Ogre to slay? Outsource it to China

By David Barboza
The New York Times

Published: December 9, 2005, 5:05 AM PST

TalkBack

E-mail

TrackBack

FUZHOU, China--One of China's newest factories operates here in the basement of an old warehouse. Posters of "World of Warcraft" and "Magic Land" hang above a corps of young people glued to their computer screens, pounding away at their keyboards in the latest hustle for money.

The people working at this clandestine locale are "gold farmers." Every day, in 12-hour shifts, they "play" computer games by killing onscreen monsters and winning battles, harvesting artificial gold coins and other virtual goods as rewards that, as it turns out, can be transformed into real cash.

That is because, from Seoul to San Francisco, affluent online gamers who lack the time and patience to work their way up to the higher levels of gamedom are willing to pay the young Chinese here to play the early rounds for them.



	For the latest breaking news, visit NYTimes.com Sign up to receive top headlines Get Dealbook, a daily corporate finance email briefing Search the jobs listings at NYTimes.com Search NYTimes.com:

"For 12 hours a day, seven days a week, my colleagues and I are killing monsters," said a 23-year-old gamer who works here in this makeshift factory and goes by the online code name Wandering. "I make about $250 a month, which is pretty good compared with the other jobs I've had. And I can play games all day."

He and his comrades have created yet another new business out of cheap Chinese labor. They are tapping into the fast-growing world of massively multiplayer online games, which involve role playing and often revolve around fantasy or warfare in medieval kingdoms or distant galaxies.

With more than 100 million people worldwide logging on every month to play interactive computer games, game companies are already generating revenues of $3.6 billion a year from subscriptions, according to DFC Intelligence, which tracks the computer gaming market.

For the Chinese in game-playing factories like these, though, it is not all fun and games. These workers have strict quotas and are supervised by bosses who equip them with computers, software and Internet connections to thrash online trolls, gnomes and ogres.

As they grind through the games, they accumulate virtual currency that is valuable to game players around the world. The games allow players to trade currency to other players, who can then use it to buy better armor, amulets, magic spells and other accoutrements to climb to higher levels or create more powerful characters.

The Internet is now filled with classified advertisements from small companies--many of them here in China--auctioning for real money their powerful figures, called avatars. These ventures join individual gamers who started marketing such virtual weapons and wares a few years ago to help support their hobby.

"What we're seeing here is the emergence of virtual currencies and virtual economies. People are making real money here, so these games are becoming like real economies."

--Peter Ludlow, gamer and professor of philosophy, University of Michigan

"I'm selling an account with a level-60 Shaman," says one ad from a player code-named Silver Fire, who uses QQ, the popular Chinese instant messaging service here in China. "If you want to know more details, let's chat on QQ."

This virtual economy is blurring the line between fantasy and reality. A few years ago, online subscribers started competing with other players from around the world. And before long, many casual gamers started asking other people to baby-sit for their accounts, or play while they were away.

'Virtual sweatshops'
That has spawned the creation of hundreds--perhaps thousands--of online gaming factories here in China. By some estimates, there are well over 100,000 young people working in China as full-time gamers, toiling away in dark Internet cafes, abandoned warehouses, small offices and private homes.

Most of the players here actually make less than a quarter an hour, but they often get room, board and free computer game play in these "virtual sweatshops."

"It's unimaginable how big this is," says Chen Yu, 27, who employs 20 full-time gamers here in Fuzhou. "They say that in some of these popular games, 40 or 50 percent of the players are actually Chinese farmers."

For many online gamers, the point is no longer simply to play. Instead they hunt for the fanciest sword or the most potent charm, or seek a shortcut to the thrill of sparring at the highest level. And all of that is available--for a price.

"What we're seeing here is the emergence of virtual currencies and virtual economies," says Peter Ludlow, a longtime gamer and a professor of philosophy at the University of Michigan, Ann Arbor. "People are making real money here, so these games are becoming like real economies."

The Chinese government estimates that there are 24 million online gamers in China, meaning that nearly one in four Internet users here play online games.

And many online gaming factories have come to resemble the thousands of textile mills and toy factories that have moved here from Taiwan, Hong Kong and other parts of the world to take advantage of China's vast pool of cheap labor.