Live Gamer, Massive founder Mitch Davis’ new startup, has raised $24 million, the WSJ says. As we noted last month, Charles River Ventures is funding the virtual goods exchange, as is Kodiak Venture Partners and Pequot Ventures.
The WSJ explains that Live Gamer has the support of game publishers like Sony (SNE)
and Vivendi, who produces Everquest II and World of Warcraft, respectively.* That’s because Live Gamer promises to crack down on “gold farmers” who do nothing but accumulate virtual swords, armour, etc. and sell them for real cash, and because the company promises to give the publishers a cut of 10% it collects on each transaction.
What we don’t understand is what incentive gamers will have to use Live Gamer as opposed to other exchanges, like Hong Kong-based IGE.com. Can anyone enlighten us?
* Live Gamer doesn’t have a deal with Vivendi, which means it won’t support World of Warcraft sales, which is a problem. Update here.
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