Aug 2, 2011

Posted by in Off-TORpic | 10 Comments

Off-TORpic: In-Game Auction House With Out-Of-Game Money

Off-TORpic is our occasional peek outside the world of Star Wars: The Old Republic. Sometimes it’ll be Star Wars. Sometimes it’ll be games. Sometimes, something else all together. But all the time it will be Off-TORpic.

With the holiday season approaching closer by the day, there is a lot of anticipation for a variety of new games from every studio imaginable.  Bethesda is following up its next-gen system success with Skyrim.  Infinity Ward, an Activision subsidiary, is coming out with the next installment of the Modern Warfare series.  Of course, as we all know, BioWare’s first step into the MMO market with Star Wars: The Old Republic is slated for a holiday release.  One of the most anticipated games of the holiday season is also speculated to be some of SW:TOR’s biggest competition: Blizzard’s Diablo 3.

More than 11 years after its predecessor, Blizzard is in the process of beta testing its newest installment of the series which is set to launch sometime before the end of the year.  Today it was announced by developers of Diablo 3 that they will be implementing a new system to their (not-so-massive) multiplayer game.  They will be offering to users the ability to buy and sell in-game items for either in-game gold or real life money.

Quote by Blizzard Entertainment:

What is the Diablo III auction house system?
Acquiring epic new gear for your characters has always been a big part of the Diablo experience. Because of this, players have found a number of different ways to trade and otherwise obtain items both within and outside of the game. Many of these methods were inconvenient and either tedious (for example, repeatedly advertising for a desired trade in Battle.net chat channels and waiting for responses) or unsafe (e.g., giving credit card information to third-party trading sites). With Diablo III, we’re introducing a powerful auction house system that will provide a safe, fun, and easy-to-use way for players to buy and sell the loot they find in the game, such as weapons, armor, and runestones. Two different versions of the auction house will be available in Diablo III: one based on in-game gold, which players acquire through their adventures, and one based on real-world currency.

What’s Blizzard’s cut?
As with other online auction sites and real-world auction houses, our fee structure will vary by region. However, we plan to collect a nominal fixed transaction fee for each item listed in the auction house. This fee consists of a fixed charge to list the item, which is assessed whether or not the item is successfully sold, and an additional fixed charge that is assessed only if the item is sold. The listing portion of the fee, which helps encourage sensible listing prices and discourage the mass posting of items that are very low quality or would be of little interest to other players, will be waived for a limited number of transactions per account. For players who opt to have the proceeds of their auction house sales go to their third-party payment service account instead of to their Battle.net account, Blizzard will collect a separate “cash-out” fee. Specific details regarding these fees will be announced at a later date.

Needless to say, this announcement came with much discussion and controversy. It’s almost like a micro-transactions, except that the player is the vendor.

Blizzard puts a valid justification for why they are implementing such a system, and regardless of suspicions of their intent, it is something that creates a good business model while protecting its users.  We have seen this sort of thing a lot recently with free-to-play games like Team Fortress 2, but this is the first time a game of this scale has streamlined a player-based auction system that incorporates real money with prices set on an individual basis.

Diablo 3 Auction House

The fear of this type of system, however, is its effect on other games in similar genres.  There is already a numerous amount of speculation from fans that their favorite game could have such a system implemented which worries a great deal of people.  Fans of RPG’s and MMO’s are apprehensive about this system. believing it will eventually be implemented into their favorite games, fearing it may take away from their experience.

Some wonder how this is any different than websites that would buy and sell equipment in Diablo 2 or any MMO.  The difference is that this system is more streamlined; instead of being shunned by the publisher, it is made easily available and even encouraged and is much safer than giving your payment information to a random company.

As more and more MMO’s are changing their payment style to a free-to-play format, more systems like this are bound to appear.  But where is the line drawn?  What makes SW:TOR invulnerable to this kind of system ever appearing?  The answer is: nothing.  Only time will tell what kind of an impact this will have on SW:TOR and all future MMOs.

  1. God I hope not.

    • It’s interesting… it places the micro-transaction debacle squarely on the players. I know EQ2 had real-money servers but that was still purchasing from the publisher. This model is interesting!

      But I don’t know if it really has a place in an MMO.

  2. Diablo is a fundamentally different game. Especially in the way gear is handled, since most items aren’t / don’t become soul bound in any way, those items remain “on the market” even after use to be sold again. Gear will continue to flow into the market to be sold, so the prices will be kept relatively low.

    MMORPGs on the other hand benefit from soulbound items specifically to keep items rare, keep their value up over the long haul.

    Overall, I would say that Diablo is a game where the cash auction house works, but games like SWTOR, WoW, and Rift really wouldn’t benefit, and in fact would likely be harmed by, the existence of a cash auction house.

    Actually, I will take it a step further with Diablo and say that rather than a cash auction house simply working for it, it is necessary for the healthy survival of the game. These cash transactions for virtual goods have happened through various channels in Diablo games in the past and would have continued in Diablo 3 with or without Blizzard’s help. With a built in cash auction house with the full backing of Blizzard and technical implementation that handles all of the work in a fair manner, it reduces risks greatly for the players who choose to take part in the system.

    • My big issue with it is that, yes, companies have been doing this since Diablo 2 but it wasn’t streamlined like this will be. I never even considered buying a piece of gear from one of those online vendors nor did I know people who did. With this system being implemented, it will become to norm. Just a greedy money-making scheme to me.

  3. This is just ridiculous. Buying power with real life money should just not happen.

  4. I think it is a bad idea but as long as it is not unfair I don’t have a huge problem with it.

    Bethesda is making skyrim not Obsidian

  5. Blizzard’s stated they’ll be using a battle.net ‘wallet’ – which strongly suggests they want to integrate as many battle.net games into the system as possible.

    It’s impossible to rule out that they have plans for their MMO, or their upcoming MMO.

    It’s a troubling model that’s really taking advantage of people’s tendency to jump to spend money for any in-game advantage they can get.

    It works okay in EVE to have a kind of gold/dollar equivalency, but the people who don’t take advantage of the system will be at a near permanent disadvantage – at least it’s a free to play game. In a pay to play game the moral issues go through the roof.

  6. Diablo is fundamentally different because of two crucial factors:

    1) The game doesn’t require a monthly subscription, and is effectively F2P beyond the initial purchase.

    2) All items are interchangeable (nothing bound), randomly generated (even ‘unique’ items have varying stats), and can be further modified with gems/runes/etc. This effectively creates a near-infinite number of ways to get “uber” gear, compared to most MMOs where the best gear comes from a specific raid or boss, and every single person is funnelled into either beating that raid/boss, or never getting said item, ever (hence pay-to-win).

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