eBay bans virtual items but gives exemption to Omidyar investment Second Life

[mandy]

Does eBay see Linden dollar signs? The company has banned the sale of virtual game items, but made an exception for items from Second Life, owned by Linden Lab. Second Life (SL) is a 3D virtual world that anyone can join, and participants (called avatars) buy and sell virtual goods using a virtual currency called Linden dollars. Users can purchase virtual Linden dollars with real money (including PayPal) - and then use those Linden dollars to buy virtual goods, such as clothing, furniture, buildings and land.

eBay says it "pioneers communities built on commerce, sustained by trust and inspired by opportunity." Does the SL virtual world, also called a metaverse, inspire opportunity for eBay? I can only speculate, but eBay founder Pierre Omidyar was impressed enough with SL to have invested "real" money in the project. And there is precedent for eBay to follow Pierre: eBay invested in MeetUp, a social networking site backed by eBay's founder...

full article: http://blog.auctionbytes.com/cgi-bin/blo...27249.html

[BellisimaJ.]

Does eBay see Linden dollar signs?

Insider info I would have to say....sounds as though Second Life is planning to sell more than virtual items for virtual earnings. :blinkie:

[thentavius]

I thought Second Life was also a sex chatroom thing, with pole dancing and cybersex.

[BellisimaJ.]

[quote author=thentavius link=topic=6899.msg41756#msg41756 date=1170201782]
I thought Second Life was also a sex chatroom thing, with pole dancing and cybersex.
[/quote]

Um, I have no idea. :blinkie:

[regic]

[quote author=BellisimaJ. link=topic=6899.msg41719#msg41719 date=1170201417]

Does eBay see Linden dollar signs?

Insider info I would have to say....sounds as though Second Life is planning to sell more than virtual items for virtual earnings. :blinkie:
[/quote]

The Second Life virtual economy  is trading $220 million worth of virtual goods yearly.  The IRS is trying to find a way to tax virtual assets.

Are virtual assets taxable?
http://news.com.com/Are+virtual+assets+t...g=nefd.pop
Second Life called a pyramid scheme
http://community.tuliptools.com/index.ph...826.0.html

[BellisimaJ.]

The IRS is trying to find a way to tax virtual assets.

I read the article, I understand the point that they are making, but really, I find the idea of taxing virtual earnings    more than faintly ridiculous.

Unless real money or real goods/services change hands, I do not see how the IRS has a snowball's chance in hell of collecting a single dime. I think the public would throw the equivalent of "The Boston Tea Party". At least I hope so!!

[regic]

A lot of real money changes hands.  Second Life and World of Warcraft's virtual world's have spawned hundreds of real world sweatshops in China where people are paid less than 25 cents an hour to play games full time for wealthy Westerners.

Virtual Sweatshops: Affluent Online Game Players Outsource Game Playing to China
http://community.tuliptools.com/index.ph...677.0.html

[BellisimaJ.]

[quote author=regic link=topic=6899.msg41768#msg41768 date=1170207132]
A lot of real money changes hands.  Second Life and World of Warcraft's virtual world's have spawned hundreds of real world sweatshops in China where people are paid less than 25 cents an hour to play games full time for wealthy Westerners.

Virtual Sweatshops: Affluent Online Game Players Outsource Game Playing to China
http://community.tuliptools.com/index.ph...677.0.html
[/quote]

I missed that one. That is sad. And pathetic. But, they are not earning money here, correct? They are paying the Chinese to play for them. So how can that be taxed?

[regic]

The people outsourcing their game playing to China are winning virtual cash that can be cashed out various ways and becomes taxable when converted to real money.  One game has its own ATM card that allows players to convert their virtual money to real dollars.

New ATM Cash Card Allows Gamers to Spend Virtual Game Fund Earnings Offline
http://community.tuliptools.com/index.ph...605.0.html

[BellisimaJ.]

Thanks, Reg. I had no idea. :blinkie: