Virtual Currency
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Outspark to reward Fiesta's fastest levelers with 1 million Spark Cash
The free-to-play game Fiesta from publisher Outspark has announced the game's "Race for 1,000,000" contest, which will be held in tandem with the launch of Fiesta's newest server Cypion on June 3rd. In celebration of the opening, Outspark will give 1,000,000 Spark Cash to the first three players to reach the game's level cap of 105. The promotion's site is counting down to the Cypion launch, at which time more info (namely rules and restrictions) about "Race for 1,000,000" will be posted.
Runes of Magic community manager Jörg Koonen on game currencies and reducing gold spam
With only two months of operation under its belt, fantasy game Runes of Magic already seems to be enjoying a great deal of popularity. Runes of Magic uses the free-to-play business model, which is discussed in an interview with community manager Jörg "Kerensky" Koonen. Sam "Azerian" Maxted from ZAM caught up with Koonen to discuss the game's launch and where the title is headed in future updates, but their talk quickly turned to some of the details of how the game's economy operates. Koonen discusses how players have responded to Runes of Magic's microtransaction system through the in-game Item Shop, and that by design the Item Shop doesn't sell certain types of items. "We do not sell any weapons or armour or such," he says. "All of this has to be collected by the players through the game." However, Runes of Magic also uses non-microtransaction currencies and some players are concerned that their gold lacks real value in the game. Koonen says that the developers are looking into this. They're presently gathering feedback from the playerbase and are willing to introduce other measures, if necessary, to ensure that non-microtransaction currencies serve a purpose in RoM.
The big business of selling virtual goods
It doesn't seem like it was that long ago that the entire concept of people spending real money on virtual items and currency was just bizarre. The first mentions of such a thing this writer ever came across were back in 2003, when Julian Dibbell told the story of Black Snow Interactive, rumored to have been operating virtual sweatshops operating in Mexico. Fast forward to 2009 and the notion of shelling out real world cash for the ephemeral has become commonplace. Moreover, these formerly arcane business models centering around virtual trading have ballooned into a huge business, much to the chagrin of many game companies and their players. However, not all companies attempt to fight this ever-increasing gravity of real money trading (RMT) that now permeates the MMO and virtual worlds industry, and some seek to make it an aspect of their business that they control rather than something they need to curb. Indeed, the profits of many (legitimate) businesses are largely derived from sales of virtual goods, as Rory Maher explains at paidContent.org in his article titled "From Pet Penguins to Flame Throwers: The Biggest Sellers In The Virtual World".Maher looks at three companies doing well for themselves in the virtual goods game, and what they're selling that's proven so popular. He points out Tencent, a Chinese IM provider that incorporates microtransactions into the service, allowing users to spend their "QQ" currency to enhance and customize their IM interactions, even buying virtual pets that exist on their desktop and run around inside their instant messages.
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.
GDC09: Raph Koster kicks off Worlds in Motion Summit
Game Developers Conference (GDC) 2009 has begun and Massively is in the trenches to report on all the big announcements for the massively multiplayer online gaming industry, plus we have some great interviews lined up all week as well. Our GDC 2009 coverage begins with today's Worlds in Motion Summit, kicked off by Raph Koster, MMO and virtual worlds luminary. Koster's speech is short, essentially a quick review of the virtual worlds trends he's observed over the past year. It's important to see things in perspective, Koster points out, mentioning that virtual worlds have recently turned 30, and are now a far cry from their MUD origins. Hardcore, geeky stuff Koster says, and we've come a long way since then. "We've kind of arrived, haven't we?" Koster asks. "One half of American adults are gamers today, which is an incredible step."
Entropia Universe to operate real-world bank with virtual world presence
Most of our virtual world coverage at Massively is focused on Second Life, but we're still keeping an eye on what's happening beyond the walls of Linden Lab. One significant development revealed this past week is that Entropia Universe will be the first virtual world to have a bank that's actually backed and regulated by a real-world government, called Mind Bank AB.We received word on this from MindArk's PR: "The Swedish Financial Supervisory Authority (Finansinspektionen) has granted a license to conduct banking activities to virtual universe developer MindArk PE AB's wholly owned subsidiary Mind Bank AB. The unique step of integrating MindArk's virtual universe Entropia Universe with the real world will allow Mind Bank AB to function as a central bank for all virtual worlds within the Entropia Universe."
