Virtual sales presentation

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virtual sales presentation

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In practice, this results in constantly rising prices for traded commodities. With the proper balance of growth in player base, currency sources, and sinks, a virtual economy could remain stable indefinitely. As in the real world, actions by players can destabilize the economy. Gold farming creates resources within the game more rapidly than usual, exacerbating inflation. In extreme cases, a cracker may be able to exploit the system and create a large amount of money. This could result in hyperinflation.

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Virtual possessions valued in the tens of thousands of usd have been destroyed or plundered through corporate espionage and piracy. This has resulted in widespread retributive warfare and crime between various player corporations. Black market edit many mmorpgs such as RuneScape, world of Warcraft, guild Wars, warhammer Online, lord of the rings Online and Final Fantasy xi strictly prohibit buying gold, items, or any other product linked with the game, with real world cash. RuneScape went as far as making this practice impossible by removing unbalanced trades and their traditional player. Player fighting system (this was scrapped on February 1, 2011 after having been in place for 3 years resulting in over 60,000 cancelled subscriptions in protest. 24 Final Fantasy xi and Warhammer Online both have entire task forces dedicated to the removal of real money trading from the game. To control real money trading, eve online created an official and sanctioned method to convert real world cash to in-game currency; players can love use real world money to buy a specific in-game item which can be redeemed for account subscription time or traded on the. Stability edit main article: Mudflation For a persistent world to maintain a stable economy, a balance must be struck between currency sources and sinks. Generally, games possess numerous sources of new currency for players to earn. However, some possess no effective "sinks or methods of removing currency from circulation. If other factors remain constant, greater currency supply weakens the buying power of a given amount; a process known as inflation.

In south Korea, where the number of video game players is massive, some who? have reported the emergence of gangs and mafia, where powerful players would threaten beginners to give money for their "protection and actually steal and rob. Citation needed Other similar problems arise in other virtual economies. In the game The sims Online, a 17-year-old boy going by the in-game name "Evangeline" was discovered to have built a cyber- brothel, where customers would pay sim-money for minutes of cybersex. Maxis canceled each of his accounts, but had he deposited his fortune in the gaming Open Market he would have been able to keep a part. 21 22 A 2007 virtual heist has led to calls from some community members in Second Life to bring in external regulation of these markets: "In late july, a perpetrator with privileged information cracked a stock exchange's computers, made false deposits, then ran off bill with. This heist left investors feeling outraged and vulnerable." 23 In eve online however, theft and scamming other players is perfectly allowed within the game's framework as long as no real world trading is committed. Players are allowed to loot all items from fallen victims in battle, but there is a disincentive in the form of npc police intervention in higher-security space.

virtual sales presentation

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This is why gamers and companies engaged in this conversion, where it is permitted by a game, may fall under gambling legislation. During an interview with Virtual World News, alex Chapman of the British law firm Campbell hooper stated: "Now weve spoken with the gambling commission, and theyve said that mmogs arent the reason for the gambling Act 2005, but they wont say outright, and weve asked. You can see how these would be ignored at first, but very soon they could be in trouble. Its a risk, but a very easy risk to avoid." 20 he suggested that compliance might require mmogs and related traders to obtain a gambling license, which is not excessively difficult in the. When queried about games where real-world transactions for in-game assets are not permitted, but there is an 'unofficial secondary market Chapman responded: "Ultimately the point is whether the thing that you win has value in money or moneys worth. If it does have engelsk value, it could be gambling." 20 so to avoid regulation by these laws, the "operator would need to take reasonable steps to ensure that the rewards they give do not have a monetary value 20 possibly resume by demonstrating enforcement of their. Virtual crime edit main article: Virtual crime monetary issues can give a virtual world problems similar to those in the real world.

