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Games Entertainment

EverQuest and the UN 362

maddugan writes "NewScientiest.com has a piece on how EverQuest has spawned an economy with a per-captia income comparable to that of a small country. Mostly from profiteering on eBay. If it was indeed a country, it would rank 77th, just behind Russia." It'll be quite interesting to see what happens as MMORPGs gain popularity and absorb more and more man hours.
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EverQuest and the UN

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  • by Anonymous Coward on Monday January 28, 2002 @06:14PM (#2916375)
    "If it was indeed a country, it would rank 77th, just behind Russia."

    Must be about time to invade France then. Seems like everyone else does it.
    • by daeley ( 126313 ) on Monday January 28, 2002 @06:25PM (#2916466) Homepage
      Must be about time to invade France then.

      Yeah, but the French are saying their Maginot Firewall is completely impregnable! ;-)
      • by nick_davison ( 217681 ) on Monday January 28, 2002 @06:48PM (#2916642)
        Yeah, but the French are saying their Maginot Firewall is completely impregnable! ;-)


        As any MMPORPG player will tell you - look for the gap in the polygons and slip through it. France may appeal to the UN to get you banned from the server but all their bases are belong to you still.
      • Yeah, but the French are saying their Maginot Firewall is completely impregnable! ;-)

        Installed as a result of the e-Schliffen plan no doubt

    • I dunno... Based on America's experience in the 19th Century, it seems that one should recommend you Spanish speaking countries to those attempting to build a military reputation.

      Q: Why did the French plant trees along the Champ Elysee?
      A: Because Germans like to march in the shade.
  • This is a lot like:
    http://slashdot.org/article.pl?sid=02/01/23/2131 25 9&mode=thread
  • by tsmit ( 222375 ) <tsmit50.yahoo@com> on Monday January 28, 2002 @06:16PM (#2916397) Homepage
    would that be geeks?

    Or maybe virgins?

  • And the disturbing thought is, if all of this commerce is going on in a virtual environment, what is the "gold standard" for the monetary unit and how stable is that economy? I'm also curious as to how an "online economy" can function in a complete abscence of necessity. Every item in EQ is essentially a luxury item, there is no food/water/shelter requirement being satisfied.
    • An interesting comparison would be that I heard an NPR commentator announcing that WalMart had become the largest corporation on earth, passing Exxon. But his point was "They make nothing."

      EverQuest makes nothing, too. Or does it?

    • Interesting questions you raise. I'd suggest that one of two things will happen: either
      a) the ops will introduce some kind of in-game "need", or
      b) they won't, in which case the economy becomes driven by non-need items/services...but...I'd point out that this has already occurred to a large degree in the real world. Everywhere, even in countries which aren't "rich" by Western standards, people spend a lot of money on things that aren't necessities. Look at how much gets spent on Hollywood, after all. Luxury is capable of sustaining quite an economy by itself. (But then you need things to make the luxury items...)

      Another point to keep in mind is that even if food and clothing and shelter rain from the sky, there's always a shortage of something. Most interestingly, there's always a shortage of you. You can't be everywhere, see everything, and do everything, and neither can anyone else - so you better run and see Eric Clapton now, because there are only so many seats, and he and you won't live forever...

  • Duplicate post? (Score:5, Informative)

    by Blackwulf ( 34848 ) on Monday January 28, 2002 @06:17PM (#2916403) Homepage
    Didn't we just hear [slashdot.org] about this the other day?

    This article references the one we already had about the Norrath Economical Report...
  • by Artifice_Eternity ( 306661 ) on Monday January 28, 2002 @06:17PM (#2916409) Homepage
    My stepfather-in-law has almost ruined his marriage with this. It's all he does when he isn't at work.

    Don't know what can/should be done about it. The question is, who is benefiting from sucking money out of so many people's wallets?
    • by PD ( 9577 ) <slashdotlinux@pdrap.org> on Monday January 28, 2002 @06:27PM (#2916483) Homepage Journal
      Can't blame Evercrack for this. People have been ruining their marriages since waaaay before online gaming. The technique of "incessant yelling and screaming" was patented at about the same time as "nagging the hell out of your husband", "sleeping with the babysitter", and "blowing the house payment on a lifetime supply of pudding."
    • by Anonymous Coward
      "Don't know what can/should be done about it. The question is, who is benefiting from sucking money out of so many people's wallets?"
      • Network connection to deal with hundreds of thousands of users
      • 24/7 Tech support.
      • 24/7 In game support.
      • Server maintenance
      • New servers
      • Continuing game development
      • New zone development
      • Fan Faires
      • People who want to play Star Wars Galaxies that's being developed by the same people.
      • Associated web site
      • HR, billing, office spaces - all the support costs
      • And not to mention the shareholders who'd like to see at least a reasonable profit after all of that.

      I could be wrong, but I'd imagine that those, amongst others, are where the $10/month goes. You may notice that most of the next gen MMPORPGs are looking at charging about double that to be able to stay profitable.
    • There actually was (is?) a support group somewhere about EverQuest addiction, where people post their stories about how they were addicted and how they got out of it to save their marriage.

