im not gonna make fun of this person...it would be too ez. instead i will just say that if i had 27 grand to piss away i could find something better than make-believe to spend it on.
A.K.A. Wrython
Joined 2004 - I can't believe I've been a MMORPG.com member for 20 years! Get off my lawn!
Yeah it's tax free if you don't report it, but you think the bank isn't gonna report large sums like that? They have to. I think any transaction $10,000 and over they have to report. Not totally sure on the amount but I know they have to report large transactions.
Originally posted by holycannoli How do you guys pay your annual taxes? This is an income right? A significant one it seems. The government ain't gonna let you do it for free forever.
In general I do not know how it would work and I would suspect it is different in every country. Keep in mind this gentlemen either deposited that amount of money into the game or made that amount of money in the game (or both) but he has not withdrawn the funds. I would think it would work just like any other investment for tax purposes. IE: I deposit $1,000 and two years later only withdraw $900 I may be able to claim that as a loss/deduction.
We would have to call the IRS for clarification on that and I would bet it would take an act of congress to get Virtual Items into the tax code.
I have to say its great! I dont know what they guys economics is like, but it seems he has the cash to spend.
Also PE is the ONLY game out there with an original concept! Other mmorpgs bost about "revolusionary" and "never seen before" this and that. But PE stands above them all.
I played it a few months and enjoyed it alot. I know alot of ppl get scared when the word "real" and "money" are put side to side in a mmorpg world, but actually the game still costs the same (and alot of times less) than any other game out there. Heck, you can even earn cash. Also It has the most mature community around! PE gets my .
This really show that rich person have an advantice in this game. That would really spoil the fun of it. You can even loan someone money in this game as it is real money. You cant even try and say, if you dont get it back, a bad luck it was not real. Almost sounds like real life
I play Project Entropia and one thing I've learnt since playing it in the Beta phases is that you can't treat this like any old game. For me, the only way to get ahead is to treat it like a business. I've seen too many players blow tons of cash on pointless equipment for their skill levels.
It is possible to make money. But it is hard work and after a while does feel like a job, so its not going to be for everyone tastes. For me my goal is to tie in my real life company I've recently incorporated into games like Project Entropia and Second Life where there is a vibrant economy in which to earn and make a living providing a wide range of services.
Maybe I'm loopy but well I enjoy gaming a lot that I might as well play and maybe earn some money to live on in the process.
Originally posted by numatic Some people dont understand. The entire games economy is played with REAL cash. Thus owning this land, IS an investmant because he can charge players to hunt/mine there(or so it seems). However I do beleive he is crazy to spend that much money on a game, but look at it logicaly. owning this land in the game wil return his profits from other players.
Yes.. he may actually make his money back. Anything bought or sold on that island could give him money back. Various activities will be profitable. So within a years or two's time he may actually get his money back or make a sizable profit. As long as the game stays alive for the next 3-5 years, it'll probably be a good investment. Still, I would never pay that kind of money for an in game property. There's too much risk involved. The person who bought it is probably a millionaire and 26K is nothing to him. He probably spends that kind of money every day. Who knows. I'm surprised people are still playing this game. I heard it wasn't all the great to begin with.
He's probably going to make back more than he spent this year on that property. Just the plot values alone are more than he spent. Plus all the extras - wow. So, say he does POORLY, and only makes his money back this year. He's spent nothing, earned nothing. Net loss of about $2.6k off a more conservative investment, but very unlikely he'd lose more than that.
But if he does well, then he earns more. Potentially, LOTS more.
Remember also, this is a paradigm change. In most MMOs, the devs (server owners) own all items, characters, land, buildings, and any other data bits that happen to reside in their game. That's why you cannot legally Ebay EQ items, for instance. You do not own them, so you cannot sell them.
In PE, you DO own them. The way I understand it, your property is hosted on their server. I'd have to look more into PE to be sure, but they are probably "bonded", it's required for most cases where you are holding a large amount of other peoples' money. Which among other things means that they are almost certainly insured for the value of every single cent of investment everyone has made.
This is not a dumb thing, folks. It's just a new thing. This is not spending $26k on an EQ sword or a UO castle. This is more like investing $26k into the company that runs PE. Think stocks, not Ebay purchases.
