Assignment 11: WOW

Virtual economies have become an extremely relevant subject when discussing the internet, especially since the introduction of World of Warcraft (WOW) in 2004. The issues that surround both open and closed virtual economies have found their way into real life, and create both problems and benefits for many people. Not being able to exchange real money for virtual money, like in World of Warcraft, and being able to do so, in games such as Ultima Online, both carry their own benefits and negativity.

In a open virtual economy real money can be spent on items in virtually created shops in online games, according to Wikipedia. In Ultima Online, a man named John Dugger bought a piece of real estate in a virtual world for $750 on eBay. This transaction is a small part of the real world economy that exists, and generates $300 million in annual revenue each year. This created business is a benefit for the people who are making the money, but seems somewhat ridiculous for the people spending the money. Is taking a weeks salary and spending it on virtual property really worth it? Is increasing your virtual status more important than your real life status? This seems like it could be a starting point for financial problems if one's spending gets out of hand. It can be like gambling in the sense that some people might not know when to stop spending, and then it is too late.

In regards to the gaming aspect of an open economy, some people and game creators frown upon the spending of real money to purchase virtual goods. Since people of any age can play, the older and more wealthier players can advance in the game easier and more quickly by spending real cash. Blizzard, which created World of Warcraft says this practice is against WOW's egalitarian spirit. The purpose of the game, they say, is to advance in status by bettering yourself within the means provided by the game.

World of Warcraft is a closed virtual economy. Virtual goods are bought and sold within the game by using the virtual money that is earned. This has not stopped games from using other techniques. According to the MSNBC article above, players "gold farm" or accumulate virtual currency and then sell it for real money. This is a huge industry, and is essentially the same as an open virtual economy. Wikipedia states that a taskforce has been set up in the game Final Fantasy who's job it is to delete users who sell in game currency for real world money.

Obviously there are issues regarding putting real currency into virtual worlds. While many people benefit, and a whole new economy has been crated from these virtual worlds, there is always a danger of taking it too far. As stated, people could find themselves in financial trouble by buying a $100,000 virtual space station for example. Virtual communities have also been created in these games, and people can use money to increase their group's status in the game. This can be seen as a positive and many relationships, good and bad, have been created through these online games. The controversy about using real world money will continue and so will other questionable behavior. This YouTube video shows a virtual funeral for an actual person's death being ambushed by other players: