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China's State Administration of Taxation recently imposed a 20 percent income tax rate on profits made from virtual currency and virtual items, sparking price increases for virtual goods. While this tax rate (if actually enforced) clearly impacts the virtual space, it also affects transactions happening outside of MMO servers and virtual world grids. The taxation policy could ultimately extend to the virtual currencies linked to the largest IM providers in China such as Tencent, drastically increasing the percentage of the population affected by the new laws. Despite this, the positive benefits of eliminating gray and black markets for virtual items and currency may outweigh the drawbacks for gamers and users of the various digital services in China.

Questions remain about what will and will not be taxed in the virtual space, but it's clear that individuals who gain virtual income are expected to declare their profits and pay taxes on this, and do so within seven days of having earned the profit, according to Shanghai Daily.Taxpayers who can provide proof of the value of this property or the value of the transaction are taxed at 20 percent on their profits, while those who cannot provide sufficient verification are taxed at three percent of the total transaction value. But how many people are affected by this new system?

If you're in the market for a great MMO deal this holiday season, ArenaNet has just announced their 2008 holiday promotion for Guild Wars. From now until January 5, 2009, when you purchase the Guild Wars Game of the Year Edition, Factions or Nightfall from PlayNC.com or the Guild Wars in-game store, you will get a second campaign for 50% off.

This may just be the promotion you've needed to complete your Guild Wars trilogy, with the added bonus of unlocking the M.O.X. hero on your account. What more could you want? For more information and complete rules, check out the FAQ at the main site.

Among the people President-elect Barack Obama has appointed to his FCC agency review transition team are Net Neutrality advocates Kevin Werbach, assistant professor of legal studies and business ethics at Wharton, and Susan Crawford from the University of Michigan, who teaches communications and internet law. Werbach, as it turns out, is a World of Warcraft player, according to Wagner James Au at GigaOM.

Werbach has written about MMOs on his blog (back in 2006), that games "provide an incentive for people to develop new software and ideas for collaborative production. Many of those ideas will translate to other group activities, including those within the business world. I think MMOGs will be, at minimum, a significant testbed for these new technologies, because users see a direct benefit and are willing to experiment with new things." Werbach plays in two WoW guilds, one started by a friend, and the other is comprised of academics whose interests or work focus on virtual worlds.

While Werbach is more of a traditional MMO gamer, Crawford is a fan of Second Life, judging by what she's written on the virtual world in the past on her blog. At the very least, it's a positive sign that individuals connected with the FCC and its policies really understand how people are using technology to socialize, collaborate, and play.

EVE Online's latest expansion Quantum Rise brought some new features for the industry crowd, and a few enhancements aimed at PvP pilots as well. But some of the broad changes they've made to the game mechanics have triggered lag, and lots of it, which CCP Games is hoping to combat with the help of the players themselves. CCP Tanis says, "We take this issue very seriously and as a result, our engineering team has been in high-gear working on fixing the problem and we think we are close, but we need your help."

The help CCP Games is looking for requires relatively little from players, aside from logging into the Singularity test server and entering the fray, blasting each other apart in battleships. The Wednesday tests were already underway when we got word of this, but they're looking to get a large group of pilots (200 or more) for the Thursday fleet engagements on Singularity. The test will take place on Thursday at 11:00 GMT, and another is tentatively slated for 15:00, dependent upon what CCP learns from the previous fights. CCP Tanis lays out how players can get involved:

As probably one of the most vocal supporters of KingsIsle Entertainment's Wizard101, Tipa over at West Karana certainly has shown us the beauty of this new free-to-play children's MMO. Her blog posts have covered several months of experiences progressing through the game, and have probably had a hand in getting many others into it as well.

In a recent post, Tipa takes a retrospective look back at the game and what she thinks was done right or wrong in its development so far. One particularly interesting part is her analysis of the security measures taken to prevent children from talking to random strangers in the game. "W101 is a great game," she writes. "It's a fun game, it's an innovative game, but it's a game that has bought into the hysteria that every adult is a real or potential child abuser, completely disregarding that children are in considerably more danger from people they know in real life than from anyone they might meet playing a video game." It's certainly an interesting point on an innovation that has been showcased as a main family-friendly feature. Check out Tipa's complete blog for more of her thoughts on Wizard101.

Since the game's launch in April of 2005, ArenaNet's Guild Wars has set the bar a bit higher for future MMOs in relation to gameplay, their unique business model and skill balance. Their constant attention to detail when balancing literally hundreds of game skills between PvP and PvE has been an ongoing progression for everyone on the ArenaNet team.

Often seen by hardcore players as the name behind this constant balance is Isaiah "Izzy" Cartwright, Game Designer at ArenaNet. We were able to catch up with Cartwright for a brief interview regarding the past, present and future state of PvP in Guild Wars. Follow along after the cut for the full interview and some exclusive PvP screenshots supplied to us by ArenaNet.

Massively Speaking Episode 32 works through a heaping helping of Wrath-related discussion, as more World of Warcraft conversation is had in the span of 50 minutes than really should be possible. WoW Insider's Mark "Turpster" Turpin and Mike Schramm join Shawn and Michael to run through a ton of personal opinions on Blizzard's brand-new expansion. Join us for talk of zones, instances, and the future of the game.

