5 not-so-simple ways Blizzard can fix the World of Warcraft Auction House

Is the World of Warcraft economy broken? Not for everyone. Plenty of people get exactly what they need out of the existing WoW economy. High volumes. Quick sales. Strong profits.
For some, though, the economy is terribly broken. Plenty of folks are marooned on low-population servers with economies that crawl (if an economy even exists at all). There are few sellers and even fewer buyers. These players need help, and Blizzard isn't acting.
But what exactly can Blizzard do to help? Simple, small solutions won't help -- problems this big call for major action. And that's exactly what today's column is all about: major reforms to the WoW economy, any single one of which could right a ship that, for thousands of players, is sinking. For broken servers, a fix. For servers with humming economies, reforms that actually improve things and make the economy better and more fun.
So what are we waiting for? Let's roll up our sleeves and get to work.
1. Consolidate low-population realms. I'm about to walk straight into a minefield here, but it's an important subject. Low-population servers -- there are just too many of them, so many that the official forums are filled with threads (here, here, and here, just for starters) complaining about empty realms. Very few people like playing in a vacuum, even if there are some minor benefits to doing so (namely, lack of competition for farmed herbs and ore). There's no sense of community when there's literally no community around.
And if the community is in bad shape on low-population servers, theirs AHs are often in a shape that's even worse. There's no one around to post auctions. And when there are auctions posted, there's no one around to buy them. Only the most basic and common of materials are listed, and often at incredibly random prices. That's no way for a market to function -- if you can even call that functioning at all.
Blizzard routinely offers free server transfers to realms that are struggling with imbalance issues. That's nice, but it seldom does anything to fix the underlying problem. These servers need more than a Band-Aid. And with overall WoW player numbers starting a slow decline, these servers are unlikely to experience a future renaissance.
It's not a simple solution, but it's the inevitable one: Blizzard needs to take low-pop, Alliance-heavy servers and merge them with low-pop, Horde-heavy servers. Don't sit around waiting for these poor folks to spend $25 on a realm transfer. It seems far more likely that they'll just get frustrated with their characters and abandon them, making an already imbalanced server even worse.
2. Make the Auction House global. OK, so let's face it -- consolidating realms is unlikely to happen. But there's another solution that can accomplish, economically, the same thing. Globally consolidate the Auction Houses.
Bigger markets are always better. They're more efficient. More sellers means there are no worries about supply shortages. More buyers means fairer prices, more liquidity, and faster-moving markets. It's a good thing all around.
Obviously, consolidating all the servers' AHs into one will create a coding challenge for Blizzard. But even on a more simple level, there's no reason why existing servers need to be split into three separate AHs: one Alliance, one Horde, and one neutral. It's a confusing relic of old WoW, and the game would benefit if all wares were put into one, universally available AH.
3. Redesign the AH interface. Without a doubt, the default WoW auction interface is a mess. It's hard to use. Search results are, for some reason, not returned in an intuitive way. A player has to toggle between current bids and buyouts, total prices and unit prices. Not enough auctions are listed per page. Identical auctions are not grouped together -- one jerk can force you to search through 200 auctions of one-item stacks of Elementium Ore, priced at 1,000 gold apiece. And should you actually want to buy that Ore, there's no way to do it other than click your mouse 3,000 times.
To be sure, there are addons out there that fix the Auction House experience. One of my favorites is Auctionator, but it's far from the only one that fixes a clear and present problem in the default UI. Besides, why wouldn't you want buying auctions to be as simple and clear as this?

4. Create a stock-market-style AH. In WoW, there's an imbalance in power between buyers and sellers. Buyers play in real time, searching through hundreds of auctions a second, rapidly placing bids and (should the price be right) rapidly making transactions. If you're a buyer in WoW, you hold the cards.
Sellers, on the other hand, are playing a different game. While buyers are playing in the now, sellers have to play a complicated chess game, trying to stay several steps ahead of the market. A seller can't force a sale on the spot the way a buyer can. A seller has to post and wait. But why? That's not the way things work in the real world.
In the real world, markets move fast. And that's because, in major part, because buyers and sellers both have the same amount of power. Sellers on the NYSE can list what they have for sale just like WoW players do -- say, creating sell orders for 1,000 shares of Stupid Boomkin Industries for $100 a share. But buyers have the same ability to do that too, able to create buy orders for 1,000 shares of Stupid Boomkin Industries for, say, $90 a share, even if no sellers exist at that price point yet. Transactions only occur when a buyer accepts a seller's price or when a seller accepts a buyer's price.
Creating a real-world style market opens up a myriad of new trading possibilities that simply didn't exist before. A major AH player could set a massive buy order for Whiptail at 1g each -- say, an order for 100,000 pieces. Any seller who visits that Auction House would be able to instantly sell their wares for 1g/each if they choose, or alternatively, create their own price. More options -- it's not a bad thing.
