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Legitimizing Real Money Trading In Games

MMOGamer interviewed Andy Schneider, co-founder of Live Gamer, a company working with several major game publishers (including Acclaim, Funcom, and SOE) to legitimize the real money trading (RMT) industry in online games. Schneider expects this method of customer service to grow much more popular in the West over the next few years, especially after the success it's had in Asia. "It started in the very earliest MMOs, if not back in the MUD days in a very grassroots sort of way, but then obviously got into a more opportunistic and nefarious industry. When I talk about legitimate RMT, it's about a publisher supporting the notion that people want to buy and sell virtual items for real money, and they have decided to proactively support that notion and give their player-base a way to do that. ... It takes the manual process out of the equation that most players are engaged in with the black market, and reduces the fraud considerably, which is good for players. ... The reason there are gold farmers out there, the reason why there is nearly a two billion dollar secondary market for virtual items, is because of consumer demand."

158 comments

  1. Earning cash for virtual gold will be fine until.. by Anonymous Coward · · Score: 4, Insightful

    The Taxman cometh.

  2. Re:Earning cash for virtual gold will be fine unti by Anonymous Coward · · Score: 1, Interesting

    You already have to pay tax on any cash you earn, that fact that you're selling something virtual doesn't matter. If you accumulate a lot of in-game currency but don't sell it for real currency you wouldn't be taxed on it.

  3. Be wary... by MBC1977 · · Score: 2, Insightful

    See, this would be good, except that say I start a virtual business that somehow generates millions in real income, having to pay taxes on this would be insane (since it would deal across state and international borders). I'm not seeing that I would be doing anything but working for various governments and since that would mirror real life, I don't feel the need to assist the government in the taking of any more of my time and effort (much less money). On technical side though, this has some interesting possibilities...

    --
    Regards,

    MBC1977,
    1. Re:Be wary... by artor3 · · Score: 4, Insightful

      See, this would be good, except that say I start a virtual business that somehow generates millions in real income, having to pay taxes on this would be insane

      Why? All companies pay taxes. You're not making a virtual business - you're making a real business that just so happens to deal in virtual goods. You should (and will) pay taxes like any other company. In fact, it would probably be in your best interest to incorporate, just like any other company.

      A company is a company. You are selling a good or service in exchange for money. The fact that the good or service exists as data in a computer shouldn't matter.

    2. Re:Be wary... by julesh · · Score: 1

      Why? All companies pay taxes.

      Not true in the slightest. Set up a company in, say, Panama, and it doesn't have to pay taxes except for profit from business conducted within Panama. Other countries (e.g. UK and I presume US) have tax rules that will take taxes on profits from trading that takes place within those countries, but if the basic work is being carried out in a virtual environment has the trading taken place in those countries? Probably not.

      An offshore company dealing in a virtual world will probably never have to pay any significant chunk of taxes.

    3. Re:Be wary... by pbhj · · Score: 1

      So if I use a North American bank to execute my futures investments I can run a ponzi^w investment bank in the UK and not pay taxes. Sounds good.

    4. Re:Be wary... by julesh · · Score: 1

      So if I use a North American bank to execute my futures investments I can run a ponzi^w investment bank in the UK and not pay taxes. Sounds good.

      No, because those futures investments are taking place in North America, so you'll have to pay North American tax on them.

      The question becomes interesting when the investment is not related to something that has a geographical location, but exists only on the Internet. You'll then get interesting questions arising like "where are the servers based?" ... but consider the possibilities of distributed processing here.

    5. Re:Be wary... by Cyberurchin · · Score: 1

      Yeah, but then you also lose a lot of credibility. Who protects the consumer when the company rips off the users? Or, even better, when the players steal each others virtual (=real) money? Interesting security issues.....

      Nobody will invest a lot of money into this game ..... Well, or at least should not.

    6. Re:Be wary... by TheRaven64 · · Score: 3, Interesting

      No, because those futures investments are taking place in North America, so you'll have to pay North American tax on them.

      Note that this may not actually be true. There are several tax treaties signed between the UK and USA, and between commonwealth countries (e.g. the UK and Canada) which give some quite complex rules. On royalty income paid by my US publisher, for example, I pay tax in the UK but for other kinds of income from the USA this specific exemption would not apply. Just to make life more fun, the IRS forms require you to state the treaty and clause that is relevant to your specific case, so you need to look this up yourself (or, if you're lucky, find someone else who has already done the research and blogged the answer).

      --
      I am TheRaven on Soylent News
    7. Re:Be wary... by harl · · Score: 1

      What?

      For the "real income" to be real it has to exist in the possession of a real business or real person. Thus it is taxable. The taxman doesn't give a fuck how you earned it.

      --
      I find being offended by me offensive.
    8. Re:Be wary... by pbhj · · Score: 1

      Interesting, in all future posts on gambling on arbitrary fluctuations of intangibles I'll consider running investments from Papua New Guinea.

    9. Re:Be wary... by harl · · Score: 1

      That has nothing to do with the original point. The GP claimed dealing in virtual goods rendered them immune to taxes.

      --
      I find being offended by me offensive.
    10. Re:Be wary... by pbhj · · Score: 1

      What's the geographical location of the future stock price of Google?

      The Geographical location of the company, fair enough, it has several. You can locate the transaction, sure, but if it's just about the location of the transaction then a MMORPG transaction is just as much located geographically as a gamble on a stock price fluctuation.

      What if the transaction is actuated on a computer on a ship in international waters? Futures to my mind are equally tangible as MMORPG monies.

    11. Re:Be wary... by vertinox · · Score: 1

      See, this would be good, except that say I start a virtual business that somehow generates millions in real income, having to pay taxes on this would be insane

      I don't see the problem here. You can pay your taxes in virtual money.

      --
      "I am the king of the Romans, and am superior to rules of grammar!"
      -Sigismund, Holy Roman Emperor (1368-1437)
  4. If you can't beat em by Anonymous Coward · · Score: 0

    The market will always be there, so it makes sense for a developer to try to get a slice of the pie. This needs to be balanced with player wishes and gameplay mechanics though, done badly and it could ruin a game. The only instance I've seen work well is Eve online timecards which don't prevent black market trade, but they do limit it considerably.

  5. Re:Earning cash for virtual gold will be fine unti by Anonymous Coward · · Score: 3, Insightful

    That's a rational, logical, well thought out argument. Good luck selling the taxmen on it.

    Where there's a buck to be had, don't assume people are going to be rational about it. And never, ever, ever assume that the legislation that introduces a new tax upon something will be well thought out.

    Easy solution though. Just limit yourself to games in which gold-selling is not permitted, and you'll be fine.

    Hell, I'm of the opinion that any game economy that allows real world money into it is bound to get out of control with inflation in an awful hurry, and probably won't remain worth playing for long. It's only the fact that the MMO companies don't allow such services (and do everything in their power to curb them) that limits this now - open the floodgates, and you'll see the in-game currency massively and rapidly devalued, and a big chunk of the playerbase leaving in disgust as they find themselves unable to compete without emptying their wallets.

    Selling in-game resources for real-world money is simple greed, much like billing by the hour would be. If an alternative game exists that doesn't shaft the customers for every dime, they'll move one. Notice that, without exception, the successful MMOs are the ones that don't pull that crap?

  6. Interesting... by detox.method() · · Score: 0

    I wonder how much total GDP has been transferred over the years in these games?

  7. Do they wish their own death? by RuBLed · · Score: 4, Insightful

    Are they trying to dig their own graves? The reason why the gold farmers and item traders are thriving is because it is not legal under the TOS of many MMO games out there. If it suddenly become legal, what made them think that they can profit from it? I'm pretty sure that gold farmers would cease to exist if the gaming company themselves sells gold for real $$$ at a lower rate.

    I'm against real money trading for gold and items because it would definitely create a crazy and lazy in-game economy. It would also remove the sense of common-ground in the game. I would hate it if by any chance Bill Gates decided to play an MMO and would have better items and gear than me instantly. (something along those lines)

    1. Re:Do they wish their own death? by jmorris42 · · Score: 3, Insightful

      > I'm pretty sure that gold farmers would cease to exist if the gaming company themselves sells gold for real $$$ at a lower rate.

      I think that is the point. If you have to grind for weeks to get a Sword of Awesomeness you will insist on selling it for a decent chunk of change. But you won't be able to compete with the company store. Thus farming isn't a viable business model anymore.

      Which is all well and good as far as it goes. But that treats symptoms not the real problem. The problem is losers wanting pretend items they couldn't possibly earn in a frickin' game so badly they will pay serious real coin to get them. It would be like bribing your DM to let your third level character find a +5 sword. Who would continue to play in a gaming group if such a disgusting thing were to occur?

      --
      Democrat delenda est
    2. Re:Do they wish their own death? by shawb · · Score: 3, Interesting

      If it suddenly become legal, what made them think that they can profit from it?

      They think they can profit because they have (or at least intend to have) an exclusive contract with the game company to do the legal transactions.

      Players would have an incentive to purchase from an official third party rather than a black market source as the likelihood of all sorts of different fraudulent activities would be reduced. What assurance are you given that you will receive the item advertised, or any item at all? Do you think the back alley item salesman would think twice about selling your contact information to spammers? How convinced are you that your financial information will be handled in a secure manner, if not outright sold on the black market?

      The big question might be why the game publishers don't get into the action themselves rather than having a third party perform the transaction. There are foreseeable problems with the developer running an in game real money trading economy, primarily in customer perception. Redirecting the ire of irate "purist" gamers to a third party is a win for the developer. Additionally, specialization and economies of scale could possible make combating fraud more reasonable. Same for handling a sale between people who use different currencies. Developing both the game world and the transaction system could be tricky tax-wise and could even present expensive edge cases of legal liability.

      In the end, some developers will decide to use a third party to handle player/player transactions. Some game companies will decide that handling financial transactions internally is worthwhile... likely those under the umbrella of a larger publisher that can devote the developer expertise to creating a fairly robust market system (parts of which can the be reused in other games) as well as the legal muscle to not get in too much trouble with it. Other in-game economies will still prohibit all real money sales... and those games will always have a prominent, annoying black market element. The developers can do their best to stamp out the gold-farmers, but any time there is a profit motive roaches will come out of the woodwork to try to get a quick meal. And once they are there, they reproduce quicker than you can stamp them out.

      --
      I'll never make that mistake again, reading the experts' opinions. - Feynman
    3. Re:Do they wish their own death? by Anonymous Coward · · Score: 1, Informative

      The problem isn't that the gamers with $$$ would get ahead, the problem is that the gold farmers can (and often have the know-how) to take it to the next level, up to and including stealing entire accounts just to make a buck.

      If that were completely preventable, people would be much more willing to give gold farmers the benefit of a niche market... but when things become harmful to the gamers enjoyment of the game, they have to draw the line somewhere.

      Few companies have embraced legalized RMT. Other companies completely reject RMT. And then there's the middle-ground, where RMT exist on the whim of the server gods (and their corporate overlords).

      To be honest, I'm not against RMT. I'm against them making normal game-play problematic, irritating, or unenjoyable.

