Of greed and morality

A few days ago the Washington Post published an investigative piece about World of Warcraft. Well, it wasn’t exactly about that — it was about Internet Gaming Entertainment (IGE) and that company’s involvement in what we can most charitably call the gray market of internet gaming — gold farming, maxed-avatar selling, gear selling, etc. And of some interest, but I fear not surprise, the current chief advisor to the President of the United States, Steve Bannon — odious enabler of American Nazism and white supremacy — was one of the company’s executives.

Bannon saw so much opportunity in the prospect of game cheating that he persuaded Goldman Sachs and a consortium of Wall Street investment firms to invest $30 million in the company. Thirty. Million. Dollars. Eventually, IGE went out of business (I think — it is hard to track corporate restructuring and acquisitions and such), but in their heyday they did up to 8-10 million dollars of business per month.

The Post article was actually old news — similar shorter pieces have been appearing in online gaming news sources and blogs for a few months now — but it had some new details and gave a good picture of the seamier side of internet gaming. If you have some time, I recommend you give it a read.

At any rate, my point today is not that the President of the United States places faith and trust in a sleazy cheater, nor even that American economic policy is now being controlled by former employees of firms eager to invest in exploitation of game cheating. Rather, I would like to examine the notion of morality in the current world of internet gaming, using the IGE saga as a vehicle and Blizzard as one of the principal protagonists.

First, who were the winners and losers in the IGE morality play? Clearly, IGE was ultimately the loser — they went down in rather ignominious fashion, not with a bang but an impoverished, debt-ridden whimper. At their profit zenith, they had tried to buy off Blizzard and other game companies by offering them a share in the profits if the companies would legitimize IGE’s activities. As WoW represented a huge share of IGE’s business, Blizzard’s decision here was key and likely the deciding factor in IGE’s final demise. Blizzard said no, and in my eyes that makes them — and WoW players — the winner.

I don’t actually know why they refused, but I am giving them the benefit of the doubt and attributing it to a sort of foundational morality, a gut instinct that selling advantages in a game is just wrong. The real answer, of course, is more complicated, I suspect. A lot of factors persuaded Blizz to go after IGE with a vengeance rather than be co-opted.

One factor may have been that Blizz touted the game as one of merit not money, and they set up the subscription model to support this. Gaming companies need to make a profit, and selling subscriptions rather than virtual gear or gold was a good way to make money, especially in the early days of the game before spinoffs and endorsements and T-shirts and the like bring in much. To allow players to buy their way into max levels or high gear — without experiencing the game as intended — was contrary to everything Blizz had advertised about WoW.

A second factor was that the WoW player base was overwhelmingly against “pay to play”. Almost certainly, had Blizzard opted to throw in with IGE, they would have lost millions of players. Such a decision might have actually resulted in the destruction of the game. There is no doubt that this kind of strategic assessment played a part in Blizz’s final decision. They might have increased profits in the short term, but in the long run there was a good chance they would have caused the death of the game.

Other factors were subsidiary to the two I have just mentioned. For example, a sudden and significant influx of easy gold would likely have caused rampant inflation in the virtual economy of the game. Similarly, gear that players had to be proficient and persistent to obtain would lose its value if anyone could plunk down $20 and get the same stuff. Back when IGE was active, it was more rare to have a max level character than it is today, and the notion that anyone could purchase a max level with real money would have cheapened the accomplishment.

So I give Blizz props for turning IGE down, and for working to eradicate gold sellers and the like from the game. I don’t care what their reasons were, they did the right thing. And they continue to do the right thing today when they go after bots or when they punish players for selling services for real money. Yes, you can still cheat in WoW — the cheat sites are out there — but Blizz is continually refining its detection methods and imposing punishments, such that players really have to think twice about whether or not it is worth it in the end.

Now, of course one of the ways Blizz used to defeat gold sellers was to institute the WoW token — basically legitimizing the practice. I am still not sure if this was a good move, but it was undeniably smart business. Making it two-sided (turn real money into WoW gold and turn WoW gold into playing time) was genius and addressed two player markets — those who had time but not money and those who had money but not time. Additionally, Blizz controls the availability and price, so they can put brakes on undesirable results such as rampant inflation. As an added bonus, every player using gold to get play time has garnered a $20 per month subscription for Blizz rather than the standard $15 one. Genius. But I still think it was a minor backing off from one of the game’s founding principles.

The last thought I have on the whole IGE story is this. Internet gaming, even though it has been around for years, is still in its profit infancy. How the industry — players and spectators as well as developers and investors — deal with cheating will set the standard for the rest of its existence. Thus far Blizz has acted responsibly, I think, although they have been a bit easy on high-profile cheaters. Still, I believe they are on the right path. But the industry could go either way — it could go the route of professional wrestling or it could go the route of the NFL. There is big money in both, but one at least strives to be honest and competitive, and the other — not so much.

I am not so naive as to think greed is not a business motivator, but I am still naive enough to hope there is room for morality, too. For knowing and doing the right thing.

About Fiannor
I have a day job but escape by playing WoW. I love playing a hunter, and my Lake Wobegonian goal is to become "above average" at it.

2 Responses to Of greed and morality

  1. Marathal says:

    I’m still on the fence with being able to buy a level 100, plunk down a few hundred bucks on gold, quickly level yourself to 110, and pay some guild a few million for a full Heroic or I suppose even Mythic ToS clear with all the gear you could want.

  2. My guess is that the next step is encrypted currencies like bitcoin and more; I know that Russia is taking an interest right now but probably for money laundering. However, bitcoins are a part of the gaming world and to think that flow of virtual cash … and so on.

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