Joystiq http://www.joystiq.com Joystiq http://www.blogsmithmedia.com/http://www.joystiq.com/media/feedlogo.gif Joystiq http://www.joystiq.com en-us Copyright 2013 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Valve economist examines TF2's 'sophisticated' barter system]]>http://www.joystiq.com/2012/06/25/valve-economist-examines-tf2s-sophisticated-barter-system/http://www.joystiq.com/2012/06/25/valve-economist-examines-tf2s-sophisticated-barter-system/http://www.joystiq.com/2012/06/25/valve-economist-examines-tf2s-sophisticated-barter-system/#comments Valve economist publishes first post on TF2's complex barter systemWe're not sure why Valve's economist is concerned with the finances of prestigious Covenant Elites in Halo, but the first publication from Yanis Varoufakis on Valve Economics is about exactly that. Only he spelled "Arbiter" wrong like 20 times.

Oh, he's talking about "Arbitrage," the practice of capitalizing on the price difference between two or more markets, and its place in the Team Fortress 2 economy. That makes more sense, barely, but between the specialized equations and graphs Varoufakis offers some plain insight into the world of digital economies.

For example, Varoufakis calls the TF2 barter economy "peculiarly sophisticated," noting that Steam's support system allows players to side-step the introduction of currency, operating solely on a "double coincidence of wants." This is something that civilizations for centuries have not been able to support for any protracted period of time, and its complexity is the reason we now have money, rather than things to trade with.

The isolated nature of digital economies lends itself to intriguing happenings such as that one, as Varoufakis explains in great detail, we assume because he's thrilled to be able to calculate the exchange rates of laser guns and hats rather than boring old dollars and cents.

JoystiqValve economist examines TF2's 'sophisticated' barter system originally appeared on Joystiq on Mon, 25 Jun 2012 23:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>barterEconomicshatsmacmoneypcSTEAMTeam-Fortress-2valvevalve-economicsyanis-varoufakisMon, 25 Jun 2012 23:00:00 EST<![CDATA[Valve has an economist now]]>http://www.joystiq.com/2012/06/15/valve-has-an-economist-now/http://www.joystiq.com/2012/06/15/valve-has-an-economist-now/http://www.joystiq.com/2012/06/15/valve-has-an-economist-now/#comments Valve now has its own economist yes, reallyEconomist Yanis Varoufakis was analyzing the financial crisis in Europe, focusing on Greece, when he got a proposal seemingly out of nowhere. Valve co-founder Gabe Newell saw similarities between the situation in Europe and Valve's troubles with its own virtual economies (for DOTA 2 and Team Fortress 2, presumably.)

"Here at my company we were discussing an issue of linking economies in two virtual environments (creating a shared currency), and wrestling with some of the thornier problems of balance of payments," Newell said in an email to Varoufakis, "when it occurred to me 'this is Germany and Greece', a thought that wouldn't have occurred to me without having followed your blog. Rather than continuing to run an emulator of you in my head, I thought I'd check to see if we couldn't get the real you interested in what we are doing."

Varoufakis stopped by Valve HQ during a speaking tour and became excited about the possibility of researching a digital, fully recordable economy. "Think of it," he said, "An economy where every action leaves a digital trail, every transaction is recorded; indeed, an economy where we do not need statistics since we have all the data!" And now he's writing a weekly blog called Valve Economics. Unless, of course, he decides to do something else.

JoystiqValve has an economist now originally appeared on Joystiq on Fri, 15 Jun 2012 13:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>dota-2economicseconomistteam-fortress-2valvevalve-economicsyanis-varoufakisFri, 15 Jun 2012 13:30:00 EST<![CDATA[ESA: Games industry responsible for $5 billion of US economy]]>http://www.joystiq.com/2010/08/10/esa-games-industry-responsible-for-5-billion-of-us-economy/http://www.joystiq.com/2010/08/10/esa-games-industry-responsible-for-5-billion-of-us-economy/http://www.joystiq.com/2010/08/10/esa-games-industry-responsible-for-5-billion-of-us-economy/#commentsFiled under: , ,

A study commissioned by the Entertainment Software Association (ESA) found that the video game industry added about $5 billion to the US economy in 2009. The report, "Video Games in the 21st Century: The 2010 Report" [PDF link], claims the industry directly employs about 32,000 people in the States and indirectly employs 120,000 (GameStop employees, video game media, manufacturing and distribution). The average industry employee has an annual compensation of $89,781 -- of course, there's a wide range in that average.

