ECONOMIC STAGES OF ONLINE GAMES -- SYNOPSIS

2005/11/13

INTRODUCTION

Do MMOGs offer advanced economic systems? Should they?

• some real-world cultures have seen sharp increases in economic activity
• it is possible to characterize the innovations that enabled these increases
• most MMOGs implement only the earliest of these economic innovations
• these innovations could be implemented to offer deeper economic gameplay
• some MMOGs would benefit from implementing more of these more recent innovations

TABLE OF ECONOMIC STAGES

STAGE	TECHNOLOGY	ORGANIZING FORM	EXAMPLE	DATE
0. Prehistoric	handcrafting	barter	?	(prehistory)
1. Civic	agriculture	city	�atalh�y�k	ca. 5000 BC
2. Trading	currency	code of laws	Lex Duodecim Tabularum	ca. AD 1
3. Mercantile	printing press	banking	Bank of England	ca. AD 1400
4. Commercial	sailing ships	corporation	Dutch East India Co.	ca. AD 1600
5. Industrial	steam engine	factory	cotton mills	ca. AD 1800
6. Service	(special)	division of labor	Ford Motor Co.	ca. AD 1900
7. Information	computer nets	?	Internet	ca. AD 2000

STAGE 3: MERCANTILE ECONOMY

Printing press - While this ability would be useful in the game world, it isn't really required as long as players can communicate with each other outside the game world.

Banking - Allow in-game banks to loan a limited amount of money to established players, making banks the most important faucets from which money enters the economy.

STAGE 4: COMMERCIAL ECONOMY

Sailing ships - Allow expensive vehicles that can carry cargo faster than can be carried personally.

Corporation - Allow player groups that can "own" their own resources, survive the departure of their founders, and spread the risk of investments among members.

STAGE 5: INDUSTRIAL ECONOMY

Steam engine - Allow a large-scale but stationary and very expensive source of power generation.

Factory - Provide a crafting system that enables a stable group of unskilled players to work together in an organized way to mass-produce quantities of similar goods.

STAGE 6: SERVICE ECONOMY

Electricity, cars, and telephones - Increase the personal transportation, communication, and productive power of individual players.

Division of labor - Extend the crafting system to allow complex goods to be crafted by organizations of players with specialized skills.

STAGE 7: INFORMATION ECONOMY

Computer networks - Allow players to share knowledge in the form of player-created objects.

CONCLUSION

Why should online games offer more advanced economic capabilities to their players?

• more for players to do; more content
• increased perception that players are members of a complete and living community
• futuristic MMOGs just don't seem "done" without advanced economic features