As much as we might hate to admit it, a major element of social interaction is based around commerce; social hierarchy and structure has formed around it since the days of hunter/gatherer societies, and does not show any sign of changing any time soon. Whether capital based or commodity based, commerce is simply a part of the human social organism. It shouldn’t be surprising, then, that commerce has migrated into the online world as well. We are already familiar with using real world finances to purchase real world items via the internet (such as eBay and Amazon, among many others); what has become a hot topic for designers and scholars alike is the purchase of virtual goods with real or even virtual money through virtual worlds.
Virtual worlds is a term that has grown out of a need to describe the communal aspect of massively multiplayer online games (MMOG) in a manner that delineates it from the ludological elements of the game. “Virtual World” and MMOG are used relatively interchangeably at this time, though they will continue to diverge as more research and study is performed: a MMOG is by nature a virtual world, but a virtual world needn’t have any ludological element to succeed.
As virtual worlds have grown in complexity and popularity over the past several years, they have begun to take on more and more elements from daily life, including that of commerce. Most virtual worlds have methods for sale and trade of items and virtual currency between players, most often based around the auction house method of sale: you place an item up for bid with a minimum asking price; players bid on the item until the minimum asking price (or more) is offered, at which point the item is sold. Alternatively, player to player private transactions can also be performed. These capabilities have enabled a new type of commerce: trade of real world currency for in game currency or goods. This originated via eBay, with early MMOGs such as Ultima Online and Everquest. These prototypical sales tended to be either in-game currency, or a high level character, selling for anywhere between $100 and $700. As time went on, the trend gained popularity, until it reached a point that people were collecting in-game cash for real world sale as a profession, primarily in parts of Southeast Asia where the exchange value would be maximized. These individuals have become known as “gold farmers,” and are considered a nuisance to players as well as the designers. (According to most End User License Agreements, the sale of in game assets for real money is not allowed, and justification for denial of services.)
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