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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]

From spending lots and lots of gold on a flying mount in World of Warcraft, to blowing insane amounts of ISK on a rare ship type in EVE Online, there are all manner of expensive items floating around out there just waiting to be purchased. Some folks enjoy spending game cash on cool armor (or dyes to make armor much cooler than it was) or mounts. Others prefer to hoard gold and spend it on other things that are less common like paying other, better-progressed guilds, for runs through certain dungeons to achieve things like epic weapons or even special items like pets or riding mounts.

Beyond the most obvious in-game items, you now have microtransaction models, enabling you to spend real-world money on your game trinkets. On top of that, we also have the items that come from things like trading card game codes -- the spectral tiger from WoW being a highly-sought-after example.

So what's your most expensive in-game purchase? What item could you just not live without?

If you've been planning to buy your first horse in Age of Conan, you might want to sit on that hard-earned gold for a few more days. An update to the patch currently on the Testlive Server has slashed the price of regular mounts from 2 gold down to 75 silver - a cut to less than half price. This should make mounts available from a much earlier level, allowing many players to get saddled up at the kinds of level originally envisioned by the designers.

While this will be excellent news for first time horse buyers, several of those who have worked hard to earn the gold for their horses before this potential price crash are fuming. Joining them in their anger are some of those who purchased PC Gamer to get the Totem of Origins, a recall-to-home-city item which will now be dropping from 'select bosses' as a piece of loot, and as such is no longer exclusive.

One universally positive change is the removal of a previous unpopular nerf. Quests that have gone gray will now give XP again.

When you hear the words "power leveling," which country do you usually think of? The term almost always conjures images of digital content factories in China, where teams of workers grind around the clock for the legions of gamers out there who are willing to pay to get ahead.

Power leveling and gold farming are by no means limited to China though. Other countries in Asia are seeing a marked increase in these activities as internet access becomes more ubiquitous, and of course as broadband speeds increase. PlayNoEvil points out an article from Vietnam News, which reports "game addicts with talent can now indulge in their favourite pastime and be paid up to VND 2.7 million (US$ 160) a month for doing it." PlayNoEvil notes that the salary of a power-leveler is greater than that of a teacher, who only earns between US$ 60 and US$ 100 per month.

Via PlayNoEvil

A few years ago now, I heard a news story about a man who traded one red paperclip for a house. There were several intermediate trades, but the basic gist of it was that he started with a paperclip and traded up from there until, eventually, he was offered a house in Saskatchewan in exchange for a movie role.

I remember thinking then what an interesting concept it was (and wishing I had thought of it first). He really did not need any particular skills except maybe negotiation. He did not need any money. In the early stages, he probably didn't even need a lot of buzz. Just some connections and a dream.

In more recent times, I have seen similar things done in games. Using the auction house and connections with guildies, friends, or just willing participants in the streets, it is entirely possible to trade your way to fame and fortune without ever picking up a trade or completing a quest.

Think about this a moment: people are actually paying money to experience less of their games. Every day. Probably all day. These are often games that they've already purchased and, in effect, pay someone else to play for them. The existence of RMT and power-leveling services isn't exactly breaking news, but it makes these aspects of MMOs no less bizarre a notion. The thriving business built upon such tenets of how online games should operate is a matter of some concern to Jesse Henning, a writer at GameCyte.

Despite the can of worms it can be,"from a business standpoint, subsidizing RMT is a fantastic move," Henning writes. If players will buy items and currency outside of the system anyway, what company wouldn't prefer that cash to enter their own pockets? "From a design standpoint, however, RMT is a treacherous path to walk," Henning cautions, and goes on to look at the pitfalls of game design that incorporates RMT. Conversely, the writer then discusses the level-disparity design problem in World of Warcraft and how it actually encourages players to buy gold and use power-leveling services. Henning also looks at how the ancillary services operating within and around a world pull in more revenue than the world operation itself, citing Raph Koster on the issue as well. Have a look at the piece at GameCyte, which discusses how RMT affects console gaming as well as MMOs, and just how inescapable it really is.

RF Online in the Philippines recently had serious issues with dupe hacks, prompting an unannounced rollback of the servers. PlayNoEvil writes that the operator of RF Online for the Philippines, Level Up Games, discovered a dupe exploit and tried to purge it from the servers as well as those who used it. However due to time constraints with unraveling the intricacies of the exploit, the company decided to roll back the game to a point before the exploit was used.

Level Up Games issued a statement on the problem: Based on DB evidence, numbers as well as feedback from the community, the GMs, the Vanguards and also from our field agents, there was an oversupply of in-game currency and gold - as high as 500 %. GMTristan of RF Online Philippines clarified the situation further on his blog:

I know what some of you are thinking: gold for game time? That's just nuts. I'd probably have thought so myself, save that EVE Online does something like this with players buying time codes to trade for in-game ISK. That way the player who has extra in-game cash laying around can get some "free" gametime, and those who would normally buy game currency are able to do so in a fashion that appears to be more socially acceptable. The potential ramifications for the unethical/unapproved RMT dealers could be huge. Why buy gold from them when you can buy it from another player with the game company's blessing, and know for absolute sure that you'll actually get the in-game cash.

With all that said, what do you think? Do you think that a game like World of Warcraft could benefit from the in-game cash for time-codes system that CCP has in place for EVE? If you could get playtime for cashing out game currency, would you do it? If companies offered the chance for players get in-game currency for a time-code they purchase to trade to another player, do you think it might stop those who normally would just buy from a gold farmer?

No, I'm not making this up. In October Giant Interactive Group Inc took action against gold farmers in their MMO, Zheng Tu Online (reportedly the most popular online game in China in 2006, with 1.3 million active subscribers). Giant changed the game-mechanics to prejudice against gold farmers, just one month before their IPO in November.

Well, after kicking out all those gold farmers who were paying subscribers, concurrency figures fell, as did total registrations - and the investors are apparently cross with Giant for both not disclosing their action against the gold farmers, and using the registration figures for September (before the rules-change was made) in their IPO registration statement, instead of the October figures.

Though not every game developer discusses it, pretty much any game with a currency has an issue with people farming for funds and reselling them for real world cash. What we're asking you for this morning's Daily Grind is how farmers impact your game play experience. Are they a daily hassle? Do you have to fight them for the best farming spots? Have they caused massive inflation in your game's economy? Are they constantly spamming you with messages? Or are they completely inconspicuous? Let us know the game you're playing and how gold farmers have changed -- or not changed -- the way you play.

MMOs have a variety of currencies. WoW, Dungeon Runners, and dozens of other games have gold, EverQuest one-ups that with platinum, Final Fantasy has gil, and EVE Online has ISK. Like real-world economies, MMO economies can exhibit a variety of interesting characteristics, from inflation to deflation to complete death. Inflation in particular seems quite prominent; in my WoW experience, everything has gotten more expensive over time on every server I've played on. More expensive in terms of gold, that is.

Tobold argues that this inflation is, in effect, not real. His thesis is that time is the real currency of MMOs, not gold or ISK or whatever. And with respect to time, most in-game economies undergo deflation, not inflation. While it may cost me twice as much gold to buy a stack of Netherweave now as compared to when the Burning Crusade launched, I make gold five times as fast, so in fact it takes me less than half as long to get the Netherweave as it used to. Low-level characters are better off as well, because there is now more of a market for what they have to sell, so they'll have more gold to put towards items and training.