The Problem with MMO Economies Part 2
A few years ago, STO developers Cryptic, added a new system to the game that allowed players to re-engineer gear and alter the various modifiers associated with each item. One of the reasons behind this move was to reduce the hyperinflation associated with high end gear that has the most desirable statistics. If players could re-engineer the items that they desired it would undermine the trade in such items on the exchange. Needless to say this plan didn’t succeed and the market did not radically alter. The overall cost of the resources required to successfully re-engineer a piece of equipment ended up being comparable or even more than the price of a similar item being sold on the exchange. Similarly, the legendary progression servers in LOTRO had a brief period of economic stability and fiscal prudence when they were launched. Initially, no one section of the playerbase had more resources than others. A year on and now the same issues of inflation and excessive prices have happened with a tedious sense of inevitability. Can anything be done to stabilise MMO economies?
A few years ago, STO developers Cryptic, added a new system to the game that allowed players to re-engineer gear and alter the various modifiers associated with each item. One of the reasons behind this move was to reduce the hyperinflation associated with high end gear that has the most desirable statistics. If players could re-engineer the items that they desired it would undermine the trade in such items on the exchange. Needless to say this plan didn’t succeed and the market did not radically alter. The overall cost of the resources required to successfully re-engineer a piece of equipment ended up being comparable or even more than the price of a similar item being sold on the exchange. Similarly, the legendary progression servers in LOTRO had a brief period of economic stability and fiscal prudence when they were launched. Initially, no one section of the playerbase had more resources than others. A year on and now the same issues of inflation and excessive prices have happened with a tedious sense of inevitability. Can anything be done to stabilise MMO economies?
If MMO developers wanted to seriously address this matter, it would require designing a game with a far more controlled and regulated in-game economy. It would also require a far more interventionist approach in managing the ebb and flow of in-game resources. IE controlling the availability of specific resources and items, as well as imposing taxes and fees upon auction house transactions. Such an approach would certainly be perceived as “political” from certain quarters of the gaming community and would not be well received. Given the levels of political and socioeconomic illiteracy among some players, it would more than likely play into the ongoing culture wars we see across all levels of society in western democracies. And it can also be argued that “trading” is one of the few social elements left in the MMO genre. Plus it’s also a “game within a game” for many players. If this is fundamentally altered or regulated to the point of “no fun”, then its effectively just another nail in the coffin of the old school concept of the MMORPG. I’m not too sure how many nails the playerbase can endure.
Grinding out rewards and obtaining rare and unique items is a fundamental motivator for many MMO players. For those without the time to pursue such goals, buying these things from the in-game auction house is a credible alternative. There are still a few ships in STO that are demonstrably superior to others. If you are unable or unwilling to spend real world money on multiple loot boxes to get one of these ships, then there is always the exchange and the option to buy what you desire for energy credits. It may well be an immense uphill struggle but it can be done. If you remove such an avenue from the game you are effectively barring certain players from achieving their goal. That sends very clear message to the playerbase and not a positive one. There are already enough obstacles for new players of long established MMOs. If a player feels that they cannot reach their full potential then why should they continue to play. Life isn’t a meritocracy but we broadly seem to like the illusion of one.
Conversely, if resources and rewards are too readily available and easily acquired, it does much to mitigate a great deal of the challenge and motivation to play. It is always fun to log into a MMO test server and instantly receive all the gear you desire from the live server. But the novelty soon wears off. Players like to have goals to work towards and if you negate that you really are pulling the carpet out from under them. I don’t agree with the philosophy that things given freely have no inherent value but I do agree that familiarity breeds contempt. The optimal path is somewhere in between, so let players earn their rewards but make the journey credible. Overall, I don’t know what the long-term solution to this chicken and egg conundrum is, as it requires that developers and players alike must “unlearn what they have learned”. Perhaps it will fall to a small developer to make a bold experiment one day and create a game with an economy that breaks the existing mould. In the meantime I’m sure this problem will persist and we’ll still see regular articles decrying the status quo and asking for something to be done. Gaming like any other aspect of human culture is cyclical.