5. Blizzard should sell gold. Yes, this point is controversial. But let's be realists -- gold buyers and gold sellers will always exist. The demand is just too strong.
Keeping this market illegal does no one any favors. Sellers who bot out of sheer greed drive fair market prices into the ground. They steal nodes from legit, human farmers. And as we learned last year, a lot of these gold sellers actively engage in human rights abuses.
Blizzard has already dipped its toe into this market by offering the bind-on-use Guardian Cub pet. It was a strong first step, and one that severely hurt the bad guys' bottom lines.
But Blizzard hasn't been keeping up the fight. If it can hurt the gray market of Chinese gold selling, it should. And that means that Blizzard should sell gold, either directly or indirectly via Guardian Cubs.
Filed under: Cataclysm, Gold Capped






Reader Comments (Page 1 of 6)
kabshiel Feb 21st 2012 4:11PM
They just need to add a way to reach through your monitor and slap the people who put up thousands of single pieces of silk cloth or whatever.
Minmor Feb 21st 2012 4:58PM
oh oh oh ....how i would like that!
Marcosius Feb 21st 2012 4:58PM
Can't upvote this enough.
saliira Feb 22nd 2012 7:42AM
I'm not sure the solution is to prevent the "1000 single-item auctions" method of posting. Sure, it's annoying if you're using the default interface, and yes some people object to installing addons (or AH addons, or whatever). I switched to Auctionator from Auctioneer for just this reason -- Fox didn't show the Buy interface, but it looks like the Sell interface. It groups all similar auctions on one line and then lets you buy each posting with one click so you can very quickly work through the whole 1000 if you want. Don't want to buy those 1000 pieces of silk? Just ignore that line.
I think the better solution is not to prevent posting patterns but to instead redesign the AH interface. Maybe the changes aren't simple, but if an addon writer can do it, surely Blizzard can too.
Ellesmere Feb 21st 2012 4:11PM
Can I be a share holder of Stupid Boomkin Industries? :D
Estal Feb 21st 2012 5:50PM
Stupid Boomkin Industries would never be a publicly traded company as it would not make any profit and go poof long before it ever got there.
Now Boomin' Boomkin Industries, or Tree of Life o' Plenty corp, those companies would make big bucks!
Orrine Feb 21st 2012 11:10PM
I doubt that Fox will sell his shares. Like ever.
This Boomkin Industries might be Stupid but it's his ;)
Snuzzle Feb 22nd 2012 7:54AM
Stupid Boomkin Industries is now the name of at least a dozen new arena teams and/or guilds. Calling it now.
(And can I join one?)
think1x8x2 Feb 22nd 2012 11:39AM
I had a few shares of Stupid Boomkin (NYSE: SBI), but it was just waaay too back and forth for me... Profit, loss, profit, loss. It was like two different companies. Day and night, almost.
Rainee Sue Feb 21st 2012 4:14PM
Point 5 will always be wrong, bad, and quite frankly may make me leave the game.
Gold can be traded for items that increase combat capabilities. Blizz so far has been great about ONLY selling cosmetic vanity items for Real Money. As a player with very little extra cash to spend, I've always appreciated Azeroth as the one place I would be (mostly) judged by my effort and skills and not how much money I could throw at stuff -- the closest thing to a level playing field I'm likely to find in everyday life.
I spend enough of my life being screwed over in favor of people with more money than me. For the love of pants, don't bring it to WoW.
Phil Feb 21st 2012 4:28PM
I understand your point and I am sure there are a lot of people out there who would leave the game as well, however the influx of cash would probably greatly outweigh the loss of revenue of players leaving
clundgren Feb 21st 2012 4:30PM
Look, I feel your pain but you are kidding yourself if you think that people can't already buy gold in WoW for real world money. They cam, they do, and various shady operators are making a fortune because of it. The current system doesn't prevent gold buying, it just adds a huge incentive for account hackers.
Rainee Sue Feb 21st 2012 4:30PM
I'm not talking about it being good or bad for Blizzard. I'm talking about it being shitty for me. Blizz so far has not COMPLETELY gone up the river of cash over customers, and I have hope they'll at least wait until I get to see Pandaria before doing so.
Rainee Sue Feb 21st 2012 4:32PM
And yes, I'm aware gold buying/selling exists in game now. But it's comparitively low because most people are aware it's dangerous and harmful to other players (or, at the very least, they know they'll likely be punished for it). The existence of a black market and a Blizzard-sanctioned system with no incentives NOT to use it are two very different things.
