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Monday, April 11, 2005

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Marketing 101 Meets World of Warcraft
7:59 AM | Marcus Albers | Comment on this story

Gaming industry site Terra Nova has posted an article discussing the new economy of the MMORPG, specifically the popular World of Warcraft gaming world.

The article talks about a group that recently bought the entire trade goods contents of an auction house in the game world of Ironforge. They then turned around and sold the items to other players for a higher price, thus making a tidy profit.

This action, and others like it, bring up some very interesting ideas about a MMORPG economy:

But I'm also curious about what this says about World of Warcraft's economy, and whether the overall picture is now clear enough to begin giving a systematic account about the particular character of WoW in this respect. There are obvious entrepreneurial responses to the buying out of the auction house: hold onto trade goods, wait for the would-be monopolists to reprice trade goods and put them back up, and then marginally undersell that new price. This is pretty much already the dynamic for trade good sales on most WoW servers.
The article goes on to examine some of the finer points of this type of entrepreneurship, as opposed to trade skills. Head over to Terra Nova to check out the full article.

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