The time of purchasing virtual currency for real money (at a reasonable cost) may soon be falling by the wayside, as the Chinese government has declared it illegal. According to a report and story by InformationWeek, the new law is being used to curtail gambling and other illegal online activities.

The Chinese government estimates that trade in virtual currency exceeded several billion yuan last year, a figure that it claims has been growing at a rate of 20% annually. One billion yuan is currently equal to about $146 million.

[...]

The trading of virtual currency for real cash employs hundreds of thousands of people worldwide and generates between $200 million and $1 billion annually, according to a 2008 survey conducted by Richard Heeks at the University of Manchester.

He estimates that between 80% and 85% of gold farmers are based in China.

Brandon: While I don't personally believe this will halt the process of gold farming in games like World of Warcraft, I do see it constricting it. The cost of doing business will rise significantly if players elect to purchase in-game currency for cash. That said, it can easily be argued that the need for extra gold would be completely negligible if it weren't for gold farmers in the first place. Game currency inflation, like in true economy, is a result of this.

I will neither confirm nor deny if this will affect my status of having all crafted and "bind on equip" epic items for my WoW toons the day they reach level 80.

P.S. It will.

Written by :

cakeytaste

 

---

Add this page to your favorite Social Bookmarking websites

Vespasian

Gold Farming in China Banned Jun 30 2009 16:07:59 Aside from concerns about inflation, what keeps the MMO makers from just selling virtual coin themselves?

#11023

cakeytaste

Re: Gold Farming in China Banned Jun 30 2009 17:55:13 My assumption? I would assume there are hundreds of thousands of accounts in World of Warcraft that are used for the purpose of farming gold. Blizzard earns too much revenue to crack down on it or do it themselves. Maybe? Other virtual worlds, like Second life, DO sell their own currency, and a lot of it. I'm not sure what distinction Blizzard and others make from those publishers that do sell currency, truthfully. I know one thing: if it were not for the ability to exchange real money for virtual currency, my stint in MMO's would not ever be as enjoyable.

#11024

Aaron

Re: Gold Farming in China Banned Jul 01 2009 04:38:50 I cried actual tears.

#11027