China bans gold farming

Gold farmers! They're everywhere, right? We get spammed by them, we run into them farming Dire Maul, we put them on ignore. Lazy people with too much disposable income buy gold from them in a show of crass consumerism. Blizzard has done their best to stamp out gold-farming services, but litigation is difficult due to the fact that most of the major gold-farming companies are based in China or other parts of Asia. They've instead opted to try to control and stop gold farmers from being able to complete transactions via other methods.
This time, though, it looks like Blizzard may have an unlikely ally in, of all things, the Chinese government. They announced today that the trading of virtual goods for real money is now illegal in China. This ruling reaches farther than just gold farming, though. It also bans the sale of prepaid time cards for MMOs or other online games, as well as numerous technicalities we're sure to hear about in the weeks to come.
To give you an idea of how much an economic impact this will have on China, gold farming alone generates nearly one billion dollars a year worldwide, with China's specific numbers growing at a reported rate of 20% per year. It's estimated that 80 to 85 percent of gold farmers reside in China, so this ruling is massive and, to be frank, pretty troubling.
From a gamer's perspective, yes, it'll be nice to worry about this kind of service a little less, but from a human perspective this places hundreds of thousands of Chinese people in one of two kinds of serious trouble: the first is financial hardship from the "honest" gold-farming companies that will close down after this ban, and the second is legal issues from the companies who don't close down because they can't afford not to do what they've been doing.
It's not my intention to defend gold farming as an industry, because I used to have to deal with its more nefarious effects every day -- compromised accounts stripped of gold and gear, keyloggers, disruptive spam, all of that. But life isn't easy for many Chinese people working jobs like this. Many gold farming centers are much cleaner and safer, in relative terms, than other places in China where one on the bottom rung of the financial ladder might seek work, so while I appreciate the change as only a white first-world male can, I worry about what will happen to the underprivileged working-class Chinese people behind the spam ads and dead gnomes when this law starts getting enforced.
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Reader Comments (Page 2 of 4)
jbodar Jun 29th 2009 10:25PM
Considering the number of teens and college students who play this game while living off their parents, I don't see it as too much of a stretch.
Extrox Jun 29th 2009 8:13PM
I take it you're not in the US. All you ever hear here is "X amount of workers out of jobs" in the States.
A actual focus on Asia is rather rare.
ringthree Jun 29th 2009 8:15PM
If you do even precursory research into the subject you will find two things. One, China has banned RMT for years, they have no intention of really stopping the low level effects of it. Two, this new law was to deal with people that were laundering very large sums of money through RMT businesses.
No offense but before you report on stories dealing with the real world, it would be a good idea to do the background research that the real world usually engages in before reporting on their stories. It's just good practice.
RE: RMT. No matter ones place in the world or financial situation committing a crime is committing a crime. RMT isn't about that little kid in a basement working all night playing WoW to feed their family. It's about big time collusion, fraud, theft and law-breaking. It's time the "casual" gaming media gets behind the people they claim to report to instead of romanticizing RMT and perpetuating this illusion of the "poor but hardworking Chinese Gold farmer". A notion which is probably even more Orientalist and velvet-gloved racist than any of the direct criticism of RMT.
Bossy Jun 29th 2009 8:19PM
Well let's face it ...this has NOTHING to do with gold farming.
China is NOT a democracy.
They now "forbid" the trade of virtual goods. That's an example of pure communism.
This has nothing to do with stereotypes or attacks. It has ALL to do with a totalism regime that doesn't respect human rights, the free speech, democracy and the will of the people.
The China state will play a certain "game" as it sees fit. But the moment people want to express their opinions and just DO what they want in their free time ... the state intervenes and even executes people for sometimes trivial things that come straight out of the 14 th Century
.... Problem is .... how long will it last... You can't stop the internet (see Iran), you can't stop the information flow and free speech.
This is NOT an excuse for gold farming, but it IS about time the west sees behind the face we we were shown during the Olympics.
China is NOT a democracy as in a democracy people can vote what should happen to virtual goods and leisure time.
In fact it is and stays a crook state where corruption is the regular part of a system of exploitation and .... gold mining is a sad example of that.
WIth states like China, Iran, N Korea and a dozen other we face the difficult challenge to even get through the 21th Century without a massive blood bath.
The only thing that could prevent that blood bath is communications and the uncontrolled internet.
This thing is FAR surpassing the state of mmorpg's, it is an example of a regime which doesn't know people can no longer be manipulated tx to the international communications.
So sad we will - in the end - destroy ourselves and I am really afraid ... China is one of the states that first will destroy its own people.
Rakah Jun 29th 2009 10:57PM
and what of countries that manipulate the media for political spin?
Wynthea Jun 29th 2009 8:22PM
Thanks for presenting both sides of this - it's so easy to forget that there are people on the other side of the gold farming scenario. I appreciate you pointing out that our point of view isn't the only one.
Steven Holeyfield Jun 29th 2009 8:23PM
I simply HAD to comment on this...
For one reason, I know what it's like to be dirt poor. The simple truth is that love them or hate them, somebody is feeding their family based on this income. If those numbers are correct it's going to be a very sad state of affairs knowing that many people will no longer be able to support thier families.
