Virtual Trading

Virtual Trading

Virtual Trading

Introduction

The development of the Internet , and MMORPG operating through the Internet , has resulted in the rapid growth of e-business and development of new communities which change all aspects of traditional business . The World Wide Web is an easily used system for providing constantly available displays of information , leading to new opportunities for advertising and promotion , and a new form or interaction with customers Today , virtual trading is one of the promising fields in business . It attracts millions of users and game-payers worldwide . MMORPGs have

received the most attention from the general public . It helps to connect potential customers to MMORPGs that are offering to game services online . In spite of great opportunities and growth potential of virtual trading there are some limitations which threaten a game market and users

Why People Real Spend Money on Binary Data

Recent years , psychologists and sociologists examine the question why people spend real money on binary data . On the one hand , most of virtual game players see virtual environment as a `real ' community . They do not interpret MMORPG as a game only . Some researchers (Lehdonvirta , 2005 Haas , Hettinger , 2003 ) take a critical approach to the claim that with the coming of virtual reality , time and space have become dimensions that can be folded away . They acknowledge that the time-space patterning of information and other symbolic content made available over the internet is always in some way the expression of the activities of real individuals . All of game-players are engaged in projects involving the negotiation of constraints and opportunities of the varied environments and regions of MMORPGs . Lehdonvirta explains (2005 : An important aspect of MMORPGs is character development : the skills and abilities of one 's avatar improve with play (2

Many game-players spend money on virtual things in to have high-level characters and save time of game itself . They buy `high records ' and receive a chance to enter high levels of a game without additional efforts . If a game-player is socially oriented , high status and prestige are the main driven forces for virtual purchase . In other words , users spend hundreds of dollars to acquire a unique image , status and power . The unique image of the player will help to differentiate itself from its competitors . Game-players integrate all their experiences of observing , using and consuming the service with everything they hear and read about it . Real-money trading promotes desire for a particular lifestyle and then a virtual purchase proposes ways to satisfy that desire temporarily . Mr . Castronova explains : The buying and selling of goods , as the game 's inhabitants go about their daily business , lends realism and vibrancy to the virtual realm (Worlds without end , 2005 . In general , game-players can buy an opportunity to `follow a rags-to-riches storyline (Worlds without end 2005 . There is a fundamental sense in which all communities are imagined , given that their very production and reproduction always presumes the employment of a range of symbolic devices

Haas and Hettinger (2003 ) qualify a concept of culture as not so much an alternative to the symbolic conception as a modification of it . The exchange of information and its symbolic content between individuals located within specific contexts always presupposes the mobilization of specific means of transmission . MMORPG players pay for `information they want to share with others . MMORPGs are upsetting established patterns of availability in this respect . Moreover , individual users can potentially accomplish a degree of availability which vastly exceeds that of even the most privileged users of mass communication

The main types of gamers who spend money on MMORPGs are : achievers explorers , socializes and killers . This classification was developed by Bartle and widely used by other researchers . For instance , in the article `Real-Money Trade of Virtual Assets ' V . Lehdonvirta characterizes each type : `Achievers : like to reach defined objectives and achieve a high formal status Explorers : revel in discovering new things about the world and its logic Socializes : enjoy interacting with other players Killers : derive pleasure from demonstrating superiority over others (Lehdonvirta , n .d , 3 . Proposing an alternative classification , V .Lehdonvirta identifies achievement- , social- and immersion-oriented players . The main group which spends real money on MMORPGs is social-oriented players , although both achievement - and immersion-oriented players are apt to spend real money in virtual environment

Recent years , MMORPGs become a medium of communication for highly educated and affluent white males living in the metropolitan areas of the industrialized world . The fact that in a relatively short timespan such an oppressed group in society has managed to have its numbers so well reflected and represented is rather extraordinary . This has not been so with such groups in other communication media . It demonstrates how MMORPGs favor relatively uninhibited communication and stimulates the participation of individuals whose interests are both geographically and culturally dispersed . Although the gender gap in internet use seemed to be gradually closing , this has not been the case for the differences that exist between other minority groups , for example , between African-Americans and white Americans . By the century 's end the average age of MMORPG players worldwide was 25-30 and was rising slowly . In the United States the average age is 15-35 with the largest proportion of users aged between eighteen and thirty-four . Players spend money on virtual images because everyone will look like a Greek god or goddess (Wong , n .d