      They have also gone so far as to attempt a class action lawsuit against Verant, much like the one that was (is?) being attempted against tobacco industries. They say that Verant is profiting off of the addiction of others, and should pay the consequences.

      They also threatened to protest at an EverQuest Fan Faire, and hand out flyers about how evil EQ was. They never showed up, but there was security looking for them anyway to keep them off of the premesis.

      Personally, I feel that the point of a game is to get you hooked, Verant seems to have done a great job of that...Almost too great.
    • Same thing happened with "Magic: The Gathering" (a.k.a. cardboard cocaine).

      I saw many gpa's drop full points because of that game. Like EQ, there became a massive market for the items from the game (the net wasn't as mature, but at one point it had the largest non-binary newsgroup on the net). The only difference was that the items were not entirely virtual. But as long as the EQ software keeps certain items sufficiently "rare", then there is little difference between the two addictions.
    • I play about an hour a day maybe when I have the time but there is no way that it would ever replace real life.


      Frankly it doesn't deserve to. It's an amusing diversion but it's pretty repetitive and tiresome if played for too long. Kill, med, kill, med ad nauseum.


      I have to question the sanity of those who spend their whole lives on it. I don't know if its funny or tragic considering many of them are still in school.

  • by Em Emalb ( 452530 )
    Wow, A game has more money than a country? What a shitty world we live in these days.
    • by Cato the Elder ( 520133 ) on Monday January 28, 2002 @06:24PM (#2916462) Homepage
      Well, it probably does have more money than a few countries, like say, the one that sould the rights to .tv

      On the other hand, the article is about "per-captia" income. So what it really says is that people sink more money on average into Everquest than many people have to spend. It doesn't mean they have more money total--most countries have populations larger than Everquest.

      On the other hand, it is kind of sad that you can earn more from playing Everquest all day than the people in a lot of countries earn in a week. I wonder if "virtual sweatshops" could actually come into being--people come into work, log on to computers, and make virtual artifacts all day. Hey--probably beats farming.
  • Scary, almost (Score:3, Interesting)

    by Ionized ( 170001 ) on Monday January 28, 2002 @06:19PM (#2916424) Journal
    but the economy truly is enormous. My ex-roommate played Everquest as a JOB. He made anywhere between $500 to $1,000 per month selling EQ money and items on E-bay. The economy has dropped off somewhat after Sony officially declared selling EQ items through the real world was against their policy; if they catch you now they will ban your account.
  • A Bit Misleading (Score:5, Insightful)

    by Geeyzus ( 99967 ) <mark_madejNO@SPAMyahoo.com> on Monday January 28, 2002 @06:20PM (#2916426)
    This article is quite misleading.

    Basically, he calculated the approximate real-world worth of people's items, as sold on eBay, and this figure (GNP of Norrath 77th worldwide) would be correct if everyone sold everything they own on eBay, at these prices.

    Quote from the article : However, he notes that not all the assets are converted into real-world cash.

    Of course they aren't! If they were, the price for each item would be significantly lower, and the real GNP would be nowhere near what he is quoting. So in reality, if Norrath was a country, the GNP would not be as high as his estimate.

    Still an interesting thought though.
    • Re:A Bit Misleading (Score:5, Informative)

      by Will_Malverson ( 105796 ) on Monday January 28, 2002 @06:34PM (#2916546) Journal
      [On converting items to cash...]
      Of course they aren't! If they were, the price for each item would be significantly lower, and the real GNP would be nowhere near what he is quoting. So in reality, if Norrath was a country, the GNP would not be as high as his estimate.
      You can't "convert" an item to cash. All you can do is sell it to someone else for cash. Do you claim that, say, Egypt doesn't have an economy because the things produced there are rarely sold for dollars?


      Here's an example of his argument: The game produces (via spawns or user manufacture) 10 swords of dragonthwacking per day. Those have an in-game value of 5000 platinum pieces. You can exchange pp for dollars on the open (though technically black) market at around 100:1. Thus, there are $500 worth of SoDs produced every day. Repeat these calculations for every item in the game, and from there you can figure out the GNP of Norrath.


      Remember, GNP does not have anything to do with exports. GNP attempts to measure the complete value of the production in a country or place.


      This is the same way that you can figure out, in dollars, the GNP of a place like North Korea. The closest analog to this would be to try to figure out how many things are sold by USians to USians for dollars in Mexico.

      • Re:A Bit Misleading (Score:2, Interesting)

        by ADRA ( 37398 )
        The 100:1 is a floating number depending on supply and demand. If means the same as GNP if the same as GDP does, then imports / exports do equate.

        Consumer Spending + Investments + Gov Spending + (Exports - Imports)

        Exports == The "Illegal" trading of in-game items
        Imports == ($10usd * every month * Active players) + (Expansion pack price * active players)

        One's time put into the game can be argued both ways, both as an import and as a "Consumer spending". I guees it is all in how you structure your definition of the economic system.
      • Still not an accurate GNP since the items have no cost, and supply and demand is almost a non-consideration.
        Monster a "drops" sword thing, even if nobody wants it.
        Plus it populace is, for all intents and purposes, immortal.

        plus you got that whole imaginary money thing.
        Considering the BEST return on selling things is about 2 dollars an hour, not much of an economy, if you ask me.
      • GNP attempts to measure the complete value of the production in a country or place.

