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We all know what the economy is, but do you know what a virtual MMO economy is?
An MMO, or MMORPG, which in turn is shortened from Massively Multiplayer Online Role Playing Game, is a form of online video game. You may have heard of such MMO’s as World of Warcraft, Warhammer Online, Age of Conan, EverQuest 2, Final Fantasy XI, Lineage 2, EverQuest, Vanguard Sega of Heroes, Star Wars Galaxies, Anarchy Online, Eve Online, Guild Wars, Lord of the Rings Online, Maple Story, Pirates of the Burning Sea, Tabula Rasa, etc. Amazingly, these games have their own real economies, based on the currency of the game. Players sell their in-game money to other gamers, in exchange for real world money. It seems amazing that there is a market for these transactions, but there is.
It all started when players quit playing their game, and did not want their countless hours of work to go to waste. So they did what seemed obvious to them; they sold their MMO accounts. Many people do not want to go through the tedious process of leveling their character, and would rather just pay more in order to have the best gaming experience, so they purchased pre-leveled accounts. It makes sense in this regard. Quitting players get some extra cash, and future players get a great head start on the game, and do not have to endure hours of boring leveling.
This process is often referred to as Real Money Trade, or RMT for short. In some games, the sale of virtual money is strictly forbidden, while in others, it is encouraged. But regardless of the rules, RMT takes place in almost every MMO ever produced. Initially, RMT consisted mostly of the sale of characters, but soon, once people realized that they could make money playing video games, many people began selling in game money. Some used it as a way to pay the monthly membership fees, and some just used it for a little extra cash. Most RMT took place at online auction sites such as eBay. At this stage, RMT was a relatively harmless new trend, which did not really affect the game play experience.
However, it began to spiral out of control. A few smart individuals decided to capitalize on this hot new trend. They started websites for the sole purpose of buying and selling MMO money. They completely dominated all the trade, and made quite a bit of money. The websites would buy small amounts of in-game currency from users, and sell it in larger packages to private clients at premium prices. The process was simple; once the payment was made, the virtual currency was delivered through an in-game trading system.
Developers and moderators began to catch on as they began seeing complete beginners with ridiculous amounts of in-game money. Some game developers attempted to take legal action against those participating in Real Money Trade, and others ignored it. Many games updated their Terms of Use agreement, in order to allow or disallow RMT.
RMT began to affect the gaming experience negatively. People who had played the game for years began to get angry when a complete amateur had more in-game money than them. Also, as new people had no idea what the in-game market prices for digital goods were, they paid far too much for items, and disturbed the entire virtual economy. Just like a normal economy, virtual MMO economies are fragile. If you flood them with too much money, or take away too much money, they will react poorly.
Where RMT Started
The famous MMO EverQuest is believed to have been the game in which RMT originated. Though it may not have been the first, it is certainly the first that took it to the next level. EverQuest had such a rich economy, that players could actually make an average of $3.50+ per hour, just playing video games. Consider this: if that $3.50/hr figure is considered the games minimum wage, that ranks EverQuest, a virtual world, as the 77th richest country in the world! - A truly shocking fact. It is amazing that a video game can be considered richer than more than half of the countries in the world.
Strangely enough, people were willing to pay quite a lot for virtual money and items. Single in-game items sold for $10-$1,000 or more. In game Money began to be grouped in huge amounts in order to sell it. People would often spend thousands of dollars just setting up their character with the best equipment! Keep in mind; we are still talking about video games! Thousands of dollars for a video game? Why would someone pay that much money just to play a game? Because leveling characters and earning money on MMO’s takes ages. Players often play for months on end, playing for at least a few hours every day, and they still do not reach the maximum level, or accumulate that much money.
RMT was affecting games negatively, but it was still manageable. However, that all began to change as people became greedy. A new trend started, often called “gold farming”. Gold referred to whatever the in-game currency was, and farming referred to, essentially, manufacturing. People began designing programs, or bots, that would play video games for them, doing tedious tasks. They then logged onto their accounts and sold whatever the bot had collected.
Gold Farming
It got even worse when actual video game sweatshops began to pop up. Business men in poor countries began to notice how much money was to be made through RMT on video games, so they hired “workers” to gold farm. Workers were paid very little, but they could hardly complain, as all they were doing was playing a video game. They all did simple, mindless tasks that made a consistent amount of in-game money. These tasks usually included some sort of collecting of raw materials. Once a fair amount was collected, they would sell the materials for in-game currency. They would then sell the in-game currency for real-world currency.
It is a crazy concept to wrap your mind around, but it is the truth. Real Money Trade still takes place today, on this very web site in fact. Lawsuits have been filed against participants but to no avail. If anything, it is more popular today. With games like World of Warcraft, MMO’s have become mainstream, and thus, the need for in-game currency is in ever greater demand.
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