World of Warcraft China: Interesting Facts - Part 5

Posted by Daeity On Thursday, August 19, 2010

Because virtual currency is so easy to procure, easy to sell (it's a $2 billion legitimate industry in China), encouraged by World of Warcraft operations, and has such real value you can imagine that a lot of players are involved in the amassing (and selling) of gold.

Many users still play the game for fun (they have jobs or alternative sources of income). But there are also professional farmers (what they do all day) and players who play for fun but also farm "on the side" to pay for gadgets, gifts, subscriptions, etc.

Although no official statistics on that exact breakdown exists, there are enough to the point where it has completely reshaped the economy and industry of WoW China.  So it's definitely a lot.

Many of the activities that take place on WoW China realms would be completely unrecognizable on NA/EU realms. Here are some examples of the types of services offered by many players in CWOW:

  • Users can be paid based on each task completed, flat rate, pay by the hour, or pay by the day. Real currency or in-game gold plus others are acceptable.
  • You can pay users to go out and collect items (mining, herbalism, skinning), mats (disenchants) and/or quest items (if shareable) for you.
  • Pay a user to grind Rugged Leather for you, you pay them based on what they bring back.
  • You can pay a user to play your account for non-leveling related services. Crafting, questing, etc.
  • Pay a person to sit on the Auction House all day and sell/buy certain goods for you.
  • You can pay players to scout for you (whether it's a location, the AH, or a vendor for limited supplies)
  • Pay a user to run errands for you, deliver goods to users who are not near mailboxes, etc.
  • Any task you can think of is open up to negoiation. (The Chinese government is trying to crack down on virtual sex trade and gambling too, so that can happen as well although it's more black market.)
  • You can buy high level guards (Level 70s on CWOW) to escort you while you quest ("Hire-a-Carebear").
Other than those services, two of the big ones are:

Power-leveling Services
  • You can pay using QQ Coins, virtual gold, or real currency for a set number of levels (or all the way to 70).
  • It's extremely cheap to get power leveled and it's very common for users to be sharing accounts. You never know who you're playing with. =] It's also the reason why account hacking is so common.
  • High level players will also hang around Stratholme, Scarlet Monastery, Shattered Halls and ZulFurrak selling power levelling services or dungeon runs (for items). Sometimes they sit in the zones or in large gathering spots advertising publicly or whispering travelers. It's also not unusual for a high level character to hang around starting zones selling leveling or dungeon running services - pay by gold if it's an alt, or pay in real currency/QQ coins if they are new.
  • It's interesting to note that on NA realms there are gold beggars in major cities. But in China, there are no low level gold beggars. Instead it's the reverse: all of the high level characters are begging for gold in the starting zones. That's how valuable WoW gold really is!  =]
Raid Auctions
  • There are several "Gold PUG" groups that raid on a daily basis. Many options are available to you.
  • The teams are made up of about 20-25 experienced raiders who bring along a group of "customers" with them. No vent or speech software is used.
  • They will clear out Black Temple, Sunwell, etc. and kill everything (even level 60 dungeons). After each boss, the customers will bid for the items that drop (100g for example) and the highest bidder pays gold before receiving the item. At the end of the raid, all of the gold collected from the customers gets split amongst certain members of the raid party (depends on their reputation, work status, if their gear contributed to the success of the raid, etc.) Some of the raiders need to work their way up before they can start earning more. A normal raider can earn anywhere between 300g to 1000G per run. If the raiders are skilled, they can reduce the total number of gold earners and profit even more per player.
  • Originally from Korea, these are gaining in popularity on NA/EU realms except that they're called "Gold Bids" or GDKP's.  (More Information)
More interesting stuff about WoW China in Part 6..

High Probability of New Realms for Cataclysm

Posted by Daeity On Wednesday, August 18, 2010

Blizzard hasn't said anything official on the matter, but most players are assuming that new realms will not be created in anticipation of World of Warcraft's next expansion pack.

The following was even posted by a Community MVP on the WoW Forums:

However, those non-Blizzard employees aren't exactly known for telling the truth or even being aware of simple activities that take place behind the scenes at Blizzard.

As of right now, every post I have been able to find on the matter (official and unofficial forums) claims that "word on the street" is that no new servers will be opened. So that's the belief of most WoW players. I can understand the logic: there's no growth, so why would they increase the number of realms?

But, the problem is that most players base their decision on declining subscription figures and subsequently mistake servers with realms.

Each realm is just a virtual object operated by a cluster of servers. Some realms utilize more servers than others, and information on multiple realms is actually stored on the same servers. There are a ton of processes and activities taking place on servers that in fact manage multiple realms.

It would be very easy to create a new realm (it's just a data object) without actually changing the quantity of servers.

