...of income for more than the games’ developers. The trading of virtual services, items and currency has evolved, and such transactions are now no longer restricted to the game. Players today trade, sell and buy items and in-game currency for real money.
It is now common on websites, such as eBay, to see virtual currency and rare items listed for sale. World of Warcraft provides a prime example of virtual currency selling for real money. Gold 
Farming is a term with which many WoW players are familiar. The farming of gold in World of Warcraft is a practice whereby players collect in-game currency for the sole purpose of selling it for real money. World of Warcraft Gold farming factories have become common in China, and at least 100,000 Chinese citizens, 0.3% of China’s large gaming population, works as a gold farmer in World of Warcraft. Some ‘farmers’ work up to eighteen hours a day or more, generally for less than 100 USD a month.
So how does that affect an average gamer? The trading of virtual services, items and currency can both help and hinder gamers. Purchasing in-game currency and items can help new players advance further and more quickly than they could have without such purchases. It can also be a good shortcut for gamers who do not have as much time to dedicate to World of Warcraft and gaming as they’d like.
The buying and selling of gold can create many disadvantages for ‘genuine’ players, who sweat for many hours, hunched over their keyboard and mouse, leveling up and earning gold the traditional way. Does buying gold in World of Warcraft increase or detract from the level of enjoyment? It depends on your point of view. Having gold allows gamers to purchase better items, but, in my opinion, it is not as satisfying as if you had spent many hours earning that gold. Obtaining gold or rare items without earning them is deemed cheating, and World of Warcraft does not allow in-game virtual services, items or currencies to be traded (although this still occurs). If you are found to sell gold on World of Warcaft your account is banned.
Project Entropia is another perfect example of virtual cash and items being traded for real money. Project Entropia uses Project Entropia Dollars (PEDS), with 10 PEDs equaling one US dollar. For example, a battleaxe currently costs 45 PEDs, or $4.55 USD. In December 2004, an exclusive, virtual ‘Treasure Island’ was auctioned in Project Entropia for a record 265,000 PEDs. This means the buyer paid USD $26,500 for the exclusive island, which contained 60 blocks of land which could be sold, and provided opportunities to sell mining and hunting rights as well. Then in October 2005, a virtual space station in Project Entropia was auctioned and sold for a staggering 1,000,000 PEDs, with the buyer paying USD $100,000 for the virtual space station. The space station was named ‘Club Neverdie,’ after its owner, and opened in April, 2006. So can these two sales in Project Entropia be considered investments? To an extent these can be considered high risk ventures, as there is no guarantee you will gain any revenue from your newly acquired asset, no guarantee the game will remain popular, and no guarantee you’ll ever be able to recoup your investment.
The virtual island sold for USD $26,500 in Project Entropia in December, 2004.
The trading of virtual services, items or currencies dates back to the likes of such games as Ultima Online (1997), but the buying and selling of virtual items for cash has surged in
popularity over the past few years. It makes you wonder if this trend will continue to grow. Will online gaming one day be limited to those willing to splurge real money on virtual items and currencies?
This article, along with many other great editorials, were found in 2old2play issue #5. If you would like to sign up to write editorials or report on past/current gaming events please contact editor@2old2play.com.
