Virtual Worlds: A First-Hand Account of Market and Society on the Cyberian Frontier

[capco]

-Edward Castranova (2001)

Abstract:

In March 1999, a small number of Californians discovered a new world called "Norrath", populated by an exotic but industrious people. About 12,000 people call this place their permanent home, although some 60,000 are present there at any given time. The nominal hourly wage is about USD 3.42 per hour, and the labors of the people produce a GNP per capita somewhere between that of Russia and Bulgaria. A unit of Norrath's currency is traded on exchange markets at USD 0.0107, higher than the Yen and the Lira. The economy is characterized by extreme inequality, yet life there is quite attractive to many. The population is growing rapidly, swollen each each day by hundreds of émigrés from various places around the globe, but especially the United States. Perhaps the most interesting thing about the new world is its location. Norrath is a virtual world that exists entirely on 40 computers in San Diego. Unlike many internet ventures, virtual worlds are making money -- with annual revenues expected to top USD 1.5 billion by 2004 -- and if network effects are as powerful here as they have been with other internet innovations, virtual worlds may soon become the primary venue for all online activity.

http://poseidon01.ssrn.com/delivery.php?ID=5601200860720640060241220660830080 05031062020029025039112120121078030071048099038037 04800510502701409608709207802802700402003809206908 90730971001270780930990520030190640911260820821220 05001127029109093094086096072084098023104084075098 120008&EXT=pdf&TYPE=2

Sorry if this was already posted. I thought it was an interesting read though.

[myriverse]

Where my tree fitty?

[Jimjam]

What we need is someone convicted of RMT to confirm whether or not they paid classic exchange rates!

[Swish]

PM Calabee - convicted but not forum banned.

[jarshale]

Current prices seem to be $2-$3 per 1k pp.

[Briscoe]

What does the future look like? The Next Big Thing appears to be Project Entropia, expected to be launched sometime in early 2002. Where Norrath considers the infusion of Earth dollars and Earth markets a problem, Project Entropia embraces them.

[Swish]

Wasn't the EQ world the world's 9th biggest economy at one point or something? (before EQ2/WoW etc)

Probably twisting all kinds of stats to get that, but for an article's sake I'm sure I read it somewhere.

[capco]

I especially like the journal entries. Here is the first one:

Journal entry, 18 April. I have called my avatar 'Alaniel.' I land in Norrath for the first time, in a town called Freeport. I am standing in a stone courtyard behind a gate. I see several lean-tos and a firepit. All around I hear the sounds of footsteps and I see humanoids of various shapes and sizes running back and forth, names like "Zikon" and "Sefirooth" over their heads, wearing odd costumes, carrying strange implements. Are they people? Or merely beings created by the software? Statements flow into my chat box at a rapid rate. "Galadriel shouts: Looking for bind at gate." I see a being with the name Galadriel. Is he talking to me? What is he saying? "Friitz says out of character: brt - omwb." What? No sign of anyone named Friitz. "Ikillu auctions: WTS bone chips." An auction. What should I do? I feel the presence of humanity, but I suddenly feel like a stranger in a very foreign culture. I become afraid of breaking some taboo, of making a fool of myself. Clumsily, I maneuver Alaniel toward the nearest lean-to and hide behind it. No one can see me here.

[xhucknasty]

Wasn't the EQ world the world's 9th biggest economy at one point or something? (before EQ2/WoW etc)

Probably twisting all kinds of stats to get that, but for an article's sake I'm sure I read it somewhere.

I believe the source is in the paper mentioned by OP. Not going to read it now but IIRC it wasn't a top ten economy but did generate more wealth than a few third world countries.

[webrunner5]

What we need is someone convicted of RMT to confirm whether or not they paid classic exchange rates!

That would not be too hard to do with as many as has been wacked on here in the past lol. :D:D