EVE Extra: Deep-Space Outpost Goes Public in $8,100 Deal
by Alphaville Herald on 05/12/05 at 2:55 pm
It’s no mistake that EVE Online‘s player organizations are known as corporations. Though Second Life has seen a number of start-ups that have required resident stakeholding and investment, a recent IPO by EVE corp Interstellar Starbase Syndicate has set a new mark for virtual-world business dealings, having raised 36 billion in InterStellar Kredits, the equivalent of a whopping $8,100 at current eBay prices.
ISS, a well established “carebear” corp (i.e., not a military outfit), has built an enormous player-operated oupost (pictured above) deep in the reaches of lawless space, where player factions war for control of valuable resources. The outpost will be neutral, and players of any alliance will be able to dock there to refit their ships and sell their booty. Though the outpost has just recently gone online, ISS did an IPO back in October to raise money to get the thing up and running. The 3,600 shares they sold brought in a total of $8,100. Shares are now being traded in the secondary market as well.
How the outpost operation does as a business remains to be seen. ISS estimates projected dividend returns to shareholders at 4.7 percent a month. What’s interesting to me are the characteristics of the EVE galaxy that make this sort of business deal possible. One thing that’s remarkable here is that EVE is a game that has already seen a number of financial scams as part of accepted gameplay. But because players tend to spend lots and lots of time there and EVE toons often have lifespans of 1-2 years and more, it’s possible to build a reputation with your corp that allows people to trust you enough to invest.
The Herald has put in a request for an interview with the principals of ISS corp, and is awaiting a reply. More on this story as it develops, from your favorite fairly unbalanced news source.
Urizenus
Dec 5th, 2005
walker, any way for people outside the game to invest, or will we need an account.
Walker Spaight
Dec 5th, 2005
Hm, that’s a good question. I know that if you have an account you can buy shares on the secondary market, but I don’t know of a way to buy them from a place like Second Life or out in the real world.
That said, I’m talking to the people behind the project on Wednesday, so I will try to remember to ask them that. If the iron sieve of my mind can retain the question for an entire 48 hours.
RB
Dec 5th, 2005
I play EO. But i don’t really know much about ISS, only been in EO bout 2 weeks or so.
However it would be best to have an actual account to invest with yes. For those of you wondering.
- RB.
Walker Spaight
Dec 6th, 2005
RB, send me an EVEmail next time you’re in EVE.
Athel Richelieu
Dec 6th, 2005
Sounds like a good thing to invest in, especially if if it is the FIRST and only neutral public outpost in a wide area of space but…
People seem investment happy, don’t they? To invest in anything, because I guess investing is fun in some way like a mini-game. But I remember the corp in SL, everyone jumped on the wagon, and invested. Sounds like everyone invested in this too.
Wonder if this is necessarily good.
Seiver D'amross
Dec 6th, 2005
i play eve-online and am past of ISS for about 3-4 months. it was a masive under taking to put it (the outpost) up. i think the project was in the works for well over a month when it was set up. its quite a site to see as well, then you think ‘wow we bult that’. and yes AR for those who did invest it was a good investment,
‘Recently dividends of over one-billion ISK have been
paid to the holders of the initial 3600 share offering.
The shares, purchased at ten-million ISK per share,
have been reportedly re-selling for 70% over their
initial market price.’ EVE online news
RB
Dec 7th, 2005
Done Walker.
- RB.
ReaperOfSly
Dec 7th, 2005
How could you possibly invest without an EO account? You invest ISK and get ISK as dividends. It’s actually against the EULA to sell ISK for money, and anyone who tries will be banned. Frankly, I’m surprised so many EVE players have posted here without mentioning that.
Turbo
Jan 1st, 2006
I had 1 share in an old corp in EO not a big corp not well known and when it died i got over 1 mil isk back on it for next to nothing. so i imagen this to be big isk… but the thing is ITS ISK it shouldnot make any 1 real money… infact ur spending money for an EO account… as i say have always said and always will say… Its a game.
RB
Jan 2nd, 2006
Any kind of game can be taken to the next level. It’s no longer a game then. Only by design.
There’s the average playerbase and there’s the mighty few. Not everyone with sway is a dev.
- RB.
Lygos
Jan 2nd, 2006
I play EVE only because I don’t really enjoy games after a short while. I’m always on the lookout for spontaneous development of institutions, customs, and genuine characteristics of emergent community in textual or virtual spaces.
Projects like that of ISS are bold. Hopefully, this sort of activity will only become more robust as CCP adds contracting tools.
Illvin
Jan 3rd, 2006
As a player of EO I can state that ISS Marginis is quite possibly unique in one regard. It is a gallente class outpost, meaning it can host a large number of corporate offices. Most other outposts appear to be minmatar, meaning these are able to refine ore and various undesirable materials.
Amarr – Factory Outpost
Caldari – Research Outpost
Gallente – Administration Outpost
Minmatar – Service Outpost
RB
Jan 4th, 2006
I must comment on the well done-ness of this article in Escapist Magazine by Mark Wallace. It provides the perfect picture of why EO is so brilliant and also unique. Top job.
http://www.escapistmagazine.com/issue/25/3
- RB.