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2008 was quite a year for the sci-fi massively multiplayer online game, EVE Online. It was chock full of surprises -- both good and bad -- and of course the requisite drama you get when putting as many as 45,000 players in one galactic setting.

So much has happened that columnist Michael Lastucka has written a recap of 2008 in New Eden for Massive Gamer Magazine. Longtime EVE Online players also know him as Winterblink, someone who's been playing the game since its beta days, and he shares a bit of his perspective on the major happenings in EVE over the last year -- and what a year it was:

Alec Meer of Rock, Paper, Shotgun recently put a new twist on the 'top 10' lists that are cropping up at year's end -- a sort of top ten of gaming rage as expressed on the intertubes. Much of this list is focused on single-player titles and the industry itself, but Meer's 'Orc vs Orc' (#8 on the list) caught our attention.

Meer writes, "We've already talked today about the absurd, insane fanboy fallout from our own comparisons between Warhammer Online and World of Warcraft, but in truth it was a torrent of poison that briefly gripped MMO sites the world over. Notably, MUDfather Richard Bartle endured character assassination by a raft of WAR fansites after an interview in which he apparently stated the two games were very similar." That interview in question was actually Dr. Bartle's talk with our own (master) Michael Zenke back in June.

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Massively has been watching the issue of a significant starbase exploit in EVE Online, through which some players reaped vast financial rewards, as it went from rumor to confirmation from the developers themselves. Unlike your average run-of-the-mill exploit in most massively multiplayer online games, the exploit in question has had a significant impact on EVE's virtual economy -- the backbone of the game itself. All players in EVE interact in one vast galaxy, and their actions in the sandbox can create ripples felt by their fellow players, which has certainly been the case in this past week.

EVE Online's developer CCP Games has opted to hold off on responding to most press inquiries for comment on the issue, having issued a statement on the matter and then focusing on the investigation and a weekend meeting with EVE's player-elected community representatives, the Council of Stellar Management (CSM). The minutes from that meeting are now available, and several of EVE's developers took part in the discussion: namely CCP's Lead Economist Dr. EyjoG (Dr. Eyjólfur Guðmundsson) and CCP Arkanon -- who heads up the company's Internal Affairs division, which investigates the CCP Games staff themselves, hopefully ensuring that no CCP employee can abuse their influence over the game.

Read on for Massively's highlights of the state of affairs in EVE Online, in the wake of the starbase exploit.

In the wake of last week's revelation of a market disrupting exploit in EVE Online, a growing number of players have been calling for increased transparency on the situation. EVE's developer CCP Games has stated they've discovered seven player-run corporations taking advantage of the player owned station (POS) exploit, which yielded a vast amount of materials used in the EVE Online's manufacturing (crafting) system. Three of those corporations were in two alliances, and over 70 accounts have been banned thus far in connection with the exploit. The starbases used in the exploit have been destroyed by CCP, and they've stated that the corporations in question are now effectively inactive following the bans.

CCP Games has not released the names of characters, corporations, or alliances linked to the exploit, but a player named "moppinator" of the AMT. corporation (part of Ev0ke alliance) stepped forward and issued the following statement on the extent of his alliance's involvement:

Debate over what is considered 'right' and 'wrong' in terms of behavior in a videogame has become commonplace in recent years. Virtually any mass media commentary on the myriad evils of Grand Theft Auto or the 'Debbie Does Dallas in Space' view of Mass Effect drives this point home -- everyone has a different mindset in terms of what's acceptable to them. While gamers easily dismiss many of these notions as being uninformed and taken out of context, now and again something comes to light within the gaming community itself that sparks debate. A good example has been the recent (and heated) discussion of torture in games, stemming from the views expressed by Dr. Richard Bartle. He argued his points on the questionable existence of torture in "The Art of Persuasion" quest in World of Warcraft, which set off a flurry of responses from gamers and peers.

MMO industry luminary Raph Koster weighs in with his own views on the matter in a post titled "Are games about torture evil?". Specifically, Koster addresses this comment at his website: "... please explain to me again why killing NPCs in games is fine but sticking them with a cattle prod is evil." However, Koster seems less concerned with arbitrary notions of right and wrong as he is with the game design that leads us down this path in the first place.

