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World of Warcraft Gold Market Soaring

Gamespot has an article discussing the realities of Virtual World economics as they pertain to the real world. World of Warcraft is used as an example throughout, and they quote some staggering statistics that remove any last shred of hope that Blizzard's bluster may be having an effect on the gold market. From the article: "Sukow discovered that the top seller of WOW gold made more than $23,000 in April, just on WOW gold. And that wasn't even a good month--in January and February the number-one seller took home more than $44,000 each month."

29 of 78 comments (clear)

  1. Its called speculation by FidelCatsro · · Score: 3, Insightful

    Same thing as the stock market , Making a fortune off of money that does not really exist .
    If i were a more supicious man ,I would think that blizzard are probably the top seller .Well they print(as in printf) the money, they would be crazy not to do it.

    --
    The only things certain in war are Propaganda and Death. You can never be sure which is which though
    1. Re:Its called speculation by Jarn_Firebrand · · Score: 3, Interesting

      I must be a more suspicious man than you, since that has been my theory all along. Now, where did my tinfoil hat go...

    2. Re:Its called speculation by Anonymous Coward · · Score: 3, Funny

      lol makes sence, blizzard sells the gold, buyer pays, then is banned. oh wait then they loose the monthly payents of the buyer.

      new plan:
      -sell gold
      - imform buyer he has suspicious gold amount
      -gold is removed from player
      -warn player about buying gold being bad

    3. Re:Its called speculation by Anonymous Coward · · Score: 5, Insightful

      I don't think it's in Blizzard's best interests to sell gold. It causes inflation. Inflation makes people lose interest in the game and increases the probability that they will quit subscribing.

      In March, Blizzard had 1.5 Million subscribers. That's 1,500,000 * $15/M = $22,500,000 / Month. $200K per month would be nothing compared to that revenue stream. If they sold so much gold that they cause significant inflation and lost even 1% of their user base as a result, they would lose $225,000/M. If word got out that blizzard was selling gold themselves, they could easily lose 5 times that.

  2. I wonder how long it will take... by Matthias+Wiesmann · · Score: 5, Funny
    I wonder how long it will take for spam that proposes to move virtual gold out of disabled accounts
    Dear Friend,

    I request your assistance for an affair of the highest importance. I am Lalal 40th level gnome, whose account has been partially disabled. By hard work, I have amassed the total amount of 1'000'000 gold (one million golds) that is now blocked with said character. I solicit your help to move this sum to a new account. Due to changes of policies at Blizzard, it is of uttermost importance that this affair is conducted with the highest discretion. In reward for cooperation, I am ready to give you 10% of the total sum, that is 100'000 golds (hundred thousand golds).

    In order for the transaction to take place, I need your account name and password. Be assured that I will proceed with uttermost discretion. /blokquote)
    1. Re:I wonder how long it will take... by patio11 · · Score: 2, Informative

      Today's Funny is yesteryear's Insightful -- my UO guild got taken for several thousand gold by just that sort of scam back in the day (when I was 16 and nobody would listen to me saying "Hey, guys, why are we giving him a key to our guild house again? Can't he just HAND us the money if he wants to give it over?")

  3. Side effects by MMaestro · · Score: 3, Insightful

    While most people would probably focus on the issue of gold/gil/plat selling here, I think the more important issue here is the failure to curb these types of transactions. Blizzard had been saying that money would not be as important since the best items would be obtain from monsters, yet this happens. Simply put, either money still remains to be a major factor in the game or Blizzard totally messed up their monetary design and made it too difficult for casual players to get money.

    1. Re:Side effects by matric · · Score: 5, Informative
      Blizzard had been saying that money would not be as important ...

      Money really isn't that important in WoW and Blizzard has accomplished a very good job in allowing the market for lower-level items to flourish (That is, it is easy for a low level player to sell their drops and make cash). There are very few top-tier items that you can buy, the rest are drops from which you must be a part of the group/kill. Nevertheless, there are still people who will pay 500+ gold for an item that is probably +5% better than what you could get yourself with a moderate amount of effort.

      That said, money isn't irrelevant. At level 60, you still need cash in order to buy consumables, repair your equipment, and even save up for that pink elephant. IMO, the volume in the gold selling market is a testament to the lengths people will go in order to be 'King of the Hill' (IE, buy that item that is 5% better).