        This isn't quite right. My understanding is that GDP is the value of everything produced within the borders of a country, and GNP is the total value of everything produced by assets *owned* by the country in question (or its citizens).

        This is the same way that you can figure out, in dollars, the GNP of a place like North Korea. The closest analog to this would be to try to figure out how many things are sold by USians to USians for dollars in Mexico.

        This seems a little confusing. Economists use "purchasing power parity" to attempt to normalize the relationship between currencies in order to compare GDPs. It is calculated based on how much it costs you to buy various things in each country. For example, the Canadian dollar is worth about US$0.62 in foreign exchange, whereas it is worth about US$0.78 in purchasing-power parity. Canada's CA$1-trillion economy is worth about US$780-billion.
      • Egypt has had an economy for around 6,000 years, continous and recorded. Just because it isn't in US dollars doesn't mean it isn't an economy. But here is the thing, their currency (the Egyptian Pound) is traded openly on the FX markets.

        The argument you give is just plain stupid, sorry but its true. If I sell an original painting for $5,000 this does not mean that _every_ painting is worth that much, its diminishing returns, as the original poster said.

        The US is NOT the measure of whether an economy has a GNP, GNP is the GROSS NATIONAL PRODUCT of that country i.e. how much it produced IN ITS OWN CURRENCY this can then be traded on the FX to produce a Dollars, Euro or Sterling rate.

        But it really is muppet-tastic to think that because you sell one item at X that you can sell n items at X. The example you give demonstrates the failure to grasp simple concepts.

        If the US prints 1,000,000,000,000,000 1 dollar bills a day, then they'd be worth a damned sight less a week later.

        Supply - Demand, this doesn't determine GNP, it determines scarcity v market. To multiply it up means that either

        a) You don't understand economics AT ALL

        or

        b) You've also been nominated for a Darwin award because "Lead isn't poisonous in small doses so how can a bullet hurt ?"
    • It's extremely hard to calculate GDP of EQ, the formula for calculating GDP is:

      GDP = C + I + G + (EX-IM)

      Where

      Consumption (C)
      Investment (I)
      Government (G)
      Net Exports (EX-IM)
    • The article didn't mention anything about the cost to actually play the game. Surely its not possible for the typical gamer to play the game for free, is it? Even if you crank out your $3/hr, it's costing you more to play the game (Game+ISP at least) than you're making, isn't it?
      • Um. The game costs something like $10-15/month. I pay about $2/day for my ISP (yeah, I know). That means if you play it for an hour a day, it more than pays for itself.

        And many people play for 80 hours a week. Clearly if they sell their character after a while then they are going to be in profit.
    • "Of course they aren't! If they were, the price for each item would be significantly lower, and the real GNP would be nowhere near what he is quoting. So in reality, if Norrath was a country, the GNP would not be as high as his estimate."

      By your logic, the GDP of Japan isn't measurable from the US because the only way it could be measured is by forcing everybody in Japan to sell off their yen for US dollars. And since that would drop the yen through the floor, the numbers macroeconomists get for Japan are actually much higher than they really are. And the GDP for the US that Japanese economists get is much higher than it really is as well.

      Of course, all of these measurements assumes that the value of the observer's currency is fixed, but nobody can prove they're the One True Currency because there's no ultimate frame of reference. Even using the gold standard is no good because the amount of gold in the market changes constantly.

      Sounds like special relativity, don't it?
  • by ehiris ( 214677 ) on Monday January 28, 2002 @06:20PM (#2916432) Homepage
    The full research paper on this can be found here [ssrn.com]

    I tried to post this article last week but it seems like I did something wrong because it got rejected.
  • Watch out (Score:2, Funny)

    by Chagatai ( 524580 )
    Due to EQ's semi-national power and status, they have come under the scope of the Taliban. The Taliban have planned an invasion, complete with dressing all buxom she-elves in burqas, crashing 747s into Luclin, all the while shouting "Allah to Zone!"
  • by Tattva ( 53901 ) on Monday January 28, 2002 @06:26PM (#2916473) Homepage Journal
    Ten Thousand Villages [villages.ca] is a not-for-profit store that sells 3rd-world arts and crafts in North America for as little markup as possible. I wonder if it would be more profitable to have some of the 3rd world participants play Everquest and sell their accounts at the stores. $3.42 an hour isn't bad!

    • I wonder if it would be more profitable to have some of the 3rd world participants play Everquest and sell their accounts at the stores.

      Hey, no problem! Just trek out to some remote village in the South American jungle, or Africa, or Vietnam, and set 'em up with EverQuest-enabled PCs. Who cares that they don't have power, or even potable water supplies - they'll intuitively understand the Western culture of fantasy that is EverQuest. They don't need to spend their time finding food or eking out a living - they can just play games all day, and pick up the electronically-posted fund at the nearest ATM. Because hey, it works in America, right?

      I hope you were gunning for the +1, Funny rating, 'cuz otherwise, you need to lay off the sauce. :) I love Ten Thousand Villages, BTW, but I think I prefer getting beautiful, hand-made works created by craftsmen than some cheesy RPG junk.

      sheesh...some people... :)
  • Most of the players aren't trading/selling players and therefore aren't earning money from the game. The small percentage that IS making the money is making a LOT of money from it apparently to average out to around $2000 a year.

    However, in any economy, per capita INCOME is not the only figure you have to take into consideration. You need to understand that while some people earn money from the selling of accounts, others have to purchase those accounts and unless they purchased the account with money made from trading accounts, then you don't have a closed economy.

    To be considered a true economy, there must be a way for Everquest to actually GENERATE wealth. It needs to create something such that the value of the products and services it offers grows completely from within its own environment.

    Players (your workers, if you will) need to accomplish something by their gameplay that increases the overall wealth of the system such that the lifestyle of the players improves. However, the best Everquest can be attributed to is the art industry. People buy and sell art, but art alone can't sustain an economy, unless you have a country that only produces art and external counties provide all other basic resources in exchange for the art.

    -Restil
  • by Anonymous Coward
    An interesting question would be how has the introduction of horses affected the economy.

    For those that don't know, the latest upgrade (Shadows of Luclin) introduced horses to the game. You can buy a horse which lets you travel fasters. (And look cool).

    The thing is, they are *very* expensive. The cheapest one is about 10000 platium for a slow horse going up to well over 100,000platinum for a fast one.

    Even the cheapest one is more than the vast majority of players can afford and the expensive ones only a few people can affort at the moment.

    I'd be interested to see how this affects the economy.

    Obviously it's a huge money sink, which should reduce the prices of things. (If people have spent all their money, they won't pay so much when they want to buy things)

    But also, it means that many people have got all the old junk they had in the bank and started selling it. So does this reduce prices as there are more for sale, and people want whatever they can get, or does it increase prices because people want the money to buy a horse and so are unwilling to part with items for a bargain price.

    It's interesting. But I have no answers.
  • Per capita? (Score:5, Insightful)

    by the bluebrain ( 443451 ) on Monday January 28, 2002 @06:31PM (#2916520)
    Call me anal retentive, but "per-captia income comparable to that of a small country"?

    Heck - I've got a per-capita income comparable to a small country: my income devided by one.
    Well, I guess it is "New Scientist", and not "New Economist", but still...
    Gross income? Net income? Anything ...
    • Re:Per capita? (Score:3, Informative)

      by man_ls ( 248470 )
      I have a Ph.D. in international market economics in my family...Her opinion is that GDP/GNP as a statistic at all has fundamental flaws.

      One of em (GDP, iirc...the domestic product) counts in everything made by non-US citizens living on US soil or employed by a company in the US. Bigger number.

      GNP counts only stuff made by US citizens made on US soil. Smaller number.

      I think a more meaningful statistic (speaking as a *not* Ph.D. in economics) is the per-capita yearly income. That compares, more accurately, the lifestyle of the people of that country on average, if they lived in your country...India's per-capita income is what...$10k/yr? Decent but that's dirt poor here in America. Guess what? So are most native Indians.

      My $0.02 adjusted for inflation a few times, and probably wrongly.
      • GNP counts only stuff made by US citizens made on US soil. Smaller number.

        I was under the impression that GNP counted everything produced by assets (and/or people?) owned by a Country, anywhere in the world.

        On a per-capita-income basis, the country of "Me" is the wealthiest in the world, if we don't include the country of "max(You)".

        I'd assume that per-capita income and per-capita GDP are highly correlated.

        Also, on average, for example, Americans have a higher per-capita GDP (and presumably income) than Canadians, but the bulk of that wealth is distributed much greatly to the higher-income levels than it is in Canada. Thus, 80% of Canadians enjoy a higher standard of living than 80% of Americans, even though the "average" figure might suggest otherwise. America's a great place to be a multi-millionaire, but it's probably fairly far down on the list of first-world nations to be someone in the middle class.
        • I'd assume that per-capita income and per-capita GDP are highly correlated.
          They're related, that's for sure.

          Income per-capita = GDP per capita - deprecation per capita - business taxes (direct and indirect) per capita, including social security et. al...

          Per-capita GDP doesn't tell us much either, unless there is a fair and equitable distribution of wealth. In most countries, there isn't. All of these economic indicators will let you see a part of the picture, but you can't piece it together with only one.

      • per-capita is an average, which is not a very good figure without the standard deviation...

        for example, if your country has 5000 people, and 4990 of them make $10 a year, and the remaining 10 make $450,000 a year, you have a per capita income of $100, which does not acurately reflect the income of most of the people, which you would be able to notice with the standard deviation
  • I can't wait for this one: ChipNDales [shtank-interactive.com]
  • "If it was indeed a country, it would rank 77th, just behind Russia."

