WintryLemon,
@WintryLemon@lemmy.world avatar

The Inflation Crisis and the WoW Token

Perhaps the most destructive part of Warlords was what it did to the economy – rampant hyperinflation. WoW had always had inflation, because players had always gathered more gold than they spent. Blizzard wanted to make it possible for new players to buy stuff, so each expansion rewarded more than the last. WoW’s economy sat in this delicate balance for over a decade without issue. Until Warlords.

Garrisons gave players the ability to easily farm herbs, ores, or other material, and also to process them into valuable items. They could send out ‘followers’ on missions which required zero effort to complete, but rewarded hundreds or thousands of gold. Here’s a guide from the time.

“…between 2014 and 2016, it was possible for dedicated players to generate quantities of gold that were previously impossible to obtain, and have not been possible to obtain since.

In that expansion, NPC followers could get an ability called “treasure hunter” that doubled any gold rewards they earned from a quest. And “treasure hunter” perks stacked, so it was possible to get a few thousand gold per day, per garrison. Many casual players who had never had significant amounts of money before earned hundreds of thousands of gold during Warlords of Draenor. Players could sock away millions, since each character could earn roughly the same amount of gold from their garrisons, and you can have as many as 10 characters on a server.”

Before long, the game was full of millionaires.

Blizzard’s solution to this problem was… rudimentary. They removed the ability to generate enormous amounts of gold when the next expansion came out, and they filled the game with gold sinks. A gold sink is an extremely expensive item designed to remove money from the economy. These included gear appearances and toys, but mainly came in the form of mounts. This wasn’t anything new – the famous Traveller’s Tundra Mammoth went back to Wrath of the Lich King. What changed was the sheer cost of these mounts, as well as how many there were.

The Marsh Hopper cost 333,000 gold, and there were three to buy. The Lightforged Warframe and Palehide Direhorn each set you back a spicy 500,000 gold. The Bloodfang Window cost 2 million, and the famous Mighty Caravan Brutosaur cost 5 million.

This wasn’t really a solution. The gold farmers had so much money that none of these mounts made a dent in their wealth, and it meant a lot of mounts were totally unattainable to everyone else. This was especially bad in the case of reputations. Imagine working your socks off for weeks to max out your reputation with the Argussian Reach faction, only to find out you would never get the mount, because it had been turned into a ludicrously expensive gold sink. One expansion (Battle for Azeroth) would turn ALL of its faction mounts into gold sinks.

Rather than fix the problem of inflation, this just made the non-wealthy players more angry about it. Now it was affecting them directly. And since it didn’t fix inflation, everything else remained exorbitantly expensive.

“There is massive inequality, because WoW’s trade goods economy tends to funnel wealth to a small number of players.”

If you avoided these gold-making techniques, or weren’t subscribed during the time when they were possible, you were effectively locked out of the game’s economy.

Blizzard is fully aware of the damaging impact that some content in Warlords of Draenor has wrought onto the game economy. However, I am worried that attempts to fix it will not be heavy-handed enough, which could cause problems such as making new player experiences even more frustrating due to the sheer amount of gold they’d have to earn to make any headway into some aspects of the game.”

Blizzard did have one other trick up its sleeve to help with this.

In April 2015, Blizzard introduced the WoW Token. It was an in-game item representing one month of game play-time. Players could buy them for real money, and sell them to other players.

WoW gold had always had an in-game value on black markets, but now it was official. Blizzard took some measures to limit the tokens - unlike other items, players could neither set the price, bid or haggle, or choose who to buy from. The market price was automatically set by an algorithm based on supply vs demand, and tokens could not be directly exchanged for real money – though they could be exchanged for Battle.net account balance to spend on other Blizzard games, and those games could be legally sold on key-selling sites for real money.

Players only need a finite amount of game time; you buy 24 tokens, and you’re fixed for two years. So the players sitting on hoards of gold had an incentive to sell only a fraction of their stash. The rest of their wealth sat idle in their coffers, out of circulation.

