Learning about virtual economies is a completely new topic for me and one that I find overwhelming. It’s hard to fathom the idea that millions of people invest hours, upon hours of their time playing Massively Multiplayer Online Role-Playing Games and for many “it is more than just a game- it’s an escape, an obsession and a home” (Levy, 2007). A virtual economy is “an emergent economy existing in a virtual persistent world, usually in the context of an Internet game” (Wikipedia). The millions who play these games create new economies that for the participants involved are as good as real and in cyberspace, economies seem to mirror the real world. These virtual worlds also show a comparison to real life in that participants interact one-on-one socially. Wikipedia states that “people enter these virtual economies recreationally rather than by necessity; however, some people do interact with them for "real" economic benefit.”
Two of these virtual economies include Second Life and World of Warcraft. Second Life is considered an “open” virtual economy, while World of Warcraft is considered a “closed” virtual economy. Second Life was launched in 2003 with a downloadable client program called the Second Life Viewer. The program enables its users, called "Residents", to interact with each other through motional avatars, providing an advanced level of a social network service combined with general aspects of a metaverse. For those who do not know, metaverse is widely used term to describe the vision behind current work on fully immersive 3D virtual spaces (Wikipedia). Second Life is a user-defined world in which people can interact, play, do business, and otherwise communicate .Virtual worlds allow real people to live some of their lives through made up characters. Similar to the real world residents can explore, meet other residents, socialize, participate in individual and group activities, create and trade items and services from one another(Wikipedia). Second Life also had its own economy and a currency referred to as Linden Dollars. The virtual economy allows players to participate in an economy that features aspects of the real world. Residents are able to create new goods and services, and buy and sell them in the Second Life virtual world. Within the virtual economy there are also currency exchanges where Residents can exchange real world currencies for L$. Second Life allows for legal trading of in-world currency. Also one major point I learned is that although Second Life is considered a game, technically it does not have points, scores, winners or losers, levels, an end-strategy, or most of the other characteristics of games, though it can be thought of as a game on a more basic level because it is "played for fun".
World of Warcraft run by Blizzard Entertainment, is its fourth game set in the fantasy Warcraft universe, which was first introduced by Warcraft: Orcs & Humans in 1994. (Wikipedia.com) The virtual game has more than seven million players and is considered the most advanced and popular (Levy, 2007). The online role-playing game, World of Warcraft takes place within the world of Azeroth, four years after the events at the conclusion of Blizzard's previous release, Warcraft III: The Frozen Throne. Other aspects of the game include players going on quests and slaying mythical beasts, massing virtual wealth, gaining power as well. Unlike the game Second Life, World of Warcraft takes place in a fantasy world where there is “interaction between guilds and individuals relies on human choices and moral” (Levy, 2007). Players control a character avatar within the game world and game rewards player who succeed with money, items, and experience, which in turn allow players to improve their skill and power. Players can also participate in duels which are fought between members of the same or opposing factions, although these do not provide tangible rewards (Wikipeda.com). The game was designed to be an open environment where players are allowed to do what they please alongside optional quests that players can complete to advance further in the game. Blizzard has also created a way for members to become members of the virtual community. World of the Warcraft also believes that using real money within the game to gain an edge violates the game’s “egalitarian spirit” (Levy, 2007). Contrary to Blizzard there is an industry making tons of real dollars, by “gold farming,” which is the accumulation of in-game currency and selling it and also “power leveling, borrowing someone’s avatar and grinding through the game to gain experience (Levy, 2007).
Between Second Life and World of War craft are two completely different virtual economies, where one encourages, the other discourages. Both are two of the most popular online games available, with millions of members. Each game allows players to live their life through someone else, an avatar and whether I understand the ever increasing popularity of virtual games is beyond me.
Giles, J.(2007). Life's A Game. Nature.
Levy, S. (2007). World of Warcraft: Is It a Game. Newsweek. Retrieved November 6, 2007, from
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