Mitt of Pandaria

Republicans in Maine have launched a series of attacks on Democratic State Senate candidate Colleen Lachowicz, over her love for playing World of Warcraft; apparently they feel that it is unbecoming for a serious politician to spend time in a fantasy world. Perhaps they should tell that to their Presidential nominee

Win some, lose some, it’s all the same to me

The New York Times had an interesting piece this week profiling top online poker player Daniel Cates, and seeking to identify the secret of his success. The short answer seems to be “Asperger Syndrome“, but the details of how hours spent playing resource-management games like Command and Conquer sharpen the skills needed to triumph at the virtual card tables are certainly fascinating.

The key message though is that even a good player is at the mercy of fortune, and skill will only out over the course of thousands of hands, with many a losing streak along the way. It evidently helps to be able to see money as just an abstract way of keeping score rather than something actually valuable, especially when one can lose over $4 million in a few hours.

My own poker habit is nowhere near that level thankfully; I don’t win, but I lose slowly enough that it qualifies as cheap entertainment. Even when the cards don’t fall my way it can still be fun – just the other day I went all-in with a King-high flush only to see my opponent turn over the Ace, but I was able to smile at the thought of him gathering in my cash while whistling the greatest song about gambling ever written.

The wrong move at the right time

Regular readers will know that I have an interest in internet addiction, but I came to that via impulse control disorders in general, and pathological gambling in particular.

The BBC reported this week on the release of the British Gambling Prevalence Survey 2010, produced by the National Centre for Social Research for the Gambling Commission. It’s a fairly hefty document, and I’ve only managed to read the executive summary, but even that contains plenty of food for thought.

The headline figures are that 73% of the adult population gambled in the last year, up from 63% the last time the survey was done in 2007. Problem gambling, as measured by the DSM-IV criteria, was up from 0.6% to 0.9% in the same period, though it hadn’t risen significantly on the Problem Gambling Severity Index (0.5% in 2007 and 0.7% in 2010). These numbers are similar to the rest of Europe, but lower than the US and Australia.

One thing that surprised me was that the prevalence of online betting hadn’t increased much in the last three years. Excluding online purchase of lottery tickets, which they didn’t measure last time, the rate was 7%, up from 6% in 2007; 81% of gamblers place their wagers exclusively offline. Within this certain types of online betting are more popular though; 39% of casino gamers play on the internet.

The betting landscape has certainly changed a lot since I was a child. My grandfather liked to play the horses, which back then involved visiting the local bookie, a sinister establishment next to the pub, with blacked-out windows and a permanently smoky atmosphere, frequented by the shadiest-looking characters in the neighbourhood. He used to take home the little pens to give to me, which my mother would immediately confiscate, lest I take them to school and shame our family with the association of vice. I take after my grandfather in a lot of ways, but I must have internalised some of his daughter’s disapproval, because to this day I have never set foot inside a betting shop. I’m rather ashamed of this, as it feels like I’m betraying my working-class roots in favour of a notion of bourgeois respectability, but my mother’s scruples have probably saved me a lot of money over the years.

My grandfather’s other flutter of choice was the football pools; a sacred ritual in our family was gathering around the television at about ten to five on a Saturday to listen to the classified results. As eldest grandchild I had the responsibility of recording the scores as they were announced; the mention of lower-league English teams like Huddersfield or Gillingham still takes me back to cosy teatimes all those years ago. I was sad to see that the explosion of alternative gambling opportunities in recent times has all but killed off the pools; only 4% of the population put on a coupon now.

The change in social attitudes to gambling can be traced back to the introduction of the National Lottery in 1994; overnight gambling became a government-approved leisure activity rather than a disreputable habit looked down upon by polite society. The whole industry was deregulated, with bookies allowed to put signs in their windows advertising what went on inside, and to install seats to encourage their customers to linger; a far cry from the dens of ill-repute my grandfather used to frequent.

