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HELP ON KOREA! Copy of the recent ruling on Convertible Virtual Currency (English, preferred)

ceo@secureplay.com (SecurePlay) — Fri, 22 Jan 2010 11:27:22 -0800

I've had several requests for more information about the ruling by Korea's Supreme Court in the matter of virtual currencies being convertible.

I've not been able to get a copy of the ruling in either Korean or English.

If anyone can help, I'd appreciate it.

Thanks,

Steve "PlayNoEvil" Davis

Korea Supreme Court rules virtual currency convertible

ceo@secureplay.com (SecurePlay) — Mon, 11 Jan 2010 11:13:32 -0800

Korea's Supreme Court has ruled that game currencies can be converted back into real money, unless the game is an online gambling game, such as poker or other card games.

Now, you can play games for a living!

In some sense, the Korean Supreme Court would seem to be using the same "preponderance of skill" standard found in many states in the US for skill games.

(Comments from Korea welcomed!)

At a minimum, this has very serious customer service and security implications. After all, if currency is valuable, than a game company has an obligation to its integrity and security.

The upside for game companies...

Now, you can play games for a living!

This should also increase the attention of law enforcement to "virtual asset" theft.

Will this happen in the US?

Probably, but it will take a while. The rise of Free-to-Play games and proliferation of virtual currencies will likely accelerate the trend as players will want a refund for unused currency - just as they get now with gift cards.

Interesting days ahead.

UPDATE: Players cannot cash in if they used bots or macros (good luck detecting that!).

UPDATE 2: The article also notes that Korea passed a law that the government will collect a VAT of 10 percent on these types of transactions... given the alleged trading volume of $1 Billion or more per year, that is real money in these fiscal hard times (thanks for the reminder, David). This may have even more impact on game companies in terms of record keeping and reporting.

Park Si-soo (2010), "Ruling to Boost Sale of 'Cyber Money'", http://www.koreatimes.co.kr/www/news/nation/2010/01/116_58775.html

Choe Sun-uk (2010), "Supreme Court acquits two in cyber money game case", http://joongangdaily.joins.com/article/view.asp?aid=2915126

The Stealth Massive Online Game - Magic Online - $100 Million in Revenues?

ceo@secureplay.com (SecurePlay) — Mon, 11 Jan 2010 08:29:06 -0800

Magic Online, the online game based on Magic: The Gathering, may have earned $100 Million since its launch, according to Randy Bueller. If you were alive and a gamer in the 1990s, you ran into (or away from), the phenomenon that is Magic: The Gathering. Magic was the first collectible trading card game and spawned innumerable imitators and really popularized gaming beyond hardcore D&D players and Avalon Hill grognards in the US, at least.

Randy Bueller, formerly of Wizards of the Coast, mentioned in an aside at his blog that the game has earned around $100 Million since its launch in 2002. The game apparently generates 30 to 50 percent of the total "Magic" business, according to Wikipedia (which also cites 300,000 accounts and an average of 2000 to 4000 concurrent users in Feb. of 2007).

Why do I mention Magic Online? Well, because no one seems to talk about it in the endless articles about World of Warcraft, Eve Online, Zynga, Popcap, and everyone else in the online game business.

Magic bridges hardcore and casual gamers, is one of the pioneers in the "Free-to-Play" business, probably THE pioneer tying an online product to a physical one, and is pretty darn huge.

R. Bueller (2010), "Thinking Gamer Video Game Decade in Review", http://thethinkinggamer.com/2010/01/04/thinking-gamer-video-game-decade-in-review.aspx

NOTEWORTHY: Up to 65 percent of MMO players play for Free

ceo@secureplay.com (SecurePlay) — Thu, 19 Nov 2009 08:08:07 -0800

A recent widely cited report by GamesIndustry.com found that 15 percent of game time was devoted to MMOs. The report also stated that between 35 to 40 percent of gamers pay for MMOs...

which leaves quite a few players playing for free.

... between 60 and 65 percent playing for free to be precise (at least as precise as these surveys get).

It would be very interesting to see how this number has shifted and grown over the past several years as well as how many players are paying while not subscribing (free to play and such).

The report claimed this number for European players with somewhat (unspecified) higher paid rates in the US and is based on a survey of over 13,000 players in the US and Europe.

J. Brightman (2009), "MMOs Account for 15% of All Time Spent Playing Games in U.S. and Europe, finds Report", http://www.industrygamers.com/news/mmos-account-for-15-of-all-time-spent-playing-games-in-us-and-europe-finds-report/

via

C. Campbell (2009), "MMOs fill 15% of game time", http://www.mcvuk.com/news/36569/MMOs-fill-15-of-game-time

MMO Focus Report & Data (US,UK,DE,FR,NL,BE)MMO Focus Report & Data (US,UK,DE,FR,NL,BE), http://www.gamesindustry.com/company/542/service/1870

BRIEFLY NOTED: Yet another iPhone Piracy developer complaint

ceo@secureplay.com (SecurePlay) — Thu, 29 Oct 2009 10:54:40 -0700

Fishlabs has joined the chorus of iPhone game developers decrying piracy on the platform. Their game, Rally Master Pro, apparently suffered 95 percent piracy on its first day of release.

Fishlabs is dubious of in-game purchases as an anti-piracy measure (apparently, this was suggested by Apple). They have tried in-game purchases with their game in Java in other markets... and it doesn't sound like it has been successful.

NOTE, I'm not sure why in-game purchases would be a problem. It certainly has worked for PC games... implementation of micro-transactions certainly matter and it must work with the game design.

S. Dredge (2009), "Fishlabs slams high iPhone piracy rates", http://www.mobile-ent.biz/news/34833/Fishlabs-slams-high-iPhone-piracy-rates