MMOG currency, or in-game gold. What is it and how can you buy it?

Digital currency has become a usual phenomenon for many of us today. We use electronic money to make payments for goods and services on the Internet and besides some people can even pay their taxes online. But while digital currency directly participates in the economic activity of the society we can also encounter a type of virtual currency that is of rather entertainment character than of economic. Perhaps you may be one of those who have never heard of MMOG currency but for a great number of massively multiplayer online game fans it is “means of subsistence” in the world of virtual reality. This currency cannot be used to purchase a shirt on eBay or to book a ticket to Tokyo. Actually it has no real value. But there are websites on the Internet that make significant profits on selling this kind of “money” to others.

Secondary markets of MMOG currency

Massively multiplayer online game virtual currency is a part of virtual economy which in turn exists in the context of an Internet game where people come to have fun and recreate. Real money commerce in a virtual world has grown to become a multi billion industry with a great number of players who want to skip days and months of earning points and game coins and instead to buy ready user accounts or a portion of gold needed to pay for items to achieve a definite level in the game.

MMOGs are extremely popular with the players due to their immersive design and tools allowing them to create and participate in the virtual realities. As players create, trade, buy and sell their assets within games a real money commerce naturally follows as a consequence. Having assigned real value to the virtual currency and other assets, players created a secondary market for MMOGs.

The release of Blizzards' World of Warcraft in 2004 and its subsequent huge success across the globe has forced both MMOG and their secondary markets into mainstream consciousness, and many new market places have opened up during this time. A quick search for WoW Gold on Google will show a multitude of sites (90+ sponsored results as of June 2006) from which Gold can be purchased.

Law aspect

Inasmuch as players are ascribing real money value to virtual game assets and thus those parties who sell MMOG items earn real revenue the industry started attracting attention of government and taxation agencies.

Earlier in January 2009 Washington Post and other papers reported that IRS has plans to closely watch on the millions of small firms along with individuals making profits on virtual economies. Taxpayer advocate Nina Olson in her annual report told the IRS that it should "proactively address emerging issues such as those arising from virtual worlds." Her report said that about $1 billion in real dollars changed hands in computer-based environments during 2005. Additionally, more than 16 million people are said to have active subscriptions in these worlds, "many of which have their own virtual economies and currencies."

Still earlier in 2006 Korean government was reported as proposing a bill named “Amendment for Game Industry Promoting Law” for prohibiting acts of exchanging in-game money to real money. Under the statutes of the bill anyone cannot do his/her business for ‘exchanging’ or ‘mediating’ exchanges of, and 'repurchasing' outcomes of games by real money. The 'outcomes' mentioned include in-game money and all kinds of in-game points.

But authorities were not the first to notice the power and influence of the secondary markets. To maximize gains and earn items of value that can further be sold to a game fans firms and individuals who deal in virtual currency business practice gold farming which is an MMOG activity in which a player attempts to acquire ("farm") items of value which are sold to create stocks of in-game currency ("gold"), usually by exploiting repetitive elements of the game's mechanics. This is usually accomplished by carrying out in-game actions (such as killing an important creature) repeatedly to maximize gains, sometimes by using a program such as a bot or automatic clicker.

Such actions often lead to destabilizing game economies. Gold farming creates currency within the game more rapidly than usual, exacerbating inflation. In extreme cases, a hacker may be able to hack into the system and create a large amount of money. This could result in hyperinflation. Besides when players can buy gold with real-world cash a concentration of wealth occurs where more of the wealth is controlled by fewer players who can afford it.

In response to on-going customer complaints World of Warcraft has recently banned in-game advertisements for gold farming, as well as applying a patch to minimize in-game spam. Blizzard has now also taking legal action actively pursuing cases in court to those who do, and has been banning large numbers of accounts for farming virtual items for exchange with real world money.

Some MMOs also take action against the buyers of farmed goods, with varying measures being taken. Members of the Eve Online GM team have expressed a preference to simply remove any purchased game currency from the buyer.

MMOG currency research

Today many services appear on the web that offer tools to compare prices of the virtual economy secondary market. Players can come to the dedicated sites where they will find the latest information about the prices of MMOG currency or other virtual items of value at numerous exchangers. The automatic systems of these currency research sites allow users to see both the cheapest and the safest sites.

Eye On MOGS was the first site to tackle comparison of virtual currency sellers. They offer the opportunity to convert real life earnings into virtual gold, platinum, ISK or Credits, depending on one's inhabited virtual world. Another notable entry was GamerPrice, which deployed bots offering real-time price results.

Others include Gilfinder.com, BuddyPlayer, Gold Price Watcher, GameUSD and WoW Gold Seeker.

IGE

As the industry of exchanging virtual game gold for real money proved successful and which is more it turned profitable EverQuest players Brock Pierce and Alan Debonneville founded Internet Gaming Entertainment Ltd (IGE), a company that offered not only the virtual commodities in exchange for real money but also provided professional customer service.