A whopping 41 percent, or 13,041 of industry employees, call California home. Texas and Washington are the next closest, with 3,307 and 2,987 (approximately 10 percent apiece), respectively. The annual growth rate of the industry exceeded 10 percent between 2005 and 2009, which is good -- especially when taking the last few years of bad employment news into account.

JoystiqESA: Games industry responsible for $5 billion of US economy originally appeared on Joystiq on Tue, 10 Aug 2010 14:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>businesseconomicsEntertainment-software-associationESAthe-esaUSAVideo-Games-In-The-21st-CenturyTue, 10 Aug 2010 14:30:00 EST<![CDATA[MSNBC asks analysts if $60 is too steep for games]]>http://www.joystiq.com/2009/02/06/msnbc-asks-analysts-if-60-is-too-steep-for-games/http://www.joystiq.com/2009/02/06/msnbc-asks-analysts-if-60-is-too-steep-for-games/http://www.joystiq.com/2009/02/06/msnbc-asks-analysts-if-60-is-too-steep-for-games/#comments
MSNBC asked several analysts -- but not a single consumer -- if game prices could retain the standard $60 next-gen price point in this worsening economy. So far, despite layoffs across the industry, game sales are up around the globe -- well, mostly. A survey by Frank Magid Associates last spring noted that only 17% of respondents would pay full price for a game at that time, so MSNBC wonders what consumers are thinking now.

Signal Hill analyst Todd Greenwald reiterates his concerns about the $60 price point in the piece and analyst Colin Sebastian states he can already see price cuts accelerating on "second tier and older games." Greenwald expresses that publisher financials depend on that $60 price point -- without it, he believes, we'll see "poor quarterly earnings, layoffs and studio closures." But, wait, isn't that stuff already here?

[Image]

JoystiqMSNBC asks analysts if $60 is too steep for games originally appeared on Joystiq on Fri, 06 Feb 2009 15:46:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>economicseconomyprice-cutpricingrecessionFri, 06 Feb 2009 15:46:00 EST<![CDATA[Reggie: Wii production up; holiday supply might not meet demand ... again]]>http://www.joystiq.com/2008/10/27/reggie-wii-production-up-holiday-supply-might-not-meet-demand/http://www.joystiq.com/2008/10/27/reggie-wii-production-up-holiday-supply-might-not-meet-demand/http://www.joystiq.com/2008/10/27/reggie-wii-production-up-holiday-supply-might-not-meet-demand/#commentsFiled under: ,

So sayeth the immortal Pete Burns, "You spin me right round baby, right now, like a record baby, round, round, round, round." In an interview with Los Angeles Times, Nintendo of America President Reggie Fils-Aime has hinted that, yet again, the supply for the Nintendo Wii might not meet the demand this holiday. The Regginator (a nickname noted in the article) said that production is up 33% over last year, from 1.6 million consoles per month to 2.4 million.

We've talked about Wii shortages once or twice before. "One of our competitors' projects," he said (we're thinking he meant Sony), "they will sell 10 million consoles worldwide this year. For us, that's three months of production." By his numbers, it would actually be closer to four months, but when you're dealing with multiples of infinity all day long, math tends to get a little fuzzy.

We still find it hard to believe that there's still potential shortages after 708 days, but the sales numbers seem to suggest scholars will need to create a new number system for sales calculations.

JoystiqReggie: Wii production up; holiday supply might not meet demand ... again originally appeared on Joystiq on Mon, 27 Oct 2008 13:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>demandeconomicsnintendoreggiereggie-fils-aimeshortagesupplywiiwii-shortageMon, 27 Oct 2008 13:58:00 EST<![CDATA[ESA releases video game economics study]]>http://www.joystiq.com/2007/11/27/esa-releases-video-game-economics-study/http://www.joystiq.com/2007/11/27/esa-releases-video-game-economics-study/http://www.joystiq.com/2007/11/27/esa-releases-video-game-economics-study/#commentsFiled under:

An economic study commissioned by the Entertainment Software Association (ESA) found the industry continues to outpace US economic growth, but is that really that hard these days? The report titled Video Games in the 21st Century: Economic Contributions of the US Entertainment Software Industry found between 2003 - '06 the industry grew 17% annually, while the US economy grew 4%. The shocker in the report is that for the 24,000 individuals employed in the US, the average salary was $92,300 in '06.

