A Disputed New Business:Virtual Property Exchange


by Steven Golden

In many ways, the in-game economy is similar to a real world

economy - goods and services are traded to mutual

advantage and are mediated in currencies

(gold,platinum,credit,etc.).

An online broker, who goes by the screen name Rolala, was

not a fan of online games until his 15-year-old son became

interested in Final

Fantasy XI(FFXI).He then noticed that a large number of

gils(currencies used in FFXI) were for sale on eBay.

"I started hearing about players leaving the game who were

selling their assets at cheap prices," he said, "so I figured,

buy low, sell high."

But Rolala found his moneymaking options in FFXI "very

limited". He switched to World of

Warcraft,the world's largest MMORPG. There, he has

leveraged his real-life experience into an online business. He

converts his game profits into real money on sites likeebay, cheap wow gold

,world of warcraft

gold,etc.Earnings can be considerable. He said he was on

track to earn about $120,000 in real money in his first year in

this business.

Rolala's business is just one example of how increasingly

popular online role-playing games have created a shadow

economy in which the lines between the real world and the

virtual world are getting blurred.

Edward Castronova, an economics professor at Indiana

University who has written a book on the subject, calculated

that if you took the real dollars spent within "EverQuest "as an

index, its game world, called Norrath, would be the 77th

richest nation on the planet, while annual player earnings

surpass those of citizens of Bulgaria, India or China.

Go to GameUSD, an exchange-rate calculator for the virtual

worlds, and do a search for the latest rates of virtual

currencies against the U.S. dollar, and let your jaw drop

open. The rates of some virtual world currencies are even

better than that of the Iraqi Dinar! For instance, here is the

exchange rate of several popular virtual currencies: <i>FFXI Gil (

Final Fantasy XI Gil</i> ) ($23.89/1M), <i>Lineage 2 adena</i> ($2.80/1M), <i>Everquest Platinum</i> ($0.24/1K), <i>Everquest 2 Gold</i>($0.017/gold), <i>WOW Gold</i> (

<i>World of Warcraft Gold</i> ) ($0.178/gold),

<i>Star

Wars Galaxies Credit</i> ($0.50/1M), <i>Guild Wars Gold</i> ($0.07/1K), <i>Second Life Linden</i> ($3.14/1K), etc.

Right now, this business is one of the most hotly debated

issues on the internet. Many game companies such as

Blizzard who run World of Warcraft discourage profit from

in-game properties, though none have found a way to stop it.

Sony Online

Entertainment, on the other hand, encourages the

practice (albeit within the confines of their own "Station

Exchange", their own forum for the sale of in-game

properties). It recently announced the first month's figures

from "Station Exchange". According to SOE, over 45,000

characters from "EverQuest 2" have been active on the

exchange and have spent over $180,000 USD in one month,

half of which have been spent on in-game gold and platinum.

In terms of the law's concern, another issue is, who owns the

virtual money? Many virtual world designers maintain that

anything created in the world belong to the company. They

refuse to recognise the rights of their players in the virtual

property for fear of attracting liability for its maintenance or

security.

But will this work in the long term? Players spend

considerable time and/or money acquiring such assets. In

many cases they are the creation of the player and even the

intellectual property ownership is questionable. "As we spend

more time in these worlds, it's not enough for companies to

say that 'we own everything and we can turn it off at any

time,'" said a gamer. "The question may soon be should we

have recourse against a game company for obliterating

virtual assets?"

With the rapid growth of virtual currency exchange market,

should people accord virtual property the same protection as

property in the real world?

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