Skip to Content

AOL Games

Filed under: Economy

Linden Lab to raise Xstreet fees, loses vendors, products

Filed under: Business models, Culture, Economy, News items, Opinion, Second Life, Virtual worlds

This week, Linden Lab announced that it was going to start charging listing fees and minimum commissions on its Second Life Xstreet Web-shopping adjunct in the near future. Within hours, vendors took down thousands of products, many abandoning the service entirely in favor of alternative services.

It's unclear just how many vendors have abandoned the Xstreet SL system, but it apparently was enough to temporarily overload the Web-sites of third-party sites such as Slapt.

Why RMT won't go away

Filed under: Business models, Culture, Economy, Exploits, Opinion


"Companies should just stop gold farmers." It's a consistent complaint in many games, with "gold" replaced by your game's currency of choice. As complaints go, it's right around "somebody should do something about all the problems" in terms of overall utility, but heck, no one likes the practice and it should just be eliminated, right? Well, as Scott Jennings has pointed out recently, it's not quite that easy.

As Lum points out, there are several common misconceptions about the entire process. Among them are the idea that the game company doesn't step in because they're getting kickbacks, which is pointed out to fail the simple test of Occam's razor. When developers want to get more money from an existing game, there are usually better ways to run it, such as the Champions Online model or the Dungeons and Dragons Online approach. He also tackles the infamous statement that the farmers are paying customers and therefore the company has even less incentive to stop them.

So if everyone hates RMT, why is it still around? The article briefly touches upon it, but We Fly Spitfires had a recent post that articulates more specifically: more people buy gold than would necessarily admit it. Since no one will admit to it, no one ever asks, and as a result there's a large culture of silence that publicly despises it and privately takes part. In short? As long as there's a customer base, the farming will continue. Food for thought all around.

EVE Evolved: Trading: The basics

Filed under: Sci-fi, EVE Online, Culture, Economy, Game mechanics, Guides, Professions, Making money, Tips and tricks, PvE, Hands-on, Academic, Education, EVE Evolved


Of all the moneymaking endeavours you can take in EVE Online, trading is perhaps the one with the highest potential for profit. While mission-running profit tops out at a few tens of millions per hour and the profit margin from production isn't that big, trading is limited only by the amount of effort you're willing to put in and is much improved by inherent business talent. At the low end of the trading spectrum, beginners can make a healthy income ferrying items from A to B. At the other extreme, a market-savvy individual can pull billions per week out of the players in EVE's great conglomerated marketplaces.

In this first guide in a short series on trading, I look at the different types of trading options available to newer EVE players.

Second Life's classless server scheme

Filed under: Business models, Economy, News items, Second Life, Virtual worlds

Thus far, one of the key factors in Second Life performance has been the class of server hardware hosting the simulator. There are plenty of other non-server items that might contribute to perceived poor performance, of course, but server class versus server utilization is a pretty consistent factor.

Traditionally, each class of server has a numerical designation and represents a certain basic equipment and operating system specification. In the past, some estate owners have opted not to upgrade to a newer class of hardware in order to avoid higher monthly fees. Now the server class system is coming to an end.

EVE's Quarterly Economic Newsletter focuses on impact of anti-RMT operation

Filed under: Sci-fi, EVE Online, Economy, MMO industry


One of the strengths of the sandbox game EVE Online is its player-driven economy, which developer CCP Games monitors through a small team of researchers headed up by Lead Economist Dr. Eyjólfur Guðmundsson (aka CCP Dr.EyjoG). They observe all manner of player interactions and sift through a tremendous amount of data to track how EVE Online's economy changes over time. Their findings are presented to the playerbase (or to anyone curious about virtual economies) in the form of Quarterly Economic Newsletters (QEN). CCP released the 3rd Quarter 2009 report this week, which gives us a look at player demographics and the most popular ships flown by those players. (It's interesting to note that the most popular ship in the game is now the Hulk, a mining vessel which has usurped the Raven battleship as EVE's most flown ship, while Black Ops battleships are EVE's least flown ships.)

This latest QEN also gives various price indices and Market Snapshots, which chart the volumes of a number of popular items traded on the open market. CCP also shows the impact "Operation: Unholy Rage" -- their anti-RMT initiative -- has had on EVE Online's economy with over 18,000 (paying) accounts banned to date. Dr.EyjoG writes, "Unholy Rage taught us a great deal about RMT operations in EVE. We now have a much clearer picture of the extent of operations and the tools and methods they use."