There a lot of big numbers with billions attached to them speaking of the industry's economic impact on various states. California is currently the largest employer of industry professionals with 40% of the industry's population and a $1.7 billion contribution to the Cali economy. Of course, Washington state came in second with Microsoft and Nintendo's HQs located there. We're a little more curious about the mode salary rather than the mean. The $92,300 sounds peachy, but we're pretty sure that high-level executives screw up the average. We're guessing the quality assurance ground troops don't eat porterhouse every night and burn Benjamins on the weekends for fun.

JoystiqESA releases video game economics study originally appeared on Joystiq on Tue, 27 Nov 2007 16:15:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>economicsesagallaghermichaelgallaghermikegallagherTue, 27 Nov 2007 16:15:00 EST<![CDATA[President Iwata, economics, and fun with automatic translation]]>http://www.joystiq.com/2007/05/17/president-iwata-economics-and-fun-with-automatic-translation/http://www.joystiq.com/2007/05/17/president-iwata-economics-and-fun-with-automatic-translation/http://www.joystiq.com/2007/05/17/president-iwata-economics-and-fun-with-automatic-translation/#commentsFiled under:

Japanese publicatiion Toyo Keizai recently sat down with President Iwata for five questions about the economics of selling consoles what print money (hand over the proverbial fist, even). Since we're stuck puzzling out squiggles Kanji and scratching our heads over the auto-translation, only to discover that there isn't much meat to the interview at all, we thought we'd bring it to you exactly as we read it:

Toyo Keizai: The DS sure prints money, yeah?
Iwata: Damn yeah it does.

TK: But that's just Japan. How's the overseas market?
Iwata: The overseas market also produces fat stacks of cash, only in different colors and shapes.

TK: You guys are really expanding the market, eh?
Iwata: We had to -- everyone already owned seven DS Lites.

TK: So how about that Wii?
Iwata: It also seems to be printing money. We're very pleased, and also, rich.

TK: Is the hit of DS and Wii probably to mean what?
Iwata: Very to recently, the game was thought that the child it is something which the young man enjoys. The woman, not to mention, to forge how no one where the old people touch to the game machine imagined and, the brain, the expectation which the person whom you think that English study can become the game software, is not.

Oh, uh ... sorry, we were too busy giggling at the Google translation. This is the interesting part of the interview, but we've heard this song before: Nintendo is working to expand the gaming industry beyond the artificial boundaries we've set when it comes to determining just what a game is, and who the audience should be. And we approve; in fact, bring more of it over here! Give us the language trainers and games we can play with Grandma, as well as more traditional 'hardcore' gaming fare.

JoystiqPresident Iwata, economics, and fun with automatic translation originally appeared on Joystiq on Thu, 17 May 2007 17:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>economicsiwatamarketnintendorevenuetoyo keizaiToyoKeizaiwiiThu, 17 May 2007 17:00:00 EST<![CDATA[The new economics of Counter-Strike]]>http://www.joystiq.com/2006/10/12/the-new-economics-of-counter-strike/http://www.joystiq.com/2006/10/12/the-new-economics-of-counter-strike/http://www.joystiq.com/2006/10/12/the-new-economics-of-counter-strike/#commentsFiled under: , ,

In an effort to ensure a more diverse usage of armaments, Valve is implementing a Dynamic Weapon Pricing system into Counter-Strike: Source. Essentially, all guns are divided into two categories: pistols and everything else. Within each category, data is collected from the servers as to how much money is spent on each gun. Every Monday, the price of guns will be adjusted to correlate with its popularity from the previous week -- the higher its demand, the higher its price.

With this system, Counter-Strike users will be able to balance the game through their habits. Players will continue to have a starting bank of $800, but each week will be forced to tweak their strategy in order to accommodate for market trends. The MAC-10, for example, is on a downward trend and the price is falling. As soon as the gun becomes viable for its respective price range, the demand will increase. Eventually, we foresee, an equilibrium will be reached where the change in price from week to week will be marginal.

The projected value of each gun and piece of equipment can be tracked on the DWP market page, where Valve has also provided a more in-depth explanation of their price-adjusting algorithm.

