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In-Game Gold Farming a $500M Industry

Posted by Soulskill on Fri Aug 22, 2008 10:59 PM
from the blizzard-wins-in-that-market-too dept.
SpuriousLogic brings us this excerpt from a BBC report: "Prof. Heeks said very accurate figures for the size of the gold farming sector were hard to come by, but his work suggested that in 2008 it employs 400,000 people who earn an average of $145 (£77) per month creating a global market worth about $500m. ... Already, he said, gold farming was comparable in size to India's outsourcing industry. 'The Indian software employment figure probably crossed the 400,000 mark in 2004 and is now closer to 900,000,' said Prof Heeks. 'Nonetheless, the two are still comparable in employment size, yet not at all in terms of profile.' Prof Heeks suspects gold-farming might be an early example of the 'virtual offshoring' likely to become more prevalent as people spend more time working and playing in cyberspace. " We discussed the life of a gold farmer last year.
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[+] The Life of the Chinese Gold Farmer 553 comments
An anonymous reader writes "This weekend's New York Times Magazine puts a human face to the 'gold farming' profession. Virtual world economist Julian Dibbell travels to Nanjing, China, for a look at the working conditions and first-hand experience of farming gold from virtual monsters as a way to make a living. From the article: 'At the end of each shift, Li reports the night's haul to his supervisor, and at the end of the week, he, like his nine co-workers, will be paid in full. For every 100 gold coins he gathers, Li makes 10 yuan, or about $1.25, earning an effective wage of 30 cents an hour, more or less. The boss, in turn, receives $3 or more when he sells those same coins to an online retailer, who will sell them to the final customer (an American or European player) for as much as $20. The small commercial space Li and his colleagues work in -- two rooms, one for the workers and another for the supervisor -- along with a rudimentary workers' dorm, a half-hour's bus ride away, are the entire physical plant of this modest $80,000-a-year business.'"
[+] China To Begin Taxing Profits From Virtual Currencies 65 comments
The Wall Street Journal reports that the Chinese government will collect a 20% personal income tax on any profits obtained through the redistribution of virtual currency. The legislation is intended to curtail speculation in virtual markets, which can be quite profitable. Quoting: "The announcement, which was distributed to local tax bureaus, specifically takes aim at those who buy virtual currency from gamers and surfers and sell it to others at a mark-up. Taxation officials are granted the right to determine the original price of online virtual currency if the individual fails to provide proof of an original price, it says. The policy would cover China's legions of online gamers, who can use online virtual currency to buy better equipment and new powers for their online warriors. But it also affects millions of others who use virtual currencies on instant-messaging services and Web portals."
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  • by Das Modell (969371) on Friday August 22 2008, @11:04PM (#24715547)

    Might as well get it out of the way.

    http://www.penny-arcade.com/comic/2005/02/16/ [penny-arcade.com]
    http://www.penny-arcade.com/comic/2006/4/14/ [penny-arcade.com]

    • by narcberry (1328009) on Friday August 22 2008, @11:18PM (#24715611) Journal

      Game creators work so hard to stop these guys... Maybe they should realize their content sucks if people are willing to pay to skip it.

      Thanks China, for $5, you saved me two weeks of grinding!

      • by Das Modell (969371) on Friday August 22 2008, @11:53PM (#24715817)

        As far as WoW goes, the content doesn't suck but going through it multiple times is undoubtedly boring. Some measures have been taken to correct the situation, but they can't make it too easy for the players.

        The only thing that really needs to go away is reputation grinding. WoW is a grinding game but there's a difference between running instances, leveling up and grinding one spot for a week straight (or longer) for reputation points.

        • Well the thing is (Score:5, Insightful)

          by Sycraft-fu (314770) on Saturday August 23 2008, @05:29AM (#24717203)

          Some people LIKE to grind. Don't ask me why, I'll never get it but I know a number of WoW players that enjoy grinding. So WoW provides grinding for them to do, and rewards for it. Blizzard's theory seems to be that whatever you like to do, they are going to give you plenty of it to do and rewards for doing it. You want to do 5-mans? Go to it. Want to PvP? Sure. Whatever you like, you can do it.

          The problem comes from people who aren't playing the game for fun, but playing because they want to be better than other people. The want to have the best gear, most stuff, etc. Thus they run in to things that are grind rewards. They don't want to do those, so they buy gold instead.

          The grind isn't the problem, the people who don't play to have fun are.

          • by aurispector (530273) on Saturday August 23 2008, @07:35AM (#24717715)

            The folks that like showing off and have and their egos at stake are a minor problem and easily avoidable - that's what guilds are for. The thing that made me leave WoW was the fact that the economy never really got easier despite getting epic gear. After playing the game for well over a year, it got really tiresome to constantly HAVE to grind, grind and grind some more just to pay for repairs, potions, etc.. I can understand making players do it when leveling up for the first time but not forever. That was a major aspect of the game I just never enjoyed and it was not possible for me to simply focus those aspects of the game I DID enjoy - raiding and group play with friends.

