The fact that games are now one of the most popular ways of spending our leisure time just makes things more complicated. Once the whole of the gaming world was based on the amateur or hobbyist model. We played games because it was fun. Full Stop.
Things are different now. Social currency introduced an additional layer of economics and competitive investments into the game. Moves from casual gaming to high stakes action.
While some gamers may pick up cosmetic items on occasion, the truly devoted will stop at nothing to get their hands on the most sought-after items.
So, What Exactly Is Social Currency in Gaming?
Social currency in the context of a gaming community refers to the intangible and tangible value that is earned by gamers within their community through the means of participation, reputation, status, items (in-game currency, cosmetic items, premium items) etc. While it is set within the environment of a game, its real-world effect is that it is used by players to compare themselves with other players.
Some systems are based on the common sweepstakes-style mechanics. And yes, this means that we have to mention that sweepstakes casinos are completely legal. So, players have access to a high-stakes social reward system without crossing into the murky legal waters.
When we first started in virtual items, goods in games served a purpose: you could trade them, craft them, or purchase them for use within the world. Now, the value of a good is much less about its functional benefit, and far more about the message it sends about the person that has acquired it. These virtual items become status symbols, achievements badges, and sometimes membership cards for exclusive communities.
Why Players Spend: Psychology, Status, and Social Pressure
You probably don’t spend real money in a game on just purely functional things. Stuff that give you power or make you look cooler is nice, but status, identity, belonging and validation are really what drive you to spend money on microtransactions.
I’d argue that such behavior can be observed in massive multiplayer online role-playing games, or MMORPGs. In general, player behavior is influenced less by gameplay mechanics and more by group dynamics and the social expectations of their community. Take a common cosmetic item such as a rare shirt, for example. One might initially think that purchasing such an item for use on a non-playable avatar wouldn’t hold any weight in gameplay. And yet, the larger part of most guilds would soon be dressed in just as fancy clothing as to not appear to be inferior.
Rare Skins, Digital Status, and Cultural Signals
Rare skins, exclusive cosmetics and limited drops hold a huge amount of cultural and ludic meaning far beyond the gameplay itself.
Like electronic badges of honour. Time evidence. Proof of effort. Sometimes even proof of affiliation.
I used to poke fun at people paying a pretty penny for some in-game item on some casual, multiplayer shooter. Nowadays, items on some 3rd party marketplace are actually selling for real money – and not a few dollars or cents either. So, apparently what is valuable socially, culturally or economically must now be intertwined in some way for an item to hold genuine value to anyone other than casual gamers who really just buy the items for their in-game function. Of course, there are people who buy these items as ‘investments’ for some reason.
The ecosystem has quietly made room for both.
The Complications Behind Virtual Value
Of course, social currency doesn’t arrive without complications.
Virtual currencies have made headlines on several occasions due to their alleged involvement in criminal activities such as money laundering and black market trading. This points to a whole new set of governance and security challenges within a virtual economy.
Conclusion
Whether you’re a casual gamer with a casual collection of silly items or a serious player with serious cash at stake, social currency is impacting your favourite games in meaningful ways. Sometimes these effects are very, very subtle. Other times they are painfully, laughably obvious.
I’ve mentioned this a few times already, but virtual economies will just keep on growing. And it’s clear that social currency will play a huge part in future gaming communities.
