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China Bans Gold Farming

InformationWeek is reporting that the Chinese government has declared a ban on the sale of virtual goods for real currency. This move is poised to shut down a several billion yuan a year business that has been growing by leaps and bounds every year. "The trading of virtual currency for real cash employs hundreds of thousands of people worldwide and generates between $200 million and $1 billion annually, according to a 2008 survey conducted by Richard Heeks at the University of Manchester. He estimates that between 80% and 85% of gold farmers are based in China. [...] Game companies typically forbid gold farming but committed virtual currency traders find ways around such rules. Some game companies have recognized the futility of trying to ban the practice and have built virtual commerce into their game infrastructure."

7 of 293 comments (clear)

  1. Re:Hundred Millions or Hundred Thousands? by Hojima · · Score: 4, Interesting

    Personally, I'm quite happy when oppressive people with power tighten their grip. It follows the law of tension: the harder it's wound, the more likely it is to snap. Organizations such as companies that bully, to massive governments, make stupid decisions to maintain and ascertain their power, when all they do is jeopardize it more. I can't wait till they make a huge mistake on civil liberties and practically give their citizens no choice but to revolt.

  2. Re:China seems to want to enhance its image... by Red+Flayer · · Score: 5, Interesting

    Your bosses will constantly be pushing you to maximize your per hourly gold yield.

    My understanding is that most of the gold farmer "workers" work on a quota system. Of course the quota will get moved up depending on possible performance. It's not about maximizing yields, it's about hitting the quota dependably.

    When labor is that cheap, it's probably more effective to hire additional workers than it is to squeeze every last drop out of the ones you have.

    Anecdotally, back when I played MMOs, I was once asked to hold onto some surplus in-game cash for a farmer. He wanted to set it aside so if he had a bad day, he could use it to get over quota and avoid punishment.

    I recall reading an article about this somewhere (Gamasutra?)... the gold farmers didn't want to make too much gold for their bosses, or their coworkers would get mad. Excess earnings in a session were hidden to (1) save for a bad day (2) sell independently for income or (3) play the game themselves. It was a really interesting look inside gold farming at the basest level.

    --
    "Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
  3. Re:So... by Pollardito · · Score: 4, Interesting

    It might be related to their attempts to limit the time that people spend playing games online. After all it would seem strange to limit people from playing more than 3 hours in their private life, while still allowing people to play 4 times that long at work.

  4. Re:China seems to want to enhance its image... by lgw · · Score: 3, Interesting

    I've done buisness with gold farmers in the past, and they were quick to contact me directly to solicity my next sale - to them, not to their employers. I think this is all a bit less Charles Dickens than people are making it out to be. Certainly it's better than typical jobs for kids in the West's industrial revolution.

    --
    Socialism: a lie told by totalitarians and believed by fools.
  5. Re:Hundred Millions or Hundred Thousands? by StikyPad · · Score: 3, Interesting

    It's a pretty safe bet that the figure is in the millions USD, but beyond that it's hard to say.

    While my sample size is very small, 3 out of the 4 people I know IRL who play WoW have each dropped $200 on such services. If we assume that 1% of the WoW population spends half that, and that each 8 characters represent 1 account, that gives us $772k by itself. And that's just a very conservative estimate for one game, since some self-reported figures are much higher. If we expand our assumptions to say that each 4 characters represents 1 account, and that 15% of those accounts have purchased $100 worth of gold or other services, we end up around $23M -- a number which I still suspect is conservative.

  6. Re:Hundred Millions or Hundred Thousands? by DrgnDancer · · Score: 3, Interesting

    Indeed practically nothing short of another tank can stop a tank. A perfectly positioned and deployed shape charge can, but I doubt many civilians in any country have the training necessary to use such a thing even if they were legal. I don't disagree with the second amendment per se, but implying that it holds the government in check has always seemed silly to me. What holds the government in check is a combination of the rule of law and a culture in the military that makes them nearly unusable in domestic situations. You'd never see a Tienanmen Square in this country because the military would simply refuse the order.

    If politicians and (more importantly) the military ever totally abandon the Constitution and impose some sort of martial law, no amount of small arms is going to stop them. As it stands right now, small arms can only kill dismounted infantry if it is extremely well aimed, let alone anyone in any sort of vehicle. Modern body armor doesn't make soldiers invulnerable robo-cops, but it protects most of their vitals from even assault weapons. Put the armored soldiers in an even a lightly armored vehicle and nothing short of high explosives can do much damage to them.

    --
    I don't need a million points of light, just two points of multi-mode fiber and a 10 Gig-E router.
  7. Re:China seems to want to enhance its image... by Chriscim · · Score: 3, Interesting

    Last year, I went through a marital separation, moved into a new place with roommates, and was laid off from my job within the same week. It took me a month, but I eventually found a full-time job, and a weekend job. The damage had been done though, I was behind on bills and struggling to keep up. I had a WoW subscription going and was considering cancelling it, but the through of selling gold occurred to me as a way to help make ends meet while I wasn't work at either job. So, in order to help get out of debt and pay the bills, I started selling gold to individuals just through word of mouth, and to gold farmers when there wasn't a demand from the people I knew. Let me tell you, it was not very fun at all and really killed the game for me. For those not familiar with the game, you can do up to a certain number of "daily quests" (quests that are repeatable every 24 hours). I would do the maximum allowed and use my tradeskills (both gathering skills) and sell the goods for in-game gold, then turn around and sell the gold to whoever would buy it. I was playing probably 5 hours a day, just farming. I could make around 5-7k gold per week (Before the Lich King) and sell the gold for $10-20 per 1K. Typically I made between $3-500 per month from playing a video game. I bought the Lich King (expansion), leveled my character to level 80 and started gearing him up to farm efficiently at that level, but I was so burned out from playing every day (and finally out of debt). that I no longer saw a reason to play and cancelled my subscription. It sure as hell helped pay the bills, but the constant headaches from farming for hours at a time, killing my social life, and sucking up all my free time to do meaningful things, killed the drive to play the game. I can't imagine gold farmers (who play far more hours than I did) enjoy this at all. It's not as bad as working in a sweat shop and/or doing real labor, but it's kind of rough and really wears on you after awhile. Even so, I don't see why their government would outright ban the buying and selling of game currency. A lot of these people are really depending on that income. :(