Online Game Economies Structure and Issues

Games Examined Primarily Everquest 1 –Longest running online economy Everquest 2 World of Warcraft

Size of the Everquest Economy “Norrath, the setting for the online game Everquest, has been found to be the 77th richest country in the world, sandwiched between Russia and Bulgaria.” -BBC In 2001 Norrath’s currency out valued the Yen in relation to the US Dollar in online auctions.

Traditional Structure Non-Player Characters award/drop money for the players to pick up, acting as the “mints” of the cash system. Players buy items or services from the NPCs and remove money from the economy. Often death penalties are used to somehow remove money as well. This is intended to keep the cash level at a constant.

How Players Break the System Macros allow players to repeat a money generating action infinitely. –This gold can be traded or sold online Online sites sell game money and items high level players have earned for real money - Players sell off old maxed out characters

Examples from IGE

Problems Developers Face Market-oblivious NPC Merchants Infinitely durable goods (generally) Inflation on each server as players progress –In 2002 EQ several Realms almost collapsed as their economies approached Hyperinflation (think post WW1 Germany) Responsibility to maintain a level playing field for their clients

Attempted Resolutions In-game Auction houses using game money - WoW Durability on items - Many (WoW, SW:G etc) Sony plans to open a legal item selling site for EQ2

Cyworld Korean Based You can create a custom avatar for others to see. You can chat with other users. Decorate a room for your character.

cyworld.nate.com All of these things cost Acorns Acorns can be purchased with real money ~10¢ each. Sold online, via cell phone and now in stores as gift cards

Worth ~10¢ each, transactions of Acorns equal $200,000. Every Day.

Relevant Codes SECE 2.09: Promote no interest adverse to their employer or client… SECE 2.03: Use the property of a client or employer only in ways properly authorized…