      I remember times when RMTs would make normal game chat... irritating, mostly because I would have to scroll up just to see what was posted by friends just a half second earlier.

      I remember getting my account hacked (and my goods stolen), and the social problems in-game it caused me. (and yes, I'm a security-conscious person)

      And on the flip side, I remember gaming right next to friendly RMTs, who (despite not knowing english) were very amiable individuals.

    4. Re:Do they wish their own death? by Thanshin · · Score: 1

      would hate it if by any chance Bill Gates decided to play an MMO and would have better items and gear than me instantly.

      "You have been eaten by sir Bills-a-Gate's gold plated grue"

    5. Re:Do they wish their own death? by Anonymous Coward · · Score: 0

      > It would also remove the sense of common-ground in the game.

      You hear this reason a lot but I believe it's false. At the moment, the currency in the game is time - spend enough time and you will 'succeed'. So the game favours those with lots of spare time on their hands and is a disadvantage to those with jobs and other committments.

      Buying gold simply trades time for cash. It's simply a different form of 'common-ground'. It's absolutely no different to time.

      By having both forms in a game, you actually make the game a more even playing field.

    6. Re:Do they wish their own death? by 91degrees · · Score: 1

      Ultimately I think this can be solved with game design.

      A game should be just as much fun to play if you're a level 1 n00b or if you're a level 100 super-monster with a horde of violent psychos at your command.

    7. Re:Do they wish their own death? by dangitman · · Score: 1

      Who would continue to play in a gaming group if such a disgusting thing were to occur?

      People?

      --
      ... and then they built the supercollider.
    8. Re:Do they wish their own death? by Anonymous Coward · · Score: 0

      Which is all well and good as far as it goes. But that treats symptoms not the real problem. The problem is losers wanting pretend items they couldn't possibly earn in a frickin' game so badly they will pay serious real coin to get them.

      No, the real problems are games designed to be so boring that people would rather pay for the item than spend time playing the game.

      Usually, this kind of game has some fun parts, but not enough to make the game take more than a day to play through. Instead, the developers put in a lot of boring parts, that you have to finish to get to the interesting part. In MMO games, this is called "grinding". In single player games, it's called "unlocking".

      This parts are more like work than play. For those who don't have a job, it may be fine, but for those of us who do, more work is NOT what we are looking for. When we get home, we want to have fun, NOT to work. So, there's basically two ways to continue. We can stop playing, because the game is crap where we are now, or we can pay to get past the work part, so we can get to the next play part.

      If the game designers could come up with a genuinely fun game that takes more than a couple of hours to play, they wouldn't need this grind / unlocking part, so the whole reason for paying to get past it would disappear.

    9. Re:Do they wish their own death? by Anonymous Coward · · Score: 0

      I agree here. Its supposed to be virtual reality, not reality. I don't mind working hard in the game for something, but come on, to have to work hard in reality for a virtual item, it just wouldn't be fair anymore. It wouldn't be an escape like it is now. That's the whole point! Anybody can be a Bill Gates in virtual reality. Lets not make games only for the rich. Everything is going the money route online, It needs to stop somewhere...

    10. Re:Do they wish their own death? by harl · · Score: 1

      EVE-Online model:

      Alice gives money to CCP for 30 days game time.
      Bob gives ingame cash "isk" to Alice.
      Alice give 30 days game time to Bob.

      CCP provides a secure way for Bob and Alice to trade time for isk. No isk is artificially created by CCP.

      It's risk free and inflation free. Basically CCP wants to get the subscription cash from a player rather than a farmer.

      --
      I find being offended by me offensive.
    11. Re:Do they wish their own death? by nobodylocalhost · · Score: 1

      But you fail to realize, what incentive would game company have to contract such third party? After all, in most games a GM can create what ever item or money they wish. There are no need to waste bandwidth, system load, and time for official items and money. So it would literally spell the death of RMT

      --
      Where is the "Ignorant" mod tag?
    12. Re:Do they wish their own death? by MeanderingMind · · Score: 1

      If only that were the case.

      Rune of Magic is a free to play MMO which makes all of its money on RMT. There are effectively two currencies in the game, one which is used for common everyday stuff such as repairs and professions, and another which is used for all of the best features like mounts and player housing.

      The latter is purchased with real money, and if desired can actually be sold on the auction house for the more "mundane" currency. In theory this should kill the market for gold sellers.

      In practice it does not. The gold sellers simply offer a better conversion rate and continue to thrive. Perhaps they don't do as well as they otherwise might, but they aren't done away with at all.

      This is essentially the truth of the Black Market. If something is illegal, there'll be a market. If something is legal, there'll be a still be a market. As long as there is demand, there are those who will appear with a supply of dubious origins.

      --
      Thunderclone: ONE MAN ENTERS! TWO MEN LEAVE! ONE MAN ENTERS! TWO MEN LEAVE!
    13. Re:Do they wish their own death? by Jack9 · · Score: 1

      The problem is losers wanting pretend items they couldn't possibly earn in a frickin' game so badly they will pay serious real coin to get them.

      Ya. Fuck those pathetic losers who value their freetime and have a job. Are you seriously blaming the players? The "real problem" you describe isn't a problem at all.

      --

      Often wrong but never in doubt.
      I am Jack9.
      Everyone knows me.
  8. Can't see the point of playing a game open RMT by jmorris42 · · Score: 5, Insightful

    I can see why losers would want to buy things they couldn't earn. I can see why the companies running the games would want to take the losers money instead of spending resources fighting gold farming. What I fail to understand is why anyone worth a damn would keep playing a game that openly allows buying their way to the top. And a game filled only with pathetic losers isn't likely to stay fun for even the losers for long.

    --
    Democrat delenda est
    1. Re:Can't see the point of playing a game open RMT by silentace · · Score: 3, Insightful

      Funny... I will just compare this to sports (since its another competitive field of play). NASCAR wins by having more money to pump into car mods and engineers... NBA/NFL/NHL all make more money and have better teams if they pump money into someone that another team can't afford. I don't see the difference here. Its virtual, I can give you that, but who cares? People like you are the reason this world is so messed up. A company has a decent plan to try and level the playing field and get farmers out of games and you just call them "pathetic losers." Look around you, this kind of stuff happens all over the "real" world.

    2. Re:Can't see the point of playing a game open RMT by gmhowell · · Score: 1

      Look around you, this kind of stuff happens all over the "real" world.

      If I wanted to deal with the real world, why would I spend $12/month to try to wipe the vile Horde and Scourge from the face of Azeroth?

      --
      Jesus was all right but his disciples were thick and ordinary. -John Lennon
    3. Re:Can't see the point of playing a game open RMT by adavies42 · · Score: 1

      frankly, i would welcome a little of this in WoW--the things that seriously affect your ability to play (i.e. high-end gear) are already pretty well walled off from economic effects (available only as raid drops or PVP rewards). it's the silly new bling (bike, mammoth, dalaran ring, pilton bag, etc.) that requires ridiculous amounts of gold-grinding to get--and why shouldn't i be able to decide my own time/money balance there?

      --
      Media that can be recorded and distributed can be recorded and distributed.
      -kfg
    4. Re:Can't see the point of playing a game open RMT by ubungy · · Score: 1

      You assume everything can be 'earned' by anybody. You assume 'buying your way to the top' is buying status. In games based entirely on real cash, if I can pay 500$ to save .8 cents per click to kill bad guys, it's gonna pay itself off. And if any items returned from said bad guys are worth $ then the less cost to kill said bad guys = more money in my pocket. Stop doing what everyone else is doing and relating everything to WoW or gold farming. Games not based on real cash Live Gamer is nothing more than an extension of 'black market' trading endorsed by the publishers. But realize there is a whole other class of games based solely on real cash where every wise penny spent is a real life penny saved.

    5. Re:Can't see the point of playing a game open RMT by gmhowell · · Score: 1

      and why shouldn't i be able to decide my own time/money balance there?

      Because not everybody gets to be an astronaut. Yes, yes, in America, we know that financial might makes right, but Blizzard owns this particular playground.

      --
      Jesus was all right but his disciples were thick and ordinary. -John Lennon
    6. Re:Can't see the point of playing a game open RMT by adavies42 · · Score: 1

      and why shouldn't i be able to decide my own time/money balance there?

      Because not everybody gets to be an astronaut. Yes, yes, in America, we know that financial might makes right, but Blizzard owns this particular playground.

      sorry, i should have been more clear: that wasn't "why won't bliz let me", but "why should it offend other players so much".

      --
      Media that can be recorded and distributed can be recorded and distributed.
      -kfg
    7. Re:Can't see the point of playing a game open RMT by jmorris42 · · Score: 1, Flamebait

      > Funny... I will just compare this to sports

      That is perfectly fine, playing an online game is just playing a game the same as baseball.

      > NASCAR wins by having more money to pump into car mods and engineers.

      But only up to a point. NASCAR goes to great length to level the playing field. Any serious team should be able to muster the resources to 'play in the big leagues', otherwise they should have stayed on a less prestigious racing circuit. So all of the teams have roughly the same resources (or at least sufficient to compete) at their disposal and winning is more a matter of getting the right people on your team.

      > NBA/NFL/NHL all make more money and have better teams if they pump money into someone that another team can't afford.

      Actually, that was the motivation for the salary caps and revenue sharing rules enforced in all of the big money sports. Of course the big teams in large markets always find ways but again it is within limits. If some billionaire could take a minor market franchise to a national championship in a couple of years it would totally destroy the game and viewers would start going away until the league got some control back.

      > A company has a decent plan to try and level the playing field and get farmers out of games
      > and you just call them "pathetic losers."

      Yes, anyone who has to cheat at a fricking game is a pathetic loser. If that judgement hits a little too close to home then deal with it and ask yourself why it hurts to be called a loser by someone you have never met.

      My objection is that the companies see the farmers as the problem instead of as the symptom. Yes selling items will quickly run off the farmers if the company sells the items/gold for less than the cost to farm them. That is Econ 101. But the problem is the people buying the items and that problem only gets worse when the social sanctions are removed from the bad behaviour. It's just defining deviancy down.

      > Look around you, this kind of stuff happens all over the "real" world.

      Yes, the real world is a crappy place overrun with pathetic losers wanting things they haven't earned. We call them Democrats. If I am playing a game I want to forget about this place and it's problems and go explore a less depressing world. You know, one where Heroes do mighty deeds and survive based on their skill, wits, raw courage and just a wee bit of fortune. Adding "and when that fails entering their credit card number" just detracts from the poetry somehow.

      --
      Democrat delenda est
    8. Re:Can't see the point of playing a game open RMT by fractoid · · Score: 3, Insightful

      it's the silly new bling (bike, mammoth, dalaran ring, pilton bag, etc.) that requires ridiculous amounts of gold-grinding to get

      You're confusing cause and effect. The 'silly new bling' doesn't require gold grinding to get. Rather, it exists solely to take money out of the economy, to curb inflation. If they didn't keep adding gold sinks, eventually gold would become virtually worthless, removing any point of having it in the in-game economy. At least the sinks are carefully designed not to give any fundamental advantages in gameplay, so that having lots of gold does't give a huge advantage.

