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RickSp · Dec 9, 2005, 12:57 pm

Why bother playing video games when for a reasonable fee you can pay for a poor exploited Chinese factory worker to play for you? Where technology, international markets and video game slackers converge.

Ogre to Slay? Outsource It to Chinese

Quote:

From Seoul to San Francisco, affluent online gamers who lack the time and patience to work their way up to the higher levels of gamedom are willing to pay the young Chinese here to play the early rounds for them.

"For 12 hours a day, 7 days a week, my colleagues and I are killing monsters," said a 23-year-old gamer who works here in this makeshift factory and goes by the online code name Wandering. "I make about $250 a month, which is pretty good compared with the other jobs I've had. And I can play games all day."

He and his comrades have created yet another new business out of cheap Chinese labor. They are tapping into the fast-growing world of "massively multiplayer online games," which involve role playing and often revolve around fantasy or warfare in medieval kingdoms or distant galaxies.

With more than 100 million people worldwide logging on every month to play interactive computer games, game companies are already generating revenues of $3.6 billion a year from subscriptions, according to DFC Intelligence, which tracks the computer gaming market.

For the Chinese in game-playing factories like these, though, it is not all fun and games. These workers have strict quotas and are supervised by bosses who equip them with computers, software and Internet connections to thrash online trolls, gnomes and ogres.

As they grind through the games, they accumulate virtual currency that is valuable to game players around the world. The games allow players to trade currency to other players, who can then use it to buy better armor, amulets, magic spells and other accoutrements to climb to higher levels or create more powerful characters.

Plasma Snake[D] · Dec 9, 2005, 01:00 pm

Woah, so they sell their online currency? why do they play these games?

Kite · Dec 9, 2005, 01:09 pm

Coolies.

Osborn F Enready · Dec 9, 2005, 01:38 pm

I know when I was playing the "Sims Online" when it debuted, there were people who would spend actual U.S. currency to have people design virtual homes, aquire and sell certain things, keep their virtual properties running efficiently while they did other virtual things.

It was a bizarre little virtual world I experienced, that shows just how diverse and creative, and PROFITABLE a truly free market is. This market is a non-essential luxury market, much like modern sports figurine values, etc. This entire market depends on the success of the necessary markets, that drive the nations economy and the stock market, though it is fully independent of regulation from that body. However, the only downside here is that it is a channel of paper U.S. currency leaving the country with nothing to show for it except virtual pixels, and most of that money is not coming back to the market in any way that is beneficial. The only motivator to outsource here is the price of the labor, and this is what should be attacked logically in order for us to capitalize on that market, IF we deem some type of action necessary. Instead, I would bet our government will attempt some type of protectionism, by falsely inflating the costs through tax or tariff, or by illegalizing all together the market itself in this arena.

It is most certainly a modern reflection on the new technological enviroment, and how it can be used as both a weapon of nations, or a benefit to all.

I would wonder at the possibility of an internationally released game with wide public appeal, that is heavily skill related, and infinitely buildable or extendable, with a living, realtime virtual world. Now imagine the designers covertly implanting codes which would allow skills to be altered, like a cheat code, but only known by groups employed under secrecy by the designer, that charged private entities to modify the skill levels of their characters in game.

The only labor being performed, are keystrokes. The buyer, and the seller are happy. But there is knowingly open fraud being committed, and for what ends, to empower or enrich who?

This could theoretically be used as a national or corporate tool of untraceable wealth generation, through various private entities.

Tons of possibilities. Boggles the mind.

G. Adams · Dec 9, 2005, 02:02 pm

I remember a time when Ultima Online gold had an exchange rate of $50/1 mill gp. Thats about 30 times better than the exchange rate for Turkish lira. As for buying large houses or castles, I've seen a well placed house being sold for $500.

I think this has very interesting possibilities. How about investing in property and currency online early in the games development, letting the game peak and flogging it off? Or for international criminals using it for money laundering? I think it's fantastic. While ever so slightly depressing.

jt1012751 · Dec 9, 2005, 06:37 pm

I think NPR did a report on the online economy. The interviewed and economist and a "proffesional" Star Wars Galaxies player. He made items in the game, and sold them for real US dollars. It would be intresting to see how an online economy like this would decelope. The game design company would have total control over the industry, so it might even benifit them.

To answer the first question, most people play video games because they are fun, not because they have good gear.

RickSp · Dec 9, 2005, 08:28 pm

The interesting thing about the story, at least to me, is what it says about the nature of demand in marketplaces. Two points:

1. New products and new technology create demand.

2. Any marketer will tell you that what you are selling is an idea as much as a physical product. You are really selling the benefits the item gives to the consumer.