While many of them can be quite rude, what most don't realize is that the vast majority of these 'gold farmers' are just regular people trying to make an income in an economy over there that didn't give them a lot of opportunities. Most of these people never bother anyone and keep to themselves quite well away from the bulk of the population, basically not hurting anyone. So, personally, I could give a crap less about the game economy if it means somebody gets to feed thier kids and not having to resort to dealing drugs or prostitution or the like to get by.
Ted Jun 30th 2009 2:01AM
"On most days Li's replacement is 22-year-old Wang Huachen, who has been at this gold farm for a year, ever since he completed his university course in law. Soon, Wang told me, he will take the test for his certificate to practice, but he seems in no particular hurry to. "
http://www.juliandibbell.com/texts/goldfarmers.html
Mostly young men without families.
Ray Jun 29th 2009 8:26PM
Brothel workers? Hate to tell you this but in some countries its legal to run a brothel.
Most people only associate gold farmers with the companies who steal accounts, exploit the game. There are however other companies who run their operations honestly and are there to actually trade services. I know people who do the opposite - they farm their own gold and SELL it to these companies for personal profit.
WIth crumbling economies and rising unemployment rates, its amazing more people haven't resorted to this and this will definately impact on one of the poorer working classes quite harshly.
Ted Jun 30th 2009 1:58AM
"Brothel workers? Hate to tell you this but in some countries its legal to run a brothel."
Good point; but that doesn't make brothels legal everywhere else. It aint Kosher in WoW, so I'm saying that this is like a brothel in California (pretty much everywhere but....Nevada, Australia, Amsterdam...the list goes on?)
So yah, like brothel workers (or their street counterparts) outside of the legal areas.
Orguz Jun 29th 2009 8:26PM
I'm happy to see a post like this Michael and even though I'm not a fan of the farmers, the spammers or the spoiled "I'll buy my level 80" players I couldn't agree more on the view in this post.
Ted has a point, yet I'm assuming Ted has never had the experience to work in that position: doing the wrong thing for the companies profit - Hey, McDonald's does it.
Heck, most people don't even do it for the company, as long as the rent/bills/anything is payed people nowadays will do nearly anything under the cover "the company" just to get by.
I would love to know the subscription count once this is in place - Blizzard will notice this one - if the given numbers are correct.
Thanks again Michael for this piece of international economics - please keep us "internationals" in mind once you guys start handing out prizes again :D
Ryan Jun 29th 2009 8:54PM
So the author writes, "so while I appreciate the change as only a white first-world male can" (there was no need to point out the race of the author!) and then concludes the article with "NOTE: Racial slurs/attacks/stereotypes in the comments will be deleted. Repeat offenders will be banned. You can state a negative opinion, but do not make it an attack." What the hell is this?! You can bash white guys, as if we're all some sort of evil virus on mankind, but all others are out of the question? Nucking Futs if you ask me. You just dropped several points in my book WOW Insider. :(
Michael Sacco Jun 29th 2009 8:55PM
If you don't believe that people bugging you while you play your video game is a first-world problem, I don't know what to tell you.
Michelle Jun 29th 2009 9:06PM
How did that bash white people?
Answer: It didn't.
pet.peter.p Jun 30th 2009 12:27AM
You either.
Tzivya Jun 29th 2009 8:28PM
I bought gold once, about a decade ago in Everquest. I had the spare income at the time, and it let me do some things I wouldn't have had the actual time to do.
That said, I wouldn't know because so much gold selling is tied up in stealing accounts and liquidating them. It's all 'dirty' gold now.
Blizzard has the ability to stamp out gold farming and account stealing overnight, they simply choose not to, prefering the moral high ground of 'it's wrong to sell gold'. If they set up a spot where people could go and pay $10 to get 1000 gold, the gold farmers would fail, Blizzard would make more money, and everyone would be happier.
Rakah Jun 29th 2009 10:57PM
except you'll have rising AH prices that will mean you'd pretty much be paying $10 for a stack of herbs or something stupid.
If it was some sort of special currency that can't be directly traded with other players but can still buy you travelers mammoth mounts for alts etc then by all means do that.
aisenfaire Jun 30th 2009 2:12AM
"Blizzard has the ability to stamp out gold farming and account stealing overnight, they simply choose not to, prefering the moral high ground of 'it's wrong to sell gold'. If they set up a spot where people could go and pay $10 to get 1000 gold, the gold farmers would fail, Blizzard would make more money, and everyone would be happier. "
This, sir, is blatant stupidity of how the game economy works, and of what would kill the game overnight. Painful as it may be for you, please think for a full minute before you make such a suggestion again.
Coldbear Jun 29th 2009 8:29PM
good, well-balanced article
PansFolley Jun 29th 2009 8:32PM
I don't think you're seeing the whole picture. The Chinese Government is not going to cut off a source of income, but rather redirect the efforts and make it a Government controlled enterprise. The Chinese see the money in it and they're wanting it for themselves. The current gold farmers may just be relocated to a government approved facility and continue this scam. You're looking at this from a "feel good" point of view and not a "controlling government" point of view. Mark my words, in a few months, we'll see a post or news blerb saying how China has government run farming programs and they're not talking about produce.