Gold farmers. We know you hate them... We know. And we've mentioned the associated gold spam as being the bane of many MMO players' existence a number of times in the past. But is the situation ever going to change?

Perhaps, given the new legislation coming out of China this week. Of course while all gold farmers certainly aren't based in China, a substantial percentage of gold farming operations are in fact run from the country. Such operations may now find themselves under greater scrutiny by the Chinese authorities; the government has now established its first official rule on the use of virtual currency in China.

Essentially, it states that virtual currency cannot leave the sphere of influence of its issuer. (Exact wording: "The virtual currency, which is converted into real money at a certain exchange rate, will only be allowed to trade in virtual goods and services provided by its issuer, not real goods and services.") If the law is actually obeyed and enforced, it would curb all manner of black market activities in China connected with the virtual.

Exploration has long been a profession in EVE Online that really held a niche appeal to players. The exploration system has been a complex one, where one had to bookmark locations in space midwarp at specific points in a solar system, and burn through various types of probes (and time) to find something hidden. The game's Apocrypha expansion is very much focused on improving exploration. While we've heard a great deal about wormholes and 'true exploration' what's been less spoken of is that Apocrypha is an across-the-board revamp of exploration in EVE Online. These changes will, CCP hopes, revive the ailing booster trade in EVE. Boosters are drugs that enhance a pilot's performance. Despite the numerous benefits boosters can impart, they're also highly illegal and being caught with them in high security space can lead to hefty fines.

The arcane complexity of creating boosters and then smuggling them into high security space have made drug production and smuggling activities that comparatively few of EVE's capsuleers get involved with. This also means that boosters, the higher-grade stuff, can be hard to get your hands on. Boosters are a dimension to the game that CCP Games is looking to improve, which should come as good news to the game's would-be drug dealers.

China's State Administration of Taxation recently imposed a 20 percent income tax rate on profits made from virtual currency and virtual items, sparking price increases for virtual goods. While this tax rate (if actually enforced) clearly impacts the virtual space, it also affects transactions happening outside of MMO servers and virtual world grids. The taxation policy could ultimately extend to the virtual currencies linked to the largest IM providers in China such as Tencent, drastically increasing the percentage of the population affected by the new laws. Despite this, the positive benefits of eliminating gray and black markets for virtual items and currency may outweigh the drawbacks for gamers and users of the various digital services in China.

Questions remain about what will and will not be taxed in the virtual space, but it's clear that individuals who gain virtual income are expected to declare their profits and pay taxes on this, and do so within seven days of having earned the profit, according to Shanghai Daily.Taxpayers who can provide proof of the value of this property or the value of the transaction are taxed at 20 percent on their profits, while those who cannot provide sufficient verification are taxed at three percent of the total transaction value. But how many people are affected by this new system?

We've mentioned a company called Live Gamer in the past here at Massively. Essentially, Live Gamer is attempting to legitimize real money trading (RMT) in virtual spaces, by partnering with game publishers to create a regulated secondary market for item sales and trades. The goal is to integrate RMT with MMOs and virtual worlds and usurp the myriad gold spammers and scammers currently plaguing most virtual spaces that feature economies.

Suzie Ford at WarCry recently interviewed Live Gamer Founder and President Andrew Schneider about how the company plans to change a $2 billion industry presently dominated by the black and grey market. The interview touches on the company's background, how the Live Gamer service works, and overall how they handle some of the polarizing issues of RMT in MMOs. Check out the full interview with Andrew Schneider over at WarCry for a brief overview of what Live Gamer is about.

Does the prospect of having a legitimate, regulated secondary market for avatars, virtual items, and currency in your MMOs seem like a step in the right direction?

Today marks the commercial launch of Nexon's newest title, Combat Arms, a free-to-play hybrid first person shooter/MMO. If the words 'free-to-play' make you cringe, have a look at the trailers on their main page, which show gameplay and customization options. You might just change your mind. While Combat Arms is heavier on the first person shooter end of the spectrum, the title has many of the elements we've come to like about MMOs -- rank rewards, in-game currency and massively multiplayer social aspects are all tied into the game. (Combat Arms has a cash economy called the "Black Market" but it's not necessary to purchase anything to play the game.) Be sure to check out Joystiq's hands-on with Combat Arms for a closer look at the title and a brief interview with Nexon about the game's features.

Timed with the commercial launch of the title is Nexon's Combat Arms Tournament with Pandora's Mighty Soldiers (PMS Clan), to be held on October 4th at the E for All Expo. Pandora's Mighty Soldiers are said to be the world's largest multi-platform online female gaming group, with divisions for PC and each console on the market. If competitors can handle PMS, the tournament prizes will include Nexon game cards, t-shirts, DVDs, and an assortment of Razer gear. PMS will definitely make you work for it though.

Whether prowling low security space hunting for targets or fighting in massive fleet engagements, EVE Online's elite pilots -- called capsuleers -- stride like gods across galactic battle zones, as seen from the perspective of normal ship captains and crews. In this setting of New Eden, a capsuleer's neural interface with the ship allows his thoughts to regulate the vessel's performance; the will to survive coupled with fast reflexes equates to greater fortitude and speed in combat. Against conventional fleets, even a single capsuleer reigns supreme... but when faced with others of his caliber, or many of them, a capsuleer seeks every possible edge he can get.