Originally posted by Noraxe I would assume that PE itself put out the money to make this a big advertisement for thier company. They just make a few accounts and have a pretend bidding war, then post it as news. They get all of this free adverising on all of the gaming sites and it will probably make on some TV newscast also. Pretty smart of them actually
Thats so wrong. One of my ingame friends was the other bidder(there was just 2 in the end) and he stopped at 26k USD. The guy that bought it was actually 3guys that joined together.
Well you still dont own your stuff in PE. Mindark owns everything just like in other games. But if they go down i think you will get what you invested. I played the game for 1 year and got stuff for around 700USD and i have invested zero. So i got nothing to loose anyhow, but i think it's wise to read the EULA.
Its amazing what people will buy thinking they are investing.
Tulips (yes the flowers) used to sell for insane amounts of money in amsterdam, then all of a sudden people woke up and relised they were just flowers and the price crashed. Beenie babies were being traded for silly money some time back as well. Now its possible that some people can make money from these empty investments, but most people who invest like this end up with exactly what they payed for, absolutly nothing.
to be honest.. i think it is damned cool.. irregardless, the point is these people or person has bought something in a virtual world. Yet, we have stock traders, money exchangers, gold investers, and various formats of doing monetary transactions. Ever use a debit card? Credit Card.... take advantage while you canm. I recal people sell items all the time on ebay that are virtual.
I think we are going to see a lot more of this especially since company's running these virtual worlds will be getting a cut from each transaction.
As for the virtual property not being real, what matters is that it is a scarce resource. Just because it is not tangible does not mean it does not have value. In fact the purchase was probably conducted electronically, i.e. with virtual money not paper money. If you think about it hard enough, people pay for non tangible goods and services all the time.
What is a bit more disconcerting is that this is new territory and there are probably many legal questions to be clearly spelled out. Some people have brought them up such as "What happens if the server crashes", or "What if the company simply shuts down the game".
Right now it seems each game is a sort of Fiefdom with the game company positioned as the king setting the laws for the land as they see fit. This may or may not result in the "serfs" having the same legal protection we are accustomed to in the "real" world.
As an avid player of PE i can agree and disagree with everyones comments. I would like to shed a little light on this topic for all the non PE players. This money that was spent was already in the game, it wasnt a mass deposit. Everything in the game has some real money value. Some players have a lot of money because of items they looted and sold for a huge profit and others are just getting buy.
So was it an investment? Yes, If the money was already in game and he didnt max out 5 credit cards to do so. He will get 30K back from the lots sold also he will get a taxation from all loots and minerals that are mined on that land. That was a lot of money upfront but he will probably never have to deposit ever again.
If you dont know anything about this game and would like to, feel free to ask me anything you want. I will try to explain it to the best of my ability.
Originally posted by Desverger If you dont know anything about this game and would like to, feel free to ask me anything you want. I will try to explain it to the best of my ability. Sincerly. Desverger....Knights of the Black Reign
Hello Desverger,
I was wondering If there were some interesting sites with economic data on PE. Is the economy having the type of inflationary troubles other VR worlds have.
In the case of this island purchase, what guarantee is there from the game company that they will not create more island properties and make this guy's investment reduce in value. Is there a set plan?
Im not sure on any sites about PE's economy. If i come across one ill post it.
They do have a roadmap for 2004/2005 but its on the client loader.
We do have a problem with inflation, but it usualy spikes and then tappers off for the most part. Some people just try to rape other players so they wont have to deposit ever.
About the land purchase, it will be the only one on that continent. There are ony 2 so far on this planet. We will have more planets in the future. The value of the land after all the lots are sold is hard to judge. Im guessing it will have to be based on the taxation money made from hunters and miners that visit the land. I do know that MA is implementing a land mangement tool to control the loots that are coming from the land. So the money generated could be extremely high.
The main reason for land, houses and hangers being sold is to put money into the economy. I think they are hoping that the people with alot of peds on their ped card will buy these things insteed of pulling the money out of the game. This is just my opinion.
I hope this helps a little. Any more questions please feel free to as
What I think most of you don't know is that he didn't actually put $26.5k USD into the game!!
He sold some ingame items with friends to accumulate that much cash, ingame. I know if some people sold all their items now, it would be worth 33k USD or more! It is all money accumulated within the game. He probably did deposit some money, though it would of been quite useless. As the maximum limit for depositing cash into the game is $300 a month. Which wouldn't of helped him any in the auction as that would only be 3,000 PED. So he must have sold ingame items.
