Sweden Opens Embassy in Second Life

Further bridging the gap between real and virtual worlds, Sweden has decided to open an embassy in Second Life. Apparently, the embassy will only be used to distribute information about Sweden to the virtual characters.

Your Swedish Embassy away from the Swedish Embassy

I wonder if they will start processing visas (for the real world) and asylum applications. All jokes aside, this is the first time I have ever thought of an online world as being more like a different country you can visit. I wonder if Second Life will become more a vacation destination? I guess it already is...

VG Industry Greed disgusts DVD Empire

Citing increasing small profit margins, DVD Empire has pulled out of the video game selling business. In an article on Gamespot, the online retailer claimed that it made only five dollars on every sale of a game (approximately 8% gross margin) or console (< 1% gross margin). As if that were not enough, the five dollars doesnt take into account the expenses of the business, so profit is actually less. I am no expert in business, but if what they say is true, it looks like the small time retailers will go extinct soon...

The Fall of the (now) Wholly DVD Empire

I wonder why the smaller retailers are not allowed to return stock? Come to think of it, I have no idea who acts as the middle man between the retailers and publishers. Is there a middle man? I always the lament the exit of a smaller player. It seems f*ed that the bigger guys squeeze them like this, but at least the David in this case slung back:

"Of course, if the video game industry produced quality games, we wouldn't have this issue."

Gamasutra's take

Burger King's Gaming Empire

While Microsoft may have claimed victory for its sales figures over the holiday season, Burger King's game empire sold more than 3.2 million copies of its super-bootleg games in the fourth quarter of this year! At four dollars a pop with the purchase of a value meal, BK has really stepped up the whole get a toy with your shitty meal concept. In fact, their profits for the quarter jump up 40% from $27 million in 2005 to $38 million in 2006.

Fast Food Gaming Nation

As little as I like the fast food industry, except for Taco Bell and In-N-Out, I have to give the guys at BK some props. I don't even own an Xbox, and I still curious to see these games (signs that I may like video games a bit too much). The absolute ridiculousness of "The King" ads on TV, almost makes me want to go out and buy them anyway. Notice the almost.

Gold Farmers Unite!

In the face of proposed legislation in South Korea banning the trading of virtual currencies in online role-playing games for real currency, the gold farmers of South Korea have formed the Digital Asset Distribution Promotion Association, a lobbying group dedicated to representing the Gold Farming communities of South Korea. For those who do not know, affluent players of MMORPGs can pay to have large amounts of resources that would take hours upon hours to gather in a game given to them for what is really a nominal amount of real money. For example, it would take way over twenty hours of play to accumulate 200 gold, but you can buy it for about $40. As someone with not too much time, I thought about using one of these services to just make the casual gaming experience more enjoyable. For an economic standpoint, I would much rather pay someone the equivalent of a few dollars an hour, than sit at my computer killing the same group of enemies over and over to gain gold. Apparently, many out there agree with me, and the gold farming industry is big enough in South Korea (the highest percentage of gamers per capita in the world) to have its own political lobbying group.

Farmers Lobby for Open Markets

While I know the game industry does not like the farmers, I wonder what power the government has to regulate these games? Is there any harm caused? The SK's item trade industry has ballooned to over $1 billion a year! Will this legislation affect that? I do not see any reason for the government to step in. It is like the US government's involvement with steroids in baseball: sure, the game's purity matters, and it sounds like MMORPGs are just about the national pasttime of South Korea, but still, it is just a game. Does South Korea not want its youth looking up to those players who abuse the system to get ahead? No. They want their youth to look up to Hines Ward, who, like every other pro football player, would never cheat or take an illegal substance to get ahea...oh wait...hmm.

Microsoft declares victory over holiday season

Microsoft, murdering all holiday mirth, claimed victory as the number one console seller in the US this holiday season, beating second place Wii (around 600,000), and third place laggard PS3 (491,000). Boosted by "must-have" titles, like Gears of War, and the overall shortages faced by its competitors, Microsoft announced it has sold over ten million total units and over a million this holiday season alone. Not bad for $300-$400 a pop. Then again, at $600 a pop, PS3s grossed about $250 million, as much as only $50 million less. Not like the pure dollars matter though (since most console sales are not very profitable); its all about the recognition.

Microsoft wins again!

Oh, and the earlier post about when is Microsoft going to combine the 360 and PCs...duh, that shit is on the way. I have to say in this three way race, I'm pulling for Nintendo. While the other machines may be stronger, the Wii is just more innovative and fun, i.e. I would rather see games go that way then the Microsoft way: straight to the dark side.

Ebay delisting Virtual Property

Ebay has decided to enforce its policy about selling virtual property over its online auction house service. Their terms of service do not allow the transfer of intellectual property unless the seller owns the underlying intellectual property, or is authorized to distribute it by the intellectual property owner. I am a bit confused though: how do they define intellectual property? These items and gold are certainly not patents, trademarks, or copyrights. Ebay claims that Blizzard, the manufacturer of World of Warcraft, and like service providers are the true owners of the intellectual property. Is this because they created the weapons and gold? Apparently, items created in Second Life (where the player is given tools from which he can construct items) will not be delisted. Ebay isn't sure if Second Life is a game, and as such recognizes that the virtual economy can run through it without too much problem. Is it because Second Life's currency is convertible to US dollars? More than it being an intellectual property issue, it seems that Ebay was profiting off practices that Blizzard does not condone, namely transferring resources in the game between players for resources in the real world. Is that reason enough?

Virtual Property delisted from Ebay

I am currently writing a paper on virtual assets and marketplaces, so expect to see more!

Australia bans game over virtual drug use

Australia has denied permission for Xbox 360's Blitz: the League, because the player may choose for his players to take performance-enhancing drugs in the game. Now I'm not all about sending bad messages to children, but this seems over the top. I would have a problem with the game if NFL players didn't actually take steroids to make themselves play better. As a San Diego Chargers fan, I love Shawne Merriman to death, but get real, that guy runs on to the field with a syringe still sticking out of his butt. The reward: leading the league in sacks despite being suspended for a few games. So if it is so obvious that this stuff is going on, why not throw it into a game?

Blizzitz Blizzanned

It is funny to me that certain details of real life are just not appropriate in video games. I wonder if all virtual drug use will be banned? My guess is that people are so afraid that kids see the drugs in the game and think that the drugs must be games too, and just take them without thinking of the consequences. This seems very foolish to me. There have been games forever that have allowed the character to experience new power through imbibing drugs: Mario sure loves those mushrooms! While Mario is clearly fantasy, Metal Gear Solid allows the player to take Diazepam to calm his nerves and shoot his sniper rifle more effectively --> what kind of message is that!? Perhaps an unsettling one: drugs work. If they made a game where the player controlled a bomber in WWII, would it be inappropriate for the player to be able to give his pilots speed? Or is that one of those details we would rather just ban.