virtual-economies
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Cash rules everything around Pathfinder Online
The latest in the series of Pathfinder Online developer diaries has just recently gone live, and this time it's covering something near and dear to the heart of many gamers: money. Even if you don't play an MMO specifically for the size of your bankroll, everyone likes having cash to spend and money in the bank. The diary explains that the heart of the game's economic system will be a currency known simply as coin, which is meant to be the driving force behind the virtual economy in-place. Beyond the basics of the game's economic theory, however, the entry also reveals something of the game's business model, explaining that players will also be able to spend real money to purchase Skymetal Bits. These Bits work as microtransaction currency, running the gamut of the usual microtransaction services (skill training, cosmetic items, special content, and so forth). If you've been following the game along thus far, you'll probably want to see what information the latest entry is providing.
The slow demise of virtual tax havens
Is taxation of commerce in the virtual space inevitable? We've been hearing more and more about this coming out of China, South Korea, and Sweden, but a recent piece on BBC News -- "Slapping a tax on playtime" -- hits a bit closer to home for many of us. Flora Graham, a technology reporter for BBC News, spoke with Professor Edward Castronova of Indiana University, well-known for his research and commentary on virtual economies over the years, and game researcher Dr. Richard Bartle about the impact of taxation on games and virtual worlds. Castronova points out the idea of taxation of virtual goods exchanged for virtual money, saying, "... it's an extraordinarily dangerous development... It's as if every time I played soccer in my backyard and scored a goal, I would have to pay the government three euros. It takes away from the game's contribution to human happiness."
