Virtual world economist says Guild Wars 2's pre-endgame economy 'broken'

Ever since Guild Wars 2 went live back in August of last year, the state of the game's economy has... fluctuated wildly, let's say. But now, about eight months down the line, how is the economy holding up? Virtual world economist Ramin Shokrizade (the same fellow who wrote about using EVE Online to predict the real-world recession) has published a new piece on Gamasutra that takes an in-depth look at the economy of Guild Wars 2 as it stands today.

The article is too detailed to summarize here, but one thing worth taking away is Shokrizade's observation that, "with the exception of craft materials, [Guild Wars 2's] pre-endgame item economy is broken." He elaborates that, for example, a level 39 green-quality chestpiece regularly sells on the auction house for around 112 copper — a scant 1 copper more than vendors pay for the same item. He concludes that GW2's pre-endgame economy is "one of the worst [he has] studied in the last 14 years." Eesh. He also takes an in-depth look at the role crafting plays in the economy and the effects of the in-game economy on cash-shop purchases. The full piece is a bit long but certainly worth the time for anyone interested in the intricacies of virtual economies or Guild Wars 2 players in general.