CCP's Ryan Dancey on keeping EVE Online compelling

Filed under: Sci-fi, EVE Online, Business models, Economy, Interviews, MMO industry


CCP Games Chief Marketing Officer Ryan S. Dancey recently spoke with Gamasutra's Christian Nutt about the state of EVE Online and what makes the sci-fi title unique. EVE has traits that many MMOs don't, such as player governance, a dynamic virtual economy, and slow but continual subscription growth. CCP does face problems in tandem with that growth however, namely from RMT operations. There is also the issue of balancing developer control over aspects of the game's economy (mission rewards, salvage and loot drops, ISK sinks) with the ideal of allowing EVE's economy to be as player-driven as possible, explains Dancey.

Among other things discussed in the interview, Gamasutra asks how White Wolf has changed following the merger with CCP Games nearly three years ago. Dancey tells Gamasutra: "It's just an imprint... White Wolf used to have a fairly large staff. It doesn't anymore. It's focusing primarily on the World of Darkness RPG products. It's not doing some of the things it used to do; board games and other card games and things. The focus of the company [CCP] is on making MMOs and our legacy table top business is a legacy business."

Second Life plateaus during Q3 2009

Filed under: Business models, Economy, News items, Opinion, Second Life, Virtual worlds

Linden Lab has released the figures for the third-quarter performance of Second Life.

If you want the short version, it wasn't a growth quarter. Q3 2009 figures were not really very distinguishable from Q2 2009. There's actually nothing wrong with that. Growth plateaus are occasional and inevitable and generally represent a good opportunity for engineering and support to catch up a little with the service.

What compromises would you make to reduce Second Life copyright infringement?

Filed under: Economy, Opinion, Second Life, Legal, Virtual worlds

Seems that most of what you hear in and about Second Life recently revolves around creator rights, copyrights, trademarks, intellectual property rights, infringement and so forth. It's not that intellectual property infringement is new – you can certainly replicate content with the official viewer if you know how – but it is in the limelight and a major feature of Second Life discussions by virtue of assorted high-profile infringements, and legal actions.

Copyright infringement can't be made to go away. Since the Statute of Anne in 1710 originally codified copyrights in law, infringement has only been somewhat quelled by various means, never practically eliminated. In these predominantly digital times, there are many new tradeoffs could be made that could reduce the incidence of infringement, but at the cost of also reducing functionality.

How to email a Second Life DMCA notice

Filed under: Economy, Tips and tricks, Second Life, Legal, Virtual worlds

While Linden Lab allows you to submit a DMCA notice via post or fax, there is a third option that's valid while you're waiting for the promised new DMCA process to come along.

While many service- and platform-providers insist that they do not accept emailed DMCA notices, if you submit them correctly, the provider is lawfully obligated to accept them. Interestingly, a proper DMCA notice by email can actually give the recipient more surety about the identity of the submitter than faxed or posted notices.

Second Life users can flag accounts as bots, to no effect

Filed under: Economy, News items, Second Life, Virtual worlds

Linden Lab have installed a new account setting for Second Life users, where an account can be marked as a 'scripted agent' (which you can call a 'bot' if you prefer). At present, it isn't actually known what effect the marker has, or to what use it is being put. At some future time, we are told, it may be used to exempt accounts from contributing to the Second Life parcel-traffic system.

Right now, though, it's sort of like being asked "Would all citizens who have firearms and do not use them to break the law, please leave your name at your local police-station." That is, there doesn't seem anything actually wrong with the idea, but you've got to wonder why it is being asked at this time.

Nexon America's financials continue to impress in Q3

Filed under: MapleStory, Business models, Economy, MMO industry, News items, Mabinogi, Dungeon Fighter Online


We reported back in August that Nexon America had begun the third Quarter of 2009 with a very solid July; their revenue for the month grew 35% over the numbers for July 2008. Now that Q3 is over, they are happily touting some additional (and still impressive) figures. August 2009 beat out last year's August revenues by 32%, and September hit a lofty 44% growth in revenues compared to the same time in 2008. Overall, Nexon America's third quarter revenue grew 36% compared to Q3 2008.

Nexon America's CEO David Kim pointed out that this success comes without the bump that releasing a new game often brings: "Increasing our revenues without having added any new games to the company's portfolio for more than a year tells me that we are on the right track. Dungeon Fighter Online is just ramping up, so no revenues generated by that game are reflected in the outstanding third quarter we've had.

Dungeon Fighter Online is still in open beta, but an item mall has just been launched for the game. We can only imagine that Nexon's growth will continue when these revenues begin to show up on future financial reports.