Card gaming, poker in particular, has had quite a makeover too. It used to be a game associated with cowboys and gangsters, or at best the idle super-rich in places like Monte Carlo. I do remember, in my youth, being quite taken by Steve McQueen’s character in The Cincinnati Kid, but “professional poker player” was never going to be among my career choices. The advent of internet and televised poker tournaments has changed all that, and now the game is played by a whole host of perfectly respectable, and decidedly unglamorous, doctors, lawyers, accountants and the like.

A year or so ago I was seeing a client who had a bit of an issue with internet poker, and, out of curiosity, I registered with one of the online casinos and tried playing for a while. I’d like to say that this plunged me into a House of Games-style maelstrom of underworld intrigue, but since a) I limited myself to a $10 roll and nickel-and-dime tables and b) I am a dreadful poker player and lost all my money in short order, nothing nearly so interesting happened.

Every so often, usually when I am bored at work and daydreaming about alternative income streams, I return to the virtual tables, generally with the same result. This last month was different though; despite playing my usual ham-fisted game I went on a pretty good run, boosting my $10 stake up to over $60, before enduring an equally persistent losing streak, which had, by yesterday, reduced my stack to $15.30.

This experience has given me a bit of insight into some of the psychological phenomena associated with gambling that I had previously only read about. Simple arithmetic tells me that my latest session has been much more successful than previous forays, since I have ended up 53% ahead rather than 100% behind, but that’s not how it feels, and the temptation to chase my “losses” by playing more, or moving to a higher-stakes table has been pretty strong. It’s also been interesting to note how my feeling for the game mechanics, particularly the balance between luck and skill, has changed as my fortunes have varied; when I was hot I was convinced that I was playing masterfully, but as the money ebbed away I found myself cursing the bad cards I had been dealt.

I guess I should be happy that I’ve received some valuable professional education, and been paid $5.30 into the bargain, but I can’t help thinking about the $45 that got away, and how, if I just kept playing a little longer, the law of averages would throw a few good hands my way again…

Downhill Racer

It’s kept on snowing over the last couple of weeks, so I thought I should follow through on my plans to go skiing. I still couldn’t summon the energy to go up to the actual mountains though, so I figured I should see what Second Life had to offer in the way of winter sports. I got myself kitted out at the Zagoskin Ski Shop, for a surprisingly modest sum – skis, boots, poles, ski-suit and goggles for under L$500 – then headed over to the Nakiska Ski Club to hit the piste:

The panorama was certainly impressive, and the run ahead was invitingly steep, so I pushed off and shot away down the slope:

Down at the bottom there was a futuristic mountain train waiting to take me back up the hill:

It was fun for a while, but after a few runs it began to get a little dull. The AO that came with the skis allows one to steer from side to side, but one can’t really do anything more complicated than zig-zaging down the slope. I guess it might be more exciting if there was a slalom course laid out, or if one was racing with someone else. I should probably check out some of the other Second Life ski resorts to see if they are any more thrilling.

The experience reminded me of nothing more than the classic ZX Spectrum game Horace Goes Skiing. I’ve been similarly underwhelmed by other interactive activities on the grid – nice graphics in the service of eight-bit gameplay seems to be the rule for such things.

I was also a little disappointed, though not entirely surprised, to find that I was the only person at the resort, since I always feel that the conviviality of the après-ski is a crucial part of any winter holiday. It’s a shame it was so quiet, because the one big advantage that Second Life has over stand-alone simulations, the thing that makes up for all the limitations, is its social aspect. Maybe next time I go it will be a bit more lively.

Panorama on video game addiction

Tonight’s edition of the BBC’s flagship current-affairs programme Panorama covered the topic of video game addiction. I had been looking forward to the show but it was rather disappointing; it contained no information that anyone with even a passing interest in the subject wouldn’t already be familiar with.

After featuring the usual suspects – reformed addict, concerned parent, industry spokesman, academic (Mark Griffiths in this instance) – and taking the obligatory trip to South Korea, the reporter did come to a reasonable, if uncontroversial conclusion – games are fun, most people have no trouble with them, a few develop problematic use, this might become a significant issue as more people play.

