Virtual Economies: Gaming In The Cloud Is Big Business

Virtual Economies: Gaming In The Cloud Is Big Business

Virtual Economies: Gaming In the Cloud Is Big Business

A little while back, I did an article on how to make money as a professional, playing different types of cloud video games. The industry behind this phenomenon is growing at a geometric rate, with new events and tournaments popping up every year.

Fortunately for those of us who do not have the time or skills to game professionally, that is not the only aspect of cloud gaming that has real-world benefits and rewards. The economies inside the games themselves many times mirror what you would find out in the real world. And given that a whole slew of in-game items have value out in the real world, virtual economies are increasingly becoming attractive for entrepreneurs.

Eve Online
eyjolfurWhen it comes to providing an example of a cloud game that has developed in intricate and thriving virtual economy, Eve Online is sure to be the first to pop into most industry professional’s mind. In fact, Eve Online’s economy, in terms of sheer size, actually dwarfs the real-world economy of Iceland, the company from which it is based.

Size is not the only factor that makes Eve Online’s economy such an interesting thing to examine. The mechanics and operation of the economy are so intricate that they require an economist to oversee. Eyjólfur Guðmundsson, the economist responsible for Eve Online’s oversight, is quoted as saying “For all intents and purposes, this is an economy that has activity equal to a small country in real life. There’s nothing ‘virtual’ about this world.”

Second Life

The vibrancy and importance of the virtual economy goes a step further when it comes to the game Second Life. In fact, Second Life’s in-game operations and economy are so well developed, it has been designated as a virtual world instead of a game by many people.

A perfect example of the similarities between Second Life’s virtual economy and that of the real world can be seen with the scare that occurred in 2006 with CopyBot. CopyBot allowed any item in Second Life to be copied, bypassing the need to buy them with the in-game currency, Linden Dollars. This prompted the game’s creators, Linden Lab, to explore the option of filing a complaint under the Digital Millennium Copyright Act. This, in essence, gave real-world value to the virtual items inside the game.

Diablo 3

Blizzard, the creator of the highly-popular cloud game, Diablo 3, actually took things a bit further when they established a real money auction house (RMAH), which allowed players to auction off in-game items for real-world cash. The idea behind the RMAH was to steer players away from third-party markets held outside of the Blizzard umbrella.

Unfortunately, the result was a whole slew of new botters (gamers who use automated scripts solely to accrue virtual items), which in turn tanked the gold value in Diablo 3. This had pretty much the same effect that it would have had on a real-world economy: hyperinflation.

Virtual economies are growing in size and complexity with each cloud game that makes its mark with the public. Have you had any experience buying and selling in a virtual environment? Let us know in the Comments section below!

By Joe Pellicone

About Joe Pellicone

In 2011, Joe launched his writing career, dealing primarily with the tech topics he is so familiar with (Tech & Gaming). Today, Joe uses his experience and talent to create quality and enjoyable pieces on everything from gaming hardware and software, to individual games and gaming companies.

View All Articles

Sorry, comments are closed for this post.

Cloud Has Transformed the Costs and Capabilities of CRM

Cloud Has Transformed the Costs and Capabilities of CRM

Transformation of CRM Services Over the last decade, the Cloud has transformed the costs and capabilities of customer relationship management (CRM) tools. Users can now update and access contacts and sales data anywhere, whether in the office or at an impromptu meeting a hundred miles away. These systems promise an easy setup, decreased cost, and…

Cloud-Enabled Managed Hosting: 5 Things A Cloud Provider Should Offer

Cloud-Enabled Managed Hosting: 5 Things A Cloud Provider Should Offer

Cloud-Enabled Managed Hosting The IT industry moves at light speed fueled by constant change and advancement. No area of IT has been affected more by this change than the hosting and managed service space. Advancement in the cloud and its delivery models of IaaS and SaaS have caused a monumental shift in the way IT…

The Success Formula For Private Cloud Deployments

The Success Formula For Private Cloud Deployments

OpenStack For Private Clouds On February 15th Tom Bittman of Gartner published a blog which asserted that 95% of Private Clouds are Failing. When an industry analyst makes a statement that big, in one of the top three priorities for enterprise CIOs today, it’s critical that we as an industry step back and understand how we…

Cloud as Our Children’s Playground

Cloud as Our Children’s Playground

Cloud as Our Children’s Playground We read everyday about the fast pace of business adoption of the cloud.  But children are adopting the cloud at just as an aggressive pace.  The Cloud is changing our children’s lives – the way they play, learn, and interact with others and the world around them.  I see children…

The Meaning Of Secure Business Agility In The Cloud

The Meaning Of Secure Business Agility In The Cloud

Secure Business Agility In The Cloud As cloud continues to accelerate business delivery and shift away the balance of power from IT and InfoSec to business users, organizations need to find ways to ensure that security is part of a business process rather than an afterthought. Today’s organizations are transacting some of their most valuable…

New Smartphones From Apple, Samsung and HTC Promise To Light Up 2016

New Smartphones From Apple, Samsung and HTC Promise To Light Up 2016

New Smartphones from Apple, Samsung and HTC (Sponsored post courtesy of Verizon Wireless) The launch of the Galaxy S7 Edge at the Mobile World Congress in Barcelona during February was the first shot in a vintage year for mobile phones. The S7 is an incredible piece of hardware, but launches from HTC and Apple later in the…

Featured Sponsored Articles
How Successful Businesses Ensure Quality Team Communication

How Successful Businesses Ensure Quality Team Communication

Quality Team Communication  (Sponsored post courtesy of Hubgets) Successful team communication and collaboration are as vital to project and overall business success as the quality of products and services an organization develops. We rely on a host of business tools to ensure appropriate customer interactions, sound product manufacturing, and smooth back-end operations. However, the interpersonal relationships…

Featured Sponsored Articles
How To Develop A Business Continuity Plan Using Internet Performance Management

How To Develop A Business Continuity Plan Using Internet Performance Management

Internet Performance Management Planning CDN Performance Series Provided By Dyn In our previous post, we laid out the problems of business continuity and Internet Performance Management in today’s online environment.  In this article, we will take a look at some of the ways you can use traffic steering capabilities to execute business continuity planning and…

Featured Sponsored Articles

CloudTweaks is recognized as one of the leading influencers in cloud computing, infosec, big data and the internet of things (IoT) information. Our goal is to continue to build our growing information portal by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Sponsor