How do I know this? Im a fellow clan/society member. Of the Dark Knights. The Money that MindArk are boasting about is the value of the ingame money (PED) he spent, not how much he actually deposited in the game.
I hope that clears things up, that he didn't actually deposit that much cash. He just sold his ingame items with another person INGAME to get all those PED's. Those PED's he spent are valued at the price which is being boasted and thrown around as such.
Comments
A.K.A. Wrython
Joined 2004 - I can't believe I've been a MMORPG.com member for 20 years! Get off my lawn!
In general I do not know how it would work and I would suspect it is different in every country. Keep in mind this gentlemen either deposited that amount of money into the game or made that amount of money in the game (or both) but he has not withdrawn the funds. I would think it would work just like any other investment for tax purposes. IE: I deposit $1,000 and two years later only withdraw $900 I may be able to claim that as a loss/deduction.
We would have to call the IRS for clarification on that and I would bet it would take an act of congress to get Virtual Items into the tax code.
www.project-entropia.com
http://entropia-pioneers.kicks-ass.org
www.project-entropia.com
http://entropia-pioneers.kicks-ass.org
I have to say its great! I dont know what they guys economics is like, but it seems he has the cash to spend.
Also PE is the ONLY game out there with an original concept! Other mmorpgs bost about "revolusionary" and "never seen before" this and that. But PE stands above them all.
I played it a few months and enjoyed it alot. I know alot of ppl get scared when the word "real" and "money" are put side to side in a mmorpg world, but actually the game still costs the same (and alot of times less) than any other game out there. Heck, you can even earn cash. Also It has the most mature community around! PE gets my
.
This really show that rich person have an advantice in this game. That would really spoil the fun of it. You can even loan someone money in this game as it is real money. You cant even try and say, if you dont get it back, a bad luck it was not real. Almost sounds like real life
I play Project Entropia and one thing I've learnt since playing it in the Beta phases is that you can't treat this like any old game. For me, the only way to get ahead is to treat it like a business. I've seen too many players blow tons of cash on pointless equipment for their skill levels.
It is possible to make money. But it is hard work and after a while does feel like a job, so its not going to be for everyone tastes. For me my goal is to tie in my real life company I've recently incorporated into games like Project Entropia and Second Life where there is a vibrant economy in which to earn and make a living providing a wide range of services.
Maybe I'm loopy
but well I enjoy gaming a lot that I might as well play and maybe earn some money to live on in the process.
Xander
Xander
You folks are not thinking long-term.
He's probably going to make back more than he spent this year on that property. Just the plot values alone are more than he spent. Plus all the extras - wow. So, say he does POORLY, and only makes his money back this year. He's spent nothing, earned nothing. Net loss of about $2.6k off a more conservative investment, but very unlikely he'd lose more than that.
But if he does well, then he earns more. Potentially, LOTS more.
Remember also, this is a paradigm change. In most MMOs, the devs (server owners) own all items, characters, land, buildings, and any other data bits that happen to reside in their game. That's why you cannot legally Ebay EQ items, for instance. You do not own them, so you cannot sell them.
In PE, you DO own them. The way I understand it, your property is hosted on their server. I'd have to look more into PE to be sure, but they are probably "bonded", it's required for most cases where you are holding a large amount of other peoples' money. Which among other things means that they are almost certainly insured for the value of every single cent of investment everyone has made.
This is not a dumb thing, folks. It's just a new thing. This is not spending $26k on an EQ sword or a UO castle. This is more like investing $26k into the company that runs PE. Think stocks, not Ebay purchases.
Owyn
Commander, Defenders of Order
http://www.defendersoforder.com
Owyn
Commander, Defenders of Order
http://www.defendersoforder.com
Well you still dont own your stuff in PE. Mindark owns everything just like in other games. But if they go down i think you will get what you invested. I played the game for 1 year and got stuff for around 700USD and i have invested zero. So i got nothing to loose anyhow, but i think it's wise to read the EULA.
Its amazing what people will buy thinking they are investing.
Tulips (yes the flowers) used to sell for insane amounts of money in amsterdam, then all of a sudden people woke up and relised they were just flowers and the price crashed. Beenie babies were being traded for silly money some time back as well. Now its possible that some people can make money from these empty investments, but most people who invest like this end up with exactly what they payed for, absolutly nothing.
to be honest.. i think it is damned cool.. irregardless, the point is these people or person has bought something in a virtual world. Yet, we have stock traders, money exchangers, gold investers, and various formats of doing monetary transactions. Ever use a debit card? Credit Card.... take advantage while you canm. I recal people sell items all the time on ebay that are virtual.
omg this guy is nuts! 26 500 usd!! omg i bet his guy jsut realized wut he did and begs any1 to buy it!!
