Gold Farming Study

A colleague and fellow Dallas IGDA board member, Myke Sanders, recently forwarded me a data analysis he did on the habits of players who purchase gold from gold farmers. It’s a really fascinating bit of data, one that may give developers some revised perspective on how to combat the gold farming issue while continuing to avoid micro-transactions, implementing real money auctions, and/or monetizing the currency. While this isn’t an overly legal issue, I still wanted to take an opportunity to comment on the findings. The full piece is available here (PDF).

Myke notes two specific spikes on each graph: There were spikes at single and highly repetitive (12) transactions within the 90 day window of the study. There was also a large spike of people making high value transactions. I would be interested to see a correlated data set of these two, but based on Myke’s analysis, there were basically two groups of people: those buying a huge amount of gold once in 90 days, and those who bought almost weekly but for a much smaller sum. He reasons that the first group might be making purchases for a single, say, epic mount or piece of equipment while others might be buying to supply a weekly raid. He goes on to theorize that a loan system might satisfy the former while non-transferable buffs that are a better alternative to disposable equipment might satisfy the latter.

In general, I would tend to agree. It’s almost surprising there hasn’t been a ‘Bank of WarCraft’ to date, though I would have to say that it would need to be operated by Blizzard rather than by players (i.e. virtual loan sharks). Of course, Blizzard may need to employ an economist to at least design the system such that we don’t end up with an financial meltdown in Azeroth. It would be very easy to over saturate the market with a virtual currency, which would lead to inflation and thereby throw off the balance of the game between the bank and random drops. It would also be interesting if you could actually earn interest on gold deposits. Another alternative might be a virtual credit market, but that gets even more complex. I guess the real questions is whether players want their virtual world to mimic the real world more or not.

The solution for the second group tends to be a little more complex, as it would take likely a pretty good revision to the overall mechanics of the game to get the kinds of buffs being proposed, or at least a major change to the game as it’s currently available. Granted, this is not impossible, but I imagine the sudden change in strategy might not go over well with many players (a la the New Game Enhancements in Star Wars Galaxies) and may be better suited as an approach for developers of future games.

As a side note, it will be interesting to see if developers take advantage of the wide latitude granted by the Glider decision in order to go after gold farmers in a similar manner. The recent DMCA applications won’t apply, but it is a similar inducement to break the EULA/TOS of most games.

I certainly hope that this will be the first of many studies into actual buying habits of those who utilize the services of gold farmers and even virtual commodity salespeople. While there has been plenty of anecdotal evidence over the years, only actual data like this will provide enough information to actually combat the problem, if your game is designed to avoid such outside monetary influences, by changing certain game design elements to be more in line with the way people want to play. Similarly, if you’re looking to start a game that encourages monetization of one sort or another, this is likely a good source of information for your design decisions as well.

Disclaimer
The content of this blog is not legal advice.
It only constitutes commentary on legal issues,
and is for educational and informational purposes only.
Reading this blog, replying to its posts, or any other
interaction on this site does not create an
attorney-client privilege between you and the author.
The opinions expressed on this site are the opinions of the author only and not of any other person or entity.

LGJ: Jack Thompson’s Utah ‘game bill’

The latest LGJ is a more in-depth look at the bill Jack Thompson was behind in Utah and some of its major flaws.

Read on!

In the period of time between my writing that piece and its publication, GamePolitics has published another commentary on the issue. While I don’t necessarily disagree with the intent theory posed there, I believe the state would argue (and I’m certain Jack would argue) that by showing a pattern of ‘mistakes’ based on a series of stings, that the retailer has no intent to follow through on their advertised policy. In the alternative, I could see the argument being made that while most false advertising is a specific intent offense, this type of goodwill based advertising is not given that it’s not targeted to a specific event or sale but rather to artificially boost the store’s reputation at large. I do think the noted ‘fallacy’ of tying the advertising to subsequent conduct isn’t a fallacy insomuch as it is valid if the court wanted to accept this offense as one of strict liability, which is what it appears the goal of the provision is. This also completely invalidates the concept of intent, as strict liability requires no intent only that the conduct occurred. It would be an interesting new realm, as this would be a sort of self imposed strict liability in that it only applies to the extent the seller represents that they act in this manner.

Regardless of the outcomes of the attempts to invalidate the statute legally, my main objective in my column was to demonstrate the fact that from a practical standpoint, the statute can be completely avoided without much difficulty.

Disclaimer
The content of this blog is not legal advice.
It only constitutes commentary on legal issues,
and is for educational and informational purposes only.
Reading this blog, replying to its posts, or any other
interaction on this site does not create an
attorney-client privilege between you and the author.
The opinions expressed on this site are the opinions of the author only and not of any other person or entity.