[Via Pro-G]

JoystiqThe new economics of Counter-Strike originally appeared on Joystiq on Thu, 12 Oct 2006 16:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>counter strikeCounterStrikeeconomicsPCsourcesteamvalveThu, 12 Oct 2006 16:00:00 EST<![CDATA[Games sales figures show online is key]]>http://www.joystiq.com/2006/05/25/games-sales-figures-show-online-is-key/http://www.joystiq.com/2006/05/25/games-sales-figures-show-online-is-key/http://www.joystiq.com/2006/05/25/games-sales-figures-show-online-is-key/#commentsFiled under: ,

The NPD Group has released sales figures for 2005, estimating that the US spent $1.4 billion on games last year. An interesting and growing proportion of that income was from online games -- $344 million, about one quarter of the total spending, came from recurring subscription fees.

Breaking that down, NPD estimates about 85% of that recurring income is from specific games like World of Warcraft, whereas the rest -- a non-trivial $52 million -- comes from casual games portals. It's clear from the tremendous amount of money being generated by both games and gaming portals, as well as the popularity of MMOs and casual games, that online is a key area to watch in future.

While digital downloads are only a small part of the picture -- 3% of total market sales -- the area should grow, partly driven by the convenience of buying and delivering online. Of course, paying for a game through monthly subscriptions rather than a one-off box fee is appealing, though players of games like World of Warcraft don't seem to mind doing both.

JoystiqGames sales figures show online is key originally appeared on Joystiq on Thu, 25 May 2006 18:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>business modelBusinessModeleconomicsfiguresgames salesGamesSalesinternetnpdonlinereuterssalesThu, 25 May 2006 18:00:00 EST<![CDATA[Acclaim's MMO strategy examined]]>http://www.joystiq.com/2006/05/24/acclaims-mmo-strategy-examined/http://www.joystiq.com/2006/05/24/acclaims-mmo-strategy-examined/http://www.joystiq.com/2006/05/24/acclaims-mmo-strategy-examined/#commentsFiled under: ,

Next Generation brings us the lowdown from Howard Marks -- CEO of the newly-reopened Acclaim -- on Acclaim's MMO strategy. His plan is to bring Eastern games to the West with no subscriber fee, but instead to make money via in-game ads and micropayments.

Next Gen's feature asks if this will work in a market with no real precedent. By dropping the phrase "free game" and instead focusing on games as a service, Marks intends it to. However, his strategy doesn't come across with a lot of confidence in this article. It'll be interesting to see if Acclaim manage to set a good precedent for an East-to-West business model, and more importantly whether others follow suit.

JoystiqAcclaim's MMO strategy examined originally appeared on Joystiq on Wed, 24 May 2006 11:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>acclaimbotsbusiness modelBusinessModeleast meets westeasternEastMeetsWesteconomicsfreefree gamesFreeGameskoreammopricingwesternWed, 24 May 2006 11:59:00 EST<![CDATA[Cash card taps into virtual funds]]>http://www.joystiq.com/2006/05/02/cash-card-taps-into-virtual-funds/http://www.joystiq.com/2006/05/02/cash-card-taps-into-virtual-funds/http://www.joystiq.com/2006/05/02/cash-card-taps-into-virtual-funds/#commentsFiled under: , , , ,

The MMORPG Project Entropia is known for its economic experiments, with pieces of virtual land being bought for high real-world prices. This latest news breaks the barrier between real and virtual money even further, however; a new cash card will let owners withdraw from their ingame balances using real ATMs.

Some MMOs entirely shun the idea of converting money earned online to real money, but Project Entropia is taking this to the other extreme. The game's economy is built around real-money transfer, so a move like this simply adds a logical ending to the cashflow pipeline, with developer MindArk sitting in the middle profiting from the whole process.