      --
      Rampant carbon sequestration destroyed the Dinosaurs' tropical paradise. I'm here to help repair the damage.
    9. Re:Can't see the point of playing a game open RMT by SanityInAnarchy · · Score: 4, Interesting

      Personally, I find real games boring for precisely this reason.

      Even so, all the sports you mentioned require a certain amount of skill. In a game, to a certain extent, you can buy skill.

      A company has a decent plan to try and level the playing field and get farmers out of games

      I fail to see how this "levels" anything. In fact, it creates exactly the same problem for "fairness" -- it ruins the in-game economy for attempting to sell things to other players (since other players can simply buy those items outright from the in-game store), and it creates the same problem of newbies buying their way to the top, while a legit player struggles.

      In fact, it brings the whole class system in the real world into the game, which just sucks. What makes the game fun in the first place is that it's not the real world.

      I have seen this happen, in a few limited ways. I play Nexus TK, which has only recently begun to follow the Korean business model of giving the game away (or at least, of keeping it at the same $9.95/mo), and selling other things. Most of these other things, I have no problem with, as they're purely decorative. A few are actually useful.

      They do try, however, to prevent these from affecting the in-game economy. They cannot be dropped or traded in any way.

      Even so, the very existence of that shop has impacted the economy in a few ways. The most obvious are the Equipment Restoration items. Some players can repair items, and they charge an arbitrary fee. This fee halved when people could simply pay a few pennies (of real money) to repair their items -- the demand had simply dried up overnight.

      I've greatly simplified the above for the purposes of this comment, but the result is the same.

      --
      Don't thank God, thank a doctor!
    10. Re:Can't see the point of playing a game open RMT by SanityInAnarchy · · Score: 1

      Because, for example, Star Wars Galaxies was a lot more fun before everyone could be a Jedi.

      Or, in the case of WoW, if I did do ridiculous amounts of gold-grinding and ended up with a shiny new bike, it would piss me off to no end if every noob with a credit card suddenly had them.

      And because, in general, this is an opportunity for financial might to not matter at all.

      --
      Don't thank God, thank a doctor!
    11. Re:Can't see the point of playing a game open RMT by brkello · · Score: 1

      It works for Eve. But then again, your points still stand ;)

      --
      Support a great indie game: http://www.abaddon360.com
    12. Re:Can't see the point of playing a game open RMT by julesh · · Score: 1

      What I fail to understand is why anyone worth a damn would keep playing a game that openly allows buying their way to the top

      Because the point of a game is to have fun. It isn't a competitive sport, so why should it matter that another player you're playing with has circumvented the lower levels of the game by buying a powerful weapon that made them easier to complete? Why would you care that another player didn't start with a first level character but bought a reasonably well-developed tenth level character instead?

      Keeping a game fun for all players is a tough problem. Make it too easy, and it becomes no fun for the serious gamer. Make it too hard and it becomes no fun for the casual gamer. RMT allows those willing to spend money on the problem to make the game easier for themselves, if they want to. This way, a group of people who would find the game too hard can push the difficulty back a little. It keeps the game interesting for a wider variety of players.

    13. Re:Can't see the point of playing a game open RMT by _Sprocket_ · · Score: 1

      There are millions of people who watch NASCAR. There are considerably fewer who participate in the races. I'm not sure NASCAR makes a good example even if your claim that you buy winnings pans out. Likewise, there are far fewer actual players in the NBA/NFL/NHL than there are fans. But what we're talking about here is not a spectator sport. It's one thing to watch people participate in an expensive or difficult activity for the entertainment value. It's another thing when your entertainment is based on participation. Boxing would have far fewer fans if involved getting your face pounded every match.

      Having said that - there are a considerable number of NBA / NFL / NHL fans who also play the associated sport at a lesser level than the professionals. Nike's ad copy may imply otherwise, but in reality, even the most expensive pair of shoes can't guarantee the game. People play these sports because there is a challenge. Sure, good gear helps. But people aren't buying wins and they simply can't buy the kind of advantages MMORPG gear provides players in those games.

    14. Re:Can't see the point of playing a game open RMT by drinkypoo · · Score: 1

      NASCAR wins by having more money to pump into car mods and engineers... NBA/NFL/NHL all make more money and have better teams if they pump money into someone that another team can't afford. I don't see the difference here.

      The difference is that NASCAR teams' sponsored output pays automotive technology dividends, and sports teams' sponsorships produce revenues which make the teams profitable. Those are both commercial ventures. If a sports team doesn't make money, it ceases to exist.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    15. Re:Can't see the point of playing a game open RMT by gmhowell · · Score: 1

      The other reply got the jist of it. Having extra money to blow on a game is seen by plenty as an unfair advantage.

      --
      Jesus was all right but his disciples were thick and ordinary. -John Lennon
    16. Re:Can't see the point of playing a game open RMT by gmhowell · · Score: 1

      The difference is that NASCAR teams' sponsored output pays automotive technology dividends,

      OMG, did you type that with a straight face? Tube chassis, carburetors, and slick tires? Yeah. Lots of technology trickle down. NASCAR is budgeted by marketing, not R&D.

      It's been decades since even the lame homologation specials were around. Even longer since there was any true crossover.

      Geez, at least Formula One gave us variable valve timing.

      --
      Jesus was all right but his disciples were thick and ordinary. -John Lennon
    17. Re:Can't see the point of playing a game open RMT by bronney · · Score: 1

      The irony is it would be great if you could comment like this, perhaps to your boss, or wife, or a judge, in this real world and makes a difference in the real world.

      But alas, you can't, so you teach PhyEd. Not personal attack bro, just pointing out the beauty of the internet, such as posting to slashdot, is a privilege not everyone has. And we have, so cherish your +5 blacksmithing here instead of trashing the fun. :)

    18. Re:Can't see the point of playing a game open RMT by Deanalator · · Score: 1

      The solution for world of warcraft is a simple one. It's the same solution that would get ride of bots, and everything else you hardcore dice rollers consider "cheating".

      All they need to do is create realms where that stuff is allowed. When you start, you already get the option to chose if you are more into PvE, PvP, and if you are into the whole roll playing thing or not.

      On one end of the spectrum, you have the gamers that just want to pay more to get more content, or those that get off AI development, and on the other end you have the guys that get off on pretending that they are a night elf chick etc.

      People play the game for different reasons, and ignoring a huge set of potential customers is absurd, especially when they already have such a diverse realm system in place.

    19. Re:Can't see the point of playing a game open RMT by drinkypoo · · Score: 1

      OMG, did you type that with a straight face? Tube chassis, carburetors, and slick tires?

      Carburetors are not interesting, but if you think that tubular chassis design hasn't trickled back to space frame design, or that tire compounds haven't evolved partially as a result of racing, you need to keep thinking.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    20. Re:Can't see the point of playing a game open RMT by L4t3r4lu5 · · Score: 1

      My time is worth more than my money.

      I would rather spend £20 and be able to play parts of the game only accessible with certain items than spend three weeks (conservative estimate with, for example, raiding for Tier 5 loot in WoW) being unable to play. Grinding constantly to be able to proceed is mundane, and ultimately what put me off WoW.

      Fuck you for deciding who is a loser based upon what hobbies a person decides to spend their money on.

      --
      Finally had enough. Come see us over at https://soylentnews.org/
    21. Re:Can't see the point of playing a game open RMT by Jarnis · · Score: 1
      "Whaa, I don't have time to play this game, but I want to appear important and competent among my peers when playing the game, so I cheat"

      You, dear sir, are a scumbag. Please find a hobby you have time for. Or try playing honestly for a change.

      As for how WoW was when Tier 5 raid items were all the rage - Blizzard already nerfed it all to suit all the "I don't have time" guys. It is true that back when SSC and TK were new, you *had* to farm consumables for 4-5 hours a week to have the necessary items for proper raiding. You no longer need to do that. There is no need to farm consumables or just about anything for that matter. It's all casuali-zed by now. Heck, for the first three raid instances you do not need flasks, food buffs or mana potions at all - just drool and bash your head at the keyboard, then loot purple items.

    22. Re:Can't see the point of playing a game open RMT by Hognoxious · · Score: 0, Flamebait

      The advances come from proper motor racing - the kind where the cars can tun both left and right.

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
    23. Re:Can't see the point of playing a game open RMT by harl · · Score: 1

      RMT only works if you sell time.

      Buying things that saves you time or makes your life easier is fine. Fluff falls into this category too.

      Buying things that make you better than other people by merely having them is broken RMT and possibly a broken game design.

      --
      I find being offended by me offensive.
    24. Re:Can't see the point of playing a game open RMT by Anonymous Coward · · Score: 0

      Yeah, imagine if losers played MMOs...

      In the real world, we have people who can't win legitimately, who whine incessantly when they lose, and when given a chance to do the right thing, ruin it for everyone. They moan and groan, and wreck the IRL economy much more than any gold farmer could disrupt an MMO. They trash talk their opponents, act like macho men even though they ran from every fight they could.

      We call them 'Republicans'.

    25. Re:Can't see the point of playing a game open RMT by Amasuriel · · Score: 1

      I can see why why losers would spend hundreds of hours farming and raiding for an item they can't afford. I can see why the companies running the games would want to take the losers time instead of spending the resources fighting boring time sinks. What I fail to understand is why anyone worth a damn would keep playing a game that openly allows slowly grinding their way to the top. And a game filled only with pathetic losers isn't likely to stay fun for even the losers for long.

    26. Re:Can't see the point of playing a game open RMT by The+Slashdot+Guy · · Score: 1

      The last thing we need is every asshole having a mammoth to park on mailboxes, flight master,etc.

    27. Re:Can't see the point of playing a game open RMT by Boronx · · Score: 1

      How is someone who spends weeks of their time to play their way to to top any less of a loser than someone who buys their way?

    28. Re:Can't see the point of playing a game open RMT by 2obvious4u · · Score: 1

      The Tundra Mammoth does give an in game advantage. You should buy one, they are great!

    29. Re:Can't see the point of playing a game open RMT by vertinox · · Score: 1

      What I fail to understand is why anyone worth a damn would keep playing a game that openly allows buying their way to the top.

      Like politics?

      --
      "I am the king of the Romans, and am superior to rules of grammar!"
      -Sigismund, Holy Roman Emperor (1368-1437)
    30. Re:Can't see the point of playing a game open RMT by Junior+J.+Junior+III · · Score: 1

      What I fail to understand is why anyone worth a damn would keep playing a game that openly allows buying their way to the top.

      This sounds a lot like real life. The game company can just advertise the hell out of the added dimension of realism.

      --
      You see? You see? Your stupid minds! Stupid! Stupid!
    31. Re:Can't see the point of playing a game open RMT by analog_line · · Score: 1

      Actually, the reason it wouldn't be fun anymore is because every single in-game action would be instantly and irrevocably boil down to money. You don't really need a whole lot of trust to deal with people in a non-legitimate-RMT game. Sure, plenty of people don't care about legitimacy, but enough people do that you don't have to chew your fingernails off nightly in worry that your guild leader is going to run off with the guild bank. It might happen, and does happen often enough, but it's not a big deal. It's just a game, even if some people sell the pieces they have to other players.

