One of the most interesting and unexpected things to come out of online gaming is the birth of real economies based on the value of persistent world game characters and items. When Ultima Online and EverQuest characters started appearing on eBay, many found it hard to believe that anyone would be willing to trade real money for game items that were, after all, largely imaginary. Nevertheless, the trade in these digital goods continues to grow, and has already transformed from a pastime practiced by only a handful of hardcore gamers to a fledgling industry in its own right.

We’ve all heard that time is money. This is certainly true for persistent online world games. Under normal circumstances, it can take months or even years to level up a character in a game like EverQuest or get a rare item that only drops on, say, the Plane of Complete Annihilation. It should come as no surprise that many people are willing to spend a little extra to get there faster. Since you’re usually paying a monthly fee to play anyway, it can even be profitable for some people to buy what they need to get straight to the endgame.

For those serious about trading in-game economies, the epicenter of activity is Category 1654, Internet Games, on eBay. While not every item in the category is a game item, it remains the most popular auction for virtual marketers. Dr. Edward Castronova, an economics professor at California State University, has compiled statistics on the category, and in 2004 it brought in over $22 million in total sales. Several entrepreneurs have taken notice and started other auctions and currency exchanges specializing in virtual game property.

Of course, not all online game publishers, or players, are happy about the real-world trade of in-game assets. Sony has been quite strict on this issue, successfully getting SOE game items removed from eBay. Blizzard has sternly reminded World of Warcraft players that it is also against their policies, and anyone caught doing so will be banned. Of course, the trading of gear for these games continues through other auctions, and it seems unlikely that either company has the power to stamp it out completely. Other game companies have taken a more hands-off approach, tolerating and sometimes even facilitating the exchange of cyber goods.