    If Russians had more disposable income, they could buy Everquest assets, then Everquest's "economy" would become greater than Russia's. No wait ...

  • by idealego ( 32141 ) on Monday January 28, 2002 @06:35PM (#2916551)
    Since Ebay stopped Everquest auctions a while ago under preasure from Sony Playerauctions.com is the main site for Everquest auctions and has been for a while.

    You can usually just a search for your server name or use their catagories. Doing a search for "prexus" as an example will show all the auctions on that server.
  • by EraseEraseMe ( 167638 ) on Monday January 28, 2002 @06:36PM (#2916568)
    [Month 1]
    Sure Johnnie, we can go pick up your copy of EQ after you clean your room...
    [Month 2]
    Johnnie, get off the Internet...I'm trying to phone your Aunt Bertha!
    [Month 3]
    Dinner time! Where is that blasted kid!??!
    [Month 4]
    Is that a new gameboy game? I see your paper route is finally starting to pay off..Or at least it's keeping you off that computer, we should have never got that high speed access
    [Month 5]
    What is this XBox thingie?
    [Month 6]
    Your teacher called...She asked for something called "Mythril Armor +4"..Crazy teachers
    [Month 7]
    Ok honey, this is getting a bit nuts...but we have to get you your own mailbox
    [Month 8]
    A new car? Just for US!? Thank you Johnnie! Don't worry about cleaning your room for a whole month!
  • by 2Bits ( 167227 ) on Monday January 28, 2002 @06:38PM (#2916577)
    Ok, all of you dotcom geeks who are out of job, what's the best way to make a living while playing the whole day long your favorite game?

  • Fundamental Flaw (Score:2, Interesting)

    by DzugZug ( 52149 )
    There is something very wrong with this article's argument. In a real economy, there is production and the produced items are exchanged -- money is just a means of making transactions more efficient. Economists do not deal in terms of dollars but in terms of equivalent tangable goods. In the case of EverQuest there is no production and no infrastructure. Money is simply being transfered between other economies where that money was earned by the production of real goods. Thus calculating dolars spent in transactions relating to EverQuest in order to rank it's "economy" is meaningless. You can't rank the economy b/c there is no economy.

    BTW when I say "goods" I mean goods or services or anything usefull for that matter. A programer or movie actor is producing goods just like a factory worker is. The point is that something is getting done.
    • I don't understand the difference. In the real world, you are participating in the economy if you go find a diamond and sell it. In EQ, I am participating in the economy if I go kill an orc, pick up his loot, and sell it (for platinum pieces). People value the loot, otherwise there wouldn't be an exchange of real dollars for platinum pieces. The exchange rate indicates the 'real' value of platinum pieces in US dollars (or any other real world currency).

      The only oddity is that the economy only produces things that can be used in Norrath, and that anyone anywhere can use that thing if they have a character in Norrath who owns the thing. Frankly, I have no idea how to relate that to a real/unreal economy. But, barring that, the analogy to an economy seems very firm.
  • see topic. p.s. - get a job.
  • Russia is ranked at number 17 according to the world bank [worldbank.org]

    Number 77 is Lithuania, and you thought newscientist knows what they are talking about.
  • by burtonator ( 70115 ) on Monday January 28, 2002 @06:42PM (#2916604)
    that I could defect from the US and become a citizen of Everquest?

    This seems like a good way to get around the DMCA...

    :)
  • they had resources that respawned daily, too? No more stripmining/deforestation/wildlife preservation, just set a comrade down at the ol' spawn site and wait.

    But, at least Russia doesn't have undead. Well, ok, they have muslim separatists, but nobody's perfect.
  • by StevenMaurer ( 115071 ) on Monday January 28, 2002 @06:47PM (#2916640) Homepage

    If you take the hobbies of rich people (and folks, most people posting on this site are generally rich by world standards), you can get a high "per-capita" economy for just about anything. Like:

    Economy of California

    Economy of luxury goods.

    Economy of oversized boats and cars

    Trouble is, it's all double counting. Those people's incomes are already counted as part of the US GDP. You don't get to count them again.

    • What the hell? You can't measure California's economy because it's part of the US? If I tell you the GDP of North America, are we suddenly not allowed to discuss the GDP of the US? Your point is nonsensical. Whether the EQ economy is part of a larger economy has no bearing on whether it can be measured and discussed.
    • Yes you get a high per capita income, that's one of the points of the article. Rich people spending their money on EQ.

      But no, it's not double counting. You can analize the bigger picture and still maintain data from the smaller factors that leaded to the main conclusion.

      It's like saying that in A + B = Y you are double counting A's value because it's part of the 'total' (Y).
  • As humanity progresses, new layers are added. Each new layer relies on layers below and will run at a higher level of effeciency (i.e. value creation) than thos below.

    What we have in this case is an economy which is based on intellectual interactions. People work in the corporate world (service layer on processing layer on manufacturing layer on farming layer) in order to make enough energy to interact on this new plane. It is not the first attempt to build up a new layer of value creation, nor the last.