      When there is real, hard currency, simple-to-obtain value associated with that high-demand epic BoE ring that dropped last night during a raid, it becomes a very VERY different situation. Especially in tough economic times, that small database entry could feed me for quite some time. The corrupting influence it exerts would be staggering. The cultural shift would be staggering. If WoW suddenly legitimized and brought in-house RMT, I'm good enough at the game that I would probably use it as a source additional income, but it would stop being fun very, very fast. It'd start being a game like the stock market, and that's not an especially fun one.

    32. Re:Can't see the point of playing a game open RMT by Anonymous Coward · · Score: 0

      Sports are not a good analogy. In sports, the primary motivation is not to "win", it is to attract a crowd who pays to watch. Winning just happens to be the best way to do this.

      Your analogy might work if the athletes had to PAY to play in the sport, and the audience was part of the game instead of just sitting in the stands.

      As for better money making a winner, I think the NY Yankees are proof enough that your theory doesn't hold up in the real world.

      IF we could find a sports analogy it would be more like this:
      Let's take football. The equivelant to a MMO using a football analogy would mean that the players had to pay to play, but once they pay everyone gets a fair chance and an even playing field.
      When you add RMT, the analogy would be like if a football team could pay the refs cash for an extra down, or some extra yardage, maybe two attempts at a field goal, or more timeouts, etc.
      What would happen? The teams with more money would be able to win simply by buying the game.

      Look around you, this kind of stuff happens all over the "real" world.

      That might be true (I would argue the point in many cases, but agree in others) but one of the primary reasons people play these games is because they are NOT the real world.

    33. Re:Can't see the point of playing a game open RMT by Anonymous Coward · · Score: 0

      sorry, i should have been more clear: that wasn't "why won't bliz let me", but "why should it offend other players so much".

      It's all about the size of your E-Penis. Cool items are like a big package, or driving a sports car.

      When you have to work your tail off to get one of those "trophy" items, you can run around and show it off. When anyone with the cash can just buy one, it removes all the value to players in terms of the "coolness" factor.
      Sure, they might still have value in terms of bonuses, skills, damage, etc. but again the people who earned the item are going to feel slighted when some total noob shows up with one he bought with mommy and daddy's money.

      Now I personal don't have any problem with RMT myself, it really doesn't bother me. I usually just sit back and laugh that someone spent good cash on something they could have got for free with a little skill or a halfway decent guild. And usually, if it's a "useable" item (as opposed to just decoration) they don't know jack or shit about how to actually use the damn thing. It's kind of fun to watch a couple morons in WoW try to go on a raid with a pair of freshly purchased top-level characters & totally get spanked by stuff that should have been a cakewalk. I tend to talk a lot of trash to such people & it's funny when they get mad and say they're going to quit because nobody is "nice" to them. Suckers.

    34. Re:Can't see the point of playing a game open RMT by fractoid · · Score: 1

      Nah, I want the Hog. That thing is awesome! (Does it still protect you from fall damage? I heard it got nerfed back to pretty much a normal mount last patch :/ ) Still, it's the epitome of cool and as such I must have one! :P

      --
      Rampant carbon sequestration destroyed the Dinosaurs' tropical paradise. I'm here to help repair the damage.
    35. Re:Can't see the point of playing a game open RMT by L4t3r4lu5 · · Score: 1

      Half of me wants to call you a troll, but the other half is laughing hard at that last line.

      --
      Finally had enough. Come see us over at https://soylentnews.org/
    36. Re:Can't see the point of playing a game open RMT by Hognoxious · · Score: 1

      Slashdot, where illiteracy is no bar to having mod points.

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
  9. Mod parent up by iYk6 · · Score: 1

    Well said, man.

    1. Re:Mod parent up by Anonymous Coward · · Score: 0

      Already on it :)

  10. Title 26 Section 83 defines Income. by Anonymous Coward · · Score: 0, Troll

    You guys need to read that it's the transfer that qualifies income, not the receipts itself; even so, that Income only applies to a corporate sole and not a natural man because lawful money as defined in The Coinage Act is not being used. Put on the record that private credit is being redeamed as public money pursuant to House Joint Resolution 192 and endorse all your checks on the private side (rear/dorse) as "exchanged for private credit in the form of Federal Reserve Notes, without prejudice" and you are clear in terms of Income.

    Peace. of shit.

    1. Re:Title 26 Section 83 defines Income. by pbhj · · Score: 3, Informative

      Ha ha ha, riiiight.

      In the UK, and I'm sure this is the case in the US, even if you live by barter you're due taxes according to the value of the services or goods you exchange.

      If you pay me 250 chickens a month instead of £1000 UKP then I still owe the tax man about £400 despite not having received any money. And sadly I can't pay him in chickens.

      The only way to save is by illegally providing a false tax declaration and hoping no one notices you're working for barter rather than money. Ignorance of the need to declare such things is not a defence either.

    2. Re:Title 26 Section 83 defines Income. by Anonymous Coward · · Score: 0

      Mind you, in England, due to some old law or something, there probably is some bizarre form of payment you can use to pay the taxman. Maybe even chickens!

    3. Re:Title 26 Section 83 defines Income. by Red+Flayer · · Score: 1

      even if you live by barter you're due taxes according to the value of the services or goods you exchange

      Sweet! The government owes me taxes if I live by barter?

      Protip: "You are due taxes" means someone owes taxes to you.

      Joking aside, this is true in the US as well, for states that have sales tax. The tax is due regardless of the means of payment.

      --
      "Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
    4. Re:Title 26 Section 83 defines Income. by pbhj · · Score: 1

      I use it in the vernacular British English sense of "you are due [to pay]" as in - in the future you must pay. There is an expression "pay your dues" which means to pay what you owe (specifically in membership fees, but it's used more broadly too).

      Isn't English language awesome.

      Apologies for the confusion.

  11. No 3rd party needed. by ubungy · · Score: 5, Interesting

    I've been playing this MMO for about 3.5 years (Entropia Universe, shamelessly) which was based on Real Cash trading/economy. There has always been a fixed exchange rate between U.S. Dollars and ingame currency (PED). Therefore everything you own in game has a real dollar value and can be sold in game. Real life funds can be transferred into the game, and withdrawn back to real life funds. This MMO has been around ~7 years with no 3rd party, nothing new here to me. In fact the parent company Mindark has just been granted a Swedish banking license. Yes maybe soon you can pay your real life bills in ingame currency. We aren't talking peanuts here either, we're talking real cash related to everything you do, so the best items in game fetch a pretty penny. The best healing tool in the game today you can fetch about 40,000 U.S. dollars for. You can buy plots of land in game for about the same that you can tax for real cash. Point is there are games that are based on real cash, and those who aren't. Those who arent it doesn't matter which way you go, private sales, E-Bay, Live Gamer, it's still all 'Black Market'. I'll stick with secure, non 3rd party solutions.

    1. Re:No 3rd party needed. by L4t3r4lu5 · · Score: 1

      So, what happens when the service is used for money laundering?

      Yes, when.

      --
      Finally had enough. Come see us over at https://soylentnews.org/
    2. Re:No 3rd party needed. by Anonymous Coward · · Score: 0

      So, what happens when the service is used for money laundering?

      It works great! The money becomes sparkling white.

      But frankly

    3. Re:No 3rd party needed. by Anonymous Coward · · Score: 0

      wow virtual loans. all they need is to add more 0's. the ability to print and sell virtual money. of course trying to trade it with a real life bank and they will turn it down.

    4. Re:No 3rd party needed. by VeNoM0619 · · Score: 1

      Yep... all games have bugs, and if the game is like any MMO, it will need updates and almost every update causes bugs no matter how well tested in beta. Need proof? Play other games sometime. Find the bug that gives you the edge, or allows you to dupe. But hey, they control their economy, so if they don't like you pulling in millions (legit or not) or just hate you swearing in their game/you owning them at their own game/etc. They could flip a switch and bankrupt you - literally.

      But even if they somehow don't have bugs, their update will release some new mechanic that will screw with the economy anyways. You could literally go from having an awesome high priced item selling for millions, to having a worthless piece of trash replaced by a quest item; just because you went on vacation for a week during the update.

      No offense to you, but the idea of a game economy mixed with real life is retarded. This has been discussed before, and the consensus was about 50/50, along with the idea that a few owners of the company could literally squander player's real life money away from them *cough* "superman bug" style.

      --
      Disclaimer: I am not god.
      We may not be created equal
      But we can be treated equal.
  12. Trading by metlin · · Score: 1

    Legitimizing Real Money Trading In Games...

    As a frequent "trader" I was confused there for a second.

  13. It works for Second LIfe by Animats · · Score: 5, Interesting

    It works for Second Life. Almost too well. In 2007, Ginko Financial, an in-game bank, went bust. Then Midas Bank went bust. This drew the attention of The Wall Street Journal. In 2008, Linden Labs introduced bank regulation. Most of the Second Life banks were actually Ponzi schemes, with huge interest rates. It's still possible for a real-world bank to open branches in Second Life, but nobody has bothered.

    1. Re:It works for Second LIfe by Anonymous Coward · · Score: 1, Funny

      Why didn't they get bailed out? Obviously, there was systemic risk in Second Life?

  14. Mmmmmmmmmm, virtual economies. by Anonymous Coward · · Score: 0

    Think about the crazy new ways we can circulate money and diversify the economy with this sort of model. Each game has its own (possibly flourishing) micro-economy, which I'm sure can't exactly hurt the economy in RL.

    1. Re:Mmmmmmmmmm, virtual economies. by tibman · · Score: 1

      EVE is a good example of a virtual economy. It isn't based on RL cash (thankfully!). But it has player created banks, loaning institutions, corporate espionage, politics, and even War to consume goods and enforce politics... or just to kill helpless empire folks : /

      But it really does have a complex economy. Typical buy/sell orders on the market. Free form Contracts for anything under the sun (including scams!). Stock/Shares in companies that pay dividends. And a rediculously long supply chain to produce items. On top of it all there's giant space battles and pirates attacking poor traders (who aren't paying attention to local!)

      --
      http://soylentnews.org/~tibman
    2. Re:Mmmmmmmmmm, virtual economies. by Anonymous Coward · · Score: 0

      There is an exchange program for Pilot extension time Plex I think it is called. You can buy a time card and exchange it for isk (EVE currency). The transaction is monitored through an EVE channel for monitoring. This seems like a financial transaction to me.

    3. Re:Mmmmmmmmmm, virtual economies. by Anonymous Coward · · Score: 0

      I play EVE as well, but there is some kind of 'legal' RL cash ingame currency trading. You may buy Game Time Codes convert those to PLEX and sell them via contract or market to other players. CCP is making a lot of money this way, since they sell those GTCs.
      This doesn't prevent farmers from selling ISK and spamming locals / rookie channels frequently with their 'isk for cheap' offers.

      Fortunately in EVE you can't buy yourself to the top spending extra RL cash. Even if you buy a character that can use a titan or a mothership and one of those ships this won't help you very much if you aren't in a strong alliance.

  15. Re:Earning cash for virtual gold will be fine unti by adavies42 · · Score: 2, Interesting

    there must be something out there that can be stretched into precedent for this. what about internal accounting systems, where a company's departments "pay" each other for services, but the government only cares about money which crosses the organization's boundary?