Once Blizzard allowed players to redeem tokens for Battle.net balance, however, there was basically no limit to how many tokens players needed. Rich players began dumping their stashes, and with so many more people trying to sell than buy, the value of gold relative to dollars plunged, and the gold price of the tokens started skyrocketing.

The WoW token had four aims:

  1. To motivate dedicated players to keep playing by allowing them to pay their subscription fee in gold
  2. To give casual or new players an avenue into the economy by letting them buy gold through legitimate means
  3. To generate more profit from their shrinking player base
  4. To undermine the black market

It succeeded spectacularly on the first three, but failed just as spectacularly on the fourth.

Most MMOs had some kind of ‘token’ service – WoW wasn’t doing anything new. Indeed, most of the community were in favour of tokens. It was a popular addition which benefitted new and old players.

Here are a few comments from the Youtube trailer

“Even though I quit WoW a long time ago it’s good to see things like this being implemented in to the game.”

[…]

“This feature is completely amazing! Thanks so much for this Blizz ! :)”

[…]

“Finally an excellent idea, now people will play easier without thinking about membership. Great Job.”

[…]

“let me just say, as someone who’s highest level non-death knight is lvl 26, that this is the best feature i’ve ever seen on a multiplayer game”

But the community was divided on whether the WoW token would actually work.

Some players worried that in order to pay for WoW tokens, more of them would start farming gold, and so inflation would rise rather than fall. Gold spent on tokens never actually left the economy. If anything, by linking all of the servers within a region in the same token market, Blizzard guaranteed that gold would hit the same value everywhere. In small servers with low inflation, that meant a huge drop in the value of gold.

Internet angry-man Asmongold had this to say.

“I think that it is a negative. I think that it makes the game worse, and it’s a bandage that Blizzard puts on the game in order to make up for the fact that they’re not balancing, and they’re not dealing with [back market] gold sellers. That’s what it comes down to. It fucks the economy. It makes every single accomplishment that can be achieved with gold – which is basically all accomplishments – basically an Ebay achievement.

WoW token legitimises and it provides a vehicle for pay to win to occur. […] And what is winning in WoW? Winning in WoW means something different for everybody. But I think for many people, winning in WoW does imply, to some degree, getting a good arena rating or getting very good gear. Gold can buy both of those things, and if you can buy gold, I think that’s pay to fucking win.”

To clarify, he is referring to the ‘boost’ economy, in which groups of highly skilled and geared players escort other players through end-game content or pvp so they can get the rewards, in exchange for gold. Since the creation of the WoW token, the black market has gradually transitioned away from selling gold and toward selling these boosts.

It has been streamlined to the point where it has more in common with Uber than the shady websites of old. But unlike the black market gold sales, Blizzard profits immensely from the boosting industry, because players pay for boosts with gold, and they get that gold from tokens. In fact, Blizzard overtly works with boosting companies to track down RMT (real money transactions) in exchange for the implicit protection of these companies. In order words, Blizzard audits boosters to keep the profits flowing through the token system.

“Fundamentally, it’s a lot like randomly getting an insanely good group on the group finder, but reliable, repeatable and on-demand. They have made it convenient, low risk, and professional. Hell, if your run goes wrong, you can even get a refund. These companies have moderators, they have customer support staff, and of course advertisers. All so that you can have a good experience.”

Most full-time boosters come from poorer countries, where the profits from wealthy westerners can easily cover the costs of living. Globally, it’s an industry worth tens, perhaps hundreds of millions.

(Original post by Rumbleskim on /r/hobbydrama)

  • All
  • Subscribed
  • Moderated
  • Favorites
  • random
  • uselessserver093
  • Food
  • aaaaaaacccccccce
  • test
  • CafeMeta
  • [email protected]
  • testmag
  • MUD
  • RhythmGameZone
  • RSS
  • dabs
  • TheResearchGuardian
  • KbinCafe
  • feritale
  • Socialism
  • oklahoma
  • SuperSentai
  • KamenRider
  • All magazines