Nickname: enkaedu

Review: It is unlikely that in-game assets will ever be taxed by governments. It is easier and much more likely that real-world to game-world currency conversion will be regulated, and taxes will be assessed when in-game assets are converted into real world assets/currency. This requires essentially no new legislation, and is easy to enforce - certainly compared to cash under the table transactions in the real world. A useful mental model here is not the notion of game items somehow being part of the GDP of a country like the US, which is what is implied in the issues many raise about game asset taxation. Virtual worlds exist across all countries (especially when eventually the servers maintaining them are replaced by distributed systems). A better way to look at it is that a game world is a country you visit through your computer. The relevant issues become currency exchange and "expatriation" of assets. You should be taxed on game revenue when you convert it into real money.

Date reviewed: Aug 13, 2006 11:39 AM

Nickname: Gene

Review: It seems pretty plain that this world is at a crossroads where the distinction between MMORG virtual money and real currency is beginning to blur. Personally I believe it heralds the start-up of virtual economies and a new browser model which will challenge how we think about Internet business. For example the browsers we use are based on 2D flat images with some rich media/3D flash-based content. But eventually if MMORGs continue to grow with their own internal browsers and 3D environments we may be seeing these MMORGs challenge and even surpass traditional 2d browsers like Firefox and IE with 3D interfaces. At some point would it be so strange to see real companies paying for the privilege of advertising in MMORG 3D space? Or for that matter would it be so strange to see SSL-level transactions processed within this space? Additionally MMORG virtual economies may eventually be able to compete with real economies. At what point will this challenge the very fabric of society?

Date reviewed: May 11, 2006 7:27 PM

Nickname: Swift

Review: Interesting article. Here's my question: When I buy a game, like say Diablo 2 where the market for rare items is well-known, aren't I already 'buying' all of the in-game items, whether or not I get them to drop? What I mean is, it doesn't cost Blizzard anything to make a Stone of Jordan drop. There are an infinite number of them, unlike prizes in a contest. Doesn't a product with infinite supply by consequence have zero worth? The real commodoity isn't the ring, but the time put in by the 'farmer' to find the ring. Tax time spent playing the game if you have to tax anything. Time is money after all.

Date reviewed: May 7, 2006 2:13 PM

Nickname: Phred

Review: Hang on a minute, wouldn't taxing in-game income be the equivalent of taxing, say, a stamp collector who collects his own stamps just because they could potentially be sold? Surely, tax the income on the actual sale, that would hit the farmers and maybe make their activities unviable. Alternatively, tax at the in game level in the game currency and then let the govt sell that for real money. But wait, that contravenes the terms of use and would result in them being banned...

Date reviewed: May 2, 2006 10:45 PM