Taxation edit most scholars agree that the sale of virtual property for real currency or assets is taxable. However, there are significant legal and practical challenges to the taxation of income from the sale of virtual property. 16 For example, uncertainty regarding the nature and conceptual location of virtual property makes it difficult to collect and apportion tax revenue when a sale occurs across multiple jurisdictions. 17 In addition to taxing income from transactions involving real currency or assets, there has been considerable discussion involving the taxation of transactions that take place entirely within a virtual economy. 15 18 Theoretically, virtual world transactions could be treated as a form of barter, thus generating taxable income. 14 However, for policy reasons, many commentators support some form of a "cash out" rule that would prevent in-game transactions from generating tax liabilities. 13 nevertheless, as one commentator notes, "the easier it is to buy real goods with virtual currency (e.g. Order a real life pizza) the more likely the irs will see exclusively in-world profits as taxable." 19 Gambling regulation edit conversion between in-game and real-world currency has led to direct comparisons with other online games of chance as 'virtual winnings'.

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Recent developments edit more controlled markets edit One-way currency edit further information: Virtual currency An example of a much more controlled market is World of Tanks ' "gold a virtual currency which is only available from the vendor itself and typically only for cash payment. This has become a model full for other freemium games. It does not allow for any vending of game goods or capabilities without the permission and direct participation and control of the game server/operator/vendor. In this model, players are strictly forbidden from employing means or methods of maximizing gold availability (for instance bonuses for new accounts which are then shared). They can gift gold to each other but cannot solicit or ask for.

Gold sharing among game guilds is common and encouraged, but not among players who don't know each other for specific benefits. For instance, vehicles cannot be bought and sold within the game except to the server, for a fixed price ratio (selling earns back half the price paid). Price comparison edit Information brokerages and other tools that aid in the valuation of virtual items on secondary markets have increased in number. This has occurred as a response to alleviate the labor involved in leveling that requires hours, days or weeks to achieve. Being able to exchange real money for virtual currency provides the player purchasing power for virtual commodities. As such, players are guaranteed opportunities, increased skills and a fine reputation, which is a definite advantage over others.

In spite of numerous famed examples of the economic growth of Second Life an amateur analyst in 2008 estimated the income inequity in Second Life's economy as worse than has ever been recorded in any real economy: a gini coefficient.2, a hoover index. Citation needed however, the application of these economic measures to a virtual world may be inappropriate where poverty is merely virtual and there is a direct relationship between in-game wealth and time spent playing. The global secondary market - defined as real money trading between players - turnover was estimated at 880 million dollars in 2005 by the president of the, at the time, market leading company ige. 8 Before that, in 2004, the American economist Edward Castronova had estimated the turnover at over 100 million dollars based solely on sales figures from the two auction sites ebay and the korean itemBay. 9 A speculative extrapolation based on these"s and other industry figures produced a global turnover figure of 2 billion dollars as of 2007. 10 However, the secondary market is unlikely to have followed the growth of the primary market since 2007 seeing as game companies have become better at monetizing on their games with microtransactions and many popular games such as World of Warcraft are sporting increased measures.

Also hampering the turnover growth are the extreme price drops that has followed the increased competition from businesses in mainland China targeting the global secondary market. Furthermore, the global decline in consumption that followed the financial crisis of would have affected the secondary market negatively as well. Post 2007 secondary market growth is likely localized to emerging markets such as Russia, eastern Europe, south America, and south East Asia - all of which are relatively inaccessible to international merchants due to payment systems, advertisement channels and language barrier. For example, south Korea is estimated to have the biggest share of the global real money trading market and it has there become an officially acknowledged and taxable part of the economy. 11 In western countries the secondary market remains a black market with little to no social acceptance or official acknowledgement. As for an actual economic model, secondary market turnover in popular player vs player oriented mmorpgs without trade restrictions such as Runescape, eve online and Ultima Online has been estimated at around.1 dollar per concurrent player and day. 12 no model for more regulated mmorpgs such as World of Warcraft has been suggested. However, being a largely unregulated market and tax free market, any turnover figure or economic model remain speculative.