    2. Re:Side effects by Androclese · · Score: 5, Informative

      Getting Gold is not at all difficult, what drives the market are the following 2 things:

      - The Auction House, an in-game "eBay like" construct, lets you sell and buy items. For anybody with an eBay addiction, or for those that that want to upgraded their items for that incremental increase in power, this place place will suck your gold dry.

      - If you want a Mount (Horse, etc) at L40 when it first becomes available, then you need to collect 90 Gold (minimum). If you want a Superior Mount at L60, thewn you need 900 Gold. These are the two *must have* you-are-an-outcast-if-you-do-not-have-it items in the game.

      I am sure the argument can be made for other minor thing, but these are the main 2 reasons the market for Gold is so high.

      That, and just like in Life, Money means Power to a lot of people, and they will do whatever it takes to possess it, even if it's only digital.

  4. Scary by Chemisor · · Score: 2, Insightful

    The really scary part is that people buy virtual gold.

    1. Re:Scary by Chris_Jefferson · · Score: 2, Insightful

      When you think about it, is buying virtual gold that much different to buying real gold for the purposes of money transfer? While gold does have uses in the real world, it's value is far inflated by it's use as a form of currency transfer.. and if you have a pile of gold bricks, what use actually are they to you, except for the fact you can sell them on to other people who want gold bricks?

      --
      Combination - fun iPhone puzzling
    2. Re:Scary by Chris+Mattern · · Score: 2, Insightful

      > The really scary part is that people buy virtual gold.

      And you have real gold in your wallet? Or do you have a little card that is money only because a computer file somewhere says you have that money? Even real folding money is virtual; what can you use a dollar bill for, other than give it to somebody who'll give you stuff for it?

      Chris Mattern

    3. Re:Scary by meta-monkey · · Score: 2, Interesting

      I play WoW avidly, and I have never bought gold. However, I know people who do, and I don't see anything wrong with it.

      We all pay to play. Some people pay a little more. Acquiring gold in WoW isn't particularly difficult, but it isn't fun, either. Acquiring gold generally requires grinding.

      Let's say I'm level 60, all my friends in my guild have epic mounts, and they all like to go raiding the enemy. I, with my non-epic mount, can't keep up, so I don't get to play and have fun with my friends. So I need 900g. In order to acquire 900g, I might have to spend 15 hours grinding for it. Or, I could buy it off ebay for $100. Now let's say I have a job, and at my job I make $50/hour, or at least I know where I can pick up an odd job or two that will earn me $50/hour. I'm sure all of us know somebody who needs a network set up, that would take us an hour to do, and they'd pay us $50. Grinding for gold is not fun. Setting up somebody else's network is not fun. But I want to have fun with an epic mount. So, I can spend 15 hours grinding (not fun) to get the epic mount, or I can spend two hours working IRL (not fun) to get the epic mount. Which makes more sense?

      Personally, I got all my gold by playing the AH. Buy low, sell high. I just spent 10 minutes browsing the AH every morning before work and then relisting stuff while I leveled, and I had 900g by the time I hit 60. Regardless, I don't have any problem with others who didn't plan so well buying their gold. It doesn't hurt me in any way. Oh, and I can farm HK off the chinese farmers :D

      --
      We don't have a state-run media we have a media-run state.
  5. Some people have no life by Neo-Rio-101 · · Score: 3, Funny

    "It's a validation of your game when people are willing to spend upwards of $2,000 on a character," Kramer said.

    OMFG.
    Right, I've now officially heard it all. Excuse me while I tie this rope around my head and kick out the chaalsifysfwgbvwe fafg.g.g..

    NO CARRIER+++

    --
    READY.
    PRINT ""+-0
    1. Re:Some people have no life by rufo · · Score: 5, Funny

      NO CARRIER+++

      No wonder he commited suicide, the guy's on dialup!

      --
      My English teacher once told me that two positives don't make a negative. Two words for her: Yeah, right.
  6. I.e., "pay to cheat" by Moraelin · · Score: 5, Insightful

    Well, just like real money, money has no value by itself. The only value is what you can buy with those money. In this case: an undeserved advantage in a multiplayer game. That's what that RL money buys them.

