everything old is new again

When fantasy collides with reality

May 17, 2004
When fantasy collides with reality

Here’s a fascinating article regarding Everquest:

Things got even more interesting when Castronova learned about the “player auctions.” EverQuest players would sometimes tire of the game, and decide to sell off their characters or virtual possessions at an on-line auction site such as eBay. When Castronova checked the auction sites, he saw that a Belt of the Great Turtle or a Robe of Primordial Waters might fetch forty dollars; powerful characters would go for several hundred or more. And sometimes people would sell off 500,000-fold bags of platinum pieces for as much as $1,000.

As Castronova stared at the auction listings, he recognized with a shock what he was looking at. It was a form of currency trading. Each item had a value in virtual “platinum pieces”; when it was sold on eBay, someone was paying cold hard American cash for it. That meant the platinum piece was worth something in real currency. EverQuest’s economy actually had real-world value.

He began calculating frantically. He gathered data on 616 auctions, observing how much each item sold for in U.S. dollars. When he averaged the results, he was stunned to discover that the EverQuest platinum piece was worth about one cent U.S. — higher than the Japanese yen or the Italian lira. With that information, he could figure out how fast the EverQuest economy was growing. Since players were killing monsters or skinning bunnies every day, they were, in effect, creating wealth. Crunching more numbers, Castronova found that the average player was generating 319 platinum pieces each hour he or she was in the game — the equivalent of $3.42 (U.S.) per hour. “That’s higher than the minimum wage in most countries,” he marvelled.

Then he performed one final analysis: The Gross National Product of EverQuest, measured by how much wealth all the players together created in a single year inside the game. It turned out to be $2,266 U.S. per capita. By World Bank rankings, that made EverQuest richer than India, Bulgaria, or China, and nearly as wealthy as Russia.

It was the seventy-seventh richest country in the world. And it didn’t even exist.

Considering the amount of money I raised when I played Federation II and Gemstone III, I’m not surprised.

Hmm. I have an idea on how to move to paradise: it doesn’t cost much to live in, say, St. Lucia…

Oh, honey? . . .

Via Doyce.

One Response to When fantasy collides with reality

  • What’s not to believe when people can sell literally ‘nothing’ or even an ‘air guitar’

    P.T. Barnum is wrongly quoted as saying, “there’s a sucker born every minute”. Regardless of whether he had said this or not, this statistic is seriousily underestimated. 🙂