Speaking at Dallas IGDA Panel: “START-UPS: ARE THEY WORTH IT?”

Just a note for my Dallas-Ft. Worth area readers:

I will be on the Dallas IGDA panel “START-UPS: ARE THEY WORTH IT?” this coming Wednesday, February 11. The event is at 7 pm at the DeVry campus in Richardson. If you’re a Dallas IGDA member, an IGDA member, or just interested in the topic (and possibly becoming an IGDA member), come out an join us.

More information can be found here.

Disclaimer
The content of this blog is not legal advice.
It only constitutes commentary on legal issues,
and is for educational and informational purposes only.
Reading this blog, replying to its posts, or any other
interaction on this site does not create an
attorney-client privilege between you and the author.
The opinions expressed on this site are the opinions of the author only and not of any other person or entity.

LGJ: More game laws?

This week’s LGJ is a survey of a number of proposed game laws, including a new proposal from Jack Thompson.

Read on!

Disclaimer
The content of this blog is not legal advice.
It only constitutes commentary on legal issues,
and is for educational and informational purposes only.
Reading this blog, replying to its posts, or any other
interaction on this site does not create an
attorney-client privilege between you and the author.
The opinions expressed on this site are the opinions of the author only and not of any other person or entity.

LGJ: FTC could target EULAs

This week’s LGJ focuses on the FTC potentially targeting the EULA.


Read on!

Disclaimer
The content of this blog is not legal advice.
It only constitutes commentary on legal issues,
and is for educational and informational purposes only.
Reading this blog, replying to its posts, or any other
interaction on this site does not create an
attorney-client privilege between you and the author.
The opinions expressed on this site are the opinions of the author only and not of any other person or entity.

LGJ: Virtual Taxation

This week’s LGJ revisits the always popular topic of taxing virtual worlds.

Read on!

Disclaimer
The content of this blog is not legal advice.
It only constitutes commentary on legal issues,
and is for educational and informational purposes only.
Reading this blog, replying to its posts, or any other
interaction on this site does not create an
attorney-client privilege between you and the author.
The opinions expressed on this site are the opinions of the author only and not of any other person or entity.

LGJ: Pirates are grumpy, underutilized customers?

As the first LGJ that’s been ‘on site’ from a conference, this week’s column makes some commentary on a statement Jason Holtman, Director of Business Development / Legal Affairs for Valve, made at the Game::Business::Law Conference:

Most pirates are grumpy, underutilized customers.

Read on!

Disclaimer
The content of this blog is not legal advice.
It only constitutes commentary on legal issues,
and is for educational and informational purposes only.
Reading this blog, replying to its posts, or any other
interaction on this site does not create an
attorney-client privilege between you and the author.
The opinions expressed on this site are the opinions of the author only and not of any other person or entity.

LGJ: Here Comes the FTC

This week’s LGJ focuses on the announcement that the FTC is considering consumer protection related to digital rights management and what that could mean for consumers and developers.

Read on!

Disclaimer
The content of this blog is not legal advice.
It only constitutes commentary on legal issues,
and is for educational and informational purposes only.
Reading this blog, replying to its posts, or any other
interaction on this site does not create an
attorney-client privilege between you and the author.
The opinions expressed on this site are the opinions of the author only and not of any other person or entity.

Speaking at Game::Business::Law Conference

There has been a slight change in the speaker line up for the Game::Business::Law Conference within the past 24 hours or so. I will now be participating in Panel V on Thursday, January 15, at 1:15 pm.

Anyone in the Dallas area should consider attending, and registration is still available online for the bargain rate of $200 for the general public and $75 for students.

Please feel free to come say hello if you are in attendance at the conference.

Disclaimer
The content of this blog is not legal advice.
It only constitutes commentary on legal issues,
and is for educational and informational purposes only.
Reading this blog, replying to its posts, or any other
interaction on this site does not create an
attorney-client privilege between you and the author.
The opinions expressed on this site are the opinions of the author only and not of any other person or entity.

LGJ: Wrath of the Discrimination King

In the most recent LGJ, I apply law to the allegations discrimination against World of Warcraft players.

Read on!

Disclaimer
The content of this blog is not legal advice.
It only constitutes commentary on legal issues,
and is for educational and informational purposes only.
Reading this blog, replying to its posts, or any other
interaction on this site does not create an
attorney-client privilege between you and the author.
The opinions expressed on this site are the opinions of the author only and not of any other person or entity.