Real money and the virtual economy

In the world of Azeroth, life can be cheap but saving up for that much desired epic mount can take months of labour. Welcome to the World of Warcraft, currently the worlds largest MMORPG (Massively Multiplayer Online Role Playing Game). In the World of Warcraft, the auction house presents the avid window shopper with a cornucopia of wonders, from fabulous swords to armour guaranteed to make you the hardest elf in your neck of the woods. To purchase such wonders, the player needs gold, something that requires quite literally hours, days or weeks of in-game labour. However visit Ebay or Eye on MOGs, a price comparison engine for virtual commodities, and you have the opportunity to convert real life earnings into virtual gold, platinum, ISK or Credits, depending on the virtual world that you alter ego(s) inhabits.

The world of Real Money Trading has come a long way since its fledgling days when gamers departing from a virtual world would use websites like Ebay to convert their in-game assets into real world money. Today it is a multi-billion dollar industry, with industry insiders like Steve Sayler of IGE estimating that as much as $2.7 billion will change hands within...