LotRO producer says real money for game items is the future
by Alexander Sliwinski 
{ May 30th 2007 at 6:45PM }
Turbine, the company behind Lord of the Rings Online, recently had executive producer Jeffrey Steefel sit down for an interview where he said the company is keeping an eye on the "secondary market" of legally purchasing in-game items with real money. He says in the next five years the MMO business model will change to accommodate using real-life money to buy in-game currency. Steefel says, "Our position is pretty straightforward right now. Our responsibility is to the subscribers of the game, to deliver to them the experience they expect. So we certainly do not support people farming or taking advantage of the system in that way. It's against our Terms of Service and we do try and enforce that. ... But, we all know that something will happen in the next two to five years to business models in general, so we're paying attention to what's going on; watching what's going on with Sony Station whose servers support and manage this."
Sony Station Exchange is the controversial pay for item model. Advocates say it's a way for people who don't have the time, to pay their way into the game. Many gamers consider it corporate sponsored gold farming. Even if you purchase an item through an exchange, you can always sell it in-game for currency. Paying your way into an MMO just feels like an athlete using steroids. Sure, you can argue that if the means are there and the time isn't, why not do it? We just don't know how we'd feel about playing a game where you can, as part of the rules, pay a company extra money to get ahead.
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Reader Comments (Page 1 of 1)
ComradeTrotskii @ May 30th 2007 6:56PM
This model should be extended to single player games. Pay an extra 50% and the game is already completed when you unwrap it!. Companies must realise that nobody actually has time to play anything other than a 5 minute blast of Wii Sports these days anyway.
Striderhayasa @ May 30th 2007 6:59PM
behold, as developers prepare to fleece their fanbases and lazy ass gamers rise in the ranks on the backs of smucks looking to make a quick buck by playing the games for them. Bright future for the industry for sure.
thecactusman17 @ May 30th 2007 7:03PM
This is already being done in several major Korean MMOs, with one *major* difference: after advertising, player-purchased items are the game's primary source of revenue.
American companies aren't going to be wiling to do this, they'll just continue to charge exorbitant monthly fees on top of full-price store (online or off) sales.
So don't expect to see this until the entire business model of American MMOs is ready to change, which will be never as long as CEOs get dollar signs in their eyes looking at WoW sles data.
dark54555 @ May 30th 2007 7:07PM
It seems Law of the Game was thinking on the same wavelength earlier this afternoon:
http://lawofthegame.blogspot.com/2007/05/alternative-ip-and-economic-structuring.html
Ryan @ May 30th 2007 7:25PM
More ways to nickel-and-dime the consumer! Brilliant!
But really, this whole thing with microtransactions and paying for individual virtual items doesn't seem too appealing. If it was something really appealing or game-changing, then yeah, I might consider it, but I would rather keep our economy out of virtual economies (think sales and income taxes). This whole scheme of charging you more just to get all the enjoyment out of a game is just wrong.
Joshua @ May 30th 2007 7:55PM
So those with the most money end up being the best in the game? Huh, capitalism...
dark54555 @ May 30th 2007 7:58PM
Further analysis on Sony's model and alternatives:
http://lawofthegame.blogspot.com/2007/05/sony-station-exchange-model-and.html
Bob @ May 30th 2007 8:02PM
"We just don't know how we'd feel about playing a game where you can, as part of the rules, pay a company extra money to get ahead."
Really? Either you're not living in the US, or you suck at living in the US. There's probably a reason you're blogging as opposed to getting into politics, and this statement nails it pretty well. Get off your high horse or open your eyes, it's embarrasing Joystiq readers and yourself.
Striderhayasa @ May 30th 2007 8:09PM
@ bob
I'd have to agree with you there.
-----------------------------------
Where's the confusion? It's a terrible situation that allows people to buy their way though a game. It's total bullshit. Sometimes you just have to act like you have some balls and just say no. Especially to obviously raping gamers with microtransactions and "pay your way though" gaming.
Yon @ Jun 5th 2007 1:02AM
wtf it's just a game.
Oh noes someone bought that thing I wanted through a microtransaction.
Would be considered "your arrested" robbery if someone *mugs you ingame and steals all your microtransaction bling.
*mugs = any method used to take your stuff(context)
Cabcru @ May 30th 2007 9:00PM
Shall we all pretend not to be surprised that the exec isn't all a-jittery with excitement over the prospect of preying on player's competitive streaks and peer pressure?
He must be walking into doors and tumbling down stairs all day long with all those dollar signs flashing before his eyes.
cendalire @ May 30th 2007 10:14PM
As someone already mentioned, many southeast-asian MMOG's are already using this method as their main means of revenue. Many people in this country are also buying into those games because of that model, among other reasons of course.
