- Personal Finance
Entropia Universe Virtual Property Sold for $635 000
Entropia Universe a Better Investment than Real Estate
I guess it is sign of the times that real estate in virtual game would be a better investment than actual real estate is. Today a virtual resort in the game Entropia Universe sold for a whopping $635 000. This is the same property that sold for $100 000 in 2005. You would be hard pressed to find a real property that would appreciate by that much that fast. Of course the virtual world is not that different from the real world. The property that sold today was valued at over a million dollars in 2006 so it has lost a great deal of its value, just like most real properties have over the last four years.
The property that sold for the record price is a resort that orbits the planet Calypso in the game Entropia Universe. Apparently Planet Calypso is the high rent district of Entropia Universe, this is the fourth time that a property orbiting Planet Calypso has sold for a large dollar amount. Way back in 2004 one property sold for $26 500, there was the sale for $100 000 in 2005 and last year a property sold for $335 000. The value of these properties is largely based on the mineral and hunting rights that can be sold to other gamers.
It isn't just the players who profit from the value of the properties that are traded in Entropia Universe, the games maker First Planet also makes money off of the transactions. Unlike most games there is no fee to play the game, First Planet makes its money from taking a piece of the in game transactions. This is a different model than a lot of video game makers have used to make money but given the prices for which properties in Entropia Universe are selling for it is probably a good strategy.
The huge values being paid for virtual properties marks a pretty dramatic change in the way the world of commerce works and it is an area that is seriously under studied. The fact that investing in a virtual property is more profitable than virtually any investment you could have made in a real property or a real company has to raise some concerns for the future of the economy. If more and more people put their money into virtual investments it is going to be a real hardship for companies that need to raise money by selling stock and it is going to have a dramatic impact on our economy.