I guess it was a good enough introduction, but it felt like a missed opportunity to discuss some of the more controversial aspects of the issue, like the exact nature of the disorder, and treatment approaches, in greater depth. A half-hour TV show has its limitations I suppose.

Anyone who is looking for a (slightly) more substantial review of the topic could do worse (I would humbly suggest) than to refer to this article that we posted earlier this year.

Upon the dismal shore of Acheron

While browsing at the AV Club the other day I came across a review of the film The Dungeon Masters, a documentary following the lives of three devoted D&D and LARP fans. It sounds fairly interesting, though the director’s main theme – “people in control of their fantasy lives aren’t in control of their real ones” – won’t win any prizes for originality.

More intriguing was a link I found in the comment section of the review, leading to this cautionary tale. Who knew that D&D could be so exciting? I played for years, and I never once got invited to join a coven of witches.

Looking around the Chick Publications site reminded me of when I was about 6 or 7. There was an old lady who stood outside the gate of our primary school at break time, handing out similar illustrated tracts. One story sticks in my mind to this day; a young boy has the temerity to question his pastor about the truth of the Bible, and the very next day he is hit by a speeding truck, sent to Hell and tortured by demons, all depicted in graphic detail. I guess she was sincere in her belief that it was necessary to put the fear of eternal damnation into the minds of young children in order to save them from evil doctrines like communism or evolution (not to mention Catholicism, Islam and, of course, homosexuality), but even at that tender age my reaction was to think that her religion was pretty messed up.

I sometimes wonder if this early experience was what put me off religion for life, but if memory serves (which it probably doesn’t) I was a confirmed unbeliever even before that. In fact I can’t remember a time when I ever had any sort of faith, which I’m not sure how to explain. I did grow up in a basically secular household, but my parents weren’t militant atheists or anything, and Christianity was part of the fabric of our community. I repeated the prayers at school assembly, went to church at Easter and Christmas and was generally exposed to the idea that being a Christian was the normal thing to do, but none of it ever clicked with me. In the years that have followed I have learned about many other religions and belief-systems, ancient and modern, but my interest has always been cultural rather than spiritual. I’ve never felt that there was any sort of void in me that yearned to be filled by religion, or that my lack of faith meant I was missing something. Perhaps I just don’t have the religious gene.

(I have been politically active most of my adult life, and pious types have often told me that I am sublimating my religious impulses in radicalism, that The Communist Manifesto is my bible, but I don’t think that’s the case at all. I don’t see politics as a moral issue, but more a technical question of how to efficiently organise society. I certainly don’t think that being a communist makes me a better person than anyone else, and I’m not expecting any eternal reward for my labours).

I don’t really have a point here; I’m just musing nostalgically. I’m definitely not suggesting that all Christians are hate-filled bigots; I’ve known plenty over the years and hardly any have been like Fred Phelps. Indeed one of the saving graces of the Christian faith is the fact that its adherents are mostly content to be fuzzy about the details of doctrine. Even the Pope thinks that non-believers can go to heaven, which, to my mind, seems hard to reconcile with John 14:6, but I guess that resolving such contradictions is what keeps theologians busy. (Personally, I’d probably pass on Paradise; I’ve always thought that the first circle of the Inferno sounded much more interesting). I imagine that the followers of other religions behave in a similar way; none of the Jews, Muslims, Hindus or Buddhists that I know are particularly devout, though I’d have to admit that my deadbeat friends may not be entirely representative examples of their respective faiths.

I used to be more actively anti-religious in my younger days, and I would argue with people about how clearly nonsensical their beliefs were, but with age I have mellowed into a position of liberal secularism; I don’t care what people think or do in their homes and places of worship (or where they build those places of worship), as long as they keep their dogma out of the schoolroom, and don’t try to tell me who I can or cannot marry.

