling isn't going away as long as fungible and liquid currency exists in MMOs. Gold is "fungible" because it can be exchanged for something exactly like it, at a 1:1 ratio -- gold is gold. Gold is also liquid, as it can be used and exchanged for other goods or services. Short of Blizzard's getting rid of this type of currency altogether or selling its own currency for a cheaper price than gold sellers can furnish it, people will sell gold and items that can be traded. Blizzard has shown that it has the guts to go after gold selling as an industry but has so far failed in scope to bring down the snake that slowly poisons everything it has worked to build. As sellers become hackers, and as hacking chips away at the good will, reputation, and stability of the game we love to play and the company we love to patronize, there has never been a more urgent time to fight the gold fight. The strategy needs to change from focusing on the people who sell gold to a combination of those that sell and the gold itself.
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.
SEE buys Planet Calypso for $6 million, talks with Massively for an encore
For $6 million you could buy a heck of a lot of tacos -- or one virtual planet. Wisely, SEE Virtual Worlds went the latter route, snapping up Planet Calypso from MindArk and saving itself massive heartburn. The sci-fi-themed Planet Calypso operates under the umbrella of Entropia Universe and boasts 950,000 registered accounts since coming online in 2003. As part of the deal, SEE Virtual Worlds also acquired all of the assets of First Planet Company, a former subsidiary of MindArk, which has been transformed into SEE Digital Studios. Under this reorganization, SEE Digital Studios is now responsible for developing and operating Planet Calypso, Planet Michael and Universal Monsters. The company is expected to hire on additional team members for these projects. Fresh from the champagne celebration, SEE Virtual Worlds President Corey Redmond sat down with us to discuss this deal and the future of these three titles. Hit the jump to boogie with Michael Jackson, scream in terror at the Wolfman, and navigate the economy of virtual worlds.
Breakfast Topic: Will you be buying either of the new vanity pets?
This Breakfast Topic has been brought to you by Seed, the Aol guest writer program that brings your words to WoW Insider's pages. Blizzard has been selling us in-game items for a while now; however, it has kept this to noncombat pets and mounts -- things that, outside of counting for totals for achievements, have little to no real effect on gameplay. Some of the items Blizzard does for self-profit, and sometimes it sells in-game pets for charity. People who buy the items get different reactions from the community; the sparkle pony especially got a lot of hate. Personally, I have not bought any of the real-money pets, partially because I am not a collector and partially because I felt that paying for downloadable content should add something major to the game experience. However, I am considering buying the Ragnaros pet for one main reason: because Rags is my major epic memory of vanilla WoW, I always felt he was an awesome model and so imposing, and many of us went around saying "too soon" on Vent. Have you bought any of the vanity pets? Do you buy them all as a completionist/collector? Do you pick and choose the ones you think look cool? Do you only buy the charity pets? Or do you avoid real money transactions in games altogether?