This phenomenon can be explained by the fact that while MMORPG is global in extent , it is by no means a general medium of communication Nevertheless , the number of MMORPG players has expanded at such a phenomenal rate that estimating their number with any accuracy is quite impractical . Common sense , together with a few simple calculations , soon reveals the problematic nature of available evidence . Moreover information about MMORPG players is often presented in general numerical terms

Real-Money Trade of Virtual as a Part of Economic Market

Recent changes and growth patterns of Virtual Trade suggest that Real-Money Trade of virtual things can become a part of economic market in near future . In contrast , consumer market is more subjected to environmental economic changes , which makes it difficult for MMORPG to determine market demand precisely . Whereas MMORPG consumers buy avatars for a variety of reasons , which may include less tangible considerations of status , industrial buyers tend to be more concerned with the utility of the service in their own process , as well as its contribution to their costs . In this case , buying is institutionalized and is often carried out by `professionals ' using formalized procedures . [Mr Castronova] suggests that as synthetic worlds continue to grow in popularity , substantial numbers of people will choose to spend large parts of their lives immersed in them (Worlds without end , 2005

The market of virtual has all characteristics important for traditional economic markets : consumer , product and seller . These issues are closely connected with the positioning of MMORPG environment in consumer 's mind Trying to penetrate into MMORPG firms locate a brand in customers ' minds over and against competitors in terms of attributes and benefits that the brand does and does not offer . For instance , companies in China pay thousands of people , known as farmers , to play MMORPGs all day and then profit from selling the in-game goods they generate to other players for real money (Worlds without end , 2005

Innovations and technological improvements of MMORPGs have resulted in the development of new services with consumer appeal . Major advances in communications and the emergence of MMORPGs have made possible the widening and linking of markets . MMORPG markets have become more international as regulation has decreased and cross-national linkages have increased (Shields 2003 . Excess capacity exists in a wide range of industries in many countries . It has also been created as national or local producers have expanded to achieve economies of scale , to meet peaks in demand , to market to new areas , to employ an oversupply of labor , or for other reasons

Investments and real-money operations suggest that MMORPGs can become a part of economic market . The nature of demand conditions for the firm 's or industry 's products and services is important because it determines the rate and nature of improvement and innovation by the firms in the nation . Efficiency increases through market share increase , leading to a reduction in cost , and these lower costs then exceed price reductions It is the interplay of demand conditions that produces competitive advantage . Of special importance are those conditions that lead to initial and continuing incentives to invest and innovate , and to continuing competition in increasingly sophisticated markets . The commodity becomes a more expensive way of satisfying a want . The income and wealth of the people , both absolute magnitude and location , are relevant because they determine purchasing power . Following Ung-gi Yoon Gamers discuss world views embodied by MMORPGs and share their opinions , and sometimes , engage in collective protests to drive home their demand for improvements on game operation (Ung-gi Yoon , n .d

Also , whereas consumers buy virtual things for a variety of reasons which may include less tangible considerations of status , industrial buyers tend to be more concerned with the utility of the product in their own process , as well as its contribution to their costs . The balance can be achieved when the demand sets the quality standard and gives firms a better picture of buyer needs at an earlier time than is available to rivals . This advantage is enhanced when buyers pressure the industry to innovate quickly and frequently , and become a part of economic market

Threats and Opportunities for Virtual Trade

In spite of great opportunities of real-money trade , many MMORPG firms are against it . Lack of control under players is the main threat faced by MMORPGs . The problems of real-money trade bring together many different cultural perspectives and create many new opportunities for conflict . Moreover , the conditions of reflexive modernization severely challenge existing forms of self-regulation . Also , In some Asian countries , where MMORPGs are particularly popular , in-game thefts and cheats have led to real-world arrests and legal action (Worlds without end , 2005 . Another problem is that real-money trade will divide potential players into two groups : those who want to spend real money on virtual things and those who are constantly against real money trade In this situation , MMORPG firms can lose a substantial number of potential consumers (Shields , 2003

