| The venue is the virtual world. Numerous | | | | Because of the popularity MMORPG has gained, it |
| individuals participate, meet, and play with each | | | | is not surprising to know that revenues rose |
| other. These are the occurrences in massively | | | | dramatically over the years just so it could keep |
| multiplayer online role-playing game (MMORPG). | | | | up with the world wide demand of online gamers. |
| These are computer role playing games which | | | | In 2005 alone, about half a billion US dollars have |
| developed from continuous improvement of online | | | | been given to MMORPGs. Western revenues have |
| multi user games. It was Richard Garriott who | | | | been allotted with about one million dollars. |
| coined the term MMORPG. He is the creator of | | | | Economics |
| the game which popularized MMORPG, Ultima | | | | Most online role-playing games feature living |
| Online. | | | | economies. Virtual items and currency have to be |
| A fictional fantasy world is the usual setting in | | | | gained while playing the game and have definite |
| most role playing games. The gamers build their | | | | value for the players. Such a virtual economy can |
| own character (avatar) and take control of the | | | | be analyzed and has value in economic research |
| avatar's skill and abilities. They can customize their | | | | and can even have a dramatic impact on the |
| avatars to match their personality. Every game in | | | | economies of the real world. |
| the online RPGs comprises of different characters | | | | One of the early researchers of MMORPGs, |
| with different trait and responsibilities. They can | | | | particularly Edward Castronova, stated that the |
| be categorized into melee, ranged, and magic | | | | supply-and-demand market for virtual items is |
| users. | | | | existing. It even crossed over the real world as |
| What Makes MMORPGs Different | | | | much as the virtual one. Crossover requirements |
| Massively multiplayer online role playing games can | | | | are some of the following: The player's ability to |
| be recognized from the usual computer role | | | | sell in-game items for virtual currency, trading of |
| playing games by the number of players and the | | | | items which have the similar value, the purchase |
| virtual world where the game is situated. | | | | of game items with real money, and the |
| Computer role playing games can only cater to | | | | exchange of real money with in-game money. |
| single player modes whilst massively multiplayer | | | | The idea of exchanging real currency virtual |
| online role-playing games can cater to thousands | | | | currency or in-game items has had a significant |
| of gamers at one time. | | | | effect on both the players and game industries. |
| The world that the game is themed from is | | | | People who make a living out of the virtual |
| another factor that differentiates the two genres. | | | | economies are termed as "gold farmers" and can |
| A repetitive and constant setting is found on | | | | be employed through the game shops or private |
| computer role playing games. Because of the way | | | | forums. |
| it is programmed, each time the gamers in | | | | Real currencies in exchange for virtual money and |
| computer RPGs plays a game, the same episodes | | | | in-game items are usually prohibited by game |
| are repeated. | | | | publishers. However, because of necessity this |
| On the contrary, MMORPGs' provide an | | | | exchange cannot be avoided. An example of this |
| environment that lives on its own. That means | | | | is "Entropia Universe", an online game that allows |
| that even if the player is away or online, the | | | | real money in exchange for game money and |
| game continues to evolve and "live". | | | | vice versa. |
| Increasing Revenues | | | | |