Congress looking at taxing MMO's

Sorengard · 10-19-2006, 12:31 PM

Take a look, will make you chuckle.

http://news.bbc.co.uk/2/hi/technology/6065534.stm

rabb1t · 10-19-2006, 05:09 PM

Won't happen. The games always clearly state that any property in game belongs to the game devs, not the players. Thus regardless of how many 'transactions' there are in-game the property never really changes hands as it is all owned by the game devs.

Fozzik · 10-19-2006, 05:25 PM

Well actually, some games like Second Life actually encourage players to use real life money. In those games, I'm not so sure whether or not a case could be made that real-world income shouldn't be taxed the way all other income is (right now, I'm willing to bet a lot of folks making money of secondary market transactions are not reporting them on their taxes

).

For a game like Vanguard, where the EULA clearly outlines the fact that the game and everything within it is the property of Sigil...and that discourages the secondary market and the infultration of real world currency...I would think could make a case against any involvement by the outside world.

It's going to have to be a many-faceted law if it does ever come about... hopefully games like Vanguard will still exist where those of us who want to can get away from the complications and crappiness that comes from real-world money being involved.

rabb1t · 10-19-2006, 05:31 PM

Yeah, I could see it happening with games designed around 'micro transfers' (a friend said that most Asian based games are free and revolve around such transfer types with bits being $0.10 to $0.25 each.) But I just don't see it happening with a 'normal' MOG.

I'm sure we'll see if this micro transfer model flys soon enough. Apparently all of the unlockables in Ridge Racer 7 (pretty sure that's the one) are all micro transfers for real $. It's the dumbest idea ever. I can see things like small expansions and such being pay based, but unlockable content? Lame.

Arctic_Slicer · 10-19-2006, 05:59 PM

Actually they aren't so much trying to impose a tax on online games so much as they are trying to prevent the IRS from imposing taxes on them without the proper research.

Quote:

Originally Posted by article

"There is a concern that the IRS (Internal Revenue Service) might step forward with regulations that start taxing transactions that occur within virtual economies," said Mr Saxton. "This, I believe, would be a mistake."

Quote:

Originally Posted by article

The JEC statement said: "Clearly, virtual economies represent an area where technology has outpaced the law. The goal of the forthcoming JEC study is to help lawmakers understand the issues involved and head off any premature attempt to impose a tax on virtual economies."

I think this is the right step for the government to take as it will ensure integrity of the genre and prevent the IRS from deciding that all virtual items are taxable income. Anyway it is an important topic that should definatly be discussed.

Zeebex · 10-20-2006, 07:06 PM

I think the answer to the IRS is to pay them in the same manner, if they want to tax virtual economies then they should accept payment in virtual monies

Snake · 10-22-2006, 05:23 AM

Quote:

Originally Posted by rabb1t

I'm sure we'll see if this micro transfer model flys soon enough. Apparently all of the unlockables in Ridge Racer 7 (pretty sure that's the one) are all micro transfers for real $. It's the dumbest idea ever. I can see things like small expansions and such being pay based, but unlockable content? Lame.

Gran Turismo 4 HD i believe it is. You can buy the full 60 dollar (i guess) game or you can buy the disk and manual for a few bucks and buy the tracks/cars you want. I dont see the latter taking off at all and is seriously a bad idea. What happens if you want to play with a friend online but cant because your friend has to shell out a dollar or so to buy the track that you have.

rabb1t · 10-22-2006, 05:29 AM

Ah ok that kinda makes sense since I recall hearing them say this was basically the same game they did before but bumped into high-res.

Personally if I'm gonna buy a 'normal' car racing game it'd be Carbon. Which I do think I'll get cause some of the stuff they are doing looks pretty interesting.

(Haven't played any of the series at all yet.)

Just hope I can get a unit. What with the cuts they seem like the production expected till Xmas is gonna be really low. /cry /cry I keep hoping that EB Games / GameStop will do an 'invitation only' pre-order from the website offer for maybe the first 10k peeps to sign up or something. I signed up there for the PS3 newsletter the first day that showed up.

Snake · 10-22-2006, 04:30 PM

Gran Turismo is more of a realistic racer where you can tune almost every part of your car, ive played some NFS games in the past and they seem more fun to me, but you cant change your car as much as in GT 4

...on the other hand, no to taxes!

rabb1t · 10-22-2006, 04:49 PM

It will be interesting to see if the micro-transactions of the PS3 online service will get credit card fees or taxes. I read an article the other day on the Xbox one which mentioned they used "points" so they could specifically avoid additional credit card fees and such for transactions. Apparently the PS3 version is going for straight cash, which is a bit easier as you don't have to convert things, but it may be subject to micro transaction fees and/or tax.

Snake · 10-22-2006, 04:51 PM

Yea, you can either pay with a credit card or with a playstation card type thing you buy at a store.