    Personally I have no respect for that kind of people. Cheating in a single player game is one thing, and I have nothing against that. But cheating in MP? That's the kind of thing that's already the mark of the low-life lamer.

    Doubly so for those who actually _pay_ for that. I mean, FFS, at least the lamers with wall-hacks and aim-bots in CS have just downloaded those. But actually paying good money to cheat in MP? How desperate _can_ one get?

    Methinks that that's well past the point where one should take a break and just think it all over. I'm a game addict myself, and all, and normally won't go "it's just a game", but... when one gets _that_ caught up with keeping up with the virtual joneses, when those virtual achievements become a _must_ at all cost, it's time to worry. Really worry.

    --
    A polar bear is a cartesian bear after a coordinate transform.
  7. Wha-huh? by faloi · · Score: 4, Insightful

    "It's a validation of your game when people are willing to spend upwards of $2,000 on a character,"

    What's it validate? That your game is so boring that people don't want to spend the time playing to earn their gold/levels?

    --
    "It is a miracle that curiosity survives formal education." -Albert Einstein
    1. Re:Wha-huh? by rpillala · · Score: 2, Informative

      Which is all the more ironic since an inexperienced player at level 60 is basically worthless in the endgame content. The only thing I can think would go easily is ganking people of way lower level where skill isn't as much a factor. Although I have seen the pvp go wrong for some of those eBay level 60s.

      --
      When the axe came to the forest, the trees said, "Look out - the handle was once one of us."
  8. Easy fix by kongjie · · Score: 2, Interesting

    The article talks about the possibility of monitoring large transfers of currency between players. Why not just eliminate currency transfers? It would have the additional benefit of eliminating all the begging in cities.

    No doubt the farmers would find a way around this, like setting up auctions where they bid enormous amounts for commonplace items...but then something like that would be easy to spot.

    There's another way to discourage this, by taking a tip from The Untouchables. When they couldn't get Capone for his blatant crimes, they resorted to nabbing him for income tax evasion. I would guess that a good percentage of these top farmers aren't paying taxes on their eBay incomes. Call the IRS and sic 'em, boys!

    1. Re:Easy fix by theMightyE · · Score: 3, Insightful

      Instead of removing the ability of players to trade cash I wonder if they could set up a tracking system that monitors how much money each character gives to other characters per unit time.

      Passing a few gold here and there to guildmates or newbie players is normal, but some guy who hands out hundreds or thousands of gold per week would stand out from the crowd. Have a GM monitor him for an hour to establish that they are really meeting up with and giving cash to nearly random folks, then kill the account along with all the farmbots that are colleting the gold. Maybe nuke the accounts of people who were buyers just to attack the market from the demand side too.

    2. Re:Easy fix by Anonymous Coward · · Score: 2, Insightful

      Yes, it's an easy fix. Too easy.

      Here's your rule: It's violation of the TOS to give away large amounts of gold, and it's a violation of the TOS to accept large amounts of gold. Your account will be killed and your CC# banned.

      Here's the first effect of your rule: There are no more "charitable" donations. No snappy replies that there is no such thing. If this point became visible enough I guarantee that we could document such occurances.

      Here's the second effect of your rule: If I want to get rid of you, I offer you one or more large gifts. Unless you've read about gold farming and/or the TOS, you'd accept the gift and get punished, because as we all know, human beings can't resist free stuff. Again, no snappy replies that everyone would know. Billy can run out to the big box store and buy the game, but there's no guarantee that Billy reads Slashdot games or subscribes to computer-magagazine-du-jour (frankly, I'd rather hope not). If you want to catch the demand side, then that means your rule must scale with wealth and level, so that the little donatee gets squished and the big donator argues, if necessary at all, that it's a charitable donation of, say, 10% of their wealth. Bring out the inevitable but near meaningless threats of "I'll sue."

      The GMs have a hard job because they have to amass some sort of evidence of selling of items and/or gold farming. Your metric is useful, but I'd rather see the GM investigate and discover the farm rather than nuke people based on the fact of the "gift". Under your rules, if I were a farmer, I'd consider it a cost of business to make a large number of moderate donations to innocent buyers so that the rule inflicted the maximum damage and controversy possible in Wow in an effort to make enforcement back off. After all, $10K/mo is less than $20K/mo but better than $0K/mo.