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3 4 This lucrative market has opened a whole new type of economy where the hibernation border between the real and the virtual is obscure. Hundreds of companies are enormously successful in this new found market, with some virtual items being sold for hundreds or even thousands of dollars. Some of these companies sell multiple virtual goods for multiple games, and others sell services for single games. Virtual real estate is earning real world money, with people like 43-year-old Wonder Bread deliveryman, john Dugger, purchasing a virtual real estate for 750, setting him back more than a weeks wages. 6 This virtual property includes nine rooms, three stories, rooftop patio, wall of solid stonework in a prime location, nestled at the foot of a quiet coastal hillside. Dugger represents a group of gamers that are not in the market for a real house but instead to own a small piece of the vast computer database that was Ultima Online, the mythical world in which the venerable mmo ultima Online unfolds. Such trading of real money for virtual goods simply represents the development of virtual economies where people come together where the real and the synthetic worlds are meeting within an economic sphere. 7 Although virtual markets may represent a growth area, it is unclear to what extent they can scale to supporting large numbers of businesses, due to the inherent substitutability of goods on these markets plus the lack of factors such as location to dispense demand.

virtual sales presentation

These emergent economies are considered by most players to be an asset of the game, giving an extra dimension of reality to play. In classical synthetic economies, these goods were charged only for in-game currencies. These currencies are often sold for real world profit. Marketplace edit The release of Blizzard Entertainment 's World of Warcraft in 2004 and its subsequent huge success across the globe has forced both mmorpgs and their secondary markets into mainstream consciousness, and many new market places have opened up during this time. A search for wow gold on google will show a multitude of sites (more than 90 sponsored results as of June 2006) from which Gold can be purchased. Real money commerce in a virtual market has grown to become a multibillion-dollar industry. In 2001, everQuest players Brock pierce and Alan Debonneville founded Internet Gaming Entertainment Ltd ( ige ), golf a company that offered not only the virtual commodities in exchange for real money but also provided professional customer service. Ige had a trained staff that would handle financial issues, customer inquiries and technical support to ensure that gamers are satisfied with each real money purchase. It also took advantage of the global reach of synthetic worlds by setting up a shop in Hong Kong where a small army of technically savvy but low wage workers could field orders, load up avatars, retrieve store goods and deliver them wherever necessary.

according to a person's ability to use it for creating or experiencing some effect. Secondary markets : Virtual resources may be created, traded, bought, and sold. Real-world assets (typically money) may be at stake. Value added by users : Users may enhance the value of virtual resources by customizing and improving upon the resource. The existence of these conditions create an economic system with properties similar to those seen in contemporary economies. Therefore, economic theory can often be used to study these virtual worlds. Within the virtual worlds they inhabit, synthetic economies allow in-game items to be priced according to supply and demand rather than by the developer's estimate of the item's utility.

Second Life 's recognition of intellectual property rights for assets created "in-world" by subscribers, and its laissez-faire policy on the dillard buying and selling of Linden Dollars (the world's official currency) for real money on third party websites. Citation needed, virtual economies can also exist in browser-based Internet games where "real" money can be spent and user-created shops opened, or as a kind of emergent gameplay. Virtual property is a label that can refer to any resource that is controlled by the powers-that-be, including virtual objects, avatars, or user accounts. 1, the following characteristics may be found in virtual resources in mimicry of tangible property. Note however that it is possible for virtual resources to lack one or more of these characteristics, and they should be interpreted with reasonable flexibility. 2, rivalry : Possession of a resource is limited to one person or a small number of persons within the virtual world's game mechanics. Persistence : Virtual resources persist across user sessions.

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A virtual economy (or sometimes synthetic economy ) is an emergent economy existing in a virtual world, usually exchanging virtual goods in the context of an, internet game. People enter these virtual economies for recreation and entertainment rather than necessity, which means that virtual economies lack the aspects of a real economy that are not considered to healthy be "fun" (for instance, avatars in a virtual economy often do not need to buy food. However, some people do interact with virtual economies for "real" economic benefit. Despite primarily dealing with in-game currencies, this term also encompasses the selling of virtual currency for real money. Overview edit, virtual economies are observed in, mUDs and massively multi player online role-playing games (mmorpgs). The largest virtual economies are found in mmorpgs. Virtual economies also exist in life simulation games which may have taken the most radical steps toward linking a virtual economy with the real world. This can be seen, for example,.

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