I still think that, on balance, religion is a pernicious influence on society, but no amount of reasoned discourse is going to make it disappear as long as the material conditions that underpin it persist. Everyone knows Marx’s comment about religion being “the opium of the people”, but the full quote is more illuminating:

Religious distress is at the same time the expression of real distress and the protest against real distress. Religion is the sigh of the oppressed creature, the heart of a heartless world, just as it is the spirit of a spiritless situation. It is the opium of the people. The abolition of religion as the illusory happiness of the people is required for their real happiness. The demand to give up the illusion about its condition is the demand to give up a condition which needs illusions.

Karl Marx, Critique of Hegel’s Philosophy of Right

If we ever make it to a society that is free of inequality and injustice, the illusion of religion will no longer be necessary, and it will fade into history. We will look upon Christianity and other modern faiths in the same way we regard the pantheons of the Greeks and Romans; interesting cultural phenomena that have no direct significance in our everyday lives. Whether I’ll be around to see that day is another question, but I can always live in hope.

That gum you like is going to come back in style

I don’t look at the TV much these days, and I very rarely find myself following an episodic drama series. The last time I even partially got into a show was when I caught most of the first season of The Wire, which I quite liked, but the effort of committing myself to regular appointments with the box was too much, and I never made it past the first episode of season two.

I was thinking about this the other day when I read an article at the AV Club which considered the cultural impact of David Lynch’s cult 90’s series Twin Peaks. It reminded me not just of how slavishly I had followed that programme, but of the way that even left-field shows like Lynch‘s unsettling masterpiece could attract mass audiences at that time.

Compared with today it was both easier and harder for a show to be a big hit back then; easier because there was less competition for the audience’s attention – the UK had only four terrestrial channels to choose from, satellite and cable were niche products, and there was no internet – and harder because there was no way to see things other than by sitting down in front of the TV at a set time – no DVD box-sets, no Tivo, and no internet TV. We did have VHS recorders I guess, though the elderly model I had at the time was much too unreliable to trust with an unmissable event like that week’s Twin Peaks.

I had been a big David Lynch fan since I saw Eraserhead late one night on TV, and I’ve liked everything he’s done since (even Dune), especially Blue Velvet and Mulholland Drive (the latter is in the running for my favourite film of all time), so it was always likely I was going to be a Twin Peaks devotee, but what confirmed my addiction was the community that grew up around the show on campus. I was already hanging out with most of what became the Twin Peaks crowd, but we certainly bonded that little bit more over long evenings of coffee and cherry pie (actually, “coffee” and “cherry pie”) discussing our various theories of what the story was about. I’d like to say that we still get together every year to reminisce, but, with a couple of exceptions, I haven’t talked to any of those people in the best part of twenty years. Probably best to leave the memories undisturbed.

Anyway, the point that I’m meandering towards is that often what sticks with you about a cultural experience is not so much the event itself, but more the social connections that surrounded it. What’s changed since my Twin Peaks days is that, thanks to the wonder of the interwebs, it’s no longer necessary to be geographically co-located with your fellow fanatics to feel part of a community.

Certainly my experience over the last three years has been that, while it was the virtual eye-candy that initially pulled me into Second Life, what’s kept me around is the narrative that unfolds in the relationships between residents, played out partly in-world, but mostly in the SL blogosphere.

I don’t want to overstate the profundity of the SL storyline – it’s more potboiler than classic literature – but it’s diverting, harmless, and, best of all, it creates a pleasing illusion of interactivity. I can tell myself that I am involved in writing this tale, in my own small way, and that makes me just committed enough to stick with it through the many, many dull patches.

There’s an interesting paper by Wanenchak in the latest edition of Game Studies entitled Tags, Threads, and Frames: Toward a Synthesis of Interaction Ritual and Livejournal Roleplaying. It’s well worth reading in its entirety, but the part pertinent to this discussion is the brief review of Goffman‘s frame analysis as it applies to a collaborative online narrative:

… frames allow players to engage with the gameworld in such a way that their narrative construction and interactions become sensible to themselves and to each other.