New Realms ≠ New Purchases or Servers

Blizzard CEO Mike Morhaime even stated that there was no growth from December 2008 to February 2010.

To be clear, there was no player growth when WOTLK launched however Blizzard still created 12 new realms in the US.

Nov/08 - Dawnbringer
Nov/08 - Drak'Tharon
Nov/08 - Fizzcrank
Nov/08 - Galakrond
Nov/08 - Grizzly Hills
Nov/08 - Gundrak
Nov/08 - Saurfang
Jan/09 - Borean Tundra
Jan/09 - Garrosh
Jan/09 - Wyrmrest Accord
Jan/09 - Winterhoof
Mar/09 - Nesingwary

At the time, player distribution across the realms was even the same as it now. (i.e. 50-60% of servers half full, and an even split between high population and low population servers.)

Keep in mind that each "realm" also has it's own set of rules. A "high population" on one realm does not necessarily mean the same quantity of users on another realm. It all depends on server load, distribution, and how it's configured. Why leave multiple servers idling when their processing power can be used to support the load of other realms?

For example, let's say each realm can only support a maximum of 6,000 players on each faction. The realm never even hits half that amount (of players) during peak times. So, then you just create a new realm, split up the servers managing the one realm into two, now suddenly you have 2 realms without increasing the number of servers. And both servers can be "upgraded" from low population to medium/high population each. If the servers start to get stretched, additional servers (running low load) can be simply added to this cluster to increase number of players. Or an existing realm can just be opened up to free transfers. (This is just an example and not exactly what happens. There are actually hundreds of servers/blades involved. From a server administration perspective though, it's easy to manage and coordinate.) =]

Why would Blizzard even care about opening new realms?

For the same reason they did it for Wrath of the Lich King.

We know that there was no actual player growth at the time, and servers weren't over capacity with players (in fact about 50% of the realms were at half capacity), so why did they create new realms?

Company Perception and Reputation Management:

Making an announcement that you have to create new realms for "unexpected growth" or "rapidly increasing user base" or "significant number of sales" gives the impression of player growth. Even if you just announce that new servers "need to be added" it gives the perception that player counts are growing.

Investors, share holders, managers, and players love to hear that. It reinstates confidence in the company. =]

Blizzard also wants to be known as the #1 provider of the best MMORPG in the world. So you need to control the perception of your company and give the impression of constant growth and more profits. (Even though Quarterly Reports show hardly any gains at all, and actual player counts are really about half of "active subscribers".)

It Makes The Players Happy:

It's good for public relations too. Players want new realms to be created, so that they can create characters from scratch and try to get ahead of the others.

There's also the fear of high levels harassing the new low level characters. Remember all of the 70-80's hanging around Outlands waiting for the freshly made Death Knights to step through the portal? That same fear exists now. Except now, it's level 80-85's that can fly well overhead hunting Level 20's and finding them very quickly. With new realms, at least the option is available to start brand new just like everyone else.

There's also nothing worse than joining a server when everyone is already Level 80, there's no low-to-mid level advancement and all of the zones are empty.

Throw on your tinfoil hats! New realms might actually mean reduced servers and player counts.

Something interesting occurred to me while I was researching this. I really have no idea if this happens or not, but it's a possibility and I'm just throwing it out there. =]

Because the exact number of server-to-realm ratio has never been announced, and the fact that servers manage multiple "parts" of different realms, it's entirely possible to reduce the physical number of servers (because of declining players) but also create new realms with the added bonus of increasing customer/investor confidence.

As new realms open, all that is required is changing the internal definition of what a Low, Medium, or High population server implies. A high population could mean 10,000 concurrent users but it could just as easily mean 8,000 concurrent users.

People will get dispersed as realms are split up, but because of the large size of World of Warcraft - would anyone even notice? Factions all gather together at single locations anyways and if realms are split up, users would just assume that they see less players while questing because the world is so vast and they could be anywhere.

If it ever became an issue ("gasp! the users are starting to notice"), all that's required is opening up free transfers to the realm. =]

So basically, there shouldn't be any new realms based on WoW's growth, but it makes logical sense to launch new realms just like they did for WOTLK (which was in a similar circumstance, and users ALSO said there wouldn't be new realms at the time.) Of course, now that this information is public and Blizzard knows-that-you-know.. who knows? =]

In 2008, Vaneras wrote:
"The decision of whether or not to open a new realm is entirely based on the population size on existing realms, which is something that we are continuously monitoring. We will of course open new realms if and when it is needed :-)"

In 2008, Nethaera wrote:
"New realms are released as we feel they are necessary and we don't normally announce them ahead of time. I can't answer any of the above since they are all contingent on timing based need. If we end up needing more realms, we'll create them based for the specific purpose they need to fill."

In 2008 and 3 days before release, Nethaera wrote:
"It's too early to say whether these will be necessary or not."