Although paying for game completion is pretty...well, stupid. They're basically paying more money for less game. I'd say offer a service where they pay even more money to have somebody play and beat it for them. They don't even have to look at the game!
Shagittarius @ May 30th 2007 10:19PM
Its a terrible idea, and if it ever happens I will no longer play MMOs.
Moving on...
NintendoFanbot @ May 30th 2007 10:51PM
AHAHAHAHAHAHAHAHAAHAHAHAAH fuck no.
h2c @ May 30th 2007 11:12PM
WOW. The tone of the comments to this post, including the tone of the post itself, is amazing.
Here's the key. We all pay $X per month to play these MMO's. Regardless of whether I am getting to play 100 hours a week or just 10, I am paying the same $X per month everyone else is paying. Regardless of whether I am ever able to get to Encounter B, I am still paying $X, just like the guy who has enough time to get to Encounter B every day.
I do not get a discount when I am not able to experience Encounter B. I do not get a discount for playing less than some other guy. My monthly payment goes to the development of content, regardless of whether I am personally experiencing the content. I should, in theory, be entitled to experience all of the content my monthly payment goes towards developing.
The caveat with MMO's is that the entitlement to experience content like Encounter B has to come as a result of some sort of investment in character development. Traditionally, this investment was time. This of course precludes those who don't have time to invest in developing a character to experience Encounter B from ever experiencing Encounter B.
However, with the alternative method of character advancement where I can make up the 10 hours of weekly game play that would never allow me to experience Encounter B by "buying" the equipment / goods / gold / characters / whatever to bring me up to a point where I can experience Encounter B, I am finally able to experience all the content my monthly payment pays for. The investment aspect of accessing the content is still there - it has just shifted from being a time investment to being one of money.
This should be giving warm fuzzies all around. Now the guy with money to spare can enjoy content just like the guy with time to spare. The end result is that more gamers get to experience game content. How in the world is this a bad thing?!
Allowing more gamers to experience the content of a game should be a good thing. Especially on a gaming site with a name like Joystiq. :(
Shagittarius @ May 31st 2007 12:22AM
I'm sorry but I don't believe that just beacuse someone has more money in the real world it qualifies them to experience the same achievements that someone who plays hard can.
Your bringing the real world into the fantasy world where many people go to achieve what they cannot in RL.
I'm a terrible guitar player...but I'm going to pay someone else to record an album with my name on it. However when you come to see my shows it will be me playing...enjoy the pain.
h2c @ May 31st 2007 1:07AM
Shag,
How does allowing someone with money instead of time to enjoy the content you are enjoying *harm* your enjoyment of the game? Why do you want to preclude people without time to develop a character through traditional forms of advancement from enjoying the content you are able to enjoy?
If it is because you have invested time into the game to enjoy the content you are enjoying, and you don't thing people are entitled to a "free ride" to enjoy the content you are enjoying, I respond with two points:
1) Everyone pays the same monthly fee. Everyone. So the right to enjoy the full extent of the game exists for everyone...so long as there is an appropriate investment in developing your character.
2) In your case, the investment in developing your character is time. But for a person who does not have time, the investment can be money. Either way, an investment in character development is made - neither is a free ride into fun content.
Your enjoyment of the game is not diminished or harmed by allowing other people, who have replaced the investment of time with an investment of money, to enjoy the same content you currently enjoy. Shifting the investment into character advancement from time to money does not harm any person using time as a means of character advancement.
It's a win/win for both types of gamers: those with time to play and those with money to play. Developers also win by being able to reach a broader audience than catering to only those with time to play.
Further, the extra cash from sanctioned monetary transactions for character development can be used to develop new content - content that everyone can enjoy.
t_m @ May 31st 2007 1:13AM
I dunno why they didn't do this years ago.. it makes perfect sense.. and it provides an excellet way to keep some control on the economy.
Personally, I wouldn't want to buy things for real money (unless it was realy really cool!), but if people want to do so, then let them.
It works great in lots of Korean MMOs, though of course THEY don't charge for the initial game!
Megaqwerty @ May 31st 2007 2:29AM
As has been repeatedly mentioned, Korean MMO's use this model and that works extremely well. The world gets a free MMO that's largely paid by the people who feel like buying stuff.
For a more local analogy, Runescape uses a very similar (albeit slightly different) model that is extremely successful for a product that is absolutely hideous.
However, this will not work in an American market unless they stop charging $15 a month, or at least, I damn well hope so.
