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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.

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.

Playing the numbers game with EVE Online

Filed under: At a glance, Sci-fi, EVE Online, MMO industry, Academic


MMORPGs, at their heart, are usually games all about numbers -- stats, levels, enemies to fight, and so forth. And EVE Online focuses in even more on numbers, where players worry not only about the amount of damage their ship's main gun can put out, but what the value of ore on the open market is and whether or not the cost of an attack on a mining facility would be worth the profit. But there are other numbers involved in the game, which were highlighted on MMORPG.com in a piece about the numbers behind the game discussed at the recent 2009 Fanfest.

Among the more interesting statistics is the stated goal to have EVE's total population exceed that of its country of origin, Iceland -- a goal that the game has either nearly reached or exceeded if you count in the game's trial accounts, which are a bit of a revolving door but add a significant number of players to the total. The article also discusses the game's overall economy, player retention, and other interesting figures in relation to the game. Take a look if you'd like a peek behind the scenes of one of the most unique MMOs on the market right now.

[ via MMORPG.com ]

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."

Hit the Virtual Goods Summit 15% cheaper this year

Filed under: Business models, Economy, MMO industry, News items, Education, Virtual worlds


The Virtual Goods Summit has been an annual event since 2007, and features speakers from organizations all over the world, all focused on virtual goods, and virtual economies. This year's summit in San Francisco features quite a lineup, including the delicious Steve Meretzky, Turbine's accomplished Fernando Paiz, the engaging John Smedley of SOE, and plenty more.

Through the Virtual Goods Summit, developers and publishers share knowledge and get a deeper understanding of virtual goods and economies, how they function, their challenges and how to maximize the opportunities inherent in them. The Virtual Goods Summit runs on 30 October (with an optional half-day seminar on the 29th, covering the fundamentals and drivers of virtual economies, called Virtual Goods Summit University.

Want to get to the summit with a 15% discount on general admission? Register for the summit and use the code MASSIVELY at the checkout, and save! There's also discounted early-bird registration until 29 September.

EVE Online: The taxman cometh

Filed under: Sci-fi, EVE Online, Economy, Game mechanics, Guilds


When EVE Online developer CCP Soundwave isn't entertaining fans of internet spaceships with his wit during the EVE Alliance Tournament, he's apparently finding new ways to ... impose taxes on players? His dev blog today explains that CCP Games will tax the earnings of players in NPC corps and their reasons for introducing this taxes. This won't apply to those in EVE's player corporations or those enlisted with a militia for factional warfare. "Service guarantees citizenship and all that, so keep on trucking," he writes. (Note: For those less familiar with EVE Online, this deals entirely with in-game currency of course, InterStellar Kredits or ISK. No real world taxation is involved.)

After all these years, why impose taxes on players in NPC corps? CCP Soundwave explains it all in "I Bring Gifts! (By Gifts I Mean Taxes, Sorry)". NPC corps have a few advantages over player corps in that they cannot have wars declared against them by player corporations; immunity to wardecs is perhaps a key reason some players don't move on to player corps. In addition, members of NPC corporations don't have taxes subtracted from their NPC bounties and mission rewards, which most player corporations impose.

Linden Lab says Second Life huge, shows numbers

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

Generally, operators of MMOGs and virtual environments don't show their numbers unless they feel they've got something to crow about, and Linden Lab's crowing today, releasing a selection of figures that give you an idea of the scale of Second Life.

Approximately 1,250 text-based messages are sent every second in Second Life. That's 108 million messages per day and more than 600 million words are typed on an average day. That's a whole of messages for any architecture, quite honestly.

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