The Problem with MMO Economies Part 1
I have a very mixed relationship with MMO economies. In The Lord of the Rings Online I have adequate supplies of in-game gold but most of the items I seek to buy on Auction House are insanely overpriced. In Star Trek Online, earning energy credits is so problematic, the developers have had to add them as part of the daily personal endeavour rewards. Again, there is runaway inflation and the most desirable items such as Tier 6 ships are ridiculously priced. And in The Elder Scrolls Online, the gold slowly builds up over time but the lack of a server wide auction system means that finding and purchasing quality gear at credible prices is an arcane undertaking. There was a point a few years ago when I use to play the LOTRO economy and as a result, I had sufficient means to buy what I wanted. But maintaining that level of wealth and financial leverage is time consuming and requires adhering to a strategy. As I do not play the game, or indeed any other MMO, to that level anymore, my personal wealth in all of them has declined accordingly.
I have a very mixed relationship with MMO economies. In The Lord of the Rings Online I have adequate supplies of in-game gold but most of the items I seek to buy on Auction House are insanely overpriced. In Star Trek Online, earning energy credits is so problematic, the developers have had to add them as part of the daily personal endeavour rewards. Again, there is runaway inflation and the most desirable items such as Tier 6 ships are ridiculously priced. And in The Elder Scrolls Online, the gold slowly builds up over time but the lack of a server wide auction system means that finding and purchasing quality gear at credible prices is an arcane undertaking. There was a point a few years ago when I use to play the LOTRO economy and as a result, I had sufficient means to buy what I wanted. But maintaining that level of wealth and financial leverage is time consuming and requires adhering to a strategy. As I do not play the game, or indeed any other MMO, to that level anymore, my personal wealth in all of them has declined accordingly.
Over the years there have been many articles written about the iniquities of MMO economies and whether anything can be done to run them in a more equitable fashion. For example, last Wednesday, there was an interesting post by Ben Griggs over at Massively Overpowered about the short comings of the Guild Trade system in ESO. Then today, there was a further article about how to acquire in-game wealth in Guild Wars 2, by Bree Royce. Both highlight the recurring problems and complaints that MMO economies regularly generate. A cursory look at the comments on both posts show that there isn’t a prevailing consensus among gamers, as to which is the best way to run an MMO economy. Furthermore, game developers seem to all too often throw in the towel when a games economy starts to get out of control and hyperinflation sets in. It’s as if it is just assumed that this is an inevitable course of events and simply something endemic to the MMORPG genre. And I’m beginning to think that perhaps they are right.
Video games are commercial products. Yes, they can be art as well but MMORPGs are not developed by altruistic, Franciscan monks out of a sense of social obligation. All the resources required to create a game come with a cost. In many ways video games are the ultimate expression of consumerism in western, capitalist countries. The controversies surrounding the monetisation of a leisure activity such as video games, is the epitome of a “first world problem”. However, when you consider the economic factors that determine the creation and sales of video games, it is hardly surprising to find the same dogma perpetuated within the virtual worlds they offer. Therefore, there is little or no will to create a game with a radically different economy to that of the real world to begin with. The mantra that “time is money” has always been the under-pinning ideology of game economies. Those with any advantage in this respect will always find themselves succeeding more than those who have a time deficit. And any MMO that has existed for several years or more, will have a core player base that owns superior resources to that of any newcomers.
Over time MMO developers have often tried a variety of methods to try and mollify these problems. Tinkering with drop rates of valuable items or reducing how often resource nodes spawn. Then there’s binding items to account or to characters. Some games have even put a specific cap on how much in-game gold a player can own. But players always seem to be one step ahead and all too often such restrictions are circumnavigated. Hence, we see bots and scripts implemented by players to farm resources. I’ve even subcontracted out my own resource gathering in LOTRO in the past. You can also find third party websites where rare items are traded for real money. Player in ESO will use the gifting mechanic to achieve sales that can’t be facilitated by traditional means. And if the developers are too vociferous with the bind to character mechanic, then people will just sell accounts. It’s a blunt tool but it works. All of these issues persist because neoliberalism that exists in real life economies, bleeds into the MMO games design.