Some of EVE's pilots channel their resources into acquiring the most advanced technology, hoping to gain an advantage over their rivals. But others choose to invest in themselves through performance-enhancing drugs. These 'boosters' are outlawed in all secure regions of space, due to their powerful effects on a capsuleer's mind, and thus a magnified lethality of his ship. The demand for boosters is great, but so too are the costs. Boosters are contraband and risky to move in large quantities. Coupled with the arcane processes involved in creating these drugs, those in the know have formed cartels, whose booster production and smuggling operations form the underpinnings of New Eden's black market. The most pivotal figure in New Eden's booster trade is Masu'di, who heads the Hedonistic Imperative drug cartel through the corporate front of Es and Whizz. Their operations are largely hidden, as they dance around the power blocs of the largest capsuleer alliances, subtly influencing or corrupting those who hinder the narcotics trade. Their network operates between the cracks of New Eden's laws and systems, ensuring a steady flow of boosters into any corner of the galaxy where a capsuleer needs a fix.

Massively recently spoke with Masu'di about the life of a drug kingpin in New Eden, and the inner workings of the black market in EVE.

How do you handle the inevitable conflicts with territorial alliances who likely have greater numbers and firepower?

Most of the areas of space we need access to are claimed, with various levels of effectiveness, by large and powerful territorial alliances. We can not begin to match them with manpower, so we have to take a more cracks between the pavement route.

In EVE a little good will can go a long way. So we will always try an open upfront approach first, and try and build a mutually beneficial relationship. Cheap boosters, resource and information sharing are all things we try and bring to the table.

However, whether this is accepted or not, very much depends on the organisation involved, and their modus operandi. Some alliances in EVE develop because their leaders have good business sense, focus and strategy, they know what they want for the alliance, and know what they can offer in return. Other organisations build up from a pure quest for power. For these organisations trading and business can take away from this. They prefer to try and do everything in-house as this is perceived as a sign of strength.

"We moved a number of agents into their alliance, who could help facilitate the acquisition of the resources we needed. They provided intel, allowing us to conduct our own covert resource gathering, while causing internal disruption where possible."

In the latter scenario we have to take a more covert approach, for example one recent alliance, former resident of Fountain, was an alliance called Brutally Clever Empire. We had already moved into the booster production constellation earlier, taking advantage of the chaos there when Band of Brothers pulled out. Not being perceived as a threat by anyone else we were generally low down on the target list and left alone to get on with what we like doing best. When Brutally Clever Empire arrived and claimed the region as their own, they wanted exclusive control of all the region's resources, and allow their in-house booster producers to build up a monopoly on the Exile booster type. However, the stronger boosters need resources from other regions too. It's something which we could easily provide and they tried to negotiate with us over this, however they refused to let us continue our access to our former operational areas – something which we found unacceptable.

Without going into too much detail, we moved a number of agents into their alliance, who could help facilitate the acquisition of the resources we needed. They provided intel, allowing us to conduct our own covert resource gathering, while causing internal disruption where possible. We also we hired some mercenaries for a couple of months to harass Brutally Clever Empire, but luckily for us they had made enemies of most of their neighbours. With few friends and allies, and being yet another alliance that puts the wagon before the horse, they quickly collapsed.

PlayNoEvil points out an interesting blog entry on cheating in Runescape. The poster, who wishes to remain anonymous, describes himself as a retired Runescape cheater who devoted five years to the 'darker side' of the game. He states, "This article details all the intricacies of Runescape and cheating and what really goes on behind the scenes, I assure you that it will surprise you."

The poster, identified only by the name ThirdEyeOpen, lays out how cheaters and buyers operated as a would-be organized crime ring. 'Welcome to the Dark Side' is his chronicle of how he began his Runescape cheating career, and how it all ended. He recounts being 'interrogated' online by Jagex Ltd. about his activities, and how the subsequent account banning led to a malevolent wish to get even. His anger eventually snowballed into the creation of an organization of similar-minded individuals, mostly other teenagers, who accumulated a fair amount of real-world currency through exploits in Runescape before cashing out altogether. It's an interesting read -- perhaps a bit disturbing in the sense that he views cheating as a kind of playstyle -- but worth checking out all the same.

Via PlayNoEvil

Red Herring has named Live Gamer, a virtual items trading company, as one of the top 100 privately held companies in North America in 2008. The annual Red Herring 100 North America Awards are given to companies identified as the most promising tech startups.

Love it or hate it, RMT is not going away. The virtual trading economy, which includes avatars, items and in-game currencies, is estimated to be a market worth more than USD 1.8 billion. Much of this trading takes place on the black market, exposing buyers and sellers alike to potential fraud. Live Gamer aims to remove the sketchiness from virtual item trades, enabling secure player-to-player trading while taking business away from some of the banes of the MMO world: virtual item thieves.

Two very large names have joined forces to help battle the illegal (and increasingly annoying) digital Black Market that exists to sell virtual in-game goods. Backed by $24 million in investment money, Mitch Davis (the former Massive in-game-ad firm founder) and Sony Pictures Digital vet Andy Schneider will launch Live Gamer, a publisher-supported service that creates a secure platform for real-money purchase and the sale of virtual goods.

Already on board are MMOs and virtual worlds from Funcom GMBH, Sony Online Entertainment, 10Tacle Studios, Acclaim, GoPets and Ping0 Interactive (the company that provides access to the online, multi-player component of Hellgate: London), and they're willing to work with any publisher. With backing such as this, we may soon see a siesmic shift in the virtual goods landscape.

Nearly every MMO is now plagued by these despicable gold farmers and Real Money Traders bent on selling their warez, regardless of their legality. Even my beloved City of Heroes and Villains has recently been targeted with endless spam that fills in-game Email boxes and brazen "live" players (often named "jkjkljlkj") who will approach you trying to offer their services. A concerted effort from within the industry itself to stop these griefers is long overdue. Hopefully this will be the spark that ignites a widespread change.