In 2010, Crepe wrote:
"As always, new realm are opened due to population issues. If you wish new realms, you need to find 200,000 of your closest friends to subscribe."

In 2010, Crepe wrote:
"New realms are put up when population needs require them. We won't know until they go up."

If Mekkatorque was here, he'd say the chances of new realms being opened are less than 12.7%. =]

Other than that, the launch of Cataclysm is just a few months away (first week of December). Hope you all have your orders in!

------------------------

FYI - Another official posting on the WoW Forums:

Pretty much everyone is saying that there will NOT be any new realms due to low subscription numbers. I like to swim against the current though. So basically, there shouldn't be any new realms created, but it still might happen on launch day or within a couple months after. WOTLK for example launched in November, and new servers opened in January and then March. There's a good chance you'll see something like "Due to the unanticipated number of new players - we need to open up new realms!" at least by March of next year (especially after Christmas sales). What a great way to please the investors or give the impression of massive growth though, even if there is none. =]

I had mentioned earlier how it's very common for players to sell gold to purchase WoW hourly subscriptions.

"China has an internet cafe on every corner. Every single of them can access the web for 'codes' that can be entered into the blizzard website for time. For 15 rmb (2 dollars) you can play world of Warcraft with all expansions for 2000 minutes. (For this reason I have 8 accounts, because I do pay monthly fees and often play 2 or more accounts at once I can pick and choose what I like to have online. I really enjoy the freedom provided by metered time instead of a monthly subscription." (Source)
But it gets more interesting..

In China, the majority of workers (primarily Service and Industry jobs) work an entire day for less than 60rmb ($9 USD). Less than one hour of work in World of Warcraft (grinding gold) can easily cover your WoW subscription for several months. But more than that, 1-2 hour of gold farming each day can pay for your food, rent, game subscriptions, internet fees, toys/gadgets, etc. You can actually make more money playing the game then you can from a real job.

Think you can make 4500G per day? That's the same pay as an Electrical Engineer. 3000G per day? No need to be a Professional Nurse, just play WoW - you can make the same amount of money and play a healer! (Source)

Given all of the gold making guides, you don't even need to be that skilled at farming.. even casual players using standard farming techniques can pay for their living expenses.

But isn't that against Blizzard's Terms of Use?

In NA/EU, it's frowned upon to buy/sell accounts or gold. However in China, WoW is operated by NetEase and there are different rules surrounding the game.

It's actually perfectly acceptable and quite common for players to share accounts, buy/sell items, gold, or accounts, or convert virtual gold/items into real world money. WoW gold is really just another common commodity in China and can be bought or sold quite easily. =]

Recently, the Chinese government had announced that they are "banning gold farmers" with new legislation. However, it's been exaggerated by news outlets and there are tons of loop holes in their proposed system. In fact, their new laws will have no impact on gold farming at all (it's actually targeting something else).. and they don't even have any enforcement measures for the buying and selling of in-game virtual items.

China Banning Gold Farmers
Gold Farming Confusion
Gold Farming Ban Not Really A Ban

In NA/EU, you may have a difficult time trying to find trust-worthy gold sellers, or someone to sell your account to. It's all very shady, the services are few and far between, and it can be a challenge to find someone you can trust.

In China, however, it's the exact opposite. There are large (and trusted) businesses and corporations that focus on the sale and purchasing of virtual items. Gold or items can be bought at gaming stores, convenience stores and city streets.

QQ Coins can also be used in exchange for gold or in-game services, which can be converted into real merchandise on many online or gaming stores. Occasionally, you may also receive a random whisper from a gold seller in-game. They give you their QQ (IM) address and you can pay them with QQ points which can be obtained with real money. The Chinese Ebay "Taobao" and other Chinese websites sell gold online directly to your WoW mailbox too. =]

There's no secret "cloak-and-dagger" activities (like in NA/EU) required to sell your account or gold - it's all done right out in public and it's very much the norm.

I'm actually kind of jealous. I have over 300k of gold idling that I'd love to sell. =]

"The most common way to buy gold, however, is to trade time card codes in-game for gold to a person who needs a card. It's entirely possible to never pay any of your own money to play WoW if your dedicated to earning gold from others and have a niche as either a raider or power level or farmer." (Source)

Because of this standard industry in China, it's the reason why so many players are engaged in gold farming activities (if a couple hours playing WoW paid more than your real job, wouldn't you take advantage?), gold has real value, and it has completely reshaped the in-game and real world economies in China.

Because of this paradigm shift, players also engage in gold making "services" that you wouldn't normally see on NA/EU realms. And it's also very easy for new characters to be power leveled and geared up (15 rmb/$2 USD right now can buy you high-end epics and many hours of power-leveling.)

But more on those unique "gold making services" in the Part 5.