The example of a routine occurrence on MMORPG shows how users can have a differing volume of time-space available to them and that their ability to use the MMORPG to organize time-space is always a matter of potential contestation . So far , however , those playing MMORPGs have tended to confuse expectations concerning the temporal and spatial consequences of internet use with uncritical ideas concerning the time-space organization of so-called 'virtual reality . In the latter , the consequences of MMORPGs are to produce a flat , immaterial and malleable surface of time-space patterning , one in which individuals seem to become endowed with the ability to play God . Also , there will be a continuing rising of barriers to trade and investment , through multilateral agreements and increasing integration (Haas , Hettinger 2003 . According to Lehdonvirta Operators that seek to cater to achievement- or immersion-oriented players should generally take a more negative stance towards secondary markets than those who cater to socially-oriented players (Lehdonvirta 2005 , 3

The main opportunity of real-money trade is the ability to generate more income from virtual trade . Real-money transaction between the players can decrease profits of MMORPG firms and their competitiveness . On the other hand , the facts mentioned above will threaten profitability of MMORPG firms and their growth opportunities . Players of MMORPG are involved in turning upside down the taken-for-granted norms of the virtual culture . Players of MMORPG can share a sense of community and commonality , but they can also exhibit alienation and hostility

Regulations of MMORPGs

An important source of frustration in facing the problem of MMORPG regulation has been the clash of two distinct perspectives . Governments tend to approach MMORPGs as a technology that facilitates the public circulation of material , and is therefore akin to broadcasting - an activity for which they have developed , albeit through independent bodies , a high degree of content regulation . Individuals , on the other hand , tend to approach MMORPGs as an extension of media which have been characterized by only a very marginal regulation of content . Neither of these perspectives is helpful on its own . Through legal analysis of real-money trading of GRPMMO items and related policy-making efforts ,79 ) one can provide a frame of reference to distinguish this type of item trading from cash redemption of cyber cash in gambling-type MO games (Ung-gi Yoon n .d

Yet while these measures have been presented in an attempt to regulate the new medium , the experience of their strengths and weaknesses in other areas of media regulation has commonly been ignored . Given the characteristics of MMORPGs as a modality of cultural transmission together with the conditions of reflexive modernization , some of these weaknesses have become more pronounced . It is therefore difficult to envisage how some of these mechanisms might operate effectively and durably

However , given the nature of MMORPGs as a modality of cultural transmission and under conditions of reflexive modernization , the outrage caused by censorship has been particularly acute . This is because it stands in contrast to the high hopes many users entertained of it being a 'liberating ' technology . Another aspect of censorship in relation to MMORPGs is that it has global consequences affecting many people . Not only this , censorship decisions can be globally challenged Moreover , with the decline of final authorities under conditions of reflexive modernization , who can legitimately claim to have the authority to censor ? Many MMORPG firms affected by censorship later appeared not to have contained illegal , harmful or offensive content after all . Acts of censorship cannot be said to promote the principle of regulated pluralism in any way . The problems posed by these developments have served only to fuel the outlook of new cultural pessimists who see the internet as a threat to social (Haas , Hettinger 2003

On the other hand , MMORPG firms claims that binary regulatory structure in GRPMMOs must be replaced by merged and consolidated rules having the parallel stature as country club membership rules , shopping mall rules or articles of incorporation of business corporations (Ung-gi Yoon n .d . In most countries , MMORPGs should be based on online communication law . However , in most countries governments have also begun to realize that the capacity for the negative regulation of communication systems has gradually been slipping away . Although lack of regulations and laws on MMORPGs may have created new risks , these techniques also offer new opportunities . However , self-regulation and rating systems themselves also create risks

MMORPG firms are overly enthusiastic about the possibilities of self-regulation and rating systems . They described rating systems purely in terms of having the 'advantage of offering "bottom-up " rather than "top-down " solutions . Regulation therefore should be tended to be designed to cope with such problems in a reactive way , combating them by attempting to block flows of information . More generative policies need to be initiated if MMORPG firms are to mobilize the internet as a means for serving diverse goals . Based on a list of possible achievements these goals may include : representing diverse interests establishing a forum for the reconciliation of competing claims of these interests creating an open public sphere , in which unconstrained debate can be carried on about policy issues providing a diversity of public goods fostering market competition promoting social peace actively developing human capital sustaining the law providing economic infrastructure reflecting and shaping widely held norms and values fostering local , regional and transnational alliances and pursuing global goals (Haas , Hettinger 2003

