Report: MMOG "Gold Farming" a $500 Million Industry

Authored by Mark Hefflinger on August 25, 2008 - 11:59am.

London - Some half a million people in developing nations are working at least part time as "gold farmers," spending hours tediously accruing online currency within video games and then selling it to time-strapped players in an estimated $500 million virtual industry, the BBC reported, citing a study by University of Manchester professor Richard Heeks.

"I initially became aware of gold farming through my own games-playing but assumed it was just a cottage industry," Heeks told the BBC.

"In a way that is still true. It's just that instead of a few dozen cottages, there turn out to be tens of thousands."

Around 80% of gold farmers are believed to be based in China, and earn an estimated $145 per month for their labors.

However, the true size of the gold farming industry is difficult to gauge, as most game publishers outlaw the practice as cheating and ban users found to have engaged in it.

Published in DMW Daily, August 25, 2008

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Comments

One important thing people

Submitted by anonymous (not verified) on August 25, 2008 - 12:40pm.

One important thing people should note is the gold farmers do not pay ANY taxes.

Gold Farmers and Taxes

Submitted by anonymous (not verified) on August 25, 2008 - 11:51pm.

It turns out not quite true that gold farmers don't pay taxes. Certainly many are "underground" but quite a number are legitimate businesses paying tax in China. In fact, a few appear to have taken investments from Chinese local governments to help them set up.

I find it interesting that a

Submitted by m0r1arty (not verified) on August 25, 2008 - 12:46pm.

I find it interesting that a new form of a poverty-based class system could be born from internet gaming. It certainly does further divide those with and those without in the world. I could see this leading to some interesting possibilities for the future.

However, the true size of

Submitted by anonymous (not verified) on January 8, 2009 - 6:09am.

However, the true size of the gold farming industry is difficult to gauge, as most game publishers outlaw the practice as cheating and ban users found to have engaged in it.