Over 80 billion ISK embezzled from player-run bank in EVE Online
The player-driven economy of EVE Online is a major draw for gamers interested in virtual finance, although for very different reasons; some players enjoy managing vast funds in the game, others are primarily in it for a shot at a major heist. Sometimes, even those who start out with the best intentions succumb to temptation. Regardless of the motivations one has to build up (or tear down) something in the game, left up to their own devices, some EVE players aren't simply content with the existing game mechanics when it comes to financial instruments. As such, they've established their own banks, IPOs, and other types of investments. The more reputable banks and funds have built-in safeguards that limit any one employee's access to the deposited ISK, as -- let's face it -- this is EVE and such contingencies are necessary. More than a few players eye that cache of billions of raw ISK, Blueprint Originals, and other assets, and simply want to pull a runner. This has been the case just this week, with the player-run Dynasty Banking, which was apparently taken for billions of ISK by Xabier, the former Dynasty Investments Manager who had access to funds invested by EVE's playerbase.
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.
LGJ: Regulating Virtual Currency
Each week Mark Methenitis contributes Law of the Game on Joystiq ("LGJ"), a column on legal issues as they relate to video games: We're seeing quite the economic turbulence in the United States as of late, and financial problems lead to two things: 1) further regulations on the issues that caused the problem; and 2) people seeking out new sources to exploit to make a quick buck. Plenty of people have written article upon article about all of the various economic tools that have been exploited to bring us to this point. I, however, would like to talk about one of those potentially exploitable areas people may move toward, that being the currencies that exist in virtual worlds and MMO games. I figure it's only a matter of time before what I'm about to describe occurs in one manner or another, which could very easily turn the tide of regulatory scorn from Wall Street to Azeroth or Second Life.I guess the best place to start is from something I hope most people are familiar with on a basic level: insider trading. In short, insider trading is when people with non-public information trade stocks to their benefit. It's regulated as a combination of a breach of fiduciary duty to the company or a misappropriation of information. In short, it's an unethical way to profit from inside information, and generally frowned upon (though some economists disagree with regulating insider trading). But insider trading is about stocks and securities, so where am I going with this?
A look at virtual banking in EVE Online
EVE Online is set apart from most MMOs out there in that players find ways to establish and run large financial ventures within the game. What's interesting is that although such initiatives aren't developer-supported, players still put together banks, IPOs, and other types of investments peripherally to EVE and its game mechanics. The sandbox nature of the game paired with EVE's API allow for ventures of this sort. Dynasty Banking is one choice that players have that's been turning heads of late, but EBANK is the focus of a recent EVE-Tribune piece. EBANK has accrued over one trillion ISK and over 2750 customers, making it -- according to their 2007-2008 annual report -- "the largest financial entity ever seen in EVE." EVE Tribune had a chance to interview EBANK's LaVista Vista (real name: Charlie Eriksen), who is also a newly re-elected delegate of EVE's player representative body, the Council of Stellar Management. The EVE Tribune piece written by FinnAgain kicks off with one hell of a caveat in the form of a direct quote from one of their staff writers, but it's a good way to begin, particularly given the problems that have been seen in the past with banks in EVE Online. The interview focuses on the policies and safeguards in place to keep any individual working at EBANK from absconding with vast amounts of player-invested ISK, but LaVista Vista also discusses how EBANK puts all that isk to use, and their future plans to establish a stock exchange. If you're interested in the economic side of an MMO, the EBANK interview at EVE Tribune is a good look at what players can accomplish on their own within a virtual economy.
China's virtual goods taxation sparks price increases and controversy
China's State Administration of Taxation recently imposed a 20 percent income tax rate on profits made from virtual currency and virtual items, sparking price increases for virtual goods. While this tax rate (if actually enforced) clearly impacts the virtual space, it also affects transactions happening outside of MMO servers and virtual world grids. The taxation policy could ultimately extend to the virtual currencies linked to the largest IM providers in China such as Tencent, drastically increasing the percentage of the population affected by the new laws. Despite this, the positive benefits of eliminating gray and black markets for virtual items and currency may outweigh the drawbacks for gamers and users of the various digital services in China. Questions remain about what will and will not be taxed in the virtual space, but it's clear that individuals who gain virtual income are expected to declare their profits and pay taxes on this, and do so within seven days of having earned the profit, according to Shanghai Daily.Taxpayers who can provide proof of the value of this property or the value of the transaction are taxed at 20 percent on their profits, while those who cannot provide sufficient verification are taxed at three percent of the total transaction value. But how many people are affected by this new system?
Real world economic impact on MMOs and virtual worlds?