    Everquest is limited by the rules governing it; it will remain on the fringes. Not enough value can be created to liberate this mechanism and let it take over the entire economy as a primary layer (on par with the processing or manufacturing or service economies). It is not flexible eough. I am sure one which is flexible enough will emerge (the web is one very large example).

    The same works in ecosystems in which a predator eats grazing animals, which in turn eat vegetation, which in turn eat sunlight and bacteria-processes nutrients.

    One particular predator started thinking about some things and a whole new game of layers got started. He started building farms and powered up enough value to support an entire lattice. It really accelerated once combustion engines started getting built.

    The real question is: what is the next layer that will feed on the emerging intellectual economy layer?

    Many might
  • errors in research (Score:5, Interesting)

    by Xzzy ( 111297 ) <sether@@@tru7h...org> on Monday January 28, 2002 @06:49PM (#2916652) Homepage
    The "research" paper this article is based on has been earning some decent discussion in EQ communities the past week or so. In the ones I participate in, some interesting discredits came to light:

    1) The survey was self-selecting. Hardly a valid research tool.
    2) Poorly worded survey questions. They were geared towards provoking a specific response.
    3) Time. This person played the game for an immensely short amount of time. People have been playing this game for two YEARS. The researcher put in around a week.

    There's more, like how his favorite city was Qeynos (definetly not a place anyone sticks around to enjoy, Qeynos is at the butt end of Norrath), but you get the point.

    I find it appalling that a "reputable" source like new scientist is actually giving this guy's poor research this kind of air time.
    • There's more, like how his favorite city was Qeynos (definetly not a place anyone sticks around to enjoy, Qeynos is at the butt end of Norrath), but you get the point.

      Does that make Halas the dingleberries of norrath?

      (As a barbarian shaman who spent much of his early years in that hellish, snowy wasteland, I would have to agee)
    • Qeynos is at the butt end of Norrath

      Butt-end it might be... alas, those of us spent our newbie years in the Qeynos area way back when didn't have to put up with the constant barrage of people shouting for binds at the gates, people shouting for sow's at the gates, people shouting for ports at the gates, people shouting for spare pp at the gates, people auctioning off their orc picks at the gates, people shouting about who KS'd who, who's a n00b and who is uber... Qeynos might have been the butt-end of Norrath (Anyone in the know knows that Tox Forest is the butt end of norrath :) ) but it was a simpler, place, less filled with spam and uber-monkeys, and only the occasional KS'ing farmer there for Pyzjin and/or Hadden... Anyways... enough ranting :)
    • "I find it appalling that a "reputable" source like new scientist is actually giving this guy's poor research this kind of air time."

      One of the things New Scientist does well is mix 'proper' science with the less rigorous, 'pop science' that this report represents.

      As a first briefing to the world about the economy of EQ to people who haven't heard of it this report did a good enough job. Its a bit hyped up and sensational, and wouldn't stand up to rigourous review as a serious piece of research.

      BUT

      There is a lot of snobbery about science. If I go out and count the number of blackbirds in my garden every day I am doing science. If I put out food for a week I get more birds. Therefore birds like food. WOW. Scientific deduction.

      This is a similarly intuitive bit of research to do some quick, back of an envelope style, calculations to attempt to quantify the size of an economy. If there a real world economy? I think so, lets count it!

      So while I agree that this is the lower end of the scientific spectrum - I am overjoyed that New Scientist continues to publish a range of articles. This is better founded than many of the articles they publish about extreme physics, and is certainly more approachable to the majority of the public.
      • As a first briefing to the world about the economy of EQ to people who haven't heard of it this report did a good enough job. Its a bit hyped up and sensational, and wouldn't stand up to rigourous review as a serious piece of research.

        Of course it wouldn't stand up to a review.. What you read online (the .pdf) was *not the whole report*. It was an excerpted and simplified summary.
  • Why not create a game where you buy/sell stuff?
    The game company could charge a "tax" on everything sold, and you could only sell online via a ingame e-bay, and pay online via a ingame paypal clone.
    Make XP worth money, so you could buy XP (at small ammounts), and put in restrictions to keep the game flowing and stop player killers who have everything.

    The company should be more like the Ferengi [electriciti.com] on Star Trek!
    • If the company who is in charge of the game actually treated virtual items as real assets, they could get into trouble. Suppose someone trips over the power cord, lets in a destructive virus, makes a programming mistake somewhere in the mudlib, or something else, which causes some virtual items (which some player owns), XPs, platinum pieces, entire characters, etc to be lost?

      You know that there should be someone demanding that the virtual losses be restored, and would sue if it didn't happen. There would also be fraudsters who could demand fake losses restored, etc.

      Considering the (lack of) reliability of modern computers and the people who operate them, I sure as hell wouldn't want to be responsible for anyone's virtual assets.

  • by mystery_bowler ( 472698 ) on Monday January 28, 2002 @06:55PM (#2916693) Homepage
    As interesting as the talk about the economy of Norrath is, I'm more intrigued by what drives that economy. As a former EQer (although never an addict, per say) and the son of an avid EQ addict, my observations are that the thing that drives the economy of EQ is one of the same things that drives the "luxury" economy of the real world: status.