MMO Economies
One of the greatest assets of Star Trek Online is its single shard server technology. Not only does this foster a great sense of community but it provides several logistical benefits. The most practical of these is the in-game auction house known as the Exchange, which due to the games server structure offers a universal and comprehensive market place. If it can be sold within the game then it’s usually available on the Exchange. Like any market it is driven by supply and demand and fluctuates accordingly. The Delta Recruitment event in May saw a rise in both the availability and price of low level items. The recent announcement regarding the Admiralty system has seen the prices of Mirror Universe ships increase tenfold.
One of the greatest assets of Star Trek Online is its single shard server technology. Not only does this foster a great sense of community but it provides several logistical benefits. The most practical of these is the in-game auction house known as the Exchange, which due to the games server structure offers a universal and comprehensive market place. If it can be sold within the game then it’s usually available on the Exchange. Like any market it is driven by supply and demand and fluctuates accordingly. The Delta Recruitment event in May saw a rise in both the availability and price of low level items. The recent announcement regarding the Admiralty system has seen the prices of Mirror Universe ships increase tenfold.
Although Guild Wars 2 launched with regional and game specific servers, the Black Lion Trading Company has always been across all worlds, providing yet another well stocked virtual market place. One of the most convenient touches that ArenaNet added to the game is the ability to access the auction house anywhere in Tyria. If a player is not near a Black Lion Trader NPC then the auction house can be simply be reached via the GUI. There is a minor caveat that transactions carried out this way require you to collect your gold direct from the nearest Black Lion Trader. However the game regularly drops tokens that can summon a Black Lion Trader directly to your location, therefore bypassing this minor inconvenience.
This progressive approach to auction houses and in-game economy is sorely missed when playing older titles such as LOTRO. The auction house system is server specific and very much reflects the current state of the game population. It is not unusual to find the auction house bereft of any significant gear at lower levels. Those that regularly play through old content either recycle gear or craft what they need as they proceed through the game. Therefore casual players will often find themselves reliant on quest rewards for their gear requirements. There are alternative options such as bartering skirmish tokens but farming such currency may not be deemed as casual friendly. Hopefully the ongoing server consolidations will result in more robust in-game economies.
Despite not being a World of Warcraft player I do envy the fact that the games auction house can be accessed remotely via mobile devices. Engaging players when they are out of game is a wise policy. Accessing the economy via an app keeps gamers involved and has obvious practical benefit. I have often played various MMO’s economies as a game in itself. When LOTRO use to have a thriving raiding culture I would often stockpile potions and other useful items, only to sell them at a higher price late on a Friday and Saturday evening, when they were in great demand. Lock boxes in STO have also proven to be a good long term investment. Remote access to both these markets would be beneficial.
I’ve often found gaming economies compelling because of the interesting effect upon the player base. It is fascinating to see different people’s reactions to the auction house system. As ever with gaming many players bring their own moral and ethical baggage along with them when they enter virtual worlds. I have been upbraided in the past by other LOTRO players for the item speculation I described earlier. I have also seen arguments start in MMOs over undercutting item prices on auction house. There are even some players who balk at the notion of selling crafted gear and loot drops, wishing to impose their own in-game work ethic upon others.
Auction houses can also be a useful barometer as to the health of a game. An active player population usually means a buoyant economy with essential items being readily available. Ageing MMOs tend to suffer from a lack of resources being traded. In such cases the only real solutions are to either consolidate servers to increase populations or to adjust the auction mechanics to allow cross server access. The latter is often too complex and expensive to implement. Bearing all this in mind, if I do decide to try any new MMOs in future, they’ll need to have a robust and accessible economy to secure my custom.