    --
    Media that can be recorded and distributed can be recorded and distributed.
    -kfg
  16. Re:Earning cash for virtual gold will be fine unti by Anachragnome · · Score: 1

    Yep, taxes from every little local guv'ment to the Feds.

    And this will only be passed on to the customer. The product price increases, product becomes less attractive, less people buy it.

    How is this good, again?

  17. Misunderstanding by TiggertheMad · · Score: 2, Insightful

    Are they actually suggesting selling stuff created from the aether, or are they suggesting that they set up an internal 'ebay' where players can sell to other players with the game company taking a modest cut? I got the impression of the latter.

    Where that the case, someone would still have to go grind out the epics to hock to the bling buyers. That is already happening in most games. The only difference is who gets paid, the gold farmer and the game company, or some of these dubious 'middle men' who run the resale houses.

    --

    HA! I just wasted some of your bandwidth with a frivolous sig!
    1. Re:Misunderstanding by drinkypoo · · Score: 1

      Where that the case, someone would still have to go grind out the epics to hock to the bling buyers. That is already happening in most games. The only difference is who gets paid, the gold farmer and the game company, or some of these dubious 'middle men' who run the resale houses.

      Art imitates life. Right now if you want a smooth face someone has to "grind out" razor blades (hey wait, that's literally true) and you have to buy them before you can shave.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    2. Re:Misunderstanding by Anonymous Coward · · Score: 0

      That's the worst analogy I've ever read on Slashdot.

      And I've been reading since before there were user accounts.

  18. Look at WoW by TiggertheMad · · Score: 1

    I can see why losers would want to buy things they couldn't earn.

    You define people as 'losers' because they don't play the game the same way you do. Mighty full of yourself, aren't you? From the way you talk, it sounds like you define yourself as a 'winner' because you spend dozens of hours a week glued to a monitor hoping the random number generator will drop some instant self-esteem for you.

    I'll cut off the easy ad-hominim rebuttal for you. Never bought a gold piece, never will. However, you might be more tolerant of people who have more free money than free time, and still like to game. You might become one someday...

    --

    HA! I just wasted some of your bandwidth with a frivolous sig!
  19. Obligatory Penny Arcade by Anonymous Coward · · Score: 0
  20. Okay, awesome by Anonymous Coward · · Score: 0

    This means if the government taxes this, then they'll provide services like in real life? Like, if player one steals from another player, we can have a real-life court deal with this manner, right? Perhaps we can get some people sent to jail for online actions!

  21. On Bribing the DM by Enderreil · · Score: 4, Funny

    >It would be like bribing your DM to let your third level character find a +5 sword. Who would continue to play in a gaming group if such a disgusting thing were to occur?

    This happens every week. It is only right to bribe the DM for all his hard work.

    Rule #1: The DM need never pay his share of the pizza for he has an infinite number of Tarrasques and magical swords. ^_-

    That said though, trust me when I say, "You CAN'T afford a +5 Sword!"

    1. Re:On Bribing the DM by daid303 · · Score: 2, Funny

      That said though, trust me when I say, "You CAN'T afford a +5 Sword!"

      Unless you have boobs.

    2. Re:On Bribing the DM by geminidomino · · Score: 1

      And exhibitionist tendencies.

      Sword now, payment NOW.

    3. Re:On Bribing the DM by Anonymous Coward · · Score: 0

      but it was my grandfather's +5 vorpal great sword and he left it to me when he mysteriously disappeared

    4. Re:On Bribing the DM by Anonymous Coward · · Score: 0

      ...in which case, the DM bribes the host of said boobs to continue playing at all cost. "+5 sword? Unicorn mount at level 3? Fudge your character stats? Um...ok." Gotta keep those blueballed D&Ders on the hook, after all.

      Actually, the best pen-and-paper game I ever played was under a female DM. It was filled with intrigue and plot, not skeleton hordes. We got more experience for character interaction and for negotiating with NPCs than we did for combat and dungeon-crawling. Funny thing; a quick-witted DM can keep a game running for a long damn time on pure storytelling without investing time in tons of premades. Too bad she graduated and moved to Toledo...bleh.

  22. Second Life isn't a game... by SanityInAnarchy · · Score: 1

    ...or at least, it's a "game" the way The Sims is. Which is to say, it's a simulation.

    I have no problem with Second Life operating with real-world dollars. My problem with Second Life is that for what it is, it should not be tied to a single controlling entity (Linden).

    But in an actual game, like WoW, well, this is just the next level of gold farming. The result is the same -- status in the game is no longer driven by anything resembling skill, or even time invested, but by how much money you're willing to spend on the game.

    --
    Don't thank God, thank a doctor!
    1. Re:Second Life isn't a game... by GreyWolf3000 · · Score: 1

      ...or at least, it's a "game" the way The Sims is. Which is to say, it's a simulation.

      I have no problem with Second Life operating with real-world dollars. My problem with Second Life is that for what it is, it should not be tied to a single controlling entity (Linden).

      But in an actual game, like WoW, well, this is just the next level of gold farming. The result is the same -- status in the game is no longer driven by anything resembling skill, or even time invested, but by how much money you're willing to spend on the game.

      As a WoW player, I have to disagree. Blizzard heavily limits what items can be purchased with gold, and actually very few end game items (there's just one ring at this time, actually) can be bought with gold. What gold helps with, however, is a lot of the necessary but time consuming tasks like enchanting and gemming your equipment. You can get a decent set of gear to start raiding with gold, but you can't get very far at all without skill.

      With the achievement system in place, I can tell very quickly if a player has real experience and skill under his belt.

      --
      Slashdot: Where people pretend to be twice as smart as they really are by behaving like children.
  23. Here's the problem by Sycraft-fu · · Score: 1

    Games AREN'T the real world. People don't play them for reality, they play them for fun. That is the #1 factor a game needs is to be entertaining.

    Now as this applies to buying your way to the top, for most people that ISN'T fun. The fun of the game is the process, not hitting the top right away. I mean in any offline game I have, I can "beat" the game right away. I can have all the items, be as powerful as possible, or simply skip to the end credits. None of this is hard, I just pop open a debugger and fiddle with memory values supposing the game doesn't provide cheat codes, which almost all of them do. However, I don't do that. Why not? Well it would be fun. I don't buy a game to just instantly win, I buy the game for the fun of playing it.

    Now in terms of online games, the people who want to do this are sociopaths or bullies, more or less. They are the kind of people who take pleasure in causing pain to others. The reason they want to buy their way to the top is so that they can be better than other people with no effort.

    Well, that isn't going to be fun for most gamers. So you are going to have two potential situations, neither which is likely to make a substantial player base happy:

    1) Buying your way to the top is extremely cheap. Everyone can do it. Something like $20 gets you everything you could want. Ok well in this case all players will do it (they'll have to lest they are beaten up by those who have) and get bored real quick because all the challenge is gone. You've reached the end as soon as you've begun. Thus after exploring and goofing around, the game will get old fast.

    2) Buying your way to the top is extremely expensive, few people can do it. Something like it costs $1,000 to get everything. Well not many people have that kind of money to blow on a game, and even if they do they won't. So most of the player base will settle for having not a lot of stuff. However, there are the bullies out there who will, because it boosts their ego to be mean to others. Won't take long with that before most players get tired of it and leave.

    I just don't see how this model works for the majority of gamers, who want to play a game to have fun. This appeals only to people who want to be better than everyone else with no effort. For any other gamer, taking away the process is to take away the reason to play a game in the first place.

    So I think the grand parent is accurate in calling people like that "losers". You really are a loser if you want to take a shortcut in a game just so you can be better than everyone with no effort. Same shit as people who use aim bots in first person shooters online. All the challenge is gone, all the fun for playing is gone, so the only reason to do it is if you are so pathetic that bullying people online gives you an ego boost.

    Frankly I'm just for banning people like that. If making others miserable is your idea of fun, leave.

    1. Re:Here's the problem by Anonymous Coward · · Score: 0

      I would like to see a massive PvE world with PvP only if you want it. Quests, and open-ended gameplay. Real effects being made by PCs that are persistent. Loved UO idea of building homes and such. Think the idea of land grants for PCs would be awesome in WoW. Believe that open-ended, persistent and PvE game would be a great money maker. No win, no end game, no ranks. Just do stuff and get better over time. And in that environment, RMT and gold farmers would not be a problem.

  24. Consumers want to cheat by Jarnis · · Score: 3, Insightful

    There is "consumer demand" because lazy bum players who "can't be assed" to play the game want to cheat by buying ingame assets and currency with real money.

    Once it becomes okay to cheat, only the cheaters will stay around. It's fine to cheat in single player games - all you are really doing is cheating yourself out of the proper experience. Cheating in multiplayer games (especially persistent multiplayer games) you'll just participate in destroying the game you are playing.

    The only reason game companies are even looking at this is because enforcing the rules is expensive. Too many lazy bums around that need the banstick. Plus they look at how Asian companies rake in the money from idiots out there who all like to play "whoever has the most disposable income wins"-style game. SOE already tried this with EQ2 and it really didn't work - cheaters kept cheating on the regular servers and the gameplay and community on the "enabled" servers was a cesspit of teenagers trying to convert excess free time into dollars and lazy idiots feeding the teenagers with too much disposable income. Professional farmers stayed on the normal servers as black market prices were always higher and the "consumer demand" was higher on the servers where you could actually buy an advantage.

    Cheating with real money is an advantage only when it is cheating. When everyone is doing it, it's just a stupid way to milk more money from all the people who bother to play the "game".

    1. Re:Consumers want to cheat by Anonymous Coward · · Score: 0

      It seems to me like the real reason why money trading is forbidden is because it takes away a major part of the business model for the game company.

      Leveling up a character and searching for gold is a big part of the playing experience. Some like it and some hate it, but regardless of what you think of it, it does take a lot of time. Time is exactly what companies like Blizzard are selling; you pay per month so the more time people stay hooked to the game, the better.

      Now if you were allowed to pay extra to avoid the leveling and gold mining, then many people would do so and thus decrease the overall time spent on the MMORPG. This would lead to less profit for the game company.

    2. Re:Consumers want to cheat by dangitman · · Score: 1

      There is "consumer demand" because lazy bum players who "can't be assed" to play the game want to cheat by buying ingame assets and currency with real money.

      This seems to be more of a symptom than anything else. Games are supposed to be fun. If people "can't be assed" playing, then what does that say about the quality of the game? To me, it says that they aren't playing the game because they want to play, but because there is some social status attached to playing the game.

      The problem seems to be that there aren't enough fun games anymore, and that playing a popular game amounts to having another job, not a source of entertainment.

      --
      ... and then they built the supercollider.
    3. Re:Consumers want to cheat by Jarnis · · Score: 2, Insightful

      Not really.

      In WoW the gold has been non-issue since.. at least an year ago. The only situation where it matters any more is when you buy BOE epics or extremely rare drops from AH (which have highly inflated prices due to the ease of obtaining gold). And with these, the more you buy gold, the higher these prices inflate to - and they are all luxury items for scrubs that don't have the necessary social skills to raid. All gear that you actually want to wear, assuming you have a choice, is Bind on Pickup anyway - you have to kill the boss to loot the item, can't just buy it.

