Q13

[yangyi.sloan]

Hi

I seriously don't get this one.

This paragraph mainly says that the sale of virtual goods for real currency is taxable. "the games that are intentionally commodified" is put right after the sentence that made this main point. It's natural to think that the the games are designed to realize this kind of transaction: play in order to sell the virtual items in the game for real currency.

Upon these thoughts, I chose B, though it does not explicitly mention the real money, it does say that you can trade the virtual items (avatar), perhaps for money.

But why the right answer is D? How does the intellectual property right come in this picture? Plus, even if the property right is a commodity, the avatar could be one too right?

I am totally confused, or I missed something? I don't understand what does "in-world sales" mean too.

Can anyone help please?

[yangyi.sloan]

Ok, after a pains-taking rereading, I think due to the "and" between the "sale of virtual items for real money" and the "games intentionally commodified", the latter might need to be different than the former. And I found "intellectual property right" in the first paragraph. But, these "real-world trade in virtual items" and "granting buyer intellectual property rights in their creation" in the first paragraph are in essence no difference from "sale of virtual items for real money" right?

How can you distinguish "player owns intellectual property rights" from "player trades avatars"??? Still very much confused...

[yangyi.sloan]

Is it because of the intention? So there are two kinds:


One is answer B: no intention of the game behind these transaction

The other is D: the players get the intellectual property right because the game designers grant the rights to them (seriously, how can game designers do this??????)?

If D could phrase like: "players get intellectual property rights from the game", it would be much easier.

[maryadkins]

This question is all about the "games that are intentionally commodified," as you note. These are "in contrast" to games in which:

-there is "in-game" trading (line 50)
-"loot acquisitions in game worlds" (lines 45 - 46)

So what DOES intentionally commodified mean?

It is the games that "actually encourage it" by "granting intellectual property rights in their creations" (lines 28 - 29). This matches (D).

Yes, tricky. You have to link the first and last paragraphs.

But (B) is actually an IN-GAME TRADE—see the second-to-last paragraph. This is the kind of action that is EXEMPT from taxation in the author's view.

As for the others:

(A) misses the point of this part of the passage. This paragraph is talking about selling virtual stuff for real world money, not the other way around.
(C) isn't something told to us about this category of games.
(E) is like (B)—the kind of thing that would be EXEMPT from taxation according to the author.

Hope this helps!

[altheuer]

I understand why B is right, but I'm having trouble understanding why A is wrong. The paragraph talks about games that are intentionally commodified by saying that in them, tax doctrine and policy counsel taxation even of in-world sales for virtual currency. What am I missing that makes this not a correct answer?

[maryadkins]

"Real world" and "in-world" are not the same as "real items." It just means in the world outside the game; but the items themselves aren't something you can hold/i.e. "real." (I am having trouble even picturing what that would be in the context of this passage.) I see why you got confused though.

And the right answer is (D), not (B)!

[abc3210]

"Real world" and "in-world" are not the same as "real items." It just means in the world outside the game; but the items themselves aren't something you can hold/i.e. "real." (I am having trouble even picturing what that would be in the context of this passage.) I see why you got confused though.

Thank you for the explanation.
I am still confused how In-world sales for virtual currency (L55) is different from selling real items for virtual currency in A

Could you explain further, please?

Thank you

[andrewgong01]

"Real world" and "in-world" are not the same as "real items." It just means in the world outside the game; but the items themselves aren't something you can hold/i.e. "real." (I am having trouble even picturing what that would be in the context of this passage.) I see why you got confused though.

Thank you for the explanation.
I am still confused how In-world sales for virtual currency (L55) is different from selling real items for virtual currency in A

Could you explain further, please?

Thank you

I am also still confused about choice "A". Lines 55 -56 say in games that are intentionally commodified there will be taxes on in world sales for the virtual currency. Isn't that what Choice A also states? The quoted line says there are exchanges in the real world in return for the game currency and in turn this will be taxed. Choice A captures this by saying the game allows for virtual/game currency to be bought and sold for real items in the inworld/real world

I also agree though that D was mentioned earlier and during the PrepTest I was confused between both of these choices because both seemed to have support.

[ohthatpatrick]

An "in-world" item would be the special golden sword you bought from the goblin's weapon shop in Final Fantasy XXVI. It is just pixels on a screen.

A "real world" item would be a heavy, 16lb. sword you bought at Wal-Mart. Your Mom doesn't want you playing with it anywhere near your little brother.

(A) is saying that people would exchange their microwave or flat screen TV in order to have 200 more Gold Coins in a video game.

[snoopy]

"Real world" and "in-world" are not the same as "real items." It just means in the world outside the game; but the items themselves aren't something you can hold/i.e. "real." (I am having trouble even picturing what that would be in the context of this passage.) I see why you got confused though.

Thank you for the explanation.
I am still confused how In-world sales for virtual currency (L55) is different from selling real items for virtual currency in A

Could you explain further, please?

Thank you

I am also still confused about choice "A". Lines 55 -56 say in games that are intentionally commodified there will be taxes on in world sales for the virtual currency. Isn't that what Choice A also states? The quoted line says there are exchanges in the real world in return for the game currency and in turn this will be taxed. Choice A captures this by saying the game allows for virtual/game currency to be bought and sold for real items in the inworld/real world

I also agree though that D was mentioned earlier and during the PrepTest I was confused between both of these choices because both seemed to have support.

A isn't saying selling real currency for virtual currency. It's saying real items. I would have chosen this answer too if it hadn't been for D. D is supported in the beginning when the author says "some encourage it...by granting IP rights." They are encouraging real-world trade for virtual items which is intentional commodification.