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Virtual items and lands are high risk investments

liumlium Member Posts: 138
in Entropia Universe

Land ownership in Entropia is a prickly subject, because a legal system does not exist to mediate disputes and MindArk retains control of everything, no matter how much money a player invests in the game. What's more, land values can fluctuate more greatly than in the real world. In Entropia, unlike in the real world, land can literally be created by the developers. As more land is created, of course, demand and value can decrease.



Whether disputes over virtual real estate can be settled in real-world courts is still a legal unknown. Only one such case has been filed. In February 2002, BlackSnow Interactive filed a lawsuit against Mythic Entertainment after the developer announced that it would shut down the game Dark Age of Camelot, making virtual items related to the game worthless. BlackSnow ultimately dropped the case.



That lawsuit exemplifies the risk of investing in virtual real estate and items, says Richard A. Bartle, a London-based game developer who studies virtual economies.

If you buy things in a game like Second Life or Entropia (now know as First Planet Calipso, FPC) and the company announces that they're going to close the game down, you're in trouble, because you can't get your money back.

 

http://terranova.blogs.com/terra_nova/2006/05/mindark_im_sorr.html

Comments

  • OpticronOpticron Entropia Universe CorrespondentMember UncommonPosts: 74

    Finally something we can agree on, good post and your english has improved alot too! Could you post a link to where you found this article or forum post from?

    People should be more aware that any RCE game items are high-risk investments, it's a totally new area both legally and financially and many things are not ironed out yet. Don't treat this game as any other MMORPG where you can randomly click away but consider what you buy and sell carefully, use tactics/information and common sense to economically minimize your expenses and maximize your profit. Personally i don't spend what i can't afford to lose or will be too upset about.

    The final choice is still your own, but i still believe the acquired real banking license, combined with the statement every ped deposited will go directly into that bank offers better security than other mmo companies offer. Think of it what you will

  • liumlium Member Posts: 138

    http://terranova.blogs.com/



    The only one that MinDark hate becose is all truth !



    Best source for virtual worlds period

     

    http://terranova.blogs.com/terra_nova/2006/05/mindark_im_sorr.html

  • AlphaGeekAlphaGeek Member UncommonPosts: 193

    So basically, you're saying that investment in any mmorpg has the same risk as investing in any other privately held company.

    How does one differentiate between an investment in a company and putting cash into their gaming system? I believe that an investment would actually be for shares of stock, and not a purchase of  virtual items.

    Since MindArk, the company that owns Entropia Universe is privately held and recently aquired a Banking license from the Swedish Government (MA is based in Gothburg). Since EU is the first game with an RCE, it is my belief that the banking license is a first step in the financial regulation of the industry... or at least for those games that choose to have an RCE ast part of their structure as EU does.

    Interesting years ahead! 

    Alpha AG Geek
    Founder- Manticore Society

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