      As for all other use of gold in WoW - item repairs, consumables, crafting... it is insignificant compared to the amount you get from just playing the game. There is NO NEED to farm gold in WoW any more. Period. Only players in my large WoW guild who are commonly broke are the PvP idiots who do nothing but arena all day long - unsurprisingly that doesn't reward them with gold while they keep spending gold to enchant and gem their shiny PvP epics. So you have to go do some PvE from time to time to fund your PvP activities? Oh. My. God.

      As for the leveling... it's a major piece of the content of the game. Sure, people gripe that their alt number four or five is a pain to level as you have already done all the content a couple of times, but do you really need that alt number four or five? And if you think you do, why do you think you are entitled to cheat (by using a powerleveling service)?

    4. Re:Consumers want to cheat by omfglearntoplay · · Score: 1

      Yeah sort of. Half want to just cheat. Half want to just speed things up and quit wasting time so they can get to whatever point they want to be able to do something. "Cheating" in an MMO is not cheating, it's just buying back a little of your time for real life.

      I think grinding away on an MMO is a huge waste of time... I want all my skills available in short order. Which is why I like FPS games, fighting games, and the like.

    5. Re:Consumers want to cheat by bckrispi · · Score: 1

      As a newbie, I disagree. I broke down and started playing about three weeks ago. Shortly after starting, a lv 80 friend of mine handed me 100 gold and told me to "have fun". What I noticed at first, was that I never really tapped in to the gold. The amount I made going through quests and selling crafted items - not burning time grinding or farming, seemed to be "just enough" to buy all my skills, alchemy components, repairs, etc. I wasn't running at a profit. But I wasn't running at a loss, either. As a couple-hours-a-night gamer, this seemed to be perfectly balanced. I was leveling at a good rate, was always equipped "well enough", and didn't have to waste my precious gaming time with mundane and repetitive tasks.

      That all ended when I hit level 30 and went to my riding trainer.

      35 gold?! WTF? So I tapped into my 100 gold "gift" and went on my way. But then I noticed the price of class and profession training skyrocketing as well. I've been running at a deficit since then, and figure that I'll need to seriously rethink my economic strategy within the next three levels. Because the gold I'm making just playing the game and auctioning BoE's isn't keeping up with my expenses.

      --
      Xenon, where's my money? -Borno
    6. Re:Consumers want to cheat by mrrudge · · Score: 1

      My advice would be to level your creating professions later, it's much easier when gold is more plentiful, and the higher level recipes tend to use ingredients that have timers on them ( lvl. 80 cloths can be made once every four days ) and so are either slow, or expensive to buy in the auction house.

      Collecting professions ( mining, herbs ) are best leveled as you go along, as running around a progression of old areas collecting things isn't much fun ( imho ). You can sell these, or bank them for your fast skills upgrade later ( personally I'd sell, the money is worth more to you as you level, 1g at 80 is a taxi ride ).

      There's a chance that by the time you approach the end game you'll have changed your ideas about what professions you want, or the next expansion will be out and new professions will be available.

      The highest level riding skill ( fast flying mounts ) costs 5000g, as a casual player I've spent a couple of hours every couple of days since christmas saving up.

      HTHs

  25. More profit from game by eric1980 · · Score: 1

    Trading in Games really could shock anyone. The profit is really very huge. Meanwhile, any accessories in Games also got improve like converter, point card, message and etc. We could find more places to got profit

  26. Common misconception to gold farmers in China by jsse · · Score: 1

    The MMO Gamer: When people hear that phrase, âoereal money trading,â their initial thoughts are probably of a dark basement in China somewhere, with men slaving over keyboards night and day, and some guy who whips them if they donâ(TM)t meet their gold quotas.

    Your vision was wrong. Being a gold farm overlord, I can tell ya we whip them for pure pleasure only. Meeting gold quotas is their meaning to life, not a choice whatsoever. When they don't meet their gold quotas, I'll throw bones. If the result was in their favour, I'd only remove legs or eyes from them; otherwise execution is inevitable.

  27. Only 2-4% transition from free to paid gaming by leftie · · Score: 1

    "Conversion Rate of Active to Paid Players

    Both Paul Preece from Casual Collective and Daniel James from Three Rings shared some interesting stats from their own games on conversion rates associated with paid players (players who purchase levels, virtual goods, etc through micro-transactions). Paul said that for their single player games, they see that 2% of their active players have converted to paid players. Keep in mind this stat is for âoeactive playersâ who come back to the site regularly, not overall unique visitors. What was interesting was that for his multi-player games, 3% of active players converted to paid players, suggesting their may be some additional conversion lift from multi-player games. Daniel James echoed Paul Preeceâ(TM)s numbers, suggesting 3-4% of Three Rings users pay as well.

    The key thing they stressed was that only a very small percentage of your users end up converting, because first they need to become active users that come back and are retained by your game as well as be eager enough to pay through one of a variety of ways...."

    http://is.gd/vhWS

    I think the rush to virtual item trading is going to crash with a big audible THUD.

    People will think virtual item trading is cute for a little while most are under the impresssion they are cute little free things. The moment the vast majority of people find out in an economy like this, people are going to expect lots of money in return for those cute virtual items, there will be a wave of wide spread revulsion toward the concept that is usually reserved for the worst "crimes" of nerddom... like a full high school cheerleading squad walking in on a guy from their marching band in full Klingon battle garb (with batlif).

    After that, only young children will dare be caught "trafficked" in virtual items.

    1. Re:Only 2-4% transition from free to paid gaming by t_little · · Score: 1

      One fact missing from the above that might be fairly pertinent, is that Three Rings currently derives most of their income from in-game items bought with real cash.

      For example, their Puzzle Pirates game used to be straight subscription only. Then they opened up new servers based on tradable micropayment tokens instead, and it took off like a rocket. Not just in number of players, but also in revenue - apparently without greatly increasing overheads.

      That isn't true RMT, but fills the same demand. I think if game developers go the way of creating true RMT markets, they're abdicating any moral position they might have had on keeping real cash out of the game, but also missing out on any of the potential benefits of abandoning that position. So I think it's a pretty dumb idea.

      --

      -- Tim Little

  28. Re:Earning cash for virtual gold will be fine unti by SalaSSin · · Score: 3, Insightful

    I have to agree, the MMO's i played that were infested with RMT, are having a rapidly devaluated currency, the result being that it becomes impossible to buy items without having to resort to RMT.

    And indeed, that's why me and a lot of friends just stopped playing.

    --
    Any sufficiently advanced incompetence is indistinguishable from malice - Grey's Law
  29. Unlimited gold by TheRealRainFall · · Score: 1

    Or they could just give unlimited gold so people could enjoy the game in a fair manner instead of creating a timesink. I played many wow characters for many years and unlimited items would not have destroyed the good parts of the game. Only the trash parts(raiding). Thank god i quit!

    1. Re:Unlimited gold by mr_gorkajuice · · Score: 1

      Your perception of "the good parts of wow" is completely messed up. Thank god you quit!

    2. Re:Unlimited gold by TheRealRainFall · · Score: 1

      YOu love raiding? WoW BGs were just lolfarmaments but arena had such great potential and could be amazing fun at time as long as you didnt spend all day playing countercomps

  30. Gambling? by Keill · · Score: 2, Interesting

    How 'close' would a game come to being covered under gambling laws, if any and every item you randomly find/get given as a reward in a game, actually has official real-life monetary value?

    --
    'Stupidity is an often fatal disease' - R. A. Heinlein
  31. Re:Earning cash for virtual gold will be fine unti by Grey+Loki · · Score: 1

    I'm not sure that's correct - EVE Online has let players buy in-game money with real-world money (through buying and selling game time cards) for years, and the economy there is pretty stable - definitely no massive inflation.

  32. Except that that's the real game by Moraelin · · Score: 1

    You define people as 'losers' because they don't play the game the same way you do. Mighty full of yourself, aren't you? From the way you talk, it sounds like you define yourself as a 'winner' because you spend dozens of hours a week glued to a monitor hoping the random number generator will drop some instant self-esteem for you.

    Except that they are _supposed_ to be a time sink. That's the whole purpose of gaming: to spend some time in a more fun way than staring at your own walls. That's the actual game.

    Whether it's dozens of hours a week or an hour on sundays, the principle is the same. You spend _some_ time in there to be entertained.

    And that's what it remains, from level 1 when you're killing wolf cubs in Northshire to level 80 when you raid Ulduar. There is no point where it becomes anything more meaningful than that.

    So someone who essentially pays to have someone else to play the game in his stead... well, he called it a loser, but I'll call it stupid too. They're people who pay to skip some of the content they've already paid for. It's as stupid as paying someone to see the first 3 quarters of the LOTR trilogy for you, just so you can then watch the final battle and pretend you're so l33t for it.

    And it's funny that you should mention "instant self-esteem" because it seems to me like it usually applies not to us who play the game the normal way, but to the losers paying their way to level 80 or to some virtual status symbols. I've actually known a few (especially in COH during the "City Of Fire Tankers" period, it was hard not to), and yes, it seems to me like that's what they bought: instant self-esteem.

    Invariably it was people who believed one or more of the following, and were trying to shove them in your face at that:

    1. That being higher level somehow made them better or more worthy of respect, as opposed to just being pegged in another slice of the game's content.

    2. That being able to do this or that (e.g., because of their l33t equipment) somehow made them superior persons, instead of just being yet another normal phase of the game's content.

    3. That sporting some visible status symbol, somehow made them better and more respect worthy, as opposed to being just another piece of the game's content.

    Etc.

    And you recognize them at any level. They're the kind that, when you group with their new alt, have to mention every 5 minutes how many level 80's they have (or had even in beta!) and generally act as if their level is physically tied to their penis size, say an inch every 10 levels, and being even seen under level 70 is some kind shame and failure. They're the kind who'll sit parked at the Deadmines or wherever else and whine for a "boost"/"powerlevel"/whatever-it's-called-in-that-game for hours instead of actually playing the damned game. They're the kind who in, say, EQ2 will just have to drag you kicking and screaming to see their epic mount or mansion full of T8 furniture... at level 10... on their first character, as if that says anything else about them than "I bought platinum."

    And yes, by the pretense that they're somehow superior because they're not investing time... in something that's just a time sink anyway.

    They're in a nutshell the people who don't understand that the game is the road, not the destination. The ones who don't understand that levels 1-10 or 70-80 are just ways to parcel the game's content, as opposed to anything else. It's not more meaningful than, say, episodes 1 to 10 vs 70 to 80 of a soap opera.

    But, no, they just have to artificially partition that mass of content in their mind into a 90% slice that's for them anywhere between shameful and merely not good enough for them, and at most 10% that's, yes, "instant self-esteem". And that's what they're buying: instant self esteem. The illusion that they're somehow more esteem-worthy if they skipped a chunk of the actual game.

    Would I call them "losers" for it? Hell, yes.