Here we have entirely virtual products for which the demand was created by game play purchased with real money for virtual benefits. Intriguing stuff.

jt1012751 · Dec 9, 2005, 09:14 pm

This is the NPR story I was talking about:

http://www.npr.org/templates/story/s...toryId=5032947

Intresting stuff, I want to see where this market is in 2/3 years.

Dec 9, 2005, 01:09 pm	#3 (permalink) (top)
Kite Evil Overlord Location: A Geofront, somewhere in Antarctica Posts: 938	Coolies. I know your type. You think, "I'll just get me a costume, rip off the neighborhood kids." Next thing you know, you've got a jet shaped like a skull with lasers on the front! -The Monarch

Dec 9, 2005, 01:38 pm	#4 (permalink) (top)
Osborn F Enready Principled Observer Location: Toledo, Ohio Posts: 13,873	I know when I was playing the "Sims Online" when it debuted, there were people who would spend actual U.S. currency to have people design virtual homes, aquire and sell certain things, keep their virtual properties running efficiently while they did other virtual things. It was a bizarre little virtual world I experienced, that shows just how diverse and creative, and PROFITABLE a truly free market is. This market is a non-essential luxury market, much like modern sports figurine values, etc. This entire market depends on the success of the necessary markets, that drive the nations economy and the stock market, though it is fully independent of regulation from that body. However, the only downside here is that it is a channel of paper U.S. currency leaving the country with nothing to show for it except virtual pixels, and most of that money is not coming back to the market in any way that is beneficial. The only motivator to outsource here is the price of the labor, and this is what should be attacked logically in order for us to capitalize on that market, IF we deem some type of action necessary. Instead, I would bet our government will attempt some type of protectionism, by falsely inflating the costs through tax or tariff, or by illegalizing all together the market itself in this arena. It is most certainly a modern reflection on the new technological enviroment, and how it can be used as both a weapon of nations, or a benefit to all. I would wonder at the possibility of an internationally released game with wide public appeal, that is heavily skill related, and infinitely buildable or extendable, with a living, realtime virtual world. Now imagine the designers covertly implanting codes which would allow skills to be altered, like a cheat code, but only known by groups employed under secrecy by the designer, that charged private entities to modify the skill levels of their characters in game. The only labor being performed, are keystrokes. The buyer, and the seller are happy. But there is knowingly open fraud being committed, and for what ends, to empower or enrich who? This could theoretically be used as a national or corporate tool of untraceable wealth generation, through various private entities. Tons of possibilities. Boggles the mind. Petition of Redress of Grievances: http://www.givemeliberty.org/default.htm Canadian Lawsuit Against Their National Banks: http://www.freewebs.com/classaction/ Osborn F. Enready

Dec 9, 2005, 02:02 pm	#5 (permalink) (top)
G. Adams Fyrdman Location: Middlesbrough UK Posts: 4,152	I remember a time when Ultima Online gold had an exchange rate of $50/1 mill gp. Thats about 30 times better than the exchange rate for Turkish lira. As for buying large houses or castles, I've seen a well placed house being sold for $500. I think this has very interesting possibilities. How about investing in property and currency online early in the games development, letting the game peak and flogging it off? Or for international criminals using it for money laundering? I think it's fantastic. While ever so slightly depressing. Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery. Winston Churchill Last edited by G. Adams; Dec 9, 2005 at 02:05 pm.

Dec 9, 2005, 08:28 pm	#7 (permalink) (top)
RickSp Volcanic Erupter Posts: 9,491	The interesting thing about the story, at least to me, is what it says about the nature of demand in marketplaces. Two points: 1. New products and new technology create demand. 2. Any marketer will tell you that what you are selling is an idea as much as a physical product. You are really selling the benefits the item gives to the consumer. Here we have entirely virtual products for which the demand was created by game play purchased with real money for virtual benefits. Intriguing stuff. Rick "When fascism comes to America, it will be wrapped in the flag and carrying a cross." Sinclair Lewis

Dec 9, 2005, 01:00 pm	#2 (permalink) (top)
Plasma Snake[D] Cause for Concern Location: Planet Earth Posts: 664	Woah, so they sell their online currency? why do they play these games?

Dec 9, 2005, 06:37 pm	#6 (permalink) (top)
jt1012751 Bored and Dangerous Location: Ithaca Posts: 92	I think NPR did a report on the online economy. The interviewed and economist and a "proffesional" Star Wars Galaxies player. He made items in the game, and sold them for real US dollars. It would be intresting to see how an online economy like this would decelope. The game design company would have total control over the industry, so it might even benifit them. To answer the first question, most people play video games because they are fun, not because they have good gear.

Dec 9, 2005, 09:14 pm	#8 (permalink) (top)
jt1012751 Bored and Dangerous Location: Ithaca Posts: 92	This is the NPR story I was talking about: http://www.npr.org/templates/story/s...toryId=5032947 Intresting stuff, I want to see where this market is in 2/3 years.