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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.

Earlier today Sony Online Entertainment and Live Gamer released a joint statement announcing their intentions to collaborate on player-to-player RMT auction services for future titles. Both Free Realms and The Agency, in development at the moment, will offer this moderated transactional element at launch. In past SOE titles, such as EverQuest II, RMT services have been non-existant or highly limited. With these new games, all players will have the opportunity to engage in in-game item trading for real money.

To clarify what the company has in store we contacted Mr. John Smedley, CEO of SOE. In our brief conversation about the announcement we touched on how this might affect the games' interactions with the PlayStation 3. We also talked about SOE's hopes for a farmer free playing environment, and what this might mean for the future of the company's relationship with Live Gamer. Mr. Smedley went even further, giving us a few sneak preview comments hinting at topics he'll be discussing in his keynote address today at ION 2008. Will a Pokemon-esque card battle system will be coming to Free Realms? Read on to find out.

Gamasutra carries word that Sony Online Entertainment has announced their intentions to offer RMT services for both Free Realms and The Agency when they're released. These services will be offered through the third party company Live Gamer, likely in a similar arrangement to the company's current model on the EverQuest 2 title. This news comes just a day after the announcement that Live Gamer will be working with Petrogryph Games on their upcoming free to play MMO.

Both The Agency and Free Realms have been recognized as possible RMT/Free to play titles since they were announced by SOE last year. The Agency will feature a card-based system which puts human assets at the players fingertips. Called Operatives, this living loot will most likely be tradeable via Live Gamer's managed RMT service. Similarly, Free Realms will offer purchasing options to players in the form of outfits, pets, and special items. Tradeable items might include collection compontents. Tentative plans also call for Free Realms to offer 'event tickets' to free players that would allow them to participate in subscriber-only services.

The full release is after the break. Stay with us for future coverage of this announcement, as we've contacted both SOE and Live Gamer for comment.

The previously-postponed Live Gamer Exchange service has now launched, and EverQuest II players that are into the whole RMT thing can start spending. To get started, you'll need to register at the EQII Live Gamer page, and you can then take part in trading real cash for characters, items or in-game currency for the Vox and Bazaar servers. It looks like the bidding has already begun, so hurry along to the Live Gamer Exchange if you want to snap up the first deals.

SOE has informed EverQuest II players via the game's official community website that the opening of the Live Gamer service has been delayed. The originally stated launch date was March 31st. No new date has yet been provided. The Station Exchange -- the service Live Gamer is to replace -- ceased operation Thursday. In this new announcement, SOE noted that it will update a status thread on the official forums with new information at some point.

If you're not in the loop about Live Gamer: it's a company that works with game publishers and developers to provide legitimized RMT (Real Money Trading) services to users of MMOs. SOE has had all sorts of problems in the past with credit card fraud and gold farmers, and it hopes the folks running Live Gamer will have much better luck. Is this delay just technical in nature, or have new concerns arisen? It's a bit late for second thoughts, so this is probably just a technical bump in the road, but we'll be keeping our eyes and ears open for updates.

Oh, and if this is all new to you: before you raise your eyebrows too high note that, as with Station Exchange, Live Gamer service will be limited to the specified RMT-friendly servers.

The EverQuest 2 Players page has a post up on the start of the Station Exchange's migration over to the Live Gamer service. Sony Online Entertainment and Live Gamer made the announcement of their alliance last month, with the third-party company soon to be in control of SOE's unique publisher-supported RMT service. The 27th, specifically, is the last day that Sony Online will be running the service.

Starting on the 31st, Exchange (operating only on the Bazaar and Vox servers) will be completely transferred to Live Gamer. Already users are no longer allowed to start auctions with a 12-day timespan. Service users will have to register with the Live Gamer Exchange prior to using the service. Users who register before the 27th will actually be given a unique in-game EQ2 house item: a Pot of Gold. Somehow strangely appropriate, eh?