    From a somewhat psychological view, one could argue that one of the primary addictive qualities about EQ is that it allows the player to be represented in a grand, heroic fashion. All the guys are buff and appear strong, all the girls look like a cross between Xena and two coconuts. Riches and adventure are somewhat easy to come by, given that you spend enough time playing the game, so the opportunity to escape one's mundane and unaccomplished life is ample. Given that the rest of the game's world is populated by the avatars of living, breathing human beings, it becomes more than a simple diversion to establish oneself in the society...it becomes a major ambition, just like our normal lives.

    Enter the interaction between our real world and Norrath. It is difficult for someone of average income to buy great status. Luxury cars, large homes on prime property...all these things cost tremendous amounts of money. And since most of us did not win the genetic lottery, our appearance will not gain us said status, either (hence, only a tiny portion of the population are models). With the EQ universe, the dynamic is changed. For a mere $100, large sums of game money can be purchased. For your real-world American dollars, you can purchase the most powerful, greatest status symbols of the game. You can walk through the game world boldy, showing off your prized status symbols to other players just as wealthy Americans enjoy going for a drive in their shiny Mercedes.

    The ability to re-invent yourself is a major selling point for what is otherwise a chat window with a game around it. Verant, as a business, was very wise to include hard-to-find, rare items that would confer "great champion" status to their owners. It is the same behavior we see in our society, it's just more affordable for the average person.

    • Bang on. Another major difference is that, if you run out of money, you don't die or not eat or whatever. I totally agree that this represents the driving forces behind our material gains as social status, but little else. I surely hope EQ doesn't end up being some sort of malformed poster child for the neo-liberal free-market movement ...
  • At the risk of sounding like Katz, this phenomenon is just an outgrowth of meatworld issues. For instance, one of the best tulip-bulb markets of the 90s was the mass insanity known as early edition Magic the Gathering, followed by Pokemon. A small nation's economy was generated by the sales and trading activity spawned by those games.

    Witness also the huge amount of activity based on the rotisserie/player franchise sports leagues.

    EQ is just the graphic MUD equivalent of all that. Keep yer pants on, this is nothing new.

  • I am not an anti-EQ nazi or anything...I like computer games, and while EQ isn't my cup of tea, I have friends who like it.

    But this is out of control. 77th richest country! If people used all that wasted time, the United States (which is the principle players of EQ) we would have the combined economys of us and Russia (?!)

    I think just MAYBE this whole thing has gotten out of control.
  • gdp per capita (Score:2, Informative)

    by snarkh ( 118018 )
    GDP per capita does not depend on the size of the country.


    For example, GDP per capita of Switzerland is ~$30,000. GDP per capita of China is less then $1000.

  • by SirSlud ( 67381 ) on Monday January 28, 2002 @07:40PM (#2916921) Homepage
    > Castronova says that EverQuest's economy can be studied like any normal economy, even though Norrath is a fantasy world. This is because of the social importance attached to the game by its players.

    Castronova believes that virtual worlds like Norrath could eventually become more closely linked with the real world. "Virtual worlds may be the future of e-commerce, and perhaps the internet itself," he says. "Ordinary people, who seem to have become bored and frustrated by ordinary web commerce, engage energetically and enthusiastically in avatar-based online markets."


    Jesus christ. I feel sick to my stomach. Can be studied like a normal economy? Hello? Can we start killing off the players when they run out of virtual water and food? Can we cut a few of their virtual legs off and then tell them they cant play the part in EQ that they want to?

    I mean, does anyone actually believe this? Are we all so wealthy that we can't understand the significance of scarcity, poverty, inequality, yadda yadda in the (earth to Castronova) real world? The idea that when you can't get your next meal, you're unlikely to be fit enough to run the capitast race?
  • by mindstrm ( 20013 ) on Monday January 28, 2002 @07:50PM (#2916958)
    Keep in mind that this is not insinuating that EQ is more valuable than a country, or more viable.

    EQ has a virtual economy, we can agree on that.

    A fraction of players buy/sell virtual items/money for real world money.

    This is wta they base the per-capita income on.

    The fact is, if everyone in the game started selling things IRL, the value would probably drop to zero.

    It's similar, in a way, to large shareholders of companies. Like.. say, Gates.

    You have a value on paper, but you can't just sell it all and get cash.
  • A lot of the comments nitpick details about the economic representation of EQ. As everyone here knows, statistics can be manipulated to show whatever you want. I think the important fact to come out of this article is just what we already know. EQ wastes a lot of time.

    Remember, however, that money is an abstraction of value, traditionally the value that was built on the backs of laborers... if people are willing to pay for EQ items, then playing EQ is a valid job. It contributes to the GNP and therefore helps the economy.