    --
    A polar bear is a cartesian bear after a coordinate transform.
    1. Re:Except that that's the real game by Anonymous Coward · · Score: 0

      Except that they are _supposed_ to be a time sink. That's the whole purpose of gaming: to spend some time in a more fun way than staring at your own walls. That's the actual game.

      Whether it's dozens of hours a week or an hour on sundays, the principle is the same. You spend _some_ time in there to be entertained.

      That's the point. The game is supposed to be more fun that staring at your own walls. It's supposed to be entertaining. Unfortunately, a lot of MMOs have something called "grinding", which is only put in the games to slow people down, because otherwise they would beat the game in a couple of hours. And when people get to these parts, it's only logical, that they are willing to pay to get through the boring parts.

    2. Re:Except that that's the real game by MeanderingMind · · Score: 1

      It's not logical, for several reasons.

      Say you want to buy an epic flyer in WoW, but don't want to spend the time grinding gold for it. On my server, it's $70 for the 5k gold that would take.

      If WoW were the only game worth playing in the world, then it might be logical to spend this money. Wow is not, however, the only game worth playing. For those $70 there are any endless number of titles for the PC alone that could tickle one's fancy, without requiring the player to spend additional money to get through the "boring" parts.

      Second, If leveling is boring you're not likely to like the end game anyway. If grinding is boring you're not likely to like PvP or raiding. The fundamentals of leveling and grinding are prevalent in every aspect of the game save for standing around and flexing in trade chat. If you don't enjoy them they will be haunting you whether you spend gold or not.

      Third, most of the gold in games which do not support RMT comes from the players themselves, when they're hacked. Logically, buying gold supports these ventures and puts yourself in a situation of increased risk for the same.

      Lastly, if we're being purely logical it's fundamentally illogical to do something which is against the ToS to which you agreed. MMOs which do not directly support RMT tend to explicitly forbid RMT in their ToS.

      So yes, not logical. If you find the game boring the answer is to not play at all.

      --
      Thunderclone: ONE MAN ENTERS! TWO MEN LEAVE! ONE MAN ENTERS! TWO MEN LEAVE!
  33. Profit by Smivs · · Score: 2, Funny

    1) Start virtual brothel
    2) Charge punters real money
    3) *****
    4)Profit!

    1. Re:Profit by Boronx · · Score: 1

      Doesn't look like step 3 is necessary.

  34. Two reasons not to... by Speare · · Score: 1

    I worked on one of the earliest MMOs, Meridian 59. Yeah, I know it was tiny compared to the "big boys" when Ultima Online came out, but it was still a lot bigger than the eight-player LAN games that were the competition back then.

    Anyway, there were two very strong reasons not to get into real-money transactions. Bugs and Gambling. Any bug in the code would be exploited, and of course every MMO has shown this to be true. Unexpected object duplication or money transaction bugs will either rip off the company, or rip off other players. Also, any game that has real-money transactions could catch the ire of the US authorities who have a schizophrenic and protectionist attitude towards gambling. If you can turn real-money into virtual things, and then do a game of skill or chance, and then most crucially convert the virtual things to real-money, that's legally a gamble (for the players) and a legal gamble (for the company).

    --
    [ .sig file not found ]
  35. abuse of moderation by drinkypoo · · Score: 1

    "Troll" does not mean "anything with which I disagree". It means that someone has said something they don't believe in order to elicit a specific desired response. The above is clearly not a troll; not only is it true, but I believe it :P

    --
    "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  36. Eliminating the Gold farmers by Baljet · · Score: 2, Interesting

    CCP introduced Game Time cards that can be purchased with real cash and then sold in game. Player rich in game can play from their in-game profits and casual players who would otherwise fund the farmers get cash from them. CCP keep all the money within their system and have virtually eliminated gold-farmers from their universe, it's not worth their time or the consumers risk when compared to the system they've made available themselves. Granted there's no way for a player to get cash out of the system, but once we start doing that there's going to be alot of Treasuries taking an interest in people with tax-free incomes.

  37. Re:Earning cash for virtual gold will be fine unti by Jurily · · Score: 1

    there must be something out there that can be stretched into precedent for this. what about internal accounting systems, where a company's departments "pay" each other for services, but the government only cares about money which crosses the organization's boundary?

    Okay, that's enaough. You already messed up IRL, keep the fucking economics out of my fucking game.

    Was it really a success in Asia, or did they just ruin the game for those who were not addicted enough to pay even more?

  38. Because it's not a spectator sport by ThrowAwaySociety · · Score: 1

    NASCAR, the NBA, and the NHL all make their money by selling tickets and TV rights.

    MMORPGs make their money through participants. If they expect people to participate, they have to at least give the illusion that participation can lead to success. (Without having to invest huge amounts of level-up money.)

  39. Re:Earning cash for virtual gold will be fine unti by Jurily · · Score: 2, Insightful

    there must be something out there that can be stretched into precedent for this.

    And this is why the current legal climate is so fucked up. If you want a new law, make a new law. Distorting 200 year old laws to fit the internet does not work. See copyright.

  40. Re:Earning cash for virtual gold will be fine unti by harl · · Score: 2, Insightful

    Doesn't matter. The taxman can't do anything until you acquire assets outside the game.

    Read your TOS/EULA. Make it work for you for once. Anything inside the game is owned by the people running the game. If the taxman comes knocking I have a binding legal contract, ProCD v Zeidenberg 7th Circuit, that says they need to go talk to Blizzard/Sony/Turbine/Whoever because they are the owners of record. It's their asset not mine.

    --
    I find being offended by me offensive.
  41. Re:Earning cash for virtual gold will be fine unti by harl · · Score: 1

    I need to clarify here.

    In EVE Online you are allowed to buy in-game money from other players. This is regular cash that was created through normal means.

    This is _NOT_, I repeat _NOT_, game cash created out of thin air by the publisher.

    Thus there is no risk of massive inflation.

    --
    I find being offended by me offensive.
  42. Re:Earning cash for virtual gold will be fine unti by cml4524 · · Score: 2, Interesting

    Which is all well and good, but like most things involving corporate and government abuse, it's just not worth it. 10k gold in WoW goes for something like $75. That's, what, ten bucks extra on your taxes? Are you really going to spend thousands or even tens of thousands of dollars trying to defend your point against the IRS?

    There are lots of things that we shouldn't pay. I shouldn't have paid Bank of America when they screwed me on a credit card late fee by holding my check past the due date. But it was $39. It would have cost me $60 just to file a claim I had no guarantee of winning, so instead I swore at the guy on the phone, paid their theft fee, canceled the account and never dealt with them again.

    Fighting on principles is too expensive in America, which is why few people bother to do it.

  43. What sort of liability is this for game companies? by WillAdams · · Score: 1

    If a player has an account w/ $1,000 dollars worth of gold and gear and that account is deleted will the company directly reimburse the player?

    If a company has a game world w/ 1,000 players, each of whom has $1,000 and the company decides to close the game world down will they have to have $1,000,000 on the books to pay off the players?

    There was an interesting fictional treatment on this in _Dragon Magazine_ ages ago though, ``Catacomb'' by Henry Melton I believe it was which shows one potentially expensive aspect of such a game.

    William

    --
    Sphinx of black quartz, judge my vow.
  44. Re:Earning cash for virtual gold will be fine unti by harl · · Score: 1

    I don't understand your point.

    If you received $75 for 10K you fall under existing tax law. You always have.

    My post dealt with taxing assets held in game.

    You should have sued in small claims. BoA would have rolled over and settled with you. Too expensive for them to go to court over such a low amount.

    --
    I find being offended by me offensive.
  45. No bailout for SL banks since the reason ... by Anonymous Coward · · Score: 0

    them failing was the gov't.

    The SL Banks were linked to the SL Casinos, which were making money hand-over-fist. Loan to Ginko, which expanded the casino, and you were effectively in for a percentage of the house's take.

    When the US Gov't decided to apply the online gambling laws to the SL Casinos, they all shut down.... and that caused a ripple through the whole SL economic system that took about a year to stabilize.

    I often chuckle about the folks demanding "The gov't regulate SL so we don't have bank failures" since the cause of them failing was gov't regulation in the first place.

  46. Re:Earning cash for virtual gold will be fine unti by Idiomatick · · Score: 1

    I always wondered about this. Not so much from a player's POV that is sort of simple it can go a few ways. But from the game companies POV. They could support transfers by 'undoing' the tax by increasing the money during transfer. If it is counted as real wealth then is it a currency or a good? And then who owns it? If the players in the game own their gold fine. Then does the company own the rest of the gold (which would be really haard to determine at any given point). If gold is spawned on mob death vs spawned on mob creation. Do the mobs themselves take ownership over their own money.

    Taxing then can only occur when e$ is traded for $$. I guess it would work the same way as paying for a service. Ignore the fact there is a virtual good and say you paid for the guy to play the game for you for so many hours. Then this is the same as ANY transaction. Anytime you buy a game from a friend and don't declare the purchase for taxation it is a black-market transaction. Or if you pay 5$ for a friend to go to the store and get you a beer it is a black-market transaction. The taxman will come after the Businesses. Just like if you set up a business where you would run to the store for people and have a clientele of 5000people. This won't stop people from selling on small scales. Also US law likely won't effect the CHINESE farmers in anycase. If a chinese law was implemented to tax 50% of $ made w/ gaming then you would have a problem. I doubt there will be any international agreements on this type of taxation for many years to come. So its not really a big deal.

  47. Re:Earning cash for virtual gold will be fine unti by Maxo-Texas · · Score: 1

    If you have 75k, you can be hit for a property tax on that 75k.

    So the situation being presented is this possible future:

    Sure, legally it's blizzard's property but the government passed a law that your blizzard bill must include an assessement for in game property.
    If you don't pay it, then your blizzard account is shut down.

    The tax is $10 this year split into 12 easy payments of 80 cents. It would cost your $2,600 to fight the issue in court and you'd probably lose.

    What action you take:

    --
    She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
  48. Re:Earning cash for virtual gold will be fine unti by harl · · Score: 1

    The government passes a law saying I'm responsible for the tax liability of someone else's property?

    That's just nonsensical.

    --
    I find being offended by me offensive.
  49. Re:Earning cash for virtual gold will be fine unti by cml4524 · · Score: 1

    It doesn't matter if it's nonsensical. If they pass the law it's the law and you're obligated to abide by it unless it's overturned or repealed.

    Which goes back to my original point: yes, it would be absurd, and yes, you could fight to overturn it, but it wouldn't be worth it to most people.

    There is a cost associated with fighting back against those sorts of things. You can fight the IRS over a $10 tax bill you shouldn't have to pay, but it's going to cost you thousands of dollars in attorney fees - which you may or may not recover - and many, many frustrating hours. And you may lose the case anyway in which case you'll lose thousands in attorney fees, likely hundreds in penalties and late fees, possibly the attorney fees of the IRS, and your original $10 tax bill.

    Saying you should just go ahead and sue is all fine and dandy, and if you're fighting for the principle of the thing that's great, but the cost of being right is often much greater than the cost of just accepting the wrong in these sorts of cases.

  50. roadblocks by evilWurst · · Score: 1

    There are three things that come to mind that a "legitimized" money trading feature would have to address - all related to the poor in-game effects of the current model.

