News
Scientific American feature article for Prof. Richard Heeks' "Gold Farming" research
Ground-breaking research from the School of Environment and Development has led to a feature article in the January 2010 issue of Scientific American, by IDPM's Prof. Richard Heeks.
The research shows how online computer games have opened up a whole new industry in developing countries; providing jobs for up to 1 million workers,
This industry – known as "gold farming" – sees impatient computer gamers paying workers in Asia to go online into games such as World of Warcraft and Lord of the Rings. The Asian gold farmers build up a supply of the virtual currency (called "gold"), which they then sell to other gamers via e-commerce Web sites.
The Scientific American feature shows how the gold farming industry has progressed over time. Originally a US-based cottage industry during the 1990s, it became a sector of super-profits and millionaires when work was first outsourced to China in the early 2000s. More recently, the profit bubble has burst as competition has forced virtual currencies to devalue an average 85% against the US dollar.
Nonetheless, gold farming continues to grow, providing jobs for hundreds of thousands of urban unemployed and rural migrants. It represents an initial example of "cyber-sourcing": the sub-contracting of virtual world activities; something that may present a growing opportunity for livelihood creation in developing countries.
The impact of computer gaming and virtual worlds on developing countries forms part of the research agenda for the new Centre for Development Informatics; a cross-University grouping that studies the role of digital technologies in international development.
18 December 2009