Man Spends $330,000 on Virtual Item

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Man Spends $330,000 on Virtual Item

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The world record for "most expensive virtual item sold" has been raised, as a man has purchased real estate in Entropia Universe for a staggering $330,000 in real-world money.

Despite not being a household name like World of Warcraft or Second Life, Entropia Universe is one of the most interesting virtual worlds out there simply because it fully embraces the concept of RMT - that is, real-money transactions: Paying real cash for virtual stuff. The in-game currency, or PED, has an exchange rate of 10:1 with the USD, and the game actually has a license from the Swedish government to act as a real bank.

In 2006, Entropia personality Jon Jacobs mortgaged his house to buy an online asteroid in the world for $100,000, then a record for the most expensive in-game purchase ever. Jacobs proceeded to set up an exclusive in-game club called "Club Xanadu", and would go on to be a real-life businessman in a virtual space to recoup his money.

Now, an Entropia player named Buzz "Erik" Lightyear (or should that be Erik "Buzz Lightyear" Insertlastname?) has shattered Jacobs' record, winning an auction for the prized Crystal Palace Space Station for $330,000 - that's more money than a lot of real houses would go for. It isn't quite a dumb buy, though - Lightyear will receive a cut of the profits of all transactions that occur on the station, as well as income from players who decide to hunt rare creatures in the station's proving grounds.

It's pricey, and seems kind of silly, but hey - it's certainly a better investment than one of those gold Wiis.

(Via Slashdot)

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That is totally insane, and I'll tell yo-

and the game actually has a license from the Swedish government to act as a real bank

WHAT?!

Man Spends $330,000 on Virtual Item...man is frikking idiot

This is why you should need a license to handle more than $5000 at a time.

Who knows how long it will take him to turn a profit, if he does, good for him.

ummm.wait let me grasp this awsome consept....you pay real money for fake money...and get fake stufff....to get real money?or more fake money?i dont get online timeshares/buisnesses/waste of my money/time

Well considering he gets a percentage of all the profit generated inside the palace it wasn't necessarily stupid. I don't know much about the game, but he may end up generating more money than he spent. Though it certainly is a risky business move, as his entire fortune depends on the game.

If this guys ever turns a profit, we will be one step closer to the matrix.

Well, it's his money. Not going to argue with a man rich enough to have me killed.

Well, that sounds like something I'd do. I may have to start playing that game.

I think for me having to pay real money for a virtual item in a game would ruin it, not monthly subscription fees but paying money for in game items sounds dumb, i dont know how this game works but there was a thing on EVE online a while back where some people stole virtual things from other people worth like 17 thousand in real money, it would be hilarious if some nerds with insanely high level characters took over the place he bought

well if pixels on a screen make him happy. Then what am I to say?

other then he's a little silly.

IckleMissMayhem:
Man Spends $330,000 on Virtual Item...man is frikking idiot

I think he needs to get his head examined.

I would be very comftable with that money!

I bet he'll be upset if they shut down the servers.

It's a business investment.

I played Entropia Universe for a very short while...word of advice to beginners:
Don't fucking play it. Delete it and find something else.
It's confusing as hell and makes zero sense.

Now thats real estate to the next level, I wonder if he has any friends at all?

I think i would just buy an in game intergalactic missle... or something. Then threaten each of these areas for 1 trillion dollars. hahaha

It won't ever happen with people paying hundreds of thousands of dollars on their game, but I'd be incredibly amused if the game's studio suddenly shut down (freak tornado or something equally destructive go!), leaving this guy empty-handed.

that is allot of money for that cost he might as well bought a part of a real comapny ( I forogot the name but I think it was stock)

IckleMissMayhem:
Man Spends $330,000 on Virtual Item...man is frikking idiot

Maybe not. The guy who spent $100,000 made all that money back within a couple months.

It's not an illogical decision, and utility is still gained. From a purely economic standpoint this decision is fine.

Risky, but fine.

I have to agree with Funk on this one - unlike the golden Wii/PS3, this actually has the potential for a substantial amount of financial return from it - it isn't stupid, its actually a viable business transaction.

That said... $330,000 on an item that doesn't physically exist... whooooaaaaaa...

Ok previous highest spender in this game was making $1.50(real money) per hour per person on his asteroid and managed to pay off the 100,000$ it cost him in eight months 4 years ago and now earns a profit. If this works ...0.o

Even if you look at this from a financial stand point, it's still kind of a risky buisness. What if the company or server shuts down? What if a hacker get's into his account? What if he's banned?

Now, looking from the angle of "I spend more money than I would on a house on an item that doesn't exist" and you've got a whole new type of mind fuck.

...that would be why i wouldn't touch second life with a 10' pole

Daggermonkie:
ummm.wait let me grasp this awsome consept....you pay real money for fake money...and get fake stufff....to get real money?or more fake money?i dont get online timeshares/buisnesses/waste of my money/time

you can exchange PED for real-world cash also, so in a few months when he is pulling in thousands if not millions of PED he will be able to pull it out with the frozen exchange rate.

Entropia Universe is one of the weird games out there, you can play it without ever putting money into it, and you can make real money the same way [before I quit I made about $130 USD from selling sweat..........dont......dont ask.......]

It sounds like a great investment.

/sarcasm

SomeBritishDude:
Even if you look at this from a financial stand point, it's still kind of a risky buisness. What if the company or server shuts down? What if a hacker get's into his account? What if he's banned?

Now, looking from the angle of "I spend more money than I would on a house on an item that doesn't exist" and you've got a whole new type of mind fuck.

I think we all have to remember that there is plenty of risk of your money evaporating into nothing in the real world, too. Compare a virtual world with the stock exchange, and this deal suddenly looks like a sensible investment. Asteroids in a game don't physically exist, but stock market shares don't, either. See, if the servers shut down, you can sue. If your account gets broken into or you get banned, you had it coming because of your own stupidity/carelessness.

WoW some people have too much moneh and not enough brain cells :S

this is crazy, but if he makes money kudos to him.

CantFaketheFunk:
It isn't quite a dumb buy, though - Lightyear will receive a cut of the profits of all transactions that occur on the station, as well as income from players who decide to hunt rare creatures in the station's proving grounds.

So he gets PED for all transactions made on the station, and that PED can then be made into, say, USD?

Ben Bazooka:
It's a business investment.

Danny Ocean:
It's not an illogical decision, and utility is still gained. From a purely economic standpoint this decision is fine.

Risky, but fine.

These gentlemen/ladies have it right. It's not a game for these people; it's making a living. Don't knock it.

Personally, I'm thrilled that at least one MMO is embracing player-driven economy and letting it translate to real-world cash. AFAIK, this was one of the first big games to do that, and Second Life, of course, was the next one (and people make their livings from SL, too.)

mortgaged his house to buy an online asteroid

-facepalm-

This is just tragic to say the least.

If this game is like buying true real-estate then I'm guessing Lightyear has to pay taxes as well as receive certain billing from the game company to keep the servers, accounts, and in-game features in working order.

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