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An exploit in EVE Online has come to light that may have some major repercussions for the game. Massively does not have solid confirmation on the details (and allegations as the case may be), as this has just come to light. The exploit was publicized on a third party EVE forum called Scrapheap Challenge, on Wednesday, December 10th. If this isn't a hoax or an exaggerated account of events, how serious an exploit might this be? Very serious, if the details listed prove to be accurate... The exploit was really a bug related to a network of player owned stations (POS) paired with a moon mining operation, which yielded far too much valuable material far too quickly. Four years and an estimated 2.5 to 3 trillion ISK later, the exploit was found and patched, and the offender(s) banned. Given the claimed amount of ISK involved, it's serious enough to potentially have an impact on the game's economy.

The individual who posted the details of this exploit remains anonymous, and has only identified him or herself as "anotherone", but tells a story of how the exploit came to be: "I would like to tell you a short EVE story. Today all of my EVE Online accounts were banned. I was sure this day would come. What surprises me is that it took CCP this long to catch up with me. Even though they knew about it." It's that last sentence that is sparking so much response from the playerbase -- anotherone asserts that this issue was actually petitioned to CCP Games back in 2004, and subsequently ignored.

Read on for more details on this economic drama.

Although many western MMO gamers profess a distaste for all things RMT, it's definitely become an aspect of these games and virtual worlds that we're all aware of to some degree. But it wasn't always that way. In fact, it wasn't so long ago that the notion of people working in virtual settings and earning real world wealth was, quite frankly, bizarre.

Julian Dibbell was one of the first journalists to expose the idea of RMT and the possible existence of 'virtual sweatshops' to mainstream readers years ago, before such ideas and practices became almost commonplace in virtual worlds and MMOs. Dibbell has continued on with this tradition since the days of writing about Black Snow Interactive, more recently in his book 'Play Money' and with a piece he's written for Wired, titled "The Decline and Fall of an Ultra Rich Online Gaming Empire."

Among the changes to EVE Online introduced with the Quantum Rise expansion is a new class of ship, the 'Orca' industrial command ship.The ship is intended to be a major asset to mining operations in New Eden, but it's a flexible ship -- and this writer has been waiting to see what clever uses players will have for it. It looks like that day has come... The Orca's substantial cargo capacity, a ship maintenance bay, and corp hangar have made it an ideal base of operations for criminals operating in highsec, with an aim to suicide gank T2 mining ships. In other words, use fully insurable Tech I ships to gank specialized, expensive, and largely uninsurable Tech II ships.

Suicide ganking is nothing new, but one of the major changes CCP Games put into place to dissuade players from committing highsec suicide ganks was to substantially increase the security status penalties players are hit with when committing aggressive acts in high security (Empire) space. But no matter how low one's security status drops, all players can move about in highsec in their ship's capsule. It's only when a criminal enters a ship in highsec space that CONCORD takes action. That is where the Orca comes in. Criminals can board new ships housed within the Orca at a safespot and then warp in on their victims en masse, in multiple waves of suicide ganks. When their suicide gank ships are blasted apart by CONCORD, they can fly in their pods back to the Orca and gear up for the next wave.

You've encountered them before. Those guys. Them. Next to the ISK spammers, they're a plague within EVE Online.

They have gibberish names and sit in ice belts all day in exhumers, macro controlling large mining operations. At the first sign of trouble they gang warp out to safety. Or they're automating courier missions in an endless procession of macro'ed industrials, day in and day out. Or they're part of the infinite army of 0.0 ratting Ravens that automatically warp to a safespot and cloak once someone enters the system. They're all in China, right? The macros are all used by large ISK farming operations where people work in 23/7 shifts... right?

Apparently, that's wrong. EVE-Mag is running an article written by a self-proclaimed macro'er. Only he doesn't work in a sweatshop in a developing nation. He doesn't grind long shifts for ISK. He's an American in his early thirties, with two kids and a family dog. Just a regular guy. He writes under the pseudonym "EVE Player" and poses a question to his readers, "I have macro'ed the holy crap out of certain video games. I've been doing it for more than 8 years now so tell me; at what point did you notice your EVE experience going down the tubes because of me? I'll bet your downward spiral really has nothing to do with me macro'ing, now does it?"