Ringo Flinthammer Feb 21st 2012 5:07PM
"It should be legal because people do it illegally anyway" is a pretty weak argument, since it basically is an argument in favor of having no laws at all.
Blizzard has already create a mechanism for turning real world money into gold, and vice-versa, via the pet store. They don't need to go further down this path.
Shinae Feb 21st 2012 5:12PM
I'm with Rainee on this. Blizz has been doing the right thing by making gold only obtainable though in-game means. This even applies to the Guardian Cub because that gold is still coming from a player in the game, not freshly-minted-from-RL-money gold, so I'm cool with indirect means like that.
There are people are engaging in criminal behaviour for the sake of selling gold, but that does not mean that making gold-selling legit will stop crime. (Such prisoner-slaves would likely be forced to do something else if not WoW.) It does mean there is a HUGE reason right there for players to not buy gold in the first place. Period.
If WoW had purchasable currency from the start, like other internet games, that would have been one thing. Yet it hasn't, for several years, so let's not ask them to make such a big change now. It's not like making gold, like leveling, is that hard to do these days... provided that a realm's population supports a thriving economy, which is why I totally agree with the other points made.
clundgren Feb 21st 2012 5:15PM
I don't think you realize how very prevalent gold-buying is in WoW.
Aykwa Feb 21st 2012 5:25PM
I'm not sure how you can even pretend to quantify how much gold is bought/sold in game right now. Where are you getting your information?
I would prefer not to have Blizz sell gold, as that would be highly inflationary and we've already got a problem with infaltion. I would be fine with it if they would become the middleman between buyers and sellers of gold. There are plenty of people with lots of gold who would be happy to sell for game time (cash equivalent) to those with little gold. If Blizzard creates the interface between them, it can charge a transaction fee as the middleman/facilitator. It can maintain a secure and easy to operate interface, and can do so without creating inflation that would hurt those who don't wish to buy gold or can't do so. In addition, there would be one large gold market, and everybody would know exactly what gold is going for at any given time. Plus you can implement systems to thwart gold sellers. For example, a maximum amount that can be sold by any one account per day or week. Or it could be easily used to try and track down which accounts are hacked or who is botting. Transparency, safety, control.
If Blizz doesn't do it, unscrupulous individuals will, plain and simple. But would we rather that a bunch of shady people get a bunch of money, or that Blizz makes a little extra while the actual players of the game get the benefit?
As for the other points:
1- I would love to have a bunch of realms merged, but I don't see this happening any time soon. Regardless, point 2 will take care of it in more ways than have been stated.
2- Having a global AH is a great idea, one that I've been hoping for for several years. It would also have the tendency to push people a little more towards unpopulated realms, due to less competition there for farming mats, etc. In many ways it would act like our markets act now, incentivizing people to live in such inhospitable places as Alaska's north slope, because they know they can harvest oil there which can be sold on the world market. It would take some time, but things would equalize out on their own somewhat. Those willing to live on low-pop realms would profit more, drawing more people to stay there or move there.
3- No question the default AH interface is one of the worst parts of the game.
4- I would LOVE to a bid side added to the AH, and I've been dreaming of it for years. I completely agree with this idea. One thing to add which fits here would be the ability to greatly lengthen the amount of time an item can be listed. Forcing everyone to relist constantly moves markets faster and more erratically. I would even be happy to allow items to be on for a month at a time. And get rid of the archaic fee to list. There is already a fee to the transaction when it is completed. Right now enchanting mats cost nothing to relist anyways, so it's not like they've never done it before. Just take your fee after a sell.
5- Discussed earlier.
Smashbolt Feb 21st 2012 5:51PM
The biggest problem I can see with Blizzard selling gold is two-fold:
1. It would greatly reduce incentive for players to run dailies/randoms for gold when they could skip the work by paying real cash. They have enough troubles making people like this "casual" content enough to do it that they likely don't want to introduce another reason not to.
2. Depending on how many people buy in, it could lead to such severe inflation that commodity items like blue-quality gems soaring in price to thousands of gold, making it impossible to enhance your gear without massive effort, or massive cash. And Blizzard just cannot anticipate how many people would buy gold if they could.
If they wanted to go with some gold-buying scheme, the only reasonable way to do it would be to allow players to sell to each other like the RMAH in Diablo 3 will allow. It's not a popular idea, and it would give the illegal gold-sellers a legitimate way to sell stolen/bot-farmed gold for cash, but it does avoid most problems with inflation while allowing players more direct control over how much gold they have.
Avan Feb 21st 2012 5:52PM
I completely agree with Rainee.
The nice thing about the Guardian Cub is that the gold return is based on market price. You might sell it for 10k, maybe only 5k. Maybe less! The amount you get is not guaranteed. It's not instant either. It's a really good way to teach people about supply and demand, too.