Facebook game profits are big, but MMO gold farming is huge

Gold Farmers
In fact, a report (PDF link) by the Word Bank's infoDev finance program suggests that 75 percent of all virtual goods sales globally are from gold farmers. Gold farmers are folks who make money off of gathering gold in games like World of Warcraft and selling it for real world currency. The types of gold farmers range from those who do it for a wage to those who steal it directly from players' accounts to bots, or automated programs that do the in-game dirty work. Facebook games might be worth $5 billion in four years, but gold farming was worth at least $3 billion in 2009.

Because most gold farmers originate from poorer countries, infoDev recommends that these services be supported whose revenue could help the development of said countries. The only problem is that this practice is largely forbidden within the agreement that players accept when first signing up for their MMO of choice. The report goes so far as to recommend that the US companies behind these games support the largely Chinese gold farmers, which has all but become a business in the past few years.

However, considering companies like Blizzard make absolutely no money from gold farming, it's terribly unlikely that developers would support such a thing unless it involved them. Unfortunately, what's more likely to happen is that developers will cut out the $3 billion middle man and develop currency sales platforms like those in FarmVille and other Facebook games. The Facebook games and gold-farming industries are putting the pressure on subscription-based MMOs to adapt, which increasingly seems to be their only option.

[Via Gamasutra]

[Image Credit: Next Nature]

Have you ever bought gold for an MMO game or currency in a social game? Do you see gold farming lasting much longer as a business model?

Asura's Wrath maker says mobile social games are 'all rubbish'

At least they're "junk" in Japan, according to Hiroshi Matsuyama (pictured), CEO of Fukuoka, Japan-based developer CyberConnect 2. During an interview with Gamasutra, the chief overseeing upcoming traditional console games like Asura's Wrath for publisher Capcom and a Naruto game for Namco Bandai, said, "Another thing that I dislike is social games. Everybody is talking about social this, and social that. Even Bandai Namco. I don't like that."

However, don't think that Matsuyama's ire for social games is uninformed--the guy has reached Level 250 in DeNA's Kaito Royale for smartphones. "They're not fun at all. But, I have to play it," Matsuyama told Gamasutra. "The reality is that it has over 3 million users, and it's true that they're making money. I need to be aware of those businesses, so of course I play them. GREE's Dragon Collection. I've played that, too. [Matsuyama pulls out two smartphones] This is my iPhone, and this is my Android phone, and I play these games on both of these phones -- but they're all rubbish."

Ouch, Matsuyama. Keep in mind, however, the CyberConnect 2 president is referring specifically to Japanese mobile social games. Though, Matsuyama name dropped Infinity Blade for iOS (and soon on Mobage) as a favorite mobile game of his. Regardless, Matsuyama appears to think that, frankly, both Gree and DeNA have work to do before their games are suitable.

This point of view certainly isn't unique to Japan, as designers far and wide in the U.S. have called social games out for shallow gameplay, predatory design or just not being social enough. It seems that, regardless of the fact that social games are making a killing, they have a long way to go before earning the respect of traditional game designers. That is, of course, as their colleagues leave in droves for the social games scene.

Do you think social games deserve the respect of traditional game designers in their current state? Should social game creators even be working toward earning that respect?