[Thanks, pandlcg]

JoystiqCash card taps into virtual funds originally appeared on Joystiq on Tue, 02 May 2006 19:57:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>economicsexperimentalmoneyPCproject entropiaProjectEntropiareal worldRealWorldrmtsocialvirtual worldsVirtualWorldsTue, 02 May 2006 19:57:00 EST<![CDATA[Mobile market shows signs of stagnation]]>http://www.joystiq.com/2006/05/02/mobile-market-shows-signs-of-stagnation/http://www.joystiq.com/2006/05/02/mobile-market-shows-signs-of-stagnation/http://www.joystiq.com/2006/05/02/mobile-market-shows-signs-of-stagnation/#commentsFiled under: ,

Mobile gaming research firm M:Metrics has published data showing March 2006 from a mobile gamer's perspective. The firm claims that the mobile market is stagnating; the number of mobile gamers is remaining constant month-on-month with only a tiny fraction of mobile phone users (0.5%) downloading their first game in March.

The percentage of phone users who use their handset for downloadable games is low, with the UK standing at 4.7% and the US at 2.7%. Given the millions of mobile phones in the market, that still represents a large number of consumers, many of whom are repeat customers. However, a lack of compelling reasons to buy new titles -- as well as high prices -- are putting consumers off. After all, already-downloaded and preinstalled games fit the interstitial nature of mobile gaming just as well as brand new releases.

JoystiqMobile market shows signs of stagnation originally appeared on Joystiq on Tue, 02 May 2006 16:55:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>casual gamesCasualGamesdownloadable gamesDownloadableGameseconomicsfiguresinterstitialjavamobilemobile gamingMobileGamingngagestatisticsTue, 02 May 2006 16:55:00 EST<![CDATA[MMOs: the near and distant future [Update 1]]]>http://www.joystiq.com/2006/05/01/whats-next-for-mmos/http://www.joystiq.com/2006/05/01/whats-next-for-mmos/http://www.joystiq.com/2006/05/01/whats-next-for-mmos/#commentsFiled under: ,

Academic blog Terra Nova is asking a big and important question -- what does the future of massively multiplayer games hold? Arguing that current games like World of Warcraft are the best the current-gen has to offer, what's around the corner for next-gen MMOs?

A few buzzwords that are floating around the comments thread: middleware; user-created content; no grinding; item-based revenue; user-hosted MMOs; dynamically-changing worlds; non-high-fantasy-themed games; customisation; co-operative control of vehicles; massive-scale MMOs; celebrities; console platforms.

That's a lot of theorising, and a lot of potential for new MMOs. Whether new games get personal with localised, user-hosted mini-worlds, or create their own celebrities with ingame content creation that ties into a large-scale international world, there are some exciting possibilities around the corner.

[Update: reinserted mysterious vanishing end-of-post.]

JoystiqMMOs: the near and distant future [Update 1] originally appeared on Joystiq on Mon, 01 May 2006 23:25:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>academicdevelopmenteconomicsmmommogmmorpgnext generationNextGenerationonlineterra novaTerraNovatheoryMon, 01 May 2006 23:25:00 EST<![CDATA[Mom & Pop plot to screw you out of a PS3... and put food on their table]]>http://www.joystiq.com/2006/04/13/mom-and-pop-plot-to-screw-you-out-of-a-ps3-and-put-food-on-thei/http://www.joystiq.com/2006/04/13/mom-and-pop-plot-to-screw-you-out-of-a-ps3-and-put-food-on-thei/http://www.joystiq.com/2006/04/13/mom-and-pop-plot-to-screw-you-out-of-a-ps3-and-put-food-on-thei/#commentsFiled under: , , , , ,

We despise the bait-and-switch and illegal bundling tricks that some unscrupulous retailers played on gamers who were looking to purchase Xbox 360s last holiday season (Best Buy, we're thinking of you). But should we be even more alarmed by the way in which small games retailers take advantage of temporary shortages to make a killing selling scarce consoles on eBay?

Several weeks ago, I visited a tiny games retailer in my old 'hood of Astoria, NY, just outside of Manhattan. Once I got the clerk talking, he let slip that his boss had eBayed every Xbox 360 he'd received since the system's launch, most of them for 100% over retail price.

"Will you do the same with the PS3s you get?"

"Totally," the clerk responded.

In other words, if the PlayStation 3 is scarce this holiday season, don't expect your local games retailer to save one for you. He'll do the economically rational thing and divert his allotment of consoles to the global marketplace, where they'll fetch a higher price. After all, he's in the business of making money, not running a charity, right?

Rational merchants guided by the invisible hand? Or shady shysters? Is there any solution to this problem?

