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We have tackled the subject of mudflation tangentially a few times of late. It seems to have suddenly become the economic buzzword of MMOs. We have all experienced it. We have come to expect, if not accept, it as part of the games we love to play. And though Wikipedia, in its infinite wisdom, has dubbed it an in-game only phenomenon, I posit a different approach to looking at this occurrence.

Mudflation is an immediate devaluation of previously owned items due to the gain or release of newly available items. This is not unlike technological advance in that the release of the latest new toy makes all others somewhat obsolete. The differences here are the perceived need for the item, the amount of devaluation, and the time frame in which this occurs.

Scott Jennings has been known as 'Lum the Mad' for years now, posting regularly to a website of the same name in the murky mists of the MMO genre's past. Though "The Rantings of Lum the Mad" was a collaborative effort, Mr. Jennings well-known efforts on the site led to a lengthy stint with Mythic Entertainment. Since 2006 he's been working with NCsoft in Austin on an as-yet-unannounced massively multiplayer game. The folks at Ten Ton Hammer caught up with Lum at this month's ION conference. There, they asked a few questions about what he's working on, as well as some broader queries about the industry as a whole. If you've ever followed Mr. Jenning's writing on his current Broken Toys site, you're probably already aware he's got some great ideas about where the genre should be going.

Scott confirmed that the title he's working on is a typical fantasy MMO. But, he notes, it's a collaborative effort between a number of veterans of the genre. On the industry as a whole, the MMO commentator is fairly firm: World of Warcraft has set a standard that must be met. Anything that doesn't "will fail and deserve[s] to fail." Beyond that, Lum and the site discuss open world PvP, the sticky wicket of investment money, and the daunting challenge of MUDflation. Says Jennings, "There are ways to give players more tools in their toolbox that don't completely blow the ability spectrum out of wack. It's one of those things that's very upward focused, and that's why you need tons and tons of testing cause it's the quickest way to kill your game."

A couple weeks ago we introduced Steve Williams' notion of mudflation, its causes, and a general framework for its eradication. On Friday, he posted part two of his three part economic plan, suggesting that the best way to remove currency from the player economy was to replace large money sinks like item repairs with frequent, small, invisible tolls for things like entering a city, using reagents, and changing zones. By making these sorts of things invisible instead of up-front, you can stem the devaluing of your currency without pissing off the players, or so the argument goes.

This blogger is far more fond of having money sinks that yield tangible results. Things like player housing (and the subsequent decorating that goes along with it), guild cities or hang-outs (CoX's Supergroup Base system works quite well), or more types of crafting always seemed to yield better results. Even though the concept of an invisible toll system is really in the players' best interest , we can't imagine the response being anything other than vitriolic. In any case, we're looking forward to act three of Williams' economic treatise to see how he wraps it up.

For many players, the mysteries of a virtual economy are best left as that -- a mystery. The numbers, the abundance of terminology, it all conspires to create an environment where players generally don't want to know why the economy works, they just know that they'd rather it did than it didn't. Is that really too much to ask?

Steve Williams of Living Worlds proposes some potential solutions for curbing mudflation -- that seemingly unstoppable inflation that occurs at the endgame when players accrue large amounts of currency and the once high price of rare goods comes tumbling down. He proposes that it's actually possible to limit the amount of currency available in the economy by allowing players to use alternative currencies like vendor trash to barter for basic services like armor repairs. It makes sense, since repairs and vendor trash generally exist in limitless supply and don't actually need to be a part of the economy proper. This is only Part One of Williams' proposed system, so we'll have to check back again soon for his full set of ideas.

Should MMOs give us a more 'epic' feel to our experiences? In the past, when I've explained the time I spend in-game to friends and relatives, one of the common complaints or opinions that I hear a lot is that it never sounds very exciting.

While I know that I've been saving a future Warchief from slavery, or putting to rest the spirit of a lost fiancée, some people are always going to see it as me just killing some more anonymous monsters that will be back in five minutes' time.

"This is boring!" they cry, "How long does it take you to kill a boar!?" I have to explain to them, again and again, the genre staples – incremental gear upgrades, starting from pathetic, finally getting up to ridiculous pieces of gear that make other players weep with envy. When they turn round and say, "Okay, show me the cool gear then, go buy some and use it instead." I have to explain, once more, that that kind of gear is only rewarded after you've spent weeks, months even, in the game, working your way up to them. It's about this time that disgust and terminal boredom sets in, and they drift away to their own pursuits, convinced that I'm slightly mad.

Keen (of Keen and Graev) has a great post up about what he calls "mudflation" (a combination of the words MUD and inflation). If you've been playing any MMO through the introduction of an expansion, you'll know exactly what he's talking about. That shiny bit of loot you worked for weeks to obtain doesn't look quite so hot when players are grabbing an even better piece from a quick five-minute quest.

Truth be told, "mudflation" isn't actually a bad thing. Change is inherent to MMOs, and it's unavoidable that just as the bar will raise (there will be new heights for players to climb to), so will the minimum rise as well. Mudflation is actually a good thing for the majority of players by definition-- if you consider players as a normal distribution, with a small number of players at the top of the endgame, and a small number of players just entering the endgame, "mudflation" is actually that swell of players in the middle getting their hands on some really new items.

There is a problem, however, with mudflation that I haven't really seen an MMO skillfully deal with yet-- what happens to the content made obsolete? Whenever an expansion comes through town, the old worlds and content get more or less abandoned. While the newest players may still find a little bit of joy in discovering "the old world," they too eventually learn to abandon it for the greener pastures brought with the new content. Mudflation is all well and good for the folks picking up the new shiny items, but it's too bad that MMO makers haven't come up with a better plan for making old content relevant to new players.