What I find most fascinating about the Second Life narrative (and what I think gives it a claim to being a unique cultural phenomenon) is the fact that the frames that people are using are often unclear, shifting and overlapping. To put it in different terms, although they are operating in the same “gameworld”, which includes not just the SL grid but also the associated blogs, tweets and what have you, people are engaged with often wildly differing levels of immersion.

The effect of this is, more often than not, to render the meta-story unintelligible, but occasionally it all comes together to produce an instant of dream-like clarity that makes the whole project seem worthwhile. I would give some examples of this, but I suspect that, like real dreams, the beauty of these moments is highly subjective, and that any description I attempted would sound hopelessly prosaic.

Which brings us back to David Lynch. What I think he does better than any other director is capture the fractured reality of dreams and nightmares, in a way that is at once unsettling and beguiling. Sometimes – just sometimes – being part of the world of Second Life is like living in Twin Peaks.

On Second Life and addiction

I wasn’t going to say anything on the sad story of the Korean couple who allegedly left their baby to starve while they spent time in the virtual world Prius Online, because, you know, it seemed a bit exploitative, but I noticed that a few other blogs had referred to the issue directly or indirectly, and of course I couldn’t resist putting my two cents worth into the comments, (though it turns out that last post wasn’t inspired by the Korean incident after all), so I thought I might as well draw a few thoughts together and post them here.

Actually I’m not going to address the Korean story directly, since all I know about it is what I’ve read in the papers, and in cases like these one really needs to have all the facts before formulating any opinions. Instead I’ll say something more general about the concept of internet addiction – whether it exists at all, and, if so, what can be done to help those suffering from the problem.

My personal opinion is that problematic use of the internet should be regarded as a pathological behaviour, and that it is best thought of as an impulse-control disorder. I first became interested in the topic after reading Caught in The Net, by Kimberly Young, who did a lot of the early work in this area, and who runs the Center for Internet Addiction. Her book is aimed at a lay audience – she does tend to throw around terms like “obsession”, “compulsion” and “addiction” a bit freely – but her conceptualisation of dysfunctional online activity, drawing on the model of pathological gambling, is basically sound.

The existence and nature of internet addiction is still the subject of academic debate though. I thought Jerald Block made a good case a couple of years ago in an editorial in the AJP, Issues for DSM-V: Internet Addiction, but the draft DSM V, out last month, fails to include it. Interestingly the draft also proposes to move pathological gambling out of “Impulse-Control Disorders Not Elsewhere Classified” and into “Addiction and Related Disorders”, a move that has been labelled one of the “The 19 Worst Suggestions For DSM5“.

This argument about classification may seem a bit arcane, but it reflects a division of opinion that was also evident in the discussion of the Korean case; to what extent does labelling a particular behaviour an “addiction” absolve the person concerned of responsibility for their actions?

When it comes to MMORPGs (which for the sake of this argument we’ll take as including Second Life) there is a tendency among pro-game writers to deny that virtual worlds have any addictive properties at all, and to focus instead on the personal characteristics of the “addicts”, and especially their “personal responsibility” or lack thereof, when seeking to explain the problem. This is evident in the posts I linked to above, and more so in the comments, and is understandable when one considers that politicians and the media are quick to stir up moral panics about the supposed corrupting influence of games on society.

It’s true that impulse-control disorders are rooted in individual psychopathology, which in turn develops from the complex interaction of neurobiology, psychodynamics, cognition, social factors and environment. However I think it has to be acknowledged that games, and especially MMORPGS, have features which may promote problematic use in vulnerable people.

What are these elements? The ability to produce feelings of mastery, to increase confidence in social interaction and to explore hidden aspects of personality, which can combine to boost self-esteem. (These are of course the same things that make the worlds attractive in the first place.) Add in the variable reward schedules that are designed into the games to a greater or lesser degree, and you have the potential to set up cycles of dysfunctional behaviour.