The nature of MMORPGs coupled with the conditions of reflexive modernity demand new kinds of control . Developing and shaping these will require policy-makers to approach MMORPGs as a modality of cultural transmission rather than simply as an alternative and dangerous channel for harmful or illegal material . Regulation of MMORPGs can be better understood if the conditions the regulator seeks to promote are properly systemized Moreover , as MMORPGs technologies become increasingly integrated , the integration of policy measures becomes increasingly urgent . Important lessons can be learned from the experience of regulating more 'conventional ' forms of communication : the Internet and mass media Self-regulation can also be industry based and involve a provider drawing up codes of conduct which its members or subscribers must follow . In many cases , however , regulation has involved the setting up of broader independent supervisory bodies which claim to represent the interests and values of a wide range of different groups Self-regulation , like censorship , has often created a host of already familiar problems (Karabinus 2005

Virtual Trading : Does Virtual Things Have Real Value

Many researchers underline that virtual things have no real value Taking into account economic theory , demand determines how firms perceive , interpret , and respond to buyer needs (Shields 2003 Competitive advantage can be achieved when the demand sets the quality standard and gives MMORPG firms a better picture of buyer needs at an earlier time than is available to rivals . This advantage is enhanced when home buyers pressure the firms to innovate quickly and frequently The profit motive translates consumer demand into production . The relationship between cost and volume is critical to an approach to pricing known as experience-curve pricing . It is difficult to define the real value of virtual items because it is generated by the company and a player , community and virtual environment

On the other hand , it is difficult to define the real value of virtual thing because every player adds something to a game . Rather they are intended to provide ideas for new thinking and acting as a starting point to give all processes in the organization a new strategic direction . Human capital of a MMORPG player has a vital strategic role in recent years as organizational attempt to compete through people Today , MMORPG firms create a competitive advantage when they possess or develop resources that are valuable , rare , inimitable , and organized There are three areas that have a particular bearing on successful corporate management in times of turbulence and acute risk : moves to shore up short-term earnings and corporate survival , an active positioning within turbulent markets , and the need to adapt the organization to the turbulence around it . It is possible to say that MMORPG virtual things have no real value even if players are ready to pay high price for these `goods . Many virtual `goods ' have a demonstrable value (Karabinus 2005

Conclusion

Taking into account the facts mentioned above , it is possible to say that real money trade within virtual environment (MMORPG ) hides many threats and weaknesses for both companies and potential players . There are different types of players who spend money on virtual items and create a new market which requires strict regulations and control in to deliver high service quality and safety to potential consumers Some think that MMORPGs are trivial and at best a marginal phenomenon Others see MMORPGs as a very exciting development with almost unfathomable opportunities . One important reason for the wide diversity of opinion is of course that a MMORPG , both as a network and as an interactive medium , brings together a wide range of different people who might otherwise never have met , let alone conversed . Although , recent market growth suggests that virtual market and real money trade will grow in near future so MMORPG firms should create and introduce strict regulations and laws in to protect their business and consumers With the changing economic environment , factors such as globalization of markets , international economic integration , removal of barriers to virtual business and trade and increased competition have enhanced the need of control . The balance can be achieved when the demand sets the quality standard and gives MMORPG firms a better picture of buyer needs at an earlier time than is available to rivals . This advantage is enhanced when buyers pressure the MMORPG industry to innovate quickly and frequently

Works Cited Page

Haas , M , Hettinger , L .J . Virtual and Adaptive Environments Applications , Implications , and Human Performance Issues . Lawrence Erlbaum Associates , 2003

Karabinus , A . Real Money For Virtual Goods in Online Games ? 2005 Available at : HYPERLINK "http /blogcritics .org /archives /2005 /12 /05 /170450 .php http /blogcritics .org /archives /2005 /12 /05 /170450 .php

Lehdonvirta , V . Real-Money Trade of Virtual Assets . 2005 . Available at www .hiit .fi /u /vlehdonv /publications /Lehdonvirta-2005-RMT-Perceptions .pdf

Shields , R . The Virtual . Routledge , 2003

Worlds without end . The Economist . Dec 14 , 2005 . Available at http /www .economist .com /displaystory .cfm ?story_id 5300059

Wong , D . World of Warcraft . N .d . Available at http /www .pointlesswasteoftime .com /games /wowworld .html

Yoon , Ung-gi . A Quest for the Legal Identity of MMORPGs . N .d

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