Have a comment for the podcasters? Shoot us an email to podcast AT massively DOT com. Maybe we'll read your letter on the air!

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In an interview with videogaming247, Turbine bigwig Jeffrey Steefel said that he expects The Lord of the Rings Online to become the second viably successful western MMO in Asia (after World of Warcraft), should his team get the Chinese launch right. The two MMO-playing communities have historically had very different tastes, but Steefel believes western devs are finally figuring out how to break into the east. "That's where a big part of the global gaming market is and it's been that way for a long time," he said, "but we're only just now figuring how western games can begin to tap into that market.

Steefel also noted -- as many of Blizzard's competitors have been keen to do -- that much of WoW's growth in recent months has been in Asia, not in America or Europe. Guess he's hoping to capture a little of that Blizzard cross-cultural mojo when his game launches in China and Korea. We're aware Asia is a long way away for most of our readers, so for those of you who could care less: check out our own interview with Steefel for subjects a little closer to home. Shameless, aren't we?

Aventurine's Darkfall has been in development pretty much since the dawn of time (alright, since 2001, but that's not far from the dawn of time for the MMORPG genre), and we have on more than one occassion wondered whether or not those promises of an eventual beta test would be fulfilled. Turns out that for some, they have been.

The developers have posted a large collection of quotes from beta players' feedback. They claim it's representative, and it's mostly (but not all) positive. Sounds like players are impressed with the hugeness of the world and a solid crafting system, but a bit turned off by a complicated and unconventional control scheme. The devs say they're working on it.

If you fall into Darkfall's hardcore Ultima Online-esque PvP niche, feel free to scan through to see what you've apparently been missing out on for the past seven years.

October metrics for Linden Lab's virtual environment, Second Life are not yet formally available, but Lab CFO John Zdanowski wound up giving out a link to the information in advance, so we have the figures to work with. September was not a good month by these metrics, and we were interested to see how October panned out.

Your key takeaways for October are a continuing plunge in premium accounts, and a reduction in overall economic activity. User hours, however were up. A more detailed summary follows after the jump.

The Quantum Rise expansion for EVE Online, while only recently deployed, has drawn a substantial amount of forum rage for sweeping changes to how the game is played, namely for the nerfs of speed and missiles. This follows in the wake of unrest created by the CCP Games decision to phase out ghost training. The latest change, announced Tuesday, targets the in-game email system ("EVE Mail" to be precise).

CCP Wrangler says: "To address performance issues in EVE we are making some changes to the EVE Mail system in Quantum Rise 1.0.1. You will now be able to fetch up to 1000 undeleted EVE Mails, however EVE Mail number 1001 and beyond will not be fetched, whether it has been read or not. To gain access to those EVE Mails, you must delete newer EVE mails. In addition to this all EVE Mails sent by NPCs that are older than 3 months will be deleted."

Over the last week or so we've been asking you how you've managed to decide between the big releases hitting the MMO genre these days. Last week's Lich King launch, followed by this week's launches of EverQuest 2: The Shadow Odyssey and Lord of the Rings Online: Mines of Moria seem like challenging decisions for the fan of the MMO genre. We're not going to ask you how you picked, though, because we think we know how you decided which game to play. Like Codex and Zaboo up there, you hang out online where your friends are. At least, we think you do.

So our question this morning is, first, do you decide which MMO to play based on where your friends are? Second, how important are other people to your continued MMO gaming? If your friends weren't playing the game they are, would you be? How much does the directly social nature of massively multiplayer games affect your gameplay? Let us know, and good luck making those hard choices!

So we heard a couple months ago that The Chronicles of Spellborn would be released in North America and the United Kingdom on November 27th, coinciding with the continental European launch. Turns out it's been pushed back -- kinda. The European launch will still commence on the 27th, but the North American closed beta will begin on that day, with the actual, final launch occurring sometime in January.

Sure, we're a bit disappointed, but chances are we'll still get to play the game soon. Acclaim, the game's publisher in the region, went out of its way in the press release it sent us to stress the "Freemium" business model -- a newbie trial area will be available to all players, who can reach level seven before they have to upgrade to a premium subscription at the usual $15/month rate.

The idea of an unlimited free trial area with a level cap isn't fresh -- both Meridian 59 and EverQuest II have done that, but it's not a bad way to sample a game to decide if you want to invest your hard-earned cash in it. Might be worth trying just for Jesper Kyd's soundtrack

Most EVE Online players didn't have the opportunity to attend EVE Fanfest 2008 in Reykjavik earlier this month, but that doesn't necessarily mean they have to miss out on what was revealed. CCP Games and EVE TV have made good on their promise to release video footage of Fanfest presentations and panel discussions. While they did make live audio of some of this available in-game over EVE Voice, it was difficult to follow without the visuals to tie it all together.

Now, they've put up a new video page dedicated to EVE Fanfest 2008, with both low res and high res downloads. They culled roughly 30 hours of raw footage down into 12 videos. We've listed them below, accompanied by the CCP descriptions and video links, for both YouTube (when available) and high resolution versions: