Pixels and Policy

How Can Developers Combat Secondary Loot Markets?

The California Gold Rush of 1849 flooded the West with prospectors chasing dazzling riches.

It also created a boom market for general stores, taverns, brothels, and government where previously there had been only desert.

If the current boom in the profitability of virtual worlds is any indication, we may be seeing a Gold Rush for by 21st Century standards.

Pixels and Policy investigates how virtual goods dealers are growing rich supplying busy gamers with the rarest in-world items and weapons, and why this stands to change the future of gaming and commerce.

Investment in the Virtual Goods Market Triples in Size Over 2008 Figures

We kicked off 2010 with our report on how the virtual goods market - the virtual farm seeds and dragon-slaying armor you buy with real currency - could hit $5 billion in just under five years. But how has the virtual goods market grown over the past year, and is it an indicator of future trends?

Pixels and Policy takes a look at how the market for swords, armor and Farmville equipment exploded over 2008 and 2009, and why 2010 looks great for the continued expansion of virtual commerce.

Manual Labor in Virtual Worlds: How Fair Are In-Game Auction Houses?

One of the most frustrating times in an MMORPG player's digital life is "grinding" for experience to attain a game's highest levels. This often entails killing hundreds - if not thousands - of enemies over the course of days and weeks to obtain a small advance in the character's level and vital statistics.

But what happens when in-world auction houses like those in World of Warcraft, EVE Online and other games allow time-strapped players to contract out portions of quests to be completed by others in exchange for money?

Pixels and Policy looks at some interesting emerging research on the subject.

South Korea's Supreme Court Decriminalizes Real Money Transactions in Online Games

As many unlucky MMORPG players can attest, most subscription-based online games come down hard on players caught purchasing in-game currencies with real money. World of Warcraft bans players caught buying game gold, and and Everquest does much the same.

Now a new legal decision by South Korea's Supreme Court could be changing the balance of power decisively in favor of consumers.

Pixels and Policy investigates.

How Much is the Virtual Economy Worth? Try $5 Billion.

The BBC has an interesting report up that puts the virtual economy's banner $30 million in virtual holiday sales into perspective: Within five years, the virtual economy of the United States alone could be worth a staggering $5 billion.

Pixels and Policy takes a look at how the virtual economy is set to expand through 2015, and what this means for real-world business.