Given the drastic real world economic shifts of late, is it unreasonable to assume that there will be repercussions in virtual worlds and MMOs? That's the gist of a question posed by CBBC, a longtime commentator at the Terra Nova blog, but specifically he asks: "What now for virtual economies? What happens to EVE now that Iceland's economy is collapsing?... Will my WoW gold be worth more or less? Will games go under taking their value with them? Will we see a run on games the same as a run on banks?" While his questions aren't focused solely on EVE Online, and are more of a general inquiry, CCP's title is not surprisingly the main example cited by both the CBBC and Terra Nova's readers. As expected, the responses to the question are intelligent and shed some more light on how real world economics might affect MMO economies, namely that of EVE Online. Some speculate that real world issues will result in increased escapism, imbuing virtual worlds and their economies with greater significance. Others related financial scenarios that affect CCP Games and its virtual economics. If you're interested in the economies of MMOs and virtual worlds, you might want to get involved in the discussion of "Whither MMO economies?" over at Terra Nova.
Runescape cheater exposes his 'black market' organization
PlayNoEvil points out an interesting blog entry on cheating in Runescape. The poster, who wishes to remain anonymous, describes himself as a retired Runescape cheater who devoted five years to the 'darker side' of the game. He states, "This article details all the intricacies of Runescape and cheating and what really goes on behind the scenes, I assure you that it will surprise you." The poster, identified only by the name ThirdEyeOpen, lays out how cheaters and buyers operated as a would-be organized crime ring. 'Welcome to the Dark Side' is his chronicle of how he began his Runescape cheating career, and how it all ended. He recounts being 'interrogated' online by Jagex Ltd. about his activities, and how the subsequent account banning led to a malevolent wish to get even. His anger eventually snowballed into the creation of an organization of similar-minded individuals, mostly other teenagers, who accumulated a fair amount of real-world currency through exploits in Runescape before cashing out altogether. It's an interesting read -- perhaps a bit disturbing in the sense that he views cheating as a kind of playstyle -- but worth checking out all the same. Via PlayNoEvil
Opinion: pay more money to experience less game
Think about this a moment: people are actually paying money to experience less of their games. Every day. Probably all day. These are often games that they've already purchased and, in effect, pay someone else to play for them. The existence of RMT and power-leveling services isn't exactly breaking news, but it makes these aspects of MMOs no less bizarre a notion. The thriving business built upon such tenets of how online games should operate is a matter of some concern to Jesse Henning, a writer at GameCyte. Despite the can of worms it can be,"from a business standpoint, subsidizing RMT is a fantastic move," Henning writes. If players will buy items and currency outside of the system anyway, what company wouldn't prefer that cash to enter their own pockets? "From a design standpoint, however, RMT is a treacherous path to walk," Henning cautions, and goes on to look at the pitfalls of game design that incorporates RMT. Conversely, the writer then discusses the level-disparity design problem in World of Warcraft and how it actually encourages players to buy gold and use power-leveling services. Henning also looks at how the ancillary services operating within and around a world pull in more revenue than the world operation itself, citing Raph Koster on the issue as well. Have a look at the piece at GameCyte, which discusses how RMT affects console gaming as well as MMOs, and just how inescapable it really is.
RF Online server rollback combats cheaters and 500% inflation
RF Online in the Philippines recently had serious issues with dupe hacks, prompting an unannounced rollback of the servers. PlayNoEvil writes that the operator of RF Online for the Philippines, Level Up Games, discovered a dupe exploit and tried to purge it from the servers as well as those who used it. However due to time constraints with unraveling the intricacies of the exploit, the company decided to roll back the game to a point before the exploit was used. Level Up Games issued a statement on the problem: Based on DB evidence, numbers as well as feedback from the community, the GMs, the Vanguards and also from our field agents, there was an oversupply of in-game currency and gold - as high as 500 %. GMTristan of RF Online Philippines clarified the situation further on his blog:
Frequent Gamer Miles?
As the discourse over the new economic implications of the MMO market grows, I guess it makes sense that the next step someone would posit is the gaming equivalent of frequent flier miles. In other words, according to this article on Makezine.com, in the not-too-distant future, we will have credit card companies offering purchase incentives for gamers, much as they do for other consumers, by offering them free playtime, virtual currency, or other digital rewards.I find this line-blurring between actual money & virtual currency endlessly fascinating (even though I haven't yet found a good way to get rich quick at it), and the idea of Visa teaming up with Blizzard or the like to try & get gamers to spend more money on their credit cards makes so much sense that I can't believe it isn't happening already. of course, as you read this, some venture capatalist somewhere is already picking up his phone...