  9. The "Chicago Way" by Trillian_1138 · · Score: 3, Funny

    If you really want to go "Untouchables" on their asses, you need to go a bit further than that...

    "How we gonna get the gold farmers, then?"
    "You wanna know how you do it? Here's how, they pull a gankfest, you pull a slaughter. He sends one of yours to the graveyard, you send on of his to permadeath! That's the Lordaeron way, and that's how you get them gold farmers! Now do you want to do that? Are you ready to do that?"

    -Trillian

    (With appologies to "The Untouchables." The original quote: 'You wanna know how you do it? Here's how, they pull a knife, you pull a gun. He sends one of yours to the hospital, you send on of his to the morgue! That's the Chicago way, and that's how you get Capone! Now do you want to do that? Are you ready to do that?')

  10. solutions? by astralpop · · Score: 2, Informative

    There is really no way to eliminate this type of behavior. One poster commented about stopping currency transfers between players. People would then begin trading in items. Much like the "stone of jordan" in Diablo 2. It has happened in other games as well. The most they can do is too monitor large sums of money or several smaller sums of money over small time frames. It is done in the real world. I believe the US Federal Governemt tracks any money transfer over 10,000. Another poster mentioned using a reward system to turn other players in. That is not something you want to begin. That only turns your player base against each other. Using the same greed that promotes gold selling.

  11. Why does everyone think this needs solved? by shaitand · · Score: 4, Insightful

    In order to solve it, there has to be a problem and this really isn't a problem.

    1. Re:Why does everyone think this needs solved? by tprime · · Score: 2, Interesting

      It is a problem for Blizzard. When you can actually tie system uptime to a player's real life finances, it causes a problem. Since I don't play the game I am going to use a hypothetical situation. If a player pays $500 for a large amount of in game gold and the servers run into problems (not uncommon these days from what I hear) and they have to roll the characters back to the point just before the gold was given and after they paid for it, they will be out of luck. While the player may not have a legal leg to stand on, they can make problems for Blizzard both legally and in terms of public relations.

      On top of all that, since the system is being used to generate the gold that people are selling, would blizzard be required to file any REAL financial documents? This is different from eBay where people list items bought or created somewhere else, these sold items are created in game.

      --
      http://www.tomandemily.com
    2. Re:Why does everyone think this needs solved? by Gerad · · Score: 4, Interesting

      There actually are a number of problems generated by the buying and selling of in-game characters, items, and gold. (I'm not writing on any one specific game here, although my experiences are weighted towards EverQuest and WoW).

      One problem is that the associated "value" of items often leads to anti-social behavior and the breakdown of in-game ettiquete. For example, if a powerful magic staff drops in a group, a warrior might roll on it (distribution of item drops are handled by random number "rolls"), despite the fact that the staff might be much better used by a wizard type character. This can lead to the breakdown of friendships and general ettiquete in the game.

      "Okay", you might say, "so you need to find new friends and people you can trust". That may be the case, but sometimes the desire to earn these items leads people towards disruptive anti-social behavior that effects people even outside their group. For example, in EverQuest, known eBay farmers would frequently attract the attention of huge packs of monsters, far beyond the ability of any group to deal with, run up to a competing group, and use the "feign death" ability. This would cause all the monsters to lose their focus on the eBay farmer and instead turn towards the nearest target: you.

      "Okay", you might say, "but World of Warcraft staff will ban disruptive player slike that, plus it mitigates this problem by creating instanced areas for groups to fight in, avoiding disruption by outside players." While this is true, it takes a fair amount of time for an eBay farmer to get caught, and they will not always be. Often, Customer Service staff must actually witness such an event happening, and it can take hours for them to respond.

      While instanced content really alleviates this problem a lot, you still have the problem of pickup groups. To some extent, almost everyone is forced to group with strangers at one point or another. Grouping with a stranger who has relied on items they would never be able to naturally obtain, or who purchased a character can often result in hours of frustration as you deal with warriors who don't know how to hold the monster's attention, priests who don't heal, and wizards who are inept at dealing damage. It's just not a fun situation overall.