We've previously discussed the Live Gamer service, a venture-capitalist funded enterprise looking to legitimize RMT in the US marketplace. Their collaboration with Sony Online Entertainment (SOE) has been a topic of discussion since it was announced late last year, but not much was known about what precisely the two companies were working on. In an announcement this morning, they have revealed that Live Gamer (LG) will be effectively taking over SOE's Station Exchange (SE) service. LG will be absorbing the Station Exchange technologies, and retooling them into a service they're calling Live Gamer Exchange. By the end of March Live Gamer will be running SOE's RMT service as an independent third-party enterprise. LG eventually hopes to offer, among other tools, an in-game EverQuest 2 client to access the service.

We had the opportunity to speak to SOE president John Smedley and Live Gamer President Andrew Schneider about this step towards legitimate 3rd party Real Money Transactions. Besides stressing that the Live Gamer Exchange will still just be limited to the two already existing SE servers, the two men had some interesting things to say about the future of RMT in the US. They went on at length about the pitfalls and frustrations of existing third-party goldsellers, along with a few plans for the future. Read on for a look at what a legitimate gold-selling industry might look like.

The Next Generation site has commentary from individuals at Blizzard Entertainment, reacting to the announcement of the Live Gamer service. The company is standing firm on its current terms of use for World of Warcraft, flatly denying the possibility that it will work with the service to allow the purchase of Azeroth's in-game currency.

"The game's Terms of Use clearly states that all World of Warcraft content is the property of Blizzard Entertainment, and Blizzard does not allow 'in-game' items to be sold for real money. Not only do we believe that doing so would be illegal, but it also has the potential to damage the game economy and overall experience for the many thousands of others who play World of Warcraft for fun ... While we can understand the temptation to purchase items for real money, we feel that players can find ample equipment and money for their characters within the game through their own adventuring and questing."

Raph Koster was nice enough to come by and read our post about Live Gamer and their attempts to make RMT legit, and responds that while I suggested RMT was cheating and reading strategy guides was not, many older gamers actually do consider sites like Thottbot and EVE-db cheating. Just as the spirit of gaming evolved to consider outside help legitimate, so, Raph argues, will designers give up to market and player pressure, and make RMT viable and "legal."

Which is probably true-- it's easy to see a future where a game like Dungeon Runners becomes a big hit, and 90% of the people play the game for free (or close to it), and the other 10% of the audience pays for the game by using only the highest level items and gear, and shelling out money for both. But personally, I'd rather go for Raph's other idea-- that smart designers will find ways around integrating RMT solutions by coming up with ways to make RMT unnecessary. I've written and talked about this before-- when it's impossible and/or inconvenient to obtain ingame items with real money, players just won't do it. And no players means no market.

And let's not forget, either, that these are just games we're talking about-- RMT can buy you all the items you want, but it can't buy you great gameplay, and that's the reason we're all here in the first place. If designers emphasize gameplay over simple epic item collection in the first place, there's no reason for RMT at all. Companies like Live Gamer smell money in the air around virtual items, but hopefully (and this is what Raph doubted in his first post) there is still more money to be made with a successful widespread game than just selling the items inside of it.

Raph Koster has posted about Live Gamer, a new service we posted about yesterday (heavily funded by venture capitalists) that is attempting to bring the real money trading market (where you pay real money for ingame items) over to the official, developer-approved side of things. Gamasutra has a Q&A as well, and there's a lot to chew on as regards to what Live Gamer seems to be attempting to do.

Raph's idea seems to be that RMT is simply another ancillary service that can spring up and provide revenue around the MMO market (of which this very site you're reading is one). But there is a serious difference between RMT, and services like the one this site provides (in the form of MMO news and guides). RMT is still, among most players, considered cheating. As most people trying to make money off of RMT have pointed out, it's a cultural thing, much more ingrained among Westerners than anywhere else. But it's still a perception that exists-- it's OK to look at a strategy guide to become a better player, but it's not OK to pay real money for better gear.

Which makes Raph's last two sentences that much more disturbing. He says gamers won't like this (and they already do not). But he says that the same people who publicly decry RMT will be spending money on it in private. As much as players argue against RMT on message boards and in blog comments, there's no denying that these venture capitalists are convinced there is a huge market there.

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.