    The problem with economic indexes is that they really only measure the amount of money changing hands, but does that translate into quality of life? That is the assumption that many capitalists and economists make, but I submit that as we move into an increasingly abundant era, traditional economic indexes become more and more meaningless. I believe earning more money is only the best use of your time up to a modest income level ($30-$60k). After that non-GNP adding activities like spiritual/religious exploration, volunteer work, mentoring, open-source hacking, etc. will not only satisfy an individual more, but may also contribute more to society.

    So, to tie up this massive ideology that I've strewn about, my point is that EQ should not be judged by the cash sales it generates, but by the amount of happiness.

    Personally I feel that most computer game playing is pure escapism and thus not worth much even to the people who play it, but that's another argument for another day.
  • The State of CA has a GNP equivalent to the 7th or 8th largest economy in the world.

    If the US were somehow to lose CA it would lose about 40% of GNP.

    High-tech nations have higher GNP/GDP because money changes hands. If everyone fixes their own car, GNP suffers. If everyone pays $60/hr to have the car fixed, GNP grows. Imagine a home where gourmet meals are home-cooked "from scratch" every day, vs a home where everybody eats at McDonalds. The McDonalds home has a higher GDP.
  • Wow! How do I move to Norrath? Is that in europe?

    Bill Gates is the eqivalent of a medium sized country too.
  • by Catiline ( 186878 ) <akrumbach@gmail.com> on Monday January 28, 2002 @10:45PM (#2917623) Homepage Journal
    Correct me (politely, please!) if I'm wrong, but isn't modern economic theory based on the scarcity of goods? If nothing else, the last time this story got posted, we should have realized what a load of bunk this is.

    I don't know the numbers, but I'm sure that if I went and crunched them we would see that assuming growth trends remained the same the per-capita of Norrath would soon (5-10 years) be higher than all real countries. That is, assuming their economic model doesn't implode because they're stuck with surplusses.

    Wait a minute! Maybe this isn't so irrelevant to real life after all. All I have to do is, while stating the obvious, use the magic words "Gift culture" and "software paralells" in the same sentence as the magic /. oxidant "Eric S Raymond" and poof! Flames.

    On second thought, I kindof prefer having a high karma than a real discussion here. Perhaps some AC will do the honors?
  • anyway (damn enter on submit for default)

    I built a machine for my brother in law a while back.. and kinda got him into gaming. I also took him out on x-mas and bought him EQ as I told him how much fun and great the game was...

    He played a LOT - and ended up making about 2K per month off the game... it supported him through college, but he was banned for life from EBAY (those bastards)...

    So - yes it is time consuming - however you can farm virtual product for a living from that game if you so choose.

    .
  • russia's GDP figures are wildly misleading, mostly because such a massive chunk of the economy doesn't show up on any official ledgers.
  • I find this whole notion of selling virtual crafts very strange. Very, very strange.

    After all, we could do a reductio ad absurdem whereby there is no everquest online game. Instead, it would be economically the same if Tom just pays Joe 2$ to think of a sword.

    Two questions to ask, if you're interested in economics.

    1st: what good is an imaginary sword?
    2nd: is everquest productive, in an economic sense?

    Question #1.

    Someone is creating an imaginary object, and someone else is buying this imaginary object. But the imaginary object can't ever be used, except in the imaginary game. From an economic sense, is any value being created? Well, yes, because it improves the leisure of whoever buys it. It makes his game experience more fun, so he recieves a value. And from his perspective, it might be worth paying for: dollars spent for better leisure. However--

    Question #2: Is everquest productive, in an economic sense?

    In other words, is society as a whole wealthier or more efficient after a virtual trade takes place? My thinking is, no.

    Example: Joe spends 3 hours building an imaginary sword in the game, and then sells it to Tom for 2$. Tom feels that he has gotten a fair trade, because he values the three hours saved more than the two dollars spent. And Tom now has a valuable tool in the game. But it's an imaginary game! Jake, the person who runs the game, could just have easily given Tom a sword with no effort required. Or a million swords. Why should Tom pay Joe for effort that isn't really required? So from society's perspective, it seems like the 2$ has been spent uselessly. Money has been moved around, but society as a whole isn't any wealthier or more efficient.

    Now, why is buying an imaginary sword with real money pointless, from a macroeconomic perspective? After all, stories are imaginary, but we pay for books. The reason his action in buying an imaginary sword is pointless is because the resource he's paying for may be valuable, but it isn't scarce. A book, on the other hand, is scarce, in that it has only one author. And only that author can think of that exact book. But anyone can think of a generic imaginary sword without any effort or time spent. Why should someone pay for a resource that's so abundant? As an analogy, look at oxygen. Very valuable, because we couldn't live without it, but in most circumstances we wouldn't pay for it because it's abundant and cost nothing in time or effort. Similarly with an imaginary sword; anyone can think of one. The only difference is that in everquest, an abundant resource has been made artificially scarce.

    Now if it seems to you in looking back over this reply that the explanation in question 2 seems to contradict that of question 1, you're not alone. It appears that this sword has a microeconomic value, but no macroeconomic value.
    Which is why even after my explanation, I still think this is all really strange, and I don't quite understand it.

    Anyone with more of an economics background, please leap in.

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