JoystiqMom & Pop plot to screw you out of a PS3... and put food on their table originally appeared on Joystiq on Thu, 13 Apr 2006 08:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ebayeconomicsplaystation3ps3Wiixbox 360Xbox-360Xbox360Thu, 13 Apr 2006 08:00:00 EST<![CDATA[Alcohol and micropayments mix all too well]]>http://www.joystiq.com/2006/02/27/alcohol-and-micropayments-mix-all-too-well/http://www.joystiq.com/2006/02/27/alcohol-and-micropayments-mix-all-too-well/http://www.joystiq.com/2006/02/27/alcohol-and-micropayments-mix-all-too-well/#commentsFiled under: ,

Micropayments are already flowing freely on Xbox Live and are becoming increasingly popular in MMO circles. However, Opposable Thumbs points out an unfortunate problem with any micropayment-based system that stores your payment details--it's all too easy to buy things when intoxicated.

Of course, this problem extends beyond the realm of gaming, to websites and even real-world transactions. However, the nature of gaming as an entertainment activity means that perhaps enforced self-controls may help those of us whose wallets get looser with liquid.

JoystiqAlcohol and micropayments mix all too well originally appeared on Joystiq on Mon, 27 Feb 2006 17:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>ars technicaArsTechnicacommentaryeconomicsgamer cultureGamerCulturemicropaymentsopposable thumbsOpposableThumbsMon, 27 Feb 2006 17:30:00 EST<![CDATA[More on Majesco's fall from grace]]>http://www.joystiq.com/2006/01/24/more-on-majescos-fall-from-grace/http://www.joystiq.com/2006/01/24/more-on-majescos-fall-from-grace/http://www.joystiq.com/2006/01/24/more-on-majescos-fall-from-grace/#commentsFiled under: , , , ,

CNN are featuring a look at publisher Majesco's problems, after the company's decision last week to withdraw from the premium console market. It's a sad tale of ambition backfiring and promising titles failing to live up to expectations, with a very real impact on the company's revenue and stock.

The CNN article points out that Midway, Atari and Acclaim have all been to the brink of bankruptcy and back, Majesco may still make it through. The company's move towards budget and handheld titles, as well as emerging markets such as casual and downloadable games, seems a wise one--we may even see another Psychonauts in amongst the budget bin.

[Thanks, Ashcrotch]

JoystiqMore on Majesco's fall from grace originally appeared on Joystiq on Tue, 24 Jan 2006 08:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>budget gamingBudgetGamingcnneconomicsfinancialsgames industryGamesIndustrymajescoPCPS2publishersXboxTue, 24 Jan 2006 08:30:00 EST<![CDATA[The history of real money trading in MMOs]]>http://www.joystiq.com/2006/01/14/the-history-of-real-money-trading-in-mmos/http://www.joystiq.com/2006/01/14/the-history-of-real-money-trading-in-mmos/http://www.joystiq.com/2006/01/14/the-history-of-real-money-trading-in-mmos/#commentsFiled under: , ,


There have been some hefty discussions going on recently at WoW Insider concerning buying gold and accounts, and the subject of gold farming's fast becoming a favourite amongst MMO commentators. However, the phenomenon of real money trading (RMT) is not a new one, and Terra Nova have been digging into its history.

An interesting comment is that powerlevelling another character wasn't originally a service done for cash: "Men did it for women in the hope or expectation of some kind of emotional or physical relationship." Nice work if you can get it. According to Richard Bartle and Jessica Mulligan, selling items for money dates back to about 1987, and character sales have been happening since at least 1989. However, both were on a much smaller scale than the items available to purchase through eBay today; the universally-known auction site has certainly helped RMT take off and attain a much higher profile than it had in its early days.

JoystiqThe history of real money trading in MMOs originally appeared on Joystiq on Sat, 14 Jan 2006 13:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>economicsgold farmingGoldFarmingmoneyPCrmtSat, 14 Jan 2006 13:30:00 EST<![CDATA[Does gaming cost too much?]]>http://www.joystiq.com/2006/01/06/does-gaming-cost-too-much/http://www.joystiq.com/2006/01/06/does-gaming-cost-too-much/http://www.joystiq.com/2006/01/06/does-gaming-cost-too-much/#commentsFiled under:

This week's Escapist has a Casual Friday piece concerning the cost of gaming. According to the article, games--as compared to movies--cost too much, providing a barrier to entry that will stop the industry from hitting mainstream. The short shelf-life of games is also a problem: instead of having new, expensive games every six months, why not have cheaper games that are available for longer, just like movies can be bought years after their release?