Go out and steal oil in Planet Calypso's 10.1 update

Filed under: At a glance, Sci-fi, Entropia Universe, Economy, Game mechanics, Patches, PvP


In a move to make our virtual lives eerily more like our real ones, the First Planet Company has re-opened the oil pumping station on Planet Calypso with patch 10.1, offering all players the chance to make a quick profit by grabbing oil from the pump -- if you can make it out alive, of course.

The pumping station is not only in the middle of the wasteland, but it's also surrounded by angry NPCs (the wastelanders) and it's right in the middle of an open PvP area. Sure, you can make a tidy profit by grabbing oil from the station, but you have to be efficient and sneaky about it. Otherwise, you'll just end up with a bullet in your back and your blood mixed with the oil.

Second Life content creators warn about scam site

Filed under: Economy, News items, Second Life, Virtual worlds


Numerous Second Life content creators are warning their clientele that the Web-site virtualget.net (which has been apparently been operating for a couple of months now) is a credit-card harvesting scam. Whether that's correct or not, the site appears to be using the product images and product descriptions and trademarks of numerous Second Life content creators without their permission. The original images and text appear on Linden Lab's Xstreet SL virtual goods shopping Web-site.

Numerous DMCA notices are reportedly being filed by content creators at present. We attempted to contact virtualget.net (anonymously registered in Singapore) for comment, but none of their email addresses appeared to be functional -- One email address was restored to function when the majority of the site was taken down a short time ago, but we received no response. Linden Lab, who has an intellectual property stake in the matter, was not available for comment either.

Users of Kaspersky protection software found the Web-site marked as a phishing site several hours ago, presumably based on user reports.

Update: The operation seems to have disabled access to much of the site in the wake of numerous DMCA notices filed by content-creators.


Are you a part of the most widely-known collaborative virtual environment or keeping a close eye on it? Massively's Second Life coverage keeps you in the loop.

Indiana University studies economic interplay via Everquest II

Filed under: Business models, Economy, News items, Virtual worlds

It's no secret that MMOs have been embraced by researchers for a variety of purposes, with everything from social dynamics to the spread of diseases being modeled within the contained environment of a video game. A group of researchers over at Indiana University were attracted for just that reason, and began studying the ways that virtual economies mirror real-world economies on Everquest II. The full story can be found here, with some discussion regarding the relationship between the playerbase and the way it affects the real-world economic concerns of these games.

Certainly it's an interesting field of study, but it brings to mind one of the major ways in which an MMO economy doesn't have the ability to mirror a real-world economy: the fact that the stream of money going in to players is essentially unlimited, since there will always be roaming enemies to kill and ways to make money. It's also surprising that the study would be focused on EQII instead of the darling child of MMO economies, EVE, of which there could be and have been entire publications written solely about its economy. However, the interplay between the real economy and the virtual one isn't likely to go away, especially with the rise of free-to-play games in prominence.

[ via GamePolitics ]

UK game tax policies has Realtime Worlds considering move to Ireland

Filed under: Economy, MMO industry, News items, All Points Bulletin


Realtime Worlds is becoming synonymous with Scotland's game development with their upcoming title All Points Bulletin, but there are reports the company may consider relocating to Ireland. As one of Scotland's most prominent development studios, Realtime Worlds is keenly aware that as the computer games industry grows the UK lags behind other countries in terms of tax incentives. (Edge Online has an excellent overview of the situation which details how UK firms pay tax on R&D while countries like Canada and France provide rebates for game developers.) The situation as it affects Realtime Worlds and other Dundee-based companies is that if corporate tax breaks aren't possible in Scotland, they may need to head to greener pastures. Even moreso if such pastures include a 5-year tax holiday, which was mentioned at last weekend's Global Irish Economic Forum in Dublin.

Herald Scotland quotes Colin Macdonald, Realtime Worlds Studio Manager, as saying,"If the package on offer in Ireland was attractive we'd have to give it serious consideration. [...] Dundee is a great place to be based, one of the main hubs for computer games in Britain, but at the end of the day we've got to look after our bottom line."

Massively Features


Weekly Columns


Events Calendar

Name Date
Alganon Launch Dec 1 2009
EVE Online: Dominion Launch Dec 1 2009
LotRO: Siege of Mirkwood Launch Dec 1 2009
Star Trek Online Launch (NA) Feb 2 2010

Massively Podcast

New episodes every Wednesday. Now playing:
Episode 77, for Wednesday, November 18th, 2009.



Archive | RSS | iTunes | Zune

Featured Galleries

Two years of Massively features
Fallout MMO Concepts
EVE Online Postcards, part 2
Halloween 2009
DDO Tour - Update 1
EVE Online postcards part 1
Bizarro Gallery
LotRO: Siege of Mirkwood Developer Tour
Guild Wars 2 Art Book