/Smekta
/Stoppa veganerna dom
Quote :
omg this guy is nuts! 26 500 usd!! omg i bet his guy jsut realized wut he did and begs any1 to buy it!!
/Smekta
You should read All the posts before you make an assumption, you wouldnt say that if you read all of the posts.
I think we are going to see a lot more of this especially since company's running these virtual worlds will be getting a cut from each transaction.
As for the virtual property not being real, what matters is that it is a scarce resource. Just because it is not tangible does not mean it does not have value. In fact the purchase was probably conducted electronically, i.e. with virtual money not paper money. If you think about it hard enough, people pay for non tangible goods and services all the time.
What is a bit more disconcerting is that this is new territory and there are probably many legal questions to be clearly spelled out. Some people have brought them up such as "What happens if the server crashes", or "What if the company simply shuts down the game".
Right now it seems each game is a sort of Fiefdom with the game company positioned as the king setting the laws for the land as they see fit. This may or may not result in the "serfs" having the same legal protection we are accustomed to in the "real" world.
aboveGame, the Gamer's Photo Blog
As an avid player of PE i can agree and disagree with everyones comments. I would like to shed a little light on this topic for all the non PE players. This money that was spent was already in the game, it wasnt a mass deposit. Everything in the game has some real money value. Some players have a lot of money because of items they looted and sold for a huge profit and others are just getting buy.
So was it an investment? Yes, If the money was already in game and he didnt max out 5 credit cards to do so. He will get 30K back from the lots sold also he will get a taxation from all loots and minerals that are mined on that land. That was a lot of money upfront but he will probably never have to deposit ever again.
If you dont know anything about this game and would like to, feel free to ask me anything you want. I will try to explain it to the best of my ability.
Sincerly.
Desverger....Knights of the Black Reign
Hello Desverger,
I was wondering If there were some interesting sites with economic data on PE. Is the economy having the type of inflationary troubles other VR worlds have.
In the case of this island purchase, what guarantee is there from the game company that they will not create more island properties and make this guy's investment reduce in value. Is there a set plan?
Thanks,
randalx/
aboveGame, the Gamer's Photo Blog
Im not sure on any sites about PE's economy. If i come across one ill post it.
They do have a roadmap for 2004/2005 but its on the client loader.
We do have a problem with inflation, but it usualy spikes and then tappers off for the most part. Some people just try to rape other players so they wont have to deposit ever.
About the land purchase, it will be the only one on that continent. There are ony 2 so far on this planet. We will have more planets in the future. The value of the land after all the lots are sold is hard to judge. Im guessing it will have to be based on the taxation money made from hunters and miners that visit the land. I do know that MA is implementing a land mangement tool to control the loots that are coming from the land. So the money generated could be extremely high.
The main reason for land, houses and hangers being sold is to put money into the economy. I think they are hoping that the people with alot of peds on their ped card will buy these things insteed of pulling the money out of the game. This is just my opinion.
I hope this helps a little. Any more questions please feel free to as
PE fan site...best one to get some info from
http://entropia-pioneers.kicks-ass.org
It..Burns..
www.project-entropia.com
http://entropia-pioneers.kicks-ass.org
www.project-entropia.com
http://entropia-pioneers.kicks-ass.org
He sold some ingame items with friends to accumulate that much cash, ingame. I know if some people sold all their items now, it would be worth 33k USD or more! It is all money accumulated within the game. He probably did deposit some money, though it would of been quite useless. As the maximum limit for depositing cash into the game is $300 a month. Which wouldn't of helped him any in the auction as that would only be 3,000 PED. So he must have sold ingame items.
How do I know this? Im a fellow clan/society member. Of the Dark Knights. The Money that MindArk are boasting about is the value of the ingame money (PED) he spent, not how much he actually deposited in the game.
I hope that clears things up, that he didn't actually deposit that much cash. He just sold his ingame items with another person INGAME to get all those PED's. Those PED's he spent are valued at the price which is being boasted and thrown around as such.
- Levantos.
http://tirisfal.co.uk - The Tirisfal Network
http://tirisfal.co.uk - The Tirisfal Network