This doesn’t mean that games are inherently dangerous, since clearly the vast majority of players manage to use them without coming to any harm. It does suggest though that there is a particular subset of players for whom over-use of games might become a problem, and raises the question of whether game developers like Linden Lab should be responsible for raising awareness of the possible hazards among residents of their worlds. I would argue that there should be some material about recognising the signs of internet addiction included in the orientation process, and perhaps a timer built into the viewer that that pops up after, say, two hours on the grid and suggests that it might be time to take a break. I can’t see this happening though, since steps like these could be construed as an admission by the Lab that they are aware of the potentially harmful nature of their product, which would presumably expose them to some sort of liability.

What of treatment? In general terms, my experience of treating this sort of problem has convinced me of the importance of taking a non-judgemental approach. Although therapy for impulse-control disorder does focus on the choices that the client makes in certain situations, with the aim of helping them regain a feeling of control, over-emphasising “personal responsibility” is usually not helpful. These clients start with low-self esteem, and the condition further erodes their confidence in their ability to take charge of their lives, so reminding them that they could have avoided the mess by making different choices tends not to make them feel any better. Instead it’s more useful to focus on the positives, the areas of their lives that they feel they can manage sucessfully, and try to build on these.

It’s interesting that discussion of addictions, and particularly process addictions (which, as mentioned above, I prefer to conceptualise as impulse-control disorders, though plenty of people would disagree with me), often takes on a rather moralistic tone, with implicit, or sometimes explicit, condemnation of addicts for failing to take “responsibility” for what they do. I tend to think that this position represents a defence against acknowledging the extent to which everyone is a potential “addict”, a projection of intolerable unconscious “irresponsibility”. I think it’s healthier to recognise that we are all fallible humans, and we can all make bad choices, and remember that when we do mess up it’s nicer if people treat us with sympathy and compassion, rather than going on and on about “personal responsibility”.

In internet addiction specifically the treatment with the best evidence base is CBT – Young published a paper on treatment outcomes in 2007. There was also an interesting paper last year from the International Gaming Research Unit at Nottingham Trent University last year looking at various treatment approaches to videogame addiction, including 12-step, CBT and Motivational Interviewing. 12-step programmes for internet addiction are widely available – at On-Line Gamers Anonymous for example – but I’m not aware that these have been rigorously evaluated. I’m not as familiar as I would like to be with the published work coming out of South Korea and China, where they take this problem very seriously, but what I have read suggests that behavioural and family therapy approaches are useful, in younger populations especially. I expect there will be a lot more research into treatment of internet addiction published in the West over the next few years, and the best therapeutic options should become more evident.

A Radical Game

Readers may be wondering what has happened to my grand plans to launch a grid-wide insurrection to bring democracy to Second Life. I haven’t forgotten about it completely, but I have been distracted by some real-life political activity; I realised that if I had time to spend on agitation in an imaginary world, then I had no real excuse for dodging my responsibilities in my local community, where the issues are rather more pressing.

I was also a bit discouraged when I read Annabelle Boyd Jones’s B.A. thesis (OK, when I read the abstract of Annabelle Boyd Jones’s B.A. thesis) The Disconnect Between Journalism and Governance; A Critical Analysis of the Interaction of Journalism and Governance in the Virtual World Second Life, in which she concludes that journalism (and what is SLS if not citizen-journalism?) has had “negligible influence over the structure and direction of governance”. Ms Jones was awarded first class honours, so I guess her work is fairly robust, though I felt her selection of SL sources was a little restrictive, taking in the usual suspects like the Herald and New World Notes, plus the now-defunct AvaStar and Reuters SL, though also Your 2nd Place and Second Thoughts, the latter amusingly characterised as “incendiary”.