            The whole farming industry would disappear overnight if they would just sell gold as part of the game. They can't get rid of it, they can't even really make a dent in it, so why not control it? In one fell swoop you rid the game of thousands of non-players AND open a huge stream of revenue for the company. Know why they won't do it? Farmers pay for accounts and it lets Blizzard pad out the numbers.

            The hamster wheel gets rusty after a while, especially when watching gold farmers scoop up the resources you are forced to need just to play the game.

          • Re: (Score:3, Interesting)

            I think your are mostly corect about some people ruining it for the rest of the crew but you also have to look why they can't have fun and work toward getting the best gear at the same time. Its failure of the games economics.

            I don't play wow but I remember in UO that way to much commerce went on with NPCs rather then other players. It would work better if I could do something I like, say become the most efficent gold miner ever and buy the things I need like clothing from other plays more easily. I shou

          • I wonder what people who like grinding are like in real life?

            Normal Person: "Where do you want to go for dinner"
            Grinder: "Eh, same old place as before is fine with me"
            NP: "How about a movie after?"
            G: "Sure, let's see Batman"
            NP: "But you've seen it 50 times already"
            G: "Yah, but I want to see it again, and again, and again..."
            NP: "Arrrrrgghh!!!"

        • Re: (Score:3, Insightful)

          "As far as WoW goes, the content doesn't suck but going through it multiple times is undoubtedly boring."

          Games are based on repetition (that is cycling), almost every action you do in the real world is cyclical (thinking, moving, navigating, etc).

          Just think of you day and compare it to the next day, there's good repetition (fighting games, etc) and there's bad repetition. How many of us here watched really good movies more then once? If something is good we will constantly repeat it, like sex, it's all ba

      • Re: (Score:3, Interesting)

        Mod parent up.

        Blizzard should stop wasting time on anti-bot and anti-farming measures and instead put more effort into making the game not turn into a second job. When I used to play, being a level 60 was much less exciting than being a level 20. Too bad... It's a beautiful universe.

        • by WinterSolstice (223271) on Saturday August 23 2008, @01:59AM (#24716449)

          Agreed.

          I played fanatically 1-55. Loved it, and then got above 55 and started having to grind for MC and all that stuff. Getting together huge Raid groups sucked too. It became a real job, and the differences between characters vanished. Hunters had to be spec'd and armored like this. Warriors like this. Etc etc.

          So I went and created a new player, and it was a BLAST doing it all over again.

          Gold farming exists to address the desire for an easy out. It's not so much the low levels (where a small amount will get you totally set) but the high levels where it takes 20 hours a week just to keep up.

        • by Hal_Porter (817932) on Saturday August 23 2008, @04:34AM (#24717003)

          > Game creators work so hard to stop these guys... Maybe they should realize their content sucks if people are willing to pay to skip it.

          You sir, just summed up the root cause of RMT in one sentence.

          Unfortunately, solving the "how to keep people engaged for hundreds of hours without grinding" problem seems insurmountable with the current crop of game designers.

          No silly, grinding is part of the plan. Look at how pasty, spotty and overweight a Wow player is after a few months grinding. His lifeforce has been sapped. Now lifeforce is conserved globally so that means someone else has gained it. Look at photos with Blizzard executives if you can find them. They look 20-30 years younger than their chronological age.

          It's like The Picture of Dorian Grey [wikipedia.org]. The only reason Blizzard charges is to increase the degradation of the players, the real money they make comes from rich people buying lifeforce from them.

    • Re: (Score:3, Interesting)

      And to add something more, gold farmers have major marketing campaigns in WoW. An endless stream of seemingly different services are endlessly spamming capital cities, sending whispers and even in-game mail. Some spammers will first whisper something like "hello :)" and when you reply they ask if you want gold. I don't know if they're bots. Also, on one realm I encountered something way more irritating than that: group invites. Like, all the fucking time. It got so bad I simply had to get an addon that bloc

  • Oblig... (Score:4, Funny)

    by Tmack (593755) on Friday August 22 2008, @11:08PM (#24715563) Homepage Journal
    Link [gameriot.com]

    I think they have stopped now, or got kicked out, I havent seen any more similar activity from the bunch....

    Tm

  • More proof (Score:3, Insightful)

    by narcberry (1328009) on Friday August 22 2008, @11:11PM (#24715579) Journal

    Just another example that I don't deserve my nice house and cushy job. Some people are pretty desperate for the spare change that falls from American (and euro, there does that make you happy...) tables.