IGE is one of the largest MMOG services companies, with offices in Los Angeles, Miami, and China. IGE is a leading player in virtual economy services, also known in the MMOG industry as secondary market. One source notes: “IGE is one of the biggest fish in the secondary gold market. In fact, IGE has been on a buying spree. It is acquiring the competition and creating a virtual monopoly in this market.” Members of the gaming community are often critical of IGE, as its services may allow players to break the rules of online games.

Pierce was also the co-founder of the controversial failed dot-com Digital Entertainment Network. Media reports claim that Marc Collins-Rector is a silent partner in IGE. IGE initially used an address in the city of Marbella, Spain, where Collins-Rector, Shackely, and Pierce shared a villa until it was raided by Interpol in 2002.

Being a major in-game currency seller IGE makes most of its revenues on selling the World of Warcraft gold. But since 2006 its website traffic along with its revenue has been allegedly declining as a result of strong competition on the part of in-game currency sellers based in China and the incessant actions undertaken by Blizzard to prevent real money trading. But this seems to serve just as a red herring.

On its official website the company states: “IGE takes the role of advocate, steward and community member seriously. Building on relationships with publishers and players alike, IGE advocates healthy, secure and responsible secondary market practices. IGE does not farm or use bots or macros of any kind to create or collect virtual assets. IGE leverages its market presence and distribution power to avoid practices that have a negative impact on game play.”

Besides IGE president Steve Salyer also said: "We don't farm assets, nor do we endorse any type of cheating or abusive farming practices. IGE is leading the way in efforts to help prevent these abuses. We spend a lot of time speaking with sellers and educating people involved in the secondary market. IGE is against abusive farming practices wherever they are taking place."

Meantime, Bob Kiblinger of UOTreasures points to the fact that the company has customer service in Hong Kong with its employees working for sweatshop wages. But IGE explains it this way: "The reason we have customer service in Hong Kong is because it's the gateway to Asia, and our customer service reps earn a fair salary in relation to the profession in that country."

One author ironically noted: “This is the same rationale for major companies shipping their customer service desks to India.”

While the company really does not farm gold itself it still buys from farmers who could use exploits. One industry player says that whoever supplies IGE controls the market.

"IGE looks the other way when you give them currency. They don't care where it came from even if you tell them you duped it,” he adds. Known as Smooth Criminal this person is a partner in one of the largest sellers of MMORPG gold. He alleged that IGE helped him hide the illegal credits. "They had to keep moving [Star Wars Galaxies] credits around from account to account to avoid the credit trail (i.e., duped credits) because we told them they were duped."

Duped or not currency on IGE is quite liquid as “they are the most well known, and so [stuff] sells fast,” notes Smooth Criminal. He says that sales are good because resellers can track profits in real time. Besides, most currency research and comparison sites recommend IGE as a reliable and reputed seller of MMOG virtual currency.

When it comes to IGE prices there is no univocal estimate that allows you to say that they are the best or the worst. It is a comparison with other sellers which enables gamers to determine if the price suits them or not.

According to the data provided by the MMObux, IGE is the cheapest seller of EverQuest Platinum currency while prices for WoW Gold are lower with 14 other sellers than with IGE.

Prices on the site are updated constantly that is why it is unreasonable to cite any figures here. You’d better look up in the price lists yourselves.

To place an order for services with IGE you need:

1. Select the game in which you want to buy virtual currency. Next, select the specific server on which the character to whom you want the currency delivered is located. Next, select the correct faction (if applicable).

2. Choose the quantity of currency you wish to buy and click on the “Add to Cart” button located next to the quantity of currency you wish to purchase.

3. Once you are done shopping (meaning you have added all of the items you wish to purchase to the cart), click the “Proceed to Checkout” link located in the shopping cart window. If you wish to make any changes to your order, click on “Edit Cart”. (Both of which can be found at the top right portion of the page).

4. After completing the information page, check the 'I accept the terms and conditions' box and then click the “Check Out” button located at the bottom of the page.

5. You will now be forwarded to the payment page. Now you need to fill out all fields in the forms provided. When you have completed providing all of the necessary information, you must click on the “Pay Now!” button located at the bottom of the screen.

Once the order process is completed and IGE receives its payment the seller starts servicing the order. If a user is playing the game his/her order will be delivered to him/her face to face. If the user if not online the order will be sent to his/her in-game mailbox. As soon as delivery has been made, a confirmation e-mail will be sent to the contact address provided.

As IGE says delivery is dependent on such things as supply and demand. Besides, it is also influenced by any problems with the order information provided (such as wrong server name /character name), and customer availability in those games that require face-to-face delivery. IGE specifies no detailed terms and instead it only says: “We do everything possible to resolve issues quickly and to fulfill your order in the fastest possible time.”

MMOG currency is not all about fun

While buying the virtual in-game currency at the amounts you which may be fascinating and convenient you it is not as enjoyable and exciting for those who farm these gold or items for the sale. Usually companies use cheap labor for farming in-game gold. Though such giants as IGE make millions on trading MMOG virtual currency people who work for them earn on average $150 a month. Still most of employees in such sweatshops do not mind their job, because it looks much better to them than deep poverty outside in their countries. Smooth Criminal says: "They get paid dirt. But dirt is good where they live."