      --
      Be the Ultimate Ninja! Play Billy Vs. SNAKEMAN today!
    3. Re:Why does everyone think this needs solved? by shaitand · · Score: 2, Insightful

      "While the player may not have a legal leg to stand on, they can make problems for Blizzard both legally and in terms of public relations."

      You have to agree not to hold Blizzard liable for this every other day if you play WoW. So your right, they wouldn't have a legal leg to stand on. If someone wanted to create a PR nightmare but have no legal leg to stand on they can do that now without virtual gold. In fact, I would argue that someone who spent 50 hours earning an item and then losing it to a time warp is more likely to raise a stink than someone who spent $50 on one.

      "On top of all that, since the system is being used to generate the gold that people are selling, would blizzard be required to file any REAL financial documents? This is different from eBay where people list items bought or created somewhere else, these sold items are created in game."

      I am not sure I really follow your logic here. The gold can be likened to say magic the gathering trading cards (or pokemon or whatever). The value of the cards is only as a collectable. Wizards of the coast (the makers of magic) are only responsible for their profits on producing and selling the cards, not for the collectable value of the cards among traders.

      There could be a good argument that those who are profiting on selling/exchanging the gold should be paying taxes on those gains, but I imagine how the collectables are valued for inventory is already covered under tax law.

  12. Why are you playing MMORPGs? by KingSkippus · · Score: 3, Insightful

    Jesus, I am absolutely stupefied that people do this.

    I've already written one comment about this in a different article and mentioned it in a blog post at my blog, so I'll try not to repeat that stuff here.

    But for real, I'm truly saddened that the "RP" in MMORPG means so little these days. Everyone keeps taking about how much they hate grinding levels. Funny, when I used to play Dungeons and Dragons with my buddies, I never seemed to mind that my wizard was only level (whatever). Why? Because the point of the game wasn't to win, it was to have fun and (gasp!) socialize. Those of you who remember the old pencil-and-paper games, can you imagine a player offering a game master five bucks for 1,000 freebie gold pieces? If I were the game master, I would immediately figure out some heinous irrevocable death for that character.

    What some people see as mindless grinding through levels, I see as an opportunity to meet other players, some of whom are rather interesting. What some people see as farming for game currency, I see as an opportunity to roleplay and boost my reputation. Not this silly reputation by ownership of a cool gametoy, but the reputation as someone who is fun and interesting to run missions with.

    My MMORPG of choice is City of Heroes. One of my favorite characters is a Taxibot. We hardly ever level. We can't kill crap by ourselves. We have a lot of fun. The fun of the game isn't mindlessly killing mobs of enemies, although I do get fleeting enjoyment from figuring out strategies to defeat particularly tough enemies. The fun isn't even getting that new high-level power, although I do get fleeting enjoyment from seeing the cool effect of it. These things are supposed to add to the enjoyment of the game, not to be the enjoyment. My advice for MMORPG players (most MUD players figured this out a long time ago): If you really want to get long-term enjoyment from the game, get over that stuff quickly.

    I get frustrated because I often wonder how many people even bother to read the mission descriptions they're given before they go to empty a warehouse full of villains. Sometimes I'll be in a group of people and I'll say something game-related ("We can't let Ubelmann succeed!"), and I often get responses that indicate that the people in my group have no clue ("Who's Ubelmann?"). Needless to say, those people don't get invited to run in a group with me again, and the people who do run with me regularly have lots of fun "grinding" levels, even if it is the 100th time we have been to disable the Rikti portal devices.

    If level grinding has got you down and you've having so little fun that you feel the need to buy stuff on eBay or Sony's Station Exchange to use in the game, I'm begging you to play Progress Quest instead. We'll all have more fun, and you don't even have to spend a dime!

    I know what the first replies to this post will be: Wah, people play games for different reasons. Yeah, well, if your reason is so that you can brag about your über-whatever with a gazillion gold to the lower levels, you're not playing at all; you're being a pompous ass that the game would be better off without. Do you go around in real life bragging about how much more money you've got than people on welfare? We're not impressed.

    Damn, so much for keeping this post short. Oops, maybe I'll do better next time we have an "Buying virtual goods is a good thing" type of story.

  13. MMORPG - revised by JPelorat · · Score: 2, Funny

    Massively Multiplayer Online Role Paying Game

    --
    Hokey statistics and ancient misconceptions are no match for a good thought in your head, kid!