The market for virtual in-game items such as shields, skins, weapons, etcetera has exploded in the past few years, mostly due to a rise in multiplayer online gaming. The global virtual goods market is estimated to reach $189.76 billion by 2025, and some items are already selling for millions.
Marketplaces are cropping up in every corner of the world to facilitate the trade of in-game items. The primary seller is usually the game publisher, but a secondary market for these items is also thriving. Player to player transactions are also very common, and some players even sell whole accounts online.
In-game items are the bread and butter of game publishers who have released free-to-play games. The idea is to make the players buy cosmetic items, season pass etc and provide additional perks in the game. However, the problem is that this billion-dollar market literally has no rules or regulations.
What are the risks of trading virtual goods?
If you are buying stuff from the game publisher directly, there is generally no risk involved. But what about that special shield that has been phased out from the game store, but is available on eBay? Definitely a no-no!
A list of risks we have come across regarding buying and trading of game shields, skins and weapons:
- The counter-party risk in peer-to-peer trading is immense, especially for expensive items. Instances of cheating are rampant as stealing virtual goods worth thousands of dollars is much easier than robbing a bank.
- Digital rights around these items are still not clear, and some game developers do not want players to trade in-game items among each other in the same way as physical goods such as clothes or books.
- Some big companies, like Blizzard, in terms of user bars players from trading in-game virtual items. Inversely, websites and gamers selling such items could be dragged to court by Blizzard.
- Gamers have to rely on private and centralized marketplaces to trade items. The third-party will hold the item and money like an escrow service. The problem is these marketplaces could also be hacked and your items could be stolen.
- As virtual goods are sold on a centralized platform, payments are usually done in fiat currency like dollars and euros. This means there is a lot of banking red tape along with high costs of cross-border payments.
- Gamers expose themselves to data theft and financial fraud by using remote trading marketplaces which may not have enough security.
- Most marketplaces have poor customer service and it is difficult to get your money back if you run into problems.
How can you stay safe?
While virtual goods are very lucrative for gamers and users to interact with the virtual world, the current legal uncertainty is worrying. However, many game publishers such as Steam themselves provide trading platform to players. Here are some tips to help you navigate the virtual items marketplaces.
- Check for trade restrictions and in-game trading options before looking for an external platform.
- Do a background check on websites you want to use, and check reviews before paying money to anyone.
- Be wary of trades that are too attractive. Do not click on links sent by buyers or seller to trade and stick to the primary trading platform. Never move the discussion to another platform than the marketplace
- Once you have decided which item you want to buy, check its value on some other websites or gamer forums. Sellers may try to sell you a cheap item for hundred of dollars. Remember, you are using real money to buy virtual items whose value is determined by their rarity.
- Never loan an item, or transfer the item to anyone online. Be wary of people offering you in-game credits or keys in exchange of an expensive item.
- Never trade on platforms like eBay or Craigslist. These platforms are not built for selling virtual goods.
- Do not use the same password for online games and marketplaces that you use for your email, bank or social media accounts.
Reliable virtual items marketplaces:
Here we list some of the reliable websites that you can use to buy or sell your in-game assets. We are only listing only secondary and third-party marketplaces as most game publishers have their own official stores as well.