It's an interesting point, but Jason Smith seems to have entirely overlooked one of the hottest segments of the gaming market at the moment--casual games. Casual games meet all the criteria--they're cheap, there's a low barrier to entry technologically (they're even available on multiple platforms), they're widespread and available for long after their release, especially if they're good. Casual games may well be the key to the mainstream, and yet this article entirely ignores their existence. Nice work.

JoystiqDoes gaming cost too much? originally appeared on Joystiq on Fri, 06 Jan 2006 18:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>economicsescapistgamingFri, 06 Jan 2006 18:30:00 EST<![CDATA[What's holding the 360 back?]]>http://www.joystiq.com/2006/01/03/whats-holding-the-360-back/http://www.joystiq.com/2006/01/03/whats-holding-the-360-back/http://www.joystiq.com/2006/01/03/whats-holding-the-360-back/#commentsFiled under:

Forbes reports that Microsoft has suffered a particularly bumpy ride this last quarter, with analysts spotting a problem with shipments that hasn't yet been addressed:

"It is clear that something disrupted the supply of Xbox 360 shipments in the quarter, and there does not appear to be any end of year catch-up in shipments,"

The estimated number of Xbox 360s shipped so far is around 1.3 million, at 600,000 to 800,000 per month. This puts Microsoft on track for their estimated sales milestones, but why hasn't there been a catch-up with extra shipments going out to satisfy the tremendous demand for the console? Even this long after launch there are still huge shortages, so it's something on the supply side -- not the demand -- that's the problem.

JoystiqWhat's holding the 360 back? originally appeared on Joystiq on Tue, 03 Jan 2006 21:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>economicsforbesxbox 360Xbox360Tue, 03 Jan 2006 21:00:00 EST<![CDATA[Revolution will cost less than $299]]>http://www.joystiq.com/2005/12/30/the-revolution-will-cost-less-than-299/http://www.joystiq.com/2005/12/30/the-revolution-will-cost-less-than-299/http://www.joystiq.com/2005/12/30/the-revolution-will-cost-less-than-299/#commentsFiled under:

The Revolution will cost less than the Xbox 360. That's Satoru Iwata's latest droplet of Revolution-based information, and it'll no doubt help fuel rumours of low-priced launches, although some launch speculation can now be safely laid to rest.

It makes sense for the Revolution to come in at a lower price point than the 360, although we don't know how much the 360 will be selling for once the Revolution is launched--here's hoping the games are cheaper, though.

[via Engadget]

JoystiqRevolution will cost less than $299 originally appeared on Joystiq on Fri, 30 Dec 2005 09:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>economicsjapanpricingrevolutionspeculationWiiFri, 30 Dec 2005 09:00:00 EST<![CDATA[Xbox economics: revisited]]>http://www.joystiq.com/2005/12/24/xbox-economics-revisited/http://www.joystiq.com/2005/12/24/xbox-economics-revisited/http://www.joystiq.com/2005/12/24/xbox-economics-revisited/#commentsFiled under:

Slate's "Everyday Economics" columnist Tim Harford has returned to further discuss the 360 shortage and Microsoft's response to it. His basic query is, "Why doesn't Microsoft raise prices temporarily from the current floor of $300 for a basic console? Why doesn't the company auction them all on eBay, where consoles are currently reselling for $700 and up?" We responded to his original column and apparently weren't the only ones.

The writer's friend, an economics professor at George Mason University, explained, "Very few people really are willing to pay $700 for an Xbox. Contrary to what you might expect, long lines are perfectly consistent with customers who refuse to pay high prices." Harford elaborates on this theory concluding, "The answer may be that it is gamers who are acting irrationally. Very few people resell their consoles despite the high auction prices. Having grabbed a scarce console, gamers only think about using it rather than profiting from its resale. As a result, only a few consoles are up for sale and only the most desperate buyers compete for them. If more people put their consoles up for auction, the price would drop." Sounds like Harford got it right the second time around.

JoystiqXbox economics: revisited originally appeared on Joystiq on Sat, 24 Dec 2005 00:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>EconomicsSat, 24 Dec 2005 00:00:00 EST