MacInnes, Ian (2005). Virtual Worlds in Asia: Business Models and Legal Issues. Presented at DIGRA 2005, Simon Fraser University, Burnaby, BC, Canada.
Available online at:
http://www.digra.org/dl/db/06276.02460.pdf
Abstract
This paper uses a business model framework to help identify the issues that developers of virtual worlds have to address as their enterprises mature. While most virtual worlds have adopted subscription models there is an increasing trend toward selling digital items directly to users. This arises from the emergent markets linking real world currency to items existing on company servers. This practice has resulted in controversial and unresolved legal issues. Communities that arise from virtual worlds can be classified according to level and type of control. Lack of control can lead to a Hobbesian world of predation and vigilantism. Strong developer control can be exerted to protect users but communities adopting shared governance with users are likely to become more common.
This paper provides two case studies from Asia to illustrate the issues surrounding virtual worlds. Korea leads the world in both broadband access and online game usage. Property rights over digital items are not yet determined. Game developers for the most part want to control their own content but players want to have the freedom to conduct transactions and be able to enter and exit games freely at any level they choose. They also want to obtain items more rapidly and on some occasions earn money. There is currently a small group of players acting as arbitragers in virtual world economies. This enables less involved players to develop an understanding of exchange rates and prices in virtual economies. Some players engage in transactions involving thousands of dollars.
The second Asian case is from China, where the rapid growth of Internet usage has enabled many new online communities to develop. The paper discusses the feedback effects between broadband adoption and online games as well as issues such as culture, history, Waigua, private servers, virtual property trade, developer control, governance, and regulation. In spite of the profitability of major Chinese VW operators, close observation of the Chinese case suggests that even the most successful VW operators are still in the early stages of their business model development.
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This paper uses a business model framework to help identify the issues that developers of virtual worlds have to address as their enterprises mature. While most virtual worlds have adopted subscription models there is an increasing trend toward selling digital items directly to users. This arises from the emergent markets linking real world currency to items existing on company servers. This practice has resulted in controversial and unresolved legal issues. Communities that arise from virtual worlds can be classified according to level and type of control. Lack of control can lead to a Hobbesian world of predation and vigilantism. Strong developer control can be exerted to protect users but communities adopting shared governance with users are likely to become more common.
This paper provides two case studies from Asia to illustrate the issues surrounding virtual worlds. Korea leads the world in both broadband access and online game usage. Property rights over digital items are not yet determined. Game developers for the most part want to control their own content but players want to have the freedom to conduct transactions and be able to enter and exit games freely at any level they choose. They also want to obtain items more rapidly and on some occasions earn money. There is currently a small group of players acting as arbitragers in virtual world economies. This enables less involved players to develop an understanding of exchange rates and prices in virtual economies. Some players engage in transactions involving thousands of dollars.
The second Asian case is from China, where the rapid growth of Internet usage has enabled many new online communities to develop. The paper discusses the feedback effects between broadband adoption and online games as well as issues such as culture, history, Waigua, private servers, virtual property trade, developer control, governance, and regulation. In spite of the profitability of major Chinese VW operators, close observation of the Chinese case suggests that even the most successful VW operators are still in the early stages of their business model development.
* 도표 2개에 주목