Richard Bartle, co-creator of the first multi-user dungeon MUD, has expressed his displeasure with Blizzard over a Wrath of the Lich King quest -- titled, "The Art of Persuasion" -- that involves the torture of a character for information. "I'm not at all happy with this. I was expecting for there to be some way to tell the guy who gave you the quest that no, actually I don't want to torture a prisoner, but there didn't seem to be any way to do that." said Bartle on his feelings about the quest. He also said that a player must complete this quest in order to proceed into an instance called Nexus, but those we've spoken to have told us the quest is merely part of a chain that can be completed in the instance.

We mostly feel disappointed in Blizzard, because they've missed an opportunity to make something thought provoking. Players are simply given one option with no real consequence instead of pointing out the cruelty of torture or letting a player decide whether or not to do it and find another way to complete the quest. Beyond even that, this quest does kind of break the lore aspect of being a good guy (Alliance) or a misunderstood good guy (Horde) when you're doing exceptionally evil things.

[via IncGamers]

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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?

Addiction as it applies to MMOs and internet activity in general is a contentious issue. Many of the more unusual or extreme stories regarding the actions that result from digital addiction tend to come to us from Asia, especially China. The pace and fervor with which China's internet savvy population has seized the web and all that it offers -- both good and bad -- is staggering. The web has become integral to entertainment in China, particularly for the younger generation, but it's brought with it a host of societal problems and crime.

Only days ago, the Chinese government classified Internet addiction as a mental disease, a fact which may well stay the execution of Hu Ange, a 22-year-old man who poisoned his own parents... apparently so they would not interfere with his addiction to the online game Legend. Hu was sentenced to death, but the case is now being appealed on the grounds that he is mentally ill.

News has spread of a grueling new enemy encounter in Final Fantasy XI. The Notorious Monster (NM) Pandemonium Warden is one of the strongest opponents players can face in the game. But it seems Square-Enix may have raised the bar too high, given the extremes to which players must go to defeat Pandemonium Warden.

A linkshell (guild) called Beyond the Limitation recently faced off against Pandemonium Warden over an 18 hour period, but the NM was still going strong. The NM shapeshifts into multiple forms, making it even more of a challenge to defeat; Beyond the Limitations fought Pandemonium Warden through twenty of his possible forms, some of which took hours to kill. Pet Food Alpha, a Final Fantasy XI community site, quotes a member of Beyond the Limitation stating: "People were passing out and getting physically ill. We decided to end it before we risked turning into a horrible new story about how video games ruin people's lives."

An Age of Conan player tricked a naïve, Funcom-employed Game Master (an in-game customer service representative) into pursuing cybersex with him. The player posed as a female playing a male character and enticed the male GM with flirtatious remarks and innuendos. After the GM fully threw himself into the moment, the player revealed that he was male, and that the conversation had been a prank.

Friends of the player posted screenshots of the conversation on MMORPG's forums, and the ensuing controversy led Funcom to fire the GM for unacceptable behavior and violation of the customer service guidelines. Destructoid then interviewed the prankster and hosted the unedited version of the conversation screenshots.

Frankly, we're not sure who is the bigger jackass -- the GM for his unprofessional behavior, or the player for baiting him into it. Everyone seems to have his or her own unique interpretation of this fiasco.

[Via Big Download]

Let's face it. Gold farming and RMT are the bane of many players' experiences in MMOs. Bots spam poorly-spelled gold ads in every MMO title with anything even resembling an in-game economy. From a player's perspective, it's a huge problem, and not surprisingly leads many to dislike the idea of RMT. But aside from the occasional media coverage of 'digital sweatshops,' most of us know relatively little about how gold farming operations are actually run, or what effects they have on real world society.

Professor Richard Heeks from the University of Manchester has put together a substantial piece of work on gold farming. The Working Paper's abstract states Heeks' intention "to provide the first systematic analysis of the sub-sector." The paper is titled "Current Analysis and Future Research Agenda on 'Gold Farming': Real-World Production in Developing Countries for the Virtual Economies of Online Games." (Say that three times fast.) It provides an overview of gold farming followed by an in-depth analysis of its economics, sociology, enterprise, and development. In terms of development, the paper considers the benefits gold farming may create, particularly for workers in Asia. While there is a wealth of information in Heeks' work, one aspect that stands out is a question it raises: Which is more important in the grand scheme of things, socioeconomic progress for people in real life, or the enjoyment of a game?

[Via Virtual-Economy]