    They worked all day for the same money I made reading this article at work.

    • if you feel so bad about it you can send me the contents of your bank account to relieve that guilt. anything else is hypocritical
    • Re: (Score:3, Insightful)

      On the other hand, they're playing computer games for a job whilst we slave away to make money to come home and do the same.

  • by Kingrames (858416) on Friday August 22 2008, @11:16PM (#24715601)

    When I was unemployed, I saw the gold farmers as a scourge, letting people pay to get stuff for nothing.

    Now that I have a job, and next to no time to play the games I like, it pisses me off that I never have the in-game cash to get the stuff I'd need to play alongside my friends without letting them down.

    It's a real shame on both ends of the spectrum. Them, for giving people the easy way out, and the game makers, for requiring so damn much of a time investment.

  • the existence of WoW is, overtly, to have fun

    but if you are employing someone to heighten your fun, all you are really doing is distancing yourself from the true pleasure of the game. you are talking about people who do not know how to enjoy the gaming experience

    why do people cheat in any game? its the triumph of ego over id. its people mistaking the pursuit of pleasure with the pursuit of heightening your self-regard. when you conflate the two, you actually destroy your own happiness (though you don't real

    • by Lemmy Caution (8378) on Friday August 22 2008, @11:28PM (#24715671) Homepage

      The reason it seems odious is because the very act of farming highlights the paradox that threatens the very reason one plays: MMOs are work disguised as leisure.

    • by quanticle (843097) on Saturday August 23 2008, @12:03AM (#24715873) Homepage

      why do people cheat in any game? its the triumph of ego over id.

      You've got it backwards there. According to Freud, the (super)ego was the "higher" area of the mind, responsible for conscious, rational thought. The id was the subconscious, responsible for our baser impulses. Therefore, he would have viewed a cheater's conduct as the triumph of id over the ego, not the other way around.

    • Well its a paradox of requirements as well. To make a game challenging you have to build in things for the character to do to proceed throughout the game. No one would pay to skip missions in GTA 4 for instance though once they are tired of the game they might want to skip just to see what they missed. In a MMO the big draw is the social aspect of the game. But some people simply have more time for this activity than others. Like a real life competitive sport, some people may have hours a day to practice th

    • That's an interesting opinion you have, and to for the most part it's true. But, think of the everyday blue collar worker who simply doesn't have the time or patience to farm lets say a netherdrake mount, that costs hundreds of thousands of WoW gold and that as you can imagine takes lots of time. It isn't like a beginning player is going to spend $30 for 2,000 gold to tweak his level one character; most of the people who buy gold have as I've come to learn have indeed their own max level character on their
    • you are talking about people who do not know how to enjoy the gaming experience

      Save your holier-than-thou philosophy for someone else. For anybody, there is no enjoyable gaming experience in farming the 100th critter for that 0.02% chance drop. No skill, no exploration, nothing. Chinese farmers do it for money. Western players pay them money to avoid same drudgery themselves.

  • by Anonymous Coward on Friday August 22 2008, @11:26PM (#24715659)

    THAT'S NOTHING... I farm Karma on Slashdot for $0.12/hour

  • While gold-farming does go against the game's policies, there is not much that Blizzard can legally do about it. Gold-farmers are stationed mostly in China and Japan, and players are willing to buy buy their products such as gold / armor and items. it is disappointing but I don't see how that should affect gameplay, as some people do not have the time to farming gold and armor. Players use their virtual money to enhance their character, yet Blizzard feels that this is against the game's policies, which in
    • by Lemmy Caution (8378) on Friday August 22 2008, @11:31PM (#24715687) Homepage

      Gold farming is in some ways comparable to illegal immigration in the US. It is technically against the law, but covertly tolerated, because things would break down if it didn't happen.

      The day that players start getting banned en-masse for buying gold is the day that Blizzard gets tired of making money.

    • Blizzard has had pretty good luck suing the bejesus out of these guys. Those guys may be in China and Japan but threaten to have them arrested if they ever set foot in the USA and they WILL sit up and take notice. There's plenty of unpleasantness a US Judge can apply to make his displeasure known. And I wouldn't be surprised if many of those companies had US citizens at the top. Cheap labor is all well and good, but exploiting cheap labor is something Americans excel at.

      I bet Blizzard could make more crim

  • If that money or the items bought with that money could be destroyed or lost in game.

    • Re: (Score:3, Insightful)

      Yeah, With EvE online you can lose all your stuff when you die, and isk farmers TOTALLY aren't an issue there. Oh... wait...
  • News flash! (Score:5, Insightful)

    by Drakonik (1193977) <drakonik@gmail.com> on Friday August 22 2008, @11:41PM (#24715743) Homepage

    This just in! People get paid to do work others don't want to do! Details at 11.