On the other hand… My re-engagement with local politics isn’t entirely attributable to guilt-tripping; thinking about democracy and radicalism in the context of Second Life reminded me how stimulating political activity can be, and primed me to get back into it. I ended up re-reading most of Trotsky’s The History of the Russian Revolution, which really catches the excitement of the times, as the old order collapsed and a new world of limitless possibilities opened up. (John Reed‘s Ten Days that Shook the World, and Warren Beatey’s epic film Reds, based on Reed’s life, are equally inspiring.)

It can be argued that Second Life is a similarly fresh political landscape, and the challenges faced by anyone trying to build a progressive movement on the grid would be comparable to those in front of the Bolsheviks as they sought to galvanise the population of Russia around a new ideology in 1917. It would follow that, just as there are lessons for revolutionaries today in the events of October, agitating in SL might teach us something about organising in real life. Role-playing revolutionary games in Second Life could provide the intellectual space where ideas about engaging people with radical politics can be tried out and refined, before being fed back into offline experience.

For example, I was thinking about how I might go about recruiting members to an SL Communist Party, and naturally I fell back on my fairly extensive experience of doing similar things in the real world. Thinking about how to translate this on to the grid forced me to consider what worked and what didn’t, what were the really essential steps and what was just habit, what was outdated and what still applied. All this was still in my mind the other day when I met with some people to talk about what kind of intervention we can mount around the forthcoming UK General Election, and my contribution to that discussion was certainly informed by the thoughts I’d had about Second Life. Time will tell how useful these grid-derived insights are going to be of course, and the process would undoubtedly have been more valuable had I started it about a year ago, so that I could have gone through a few iterations of virtual party building and generated more feedback, but it felt as if I had been able to look at things from a new angle.

Does this mean that I am softening on my immersionist position and coming round to a more augmentalist viewpoint? Not really, because I still think that what happens on the grid has no direct significance outside of the game world, and that no matter how good a virtual simulation might be, the lessons learned only become valuable if they are applied to action in the real world.

The idea that games can be useful in preparing us for more serious affairs is hardly new of course; it’s something we have been doing in one form or another since the dawn of humanity. Wellington said that the Battle of Waterloo was won on the playing-fields of Eton, (though Orwell thought that the opening battles of all subsequent wars had been lost there.) Perhaps the outcome of future conflicts will be decided on the sims of Second Life.

Brother, can you spare me an ISK?

More virtual-life-imitates-real-life news from the futuristic universe of EVE Online, where EBANK, one of the game’s largest financial institutions, has frozen all deposits after new management discovered a 1.2 trillion ISK (InterStellar Kredit) hole in the accounts.

At first glance this seems to be a repeat of the Second Life banking fiascos of 2007, but, to be fair to the directors of EB, they do seem to have been trying to run a proper retail banking operation rather than just a glorified Ponzi scheme, with interest paid to depositors theoretically covered by interest charged to creditors.

The initial stories of EB’s troubles focused on the embezzlement of 250 billion ISK by the bank’s former CEO, but what really seems to have done the damage is the spectacularly high level of bad-debt provision. Just about the whole of EB’s loan book looks to be unrecoverable, a failure of risk-management that makes even the most delinquent of real-life banks look ultra-cautious.

It is, I think, another example of cargo cult consciousness, the belief that you can capture the essence of something by replicating its superficial form. In this case EB did the things that a real bank does, like taking deposits and making loans, but without the social infrastructure than underpins such a business in the real world, like a legal system that allows creditors to pursue their debtors and seize their assets. More importantly, institutions of finance capital can only exist in the context of a system where there is actual value being produced, rather than an imaginary universe where work ultimately counts for practically nothing.

It’s surprising that anyone still believes that banking and other financial wizardry can magically create wealth, rather than just existing parasitically on the labour of the workers, given that recent events in the real world have shown up the masters of the universe for the frauds that they are. (ISK also stands for Icelandic Krona, and we all know how well that’s been doing recently.) A certain suspension of disbelief is required to enjoy the experience of EVE Online; perhaps for the more avid players their time in New Eden detaches them from reality altogether.