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Third-World Sweatshops Producing Virtual Goods

prostoalex writes "MSNBC points to the court cases spawned by virtual worlds. Recently, Tom Loftus notes, a virtual island in one of the MMORPGs sold for $30,000, enough to attract commercial attention. Apparently, some businesses create third-world sweatshops, where low-wage laborers are being paid to play and accumulate enough virtual merchandise, so that an eBay sale of it makes the operation profitable. 'One such business, Blacksnow Interactive, actually sued a virtual world's creator in 2002 for attempting to crack down on the practice. The first of its kind to center on virtual goods, the case was eventually dropped,' MSNBC says." Update: 02/06 18:59 GMT by Z : We ran a story about the sale of the virtual island, and Terra Nova has a lot of commentary on the sale of virtual goods. For comparison, the economic impact of this phenomenon is roughly equal to that of Namibia or Macedonia.

4 of 348 comments (clear)

  1. Re:Sweatshop? by xami · · Score: 5, Insightful

    maybe the work itself doesn't seem hard (to you), but the conditions they have to suffer are really sweatshop-like
    BBC had a report about it recently, a dozen workers stuffed into a small, dark room with computers and only a sleeping bag may sound LAN party style to us - but we can leave the party anytime, they can't

  2. Re:I feel soooo sorry for them by Dark+Paladin · · Score: 5, Insightful

    I think it would depend on the labor conditions.

    If it's "Work 8-10 hours a day with a couple of breaks and an hour off for lunch, and a wage that a person can afford to live on (assuming third world country costs, this might be $5/day or so)", then yes, your sarcasm is met.

    If it's "work eighteen hours with no breaks, no air conditioning and if you get carpel tunnel that's your own damned fault, and if you miss a quote you miss pay for the day (which might be just enough to buy food at $0.25/day) , and we employ the twelve year olds who's other choice is prostitution so the constant threat of 'perform or die' is hanging over their head 24/7" - then your sarcasm might not be met.

    It's all in the scale.

  3. Re:... what? by DreadCthulhu · · Score: 5, Insightful

    Well, in a MMORPG, a good item (like say, the Sword of Pwning) might be really useful for your character, when your clan is fighting someone else. However, it might take a 10 hr quest to get the Sword of Pwning, and this busy first-worlder has a high paying job, so that can't skip that. So you buy the sword for real cash, because you get enjoyment out of the sword, just like you benefit from your 500Watt sterio that was probably built by some other third-worlder.

  4. I Live in China... by ddewey · · Score: 5, Insightful

    I work in Hangzhou on behalf of a small manufacturing outsourcing company. Conditions for workers here in China are much better now than in the past, but there are still problems. Perhaps one of the biggest hardships for them is that most buildings in Hangzhou are not heated in winter, and it gets fairly cold here, dropping below freezing outside several times per month. Often even areas where the white collar workers are located have no heat, and sometimes I think they have it the worst, because at least the unskilled laborers are constantly moving instead of sitting motionless at a computer.

    The point is, in a developing country some hardships can not be avoided. Unfortunately China's thirst for electricity is much more than can be supplied, thus it is not feasible to heat most buildings here in the south during winter. As it is, there are frequent scheduled blackouts in many areas to solve the problem that there is not enough electricity to go around. But they can't just all stop work and wait for spring. Sometimes I think people don't realize this when they get mad about working conditions in developing countries. Yes conditions are less than ideal in China, but they are improving, and it isn't possible for everyone to just quit working and wait for conditions to become like they are in the West. Change has to happen gradually and economic growth is the only way that it is going to happen at all.