Burnt Meatloaf @ May 31st 2007 5:21AM
One word: boycott.
Unfortunately, people just don't for some reason.
Evan @ May 31st 2007 7:52AM
@ComradeTrotskii "Companies must realise that nobody actually has time to play anything other than a 5 minute blast of Wii Sports these days anyway."
Ironically, your sarcasm is correct. On the one hand, there are people with no lives able to play over 100 hours a month who are demanding more content, and on the other hand, there are people with careers and families barely able to play 10 hours a month who are feeling frustrated because they can't get anywhere in the game in the precious little time they have.
Cap'n Jack @ May 31st 2007 9:28AM
Too bad LOTRO is boring as hell.
Aberu @ May 31st 2007 10:05AM
How about WoW which is the most popular MMO right now practically serving as a model in how it DOESN'T support item/gold selling of the like?
Almack64 @ May 31st 2007 10:27AM
@ h2c #14
I just wanted to say that was one of the most sensible comments I have read in a long time. You definitely swayed me with that argument. So I agree there are many ways to invest into something and having more ways is not a bad thing if it means being able to experience content that was already paid for.
Weeks ago someone made a similar argument in a thread about the difficulty of games. They argued that games should have the option of skiping past portions of the game so that one may be able to experience later content.
I guess the bottome line is if you pay for content, you should be able to experience that content; one way or another. If one can't use "cheat codes" to progress other options should be available.
Remember even Game Genie required an additional purchase for its use.
Vidikron @ May 31st 2007 10:41AM
Wow... some of you are so very clueless. I love how so many comments are stuff like, "If this happens I'm leaving MMOs for good!" or "This will never work". Hello? This is how it is NOW. People pay real money for elite items and gold on eBay and elsewhere. Not only can you buy the best items, you can also purchase maxed out characters or have someone max out your own character for you. You can pay to get ahead NOW and have been able to do so for many years now. Now the companies themselves are looking to get a piece of that action.
Muu @ May 31st 2007 10:42AM
All those games with end-game type raids could milk a lot of money from people if they make payment options for entering end-game raids, and for encountering random-spawn endgame bosses. Don't know how the whole thing works in WoW as I dont play it, but in FF11 there are a lot of people going after 21~24hr and 72+hr spawn bosses, which 95% of the playerbase obviously has no access to for one simple reason: time constraints. If a fafnir (drops one of the most sought-after weapons in the game ~5% of the time) spawn could be obtained for a hundred bucks or so, I could see a lot of people willing to try and go for it... and like their counterparts that are camping spawn for the 3hr window, they'll still have to amass their alliance members and implement proper tactics.
MattGamer @ May 31st 2007 12:05PM
I would be one of the poor ones. But is not this just like the world system today?
Rich people are already more powerful than poor people. Though if the poor people unite, we may be able to defeat the rich people!
MY BROTHERS, FIGHT STRONG FOR POOR PEOPLE!
Game Artist @ May 31st 2007 4:15PM
I dont really have a problem with it. A couple qualifications though. Bought items should have reduced or no effect in PVP. Your +5 sword of phat cash should allow you to experience end game content, but if you want to play vs other players you shouldnt be able to buy an advantage. PVE is mostly a single player game.
civilr @ Jun 2nd 2007 10:20AM
It amazes me how little anyone thinks this through... Sure it does happen now in today's society but it is limited by time as well. The gold and items you buy off eBay or sites alike are surely and easy way to get you through the game (and a pretty boring way IMHO).
You should all think for a second, currently as it stands when you buy something in-game for real money you are buying it from someone else and in order for the item to be originally acquired that person spent their time. So in essence, you are buying time.
However if game developers start getting in on this then all shit breaks loose because you are not buying time. There is no time spent acquiring these items and thus the items become less and less valued within the community because they are so easily and rapidly achieved (eg. the game "adds" the item to your account upon purchase).
If items and in-game currency don't require time (anyone's time, even if you buy it...time is still required) then the virtual market crashes. Lets bring this to a real life example for a second, is there anyway that you could magically get an item "added" to your possessions? no. It requires time and that is why the RL market hasn't crashed yet.
victorh @ Jun 13th 2007 5:44AM
Well I play WoW ... not too seriously. A few hours here and there. I don't understand all the fuss by all the people who think I'm not allowed to 'buy' item. What the? If it's real life we're talking about yeah sure that I shouldn't buy my way up my career (although some people do that), but this is a game and this ain't real.
If this is introduced, I will probably one of those people who would buy the items using real money. And yeh, I don't care if I'm spending some extra money, it's all in the name of entertainment for me. People who stopped looking these MMO as entertainment should seek help.