    1 - It would have to remove or negate the player behavior of farmers. The camping (and subsequent artificially increased rarity of gold/items), the spamming, the foreign language ninja looters, etc. IMO a certain amount of that is human nature, but the only "cure" is to make sure that in game behavior cannot translate into real-life profit. In other words, this money trade has to be one-way: you can spend real money to buy gold, but you can't trade in gold to get real money.

    2 - It would have to address the effect on the game economy. If all normal players are still making the same in-game income, but inflation screws up the prices, that really screws around with the difficulty level of the game. And if that happens in the in-game auction house, it encourages the loot farming from #1.

    3 - It would have to address the effect of twinking on the player-vs-player side of things, and the positive feedback loop of #3 into #2 and #1 - pay money up front, twink character, dominate the best loot areas to corner the auction house. Not only are the twinks, um, twinked... but everyone else is under-geared due to inflation limiting their ability to buy gear and mass farming limiting their ability to loot gear (and even under-leveled due to the same mass farming limiting their ability to get XP).

    This requires more than just tacking on one more gui panel for confirming your credit card number for gold++. It requires a major rehaul of the game mechanics. I'd do it three ways; first, you'd need to quasi-instance *everywhere* in a load-balancing way instead of a per-group way, so everyone has equal access to resources. You'd need to have "matchmaking" code that takes gear into account, not just level, such that players are put into appropriate instances except for whatever free-for-all zones the game has. And you'd probably want the money->gold flow to feed only into the auction house; equal access to resources means that while this inflates prices in the auction house up to a new equilibrium, said equilibrium actually exists - normal players can get stuff to sell too, so normal players a) cap prices by undercutting and b) make more money, thus c) are still able to afford the stuff they're supposed to be able to afford on the auction house.

    And even then I'm sure it'd probably take more new checks and balances, because that auction house equilibrium could still be *really high* and I'm not sure it's a good idea for the game mechanics to *force* every player in an MMO to choose to either fork over more dollars or spend excessive time playing the mandatory auction-house mini-game. And the improved matchmaking and instancing code would take a lot of work. And deciding how to manage the free-for-all PvP areas would be a lot of careful work too - too much, and twinking is mandatory, too little and you drive away twinks who were willing to hand you big bags of money.

    I guess my point is: I'm not yet hearing about the big MMO companies actually trying to make this work; I'm just hearing them try to make a quick buck on it by bolting on a new moneysink without dealing with the issues that'll potentially ruin the game.

  51. Re:Earning cash for virtual gold will be fine unti by harl · · Score: 1

    No. I live in a country that has restrictions on what laws can be put in place. This would never be enacted let alone stand up to challenge.

    Making a law that imposes a tax on you for me owning something is nonsensical.

    Regardless your cost argument is meaningless. You would not be fighting such a law. Someone with orders of magnitude more resources, and thus orders of magnitude more able to be fucked by such a law, would be fighting it.

    --
    I find being offended by me offensive.
  52. Re:losers wanting pretend items by Phrogman · · Score: 1

    "Which is all well and good as far as it goes. But that treats symptoms not the real problem. The problem is losers wanting pretend items they couldn't possibly earn in a frickin' game so badly they will pay serious real coin to get them. It would be like bribing your DM to let your third level character find a +5 sword. Who would continue to play in a gaming group if such a disgusting thing were to occur?"

    And because such ignorant fuckwads continue to exist and play MMOs there will always be a demand for ways to cheat the system and get the appearance of having earned something without having to actually go and make the effort. There is really nothing that can be done about this unless companies start pursuing real world prosecution of players who break the TOS in this manner. Forget chasing the farmers, their market will dry up when their customers stop buying engaging in RMTs. I would be all for companies putting a clause in their TOS that states you are liable to a $10k fine if caught - if there was some way to pursue it in the courts.

    People who buy money and items ruin the balance of the game, and destroy the playability of the game for everyone else who plays legitimately. I would kick anyone from my guild who I discovered had done so without any hestiation, but thats about the limit of my ability to affect them in game for their actions. I want to see companies take serious action against offenders, and I think thats the only solution that might have a chance to work.

    I do like the halfway solution from CCP, which if I understand it amounts to them selling subscription cards and letting players translate those into in game items which can then be bought by other players and then used to pay their subscription costs. The company gets money from being the middleman in the transaction (The player paid RL money to buy the subscription card) and the player who has the in game currency can pay their subscription costs with that in game money. It still means that someone is using their cash to gain an advantage of course, but at least it cuts the farmers out of the equation which is I suppose a form of solution

    Personally I think that allowing, in fact encouraging RMT transactions in a game means the game is rendered unplayable and only a fool would play it. I can't think of a single thing that would make me want to play a game less than that. It effectively announces that whatever you do in game is completely meaningless because some bastard with a CC can equal your achievements in a few seconds because he has more money than you do. Since that sense of achieving something challenging is part of the attraction of playing a game, rendering that achievement null and void destroys part of the attractiveness of a game. There are unfortunately a lot of MMO players who DO think that having more money than I do makes them a better person and better player, and they feel entitled to cheat to get ahead in this manner. Changing that attitude would be another solution but it would rely on players having a sense of honour and sportsmanship and I don't think you can count on that being present in most players. Our society encourages the idea that having more money makes you superior to others, and encourages the attitude that this entitles you to better treatment etc.

    Personally speaking, although it would present substantial security problems, some method by which games companies could exchange the credit cards used on a banned account so that when you are banned on game A, you are also automatically banned on any other game that used that card would be a neat addition to the mix, although I am sure lots of people would dislike that. I am not sure how you could do so effectively and legally though.

    --
    "The first time I got drunk, I got married. The second time I bought a chimpanzee, after that I stayed sober" Arian Seid
  53. Re:Earning cash for virtual gold will be fine unti by Anonymous Coward · · Score: 0

    No, it's not just nonsensical. It's nonsensical. Do you pay property tax on your car? Do you pay property tax on your bank account? Do you pay property tax on your clothes? Do you own anything? Do you know how taxes work?

  54. Re:Earning cash for virtual gold will be fine unti by Anonymous Coward · · Score: 0

    EVE online allows you to sell PLEX (basically 30-day game cards you buy w/ real money) for in-game currency.

    It is, contrary to your argument, doing quite well economically.

  55. banking games by Anonymous Coward · · Score: 0

    There is a problem, couple months ago, I used to work in Lehman Brothers, there was a game installed on each machine, in which you played like you were trading with subprime loans, some day I just decided to see what happened if I started to make wrong decitions on that game, then couple weeks later somebody fired me telling it was crisis time and blah, but i still think he didnt liked me.... ... ...
    no, wait, why does a bank has games on their computers???? eehw...crap

    1. Re:banking games by mokus000 · · Score: 1

      L'Ender's Game?

      *ducks*

      --
      Additive identity, multiplicative cancellation, distributive multiplication over addition: pick any two (unless 1 = 0)
  56. MMOs: not actually a game by TiggertheMad · · Score: 1

    Would I call them "losers" for it? Hell, yes.

    I completely understand the points you make about playing a game to enjoy it. I'm just pointing out that while you quickly jump to call them losers for buying their way to the top, others would call you a loser for playing computer 'games' in the basement all day.

    Personally, I don't care if someone buys their way into a game, it's their choice. Life is full of people who don't share my values. The way people are getting angry over the idea in this thread is more telling about their own mentality. The feel cheated because they had to spend the time to get to the top of the stack, and others don't. Their status is being devaluated, because anyone can play at their level for a few bucks. Their accomplishment is cheapened as a result.

    I wouldn't be so quick to toss around labels of 'loser'. It just kind of makes you look like a angry child who is pissed because he has to share his ball with other kids.

    --

    HA! I just wasted some of your bandwidth with a frivolous sig!
  57. Re:Earning cash for virtual gold will be fine unti by CuriHP · · Score: 1

    Whether or not he pays property tax on his car is going to depend a lot on what state he lives in. Some do have this.

    --
    If it's not on fire, it's a software problem.
  58. Re:Earning cash for virtual gold will be fine unti by SL+Baur · · Score: 1

    The government passes a law saying I'm responsible for the tax liability of someone else's property?

    That's just nonsensical.

    So are all the trillions of US$ being thrown at bankers who gambled and lost. What else is new?

  59. Re:Earning cash for virtual gold will be fine unti by cml4524 · · Score: 1

    This really isn't that complicated. If Congress passes a law it's the law and it doesn't matter how nonsensical it is. I don't care if they pass a law saying that you have to wear a zebra suit and scream the words to O Canada from the top of a belltower at noon every day or face the death penalty. It's the law and as far as the courts are concerned you're obligated to follow it until you or someone else successfully challenges it and has it revoked. You can sit around thinking it's nonsensical as intensely as you like, but it will do nothing to change the fact that it's the law. You actually have to challenge the law in court or convince legislators to repeal it to have it overturned no matter how stupid it is. That's how stupid laws stay on the books to begin with. Since nobody ever enforces them, there's never anybody with a compelling interest to challenge them, and you wind up with silly morning news show fodder about how in Pitstink, OK there's a law that says you aren't allowed to wax a duck on Sundays. Technically, then, it's illegal in Pitstink OK to wax a duck on Sundays no matter how silly it is.

    I don't know how self-centered I'd have to be to think my opinions shaped realities like law, but I really don't care to find out.

  60. Re:Earning cash for virtual gold will be fine unti by Anonymous Coward · · Score: 0

    Adhominim

  61. Principles... by RulerOf · · Score: 1

    Fighting on principles is too expensive in America, which is why few people bother to do it.

    It's not necessarily that fighting on principles in America is too expensive, it's just that things that go against principles are cost competitive with the fight.

    --
    Boot Windows, Linux, and ESX over the network for free.
  62. Re:Earning cash for virtual gold will be fine unti by Maxo-Texas · · Score: 1

    Dude...

    come on-- at least google "automobile property taxes" first.

    Automobile and House property taxes are both extremely common.

    And you are correct- you do not OWN your house. You only own it as long as you can pay your rent.. er.. property taxes to the government.

    I'm against property taxes and for income taxes.

    Property taxes really hurt people who lose their jobs or retire badly.

    Income taxes only effect people who have jobs.

    Sales taxes are objectionable but also acceptable.

    But property taxes are really quite evil.

    ---

    But you must have taxes of some kind to pay for roads, municipal water, other government services (judges, policemen, city and state government buildings and salaries, etc.)

    ---

    I think I pay about $65 a year for auto property taxes and $3k a year for house property taxes. It's a major reason I do not own a bigger house- I could technically afford about twice the house I have but that would be $6k a year (basically $12k out of my gross) just for property taxes alone.

    --
    She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
  63. Re:Earning cash for virtual gold will be fine unti by Maxo-Texas · · Score: 1

    Since you can sell that property for money, it has value to you.

    Picture it like this... you don't own a rental car- but you certainly pay taxes on it as part of your fee. They just don't break it out like your phone bills. (and i think the government passed a law two or three years ago that prevents phone companies from breaking out certain taxes to hide the level of taxes you are really paying).

    --
    She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.