<!– –> From the FT Techblog:

Imagine playing Halo 3 with a lot more at stake than losing a virtual life. What if, every time you were injured by an opponent, your bank account took a hit as well?
That’s the idea behind Kwari, a “first-person shooter skill-based cash-for-kills” online game, set to debut in the New Year. [That’s 2008, I’m slow to catch up - TH]
Players of Kwari will suffer automatic deductions from their bank accounts when they are hit in a game, as well as deposits when they strike their opponents. The amounts can be anything from one cent to one dollar per hit depending on the stakes for the game.
There is also a fractional cost if they pick up additional weapons or health packs, with the money being pooled into a jackpot.
In 16 to 64 player match-ups, jackpots are shared between the gamer in possession of a smoking sphere called the Pill at the end of the game and the player who had held it the longest.

What’s the likely response? Probably better overall skills - behavioural economics suggests that substantial but not insanely-high incentives improve performance. One might expect that incompetent players would flee for less expensive games, but online poker suggests that there is rarely a shortage of noobs. Hmmm - shooting fish in a barrel!
[Halo 3 screenshot from TeamXbox.]

March 4th, 2008 in Everyday economics | Permalink