  • To Blizzard and friends. Seriously, the party that owns the world can make anything they want, in any quantity, for essentially zero dollars, and they see that half a billion worth gets sold every year?

    Sure, they currently make money on the gold farmer's accounts; but they just have to be salivating at the prospect of cutting them out of the action. They'd take flack for it, though, so a means of laundering would need to be developed.
  • Another item on my list of things I don't buy, but support their right to earn a living;

    Fashion designers, Dry cleaners, Professional Athletes, Nail salons, and now, virtual gold miners.

    Bless you all - as long as you are earning money and keeping off the welfare roles, I applaud you.

  • Where can I find the company that will let me out-source by posts at slashdot? I don't have time to make clever witty comments, and the quality of my postings were low anyways. By out-sourcing my posting my productivity will jump 100%!

  • by Saffaya (702234) on Saturday August 23 2008, @01:44AM (#24716375)

    Excerpt from Brandon Sheffield article on Gamasutra :

    http://www.gamasutra.com/php-bin/news_index.php?story=18510 [gamasutra.com]

    It was Blueside who first introduced the idea to me, cynically stating that consoles won't succeed in Korea until players start just playing games for fun, instead of treating them as work. I laughed then, but subsequent meetings only served to confirm the theory.

    Companies from Gravity to Ntreev to Nexon agreed that a very large number - varying from 30 to 50 percent, depending on who you ask - of players in South Korea are playing games as a job. Generally, people didn't feel too good about it either, which at least indicates that people aren't designing them with that as a goal. But it's still disconcerting.

    And as any player of Lineage2 can attest, some Korean MMOs really ARE designed to be grindfests and farming prone.

    From L2 official boards :

    PushyCat on official boards:
    So, Koreans play and sell in their own servers and it covers the cost of their PC Room and meals. This is a normal aspect of Korean games. Listen to me while I say this. Ebaying is NOT CONSIDERED CHEATING in KORea. It is an important element of mmporgs. With game money, not only can you sell it to make cash, you can also order pizza, buy computers and accessories (like auto mouses, keyboards, macroprograms), and pay for your monthly fee (for those who play at home). In Korea, game money is an accepted tender for Real Life. Noone posts on message boards about cheaters, ebayers, and bots because EVERYONE does it. In Korea, the game is played much differently than in North America, and asians have different cultural backgrounds that make gameplay different as well.

  • by PieterBr (1013955) on Saturday August 23 2008, @06:30AM (#24717437)
    While goldfarming is a problem and in my opinion hurts the game in the long run, there's something that bothers me more. Account hacking. Account hacking is a professional business these day and it hurts players directly. Their accounts are robbed from every penny their gear which they obtained over hours of doing dungeons or farming, playing the game gets sold for a bit of cash and they're left with one ore more naked Characters. While people may say: gold buying is harmless, it's from Chinese farmers anyway, that's not true. If you are buying gold, you are paying someone else to hack into your fellow players accounts. Think about that.
  • by curiuz (587795) on Saturday August 23 2008, @10:28AM (#24718893)
    put the words "free tibet" somewhere in the game.
    • by Lemmy Caution (8378) on Friday August 22 2008, @11:24PM (#24715649) Homepage

      It's not the 12 year olds who buy high-level gear: the kids are the ones with more time than money. It's the busy thirty-somethings who want to have fun for a couple hours a week that pull out their credit cards to buy gold.

      • Why buy a game then pay somebody else to play it?
      • Re: (Score:3, Insightful)

        I dunno - I'm 32 and I've never bought any gold, but I've managed to buy 4 epic mounts/training on 4 characters (thats 20,000~g for those who don't play - and one of the main reasons I'm sure people buy).

        Its the 12 year olds who always ask me how I make so much money - its really simple actually (and I don't grind for the most part) - do quests and don't spend it on crap. You'll never make money selling stuff in WoW - typically the materials for making anything are worth more than the items usually sell for

      • Re: (Score:2, Interesting)

        the idea of grinding killed mmo's for me. please someone show me an mmo based on skill, rather than who has the most free time!
    • Re: (Score:2, Interesting)

      by Anonymous Coward

      In short, Blizzard should be selling the gold. They'd get money, it would be easier on their servers, and the money would go towards American interests, not Chinese ones.

    • The game is a mess and one of the messes is items you "have" to buy ingame.

      If you want extra inventory space you need to buy bags but most important are horses since the game has very little instant travel.

      250 gold for the highest level mounts in total (might be 300 forgot exactly) and 3 gold for your first set of horse and riding skill. Problem? When you reach the level for your first mount you got maybe, if you sold EVERYTHING and saved up constantly and grinding some gold 50 silver.

      So paying a gold fa