Prof debunks MindArk hype; causes CEO tantrum
Not sure how we missed this bit of juicy drama, so forgive us for the weeks-old nature of this post in advance, please. A chronological format works best:
- MindArk creates major media buzz with its announcement that they would allow players to draw money out of their Project Entropia accounts with a new debit card. We admit, it sounded novel, so we published our own uncritical account of the news.
- Wharton Professor and Terra Nova blogger Dan Hunter took a step back to ask whether the big news was really as fantastic as MindArk made it out to be. He analysed the deal then concluded, "Hey, guess what? This new frontier in virtual currency is...wait for it...a co-branded debit card." He went on to state that previous MindArk press releases, upon further analysis, appear to be "nothing but bullshit."
- MindArk's CEO throws a fit, sending a nasty email to one of Hunter's bosses at Wharton, accusing Hunter of "spreading slander."
- Hunter blogs it. Awesome.
As Terra Nova commenter Peter wrote, "Someone should have told [MindArk CEO] Welter his god-mode is limited to [Project Entropia] alone...."
See also: Aleks Krotoski's take, Daniel Terdiman's summary.
Reader Comments (Page 1 of 1)
Gamer Jay @ May 30th 2006 5:32AM
This disproves the idea that all (good and bad) publicity is good publicity for a company. Protestors screaming at the Da Vinci Code will hype its release and increase box office revenues, but a CEO going into berserker mode is another matter. No matter which way they try to spin his temper-tantrum, this will be bad for the company.
Project Enron-ia (sorry, Freudian slip) Dollars sound like a great investment for anyone living in fantasy land with fantasy news and fantasy press releases.
Moj3 @ May 30th 2006 5:35AM
Project Entropia (Entropia Universe, what ever it is now), is a huge money sink. I 'invested' about £50 in the game and have nothing to show for it, I'd say 80% of people that put cash into the game will never get it back.
Noa @ May 30th 2006 7:11AM
i can comment again!
don_sf @ May 30th 2006 7:40AM
xbox 360 premium - $399
recharge kit - $15
wifi network adaptor - $99
hd-dvd player - $99-150
5 years xbox live - $250 ($50 a year)
sony playstation 3 60 gig version - $599
+ hdmi, add full 1080p support for movies and games, add games on blu ray, add free internet gaming, add built in wifi, add usb recharger, add linux operating system, add backwards compatibility for about 12,000 games out.
do the math.
V1L3 @ May 30th 2006 8:30AM
#4: What the freaking heck? I'm hazarding a guess you posted that in the wrong section.
As for the topic, all I can say is "I'm with you, Hunter! Fight the power!!!"
dubz @ May 30th 2006 9:34AM
PS3- $599
xtra controller- $39
2 games- $120+
Online Fees for 3rd Party Publishers- $???
Do The Math....Oh and that CEO is nuts.
Anonymous rep @ May 30th 2006 9:39AM
IF there were a virtual world similar to the Matrix or those worlds speculated upon in science fiction, then I might be interested.
Otherwise - it's a freaking game, people. Get out of your house - see a real sunset - kiss a real girl (or boy) - enjoy real life, in other words.
Certainly we can all escape into fantasy worlds for recreation, but to pay real money for virtual property? I can't wait to see the lawsuits out of this - when the servers crash, or the company changes hands. Hey, my multi-million dollar home just went away. Where's my REAL, TANGIBLE, ASSET? Oh - sorry, all you had was some binary code on a server - nothing actually real.
Matt @ May 30th 2006 11:13AM
To #7, I agree that I wouldn't pay real money for virtual property either, but at E3 there was a conference on MMOs claiming that it would be the new trend. Personally, I look at games like Magic: The Gathering where you pay full price for "virtual packs", which I think turned alot of people off.
In regards to the article, having your CEO go nuts is probably not great for business...
http://www.obscuregaming.com
Pixelantes Anonymous @ May 30th 2006 12:38PM
anon rep, apparently you haven't heard of Anshe Chung:
http://pixelantes.blogspot.com/2006/03/profile-of-virtual-real-estate-mogul.html
She makes six figures selling land in Second Life.
I'd quit my day job in an instant, if I could do that. Virtual property or not.
Jordan Estes @ May 30th 2006 7:30PM
its amazing thing is how easy its going to be to make money off this thing if its real. The exchange rate is fixed from the game to real life, if you play the money market, you could become an overnight millionaire!
Austin @ May 31st 2006 9:57AM
I love that the CEO is outraged that this can come from a legal studies department yet he cannot see the difference between libel and slander. I have no experience with the game so I can make no comment, but this guy is a PR nightmare.
Austin @ May 31st 2006 10:03AM
Jordan,
As I stated in the previous comment I have no experience with the game, but if the exchange rate doesn't float and there are only two markets isn't arbitrage going to be difficult? Perhaps you we talking about another play, I duhno.