Auction House FAQ Blizzcon 2011

Blizzard released an updated Auction House FAQ in the Blizzcon 2011 press kit. The following quotes it directly.

AUCTION HOUSE SYSTEM - GENERAL INFO

What is the Diablo III auction house system?

Acquiring epic new gear for your characters has always been a big part of the Diablo experience. Because of this, players have found a number of different ways to trade and otherwise obtain items both within and outside of the game. Many of these methods were inconvenient and either tedious (for example, repeatedly advertising for a desired trade in Battle.net chat channels and waiting for responses) or unsafe (e.g., giving credit card information to third-party trading sites). With Diablo III, we’re introducing a powerful auction house system that will provide a safe, fun, and easy-to-use way for players to buy and sell the loot they find in the game, such as weapons, armor, and runestones. Two different versions of the auction house will be available in Diablo III: one based on in-game gold, which players acquire through their adventures, and one based on real-world currency.

What’s the difference between the gold-based auction house and the currency-based auction house?

The gold-based auction house uses in-game gold for purchases and sales. With the currency-based auction house, players will be able to conduct these transactions using actual currency from an authorized payment method or from funds that have been added to their Battle.net account. Players can choose to participate in whichever version of the auction house they prefer, on a per-transaction basis.

How does the auction house system work?

Players open the auction house interface to make purchases or list items for sale. Items can be sold from the shared stash (storage shared among all the characters on your Battle.net account) or from any individual character’s inventory. When posting the item, the seller picks whether it will be sold in the gold-based auction house or the currency-based auction house. The item is then held by the auction house system until the listing expires or a purchase is made. Items that are not sold are returned to the seller’s shared stash, and items that are sold are delivered to the winning bidder’s shared stash. In either case, the auction house system will deduct a nominal fixed transaction fee from the seller, the amount of which is determined by whether or not the item was sold (see below). For the currency-based auction house, players will have a few different options for how to pay for item purchases and receive funds for item sales, as discussed elsewhere in this FAQ. There may be differences in how this system will work in different regions of the world. We’ll provide further details at a later date.

How is the transaction fee determined?

A nominal fixed transaction fee will be deducted from the seller for each item listed in the auction house. This fee consists of a fixed charge to list the item, which is assessed whether or not the item is successfully sold, and an additional fixed charge that is assessed only if the item is sold. Because the listing portion of the fee is charged even if the item doesn’t sell, it will be in the seller’s interest to list items he or she believes other players will be interested in, and to do so at a competitive price. Specific details related to the transaction fee for the currency-based auction house will vary by region and will be announced at a later date.

Please note that we plan to waive the listing portion of the fee for a limited number of transactions per account. In other words, for these transactions, the seller will only pay a transaction fee if the item is successfully sold, and that fee will not include the listing charge. We’ll have further details on this as well at a later date.

Why are you creating a currency-based version of the auction house?

Our goal with all of our games is to ensure players have a highly enjoyable, rewarding, and secure experience. Acquiring items has always been an important part of the Diablo series, but the previous games have not had a robust, centralized system for facilitating trades, and as a result players have turned to inconvenient and potentially unsafe alternatives, such as third-party real-money-trading organizations. Many of the transactions between players and these organizations led to a poor player experience and countless customer-service issues involving scams and item/account theft, to name a few. To that end, we wanted to create a convenient, powerful, and fully integrated tool to meet the demand of players who wished to purchase or sell items for real-world currency, and who would likely have turned to a less-secure third-party service for this convenience.

How will the currency-based auction house work?

Players will be able to make purchases in the currency-based auction house using a registered form of payment attached to their Battle.net account. As with other popular online-purchase services, players will also have the option to charge up their Battle.net account with a balance of funds that can be drawn from for purchases of any digital product available through Battle.net -- this includes not only auction house items but also things like World of Warcraft subscription time and paid services, to name a few examples. On the flipside, when players sell an item in the currency-based auction house, the proceeds of the sale are deposited into their Battle.net account and can then be used as described above. Note that this process might be different for certain regions; we’ll provide further region-specific details as we get closer to launch.

Can players choose to get cash from currency-based auction house sales, instead of having the proceeds deposited into their Battle.net account?

Yes, as an advanced feature, players will have the option of attaching an account with an approved third-party payment service to their Battle.net account. Once this has been completed, proceeds from the sale of items in the currency-based auction house can be deposited into their third-party payment service account. “Cashing out” would then be handled through the third-party payment service. Note that this process will be subject to applicable fees charged by Blizzard and the third-party payment service. Also, any proceeds from the sale of items in the currency-based auction house that have been deposited into the Battle.net account will not be transferrable to the third-party payment service account. Not all regions will support this advanced feature at launch. Region-specific details, as well as details regarding which third-party payment services will be supported and the fee that Blizzard will charge for the cash-out process, will all be provided at a later date.

Is the currency-based version of the auction house optional?

Yes, the currency-based auction house is available as an option for players who wish to purchase or sell Diablo III items for real money. Players are also able to buy and sell items through the gold-based auction house, and they can trade items with each other as well through direct character-to-character in-game trading.

Why would I want to pay real money to buy or sell in-game items?

Acquiring items has always been a core part of the Diablo series' appeal. With the previous Diablo games, many players have shown a great interest in buying, selling, or exchanging items for their characters using real-world currency, turning to potentially unsafe avenues to accomplish this goal. The currency-based version of the auction house provides players with an easy-to-use, Blizzard-sanctioned way to collect money for items obtained while playing Diablo III. In addition, it helps protect players from scams and disreputable third-party sites by providing a secure, in-game method to search for and purchase items posted by other players that are a perfect fit for their character and play style.

The currency-based auction house is completely optional. Players who aren't interested in paying real money for items will still be able to rely on items they acquire through their own adventures, and they'll also be able to trade with friends and use the full-featured gold-based auction house.

Can I play on a server without a currency-based version of the auction house?

We want to provide a secure, fun environment for our players to purchase and sell in-game items using gold or real money and have no plans to divide the community. Players are free to participate in the gold-based auction house or the currency-based auction house, or to opt out of using any of the auction houses at all, progressing through Diablo III using only the items they obtain through their own adventures or direct trade with other players.

Does Blizzard plan to post weapons, armor, and other such items for sale in the currency-based version of the auction house?

The currency-based auction house is a place for players to purchase or sell items they’ve obtained within the game. Blizzard does not plan to post items that affect gameplay, such as gear or character-enhancing runestones, for sale in the auction house.

Will Blizzard sell anything directly through the auction house?

We don't have any plans at this time to post items for sale in the auction house.

Does the currency-based auction house signify a shift in Blizzard’s business and revenue model?

We’ve always tailored our business models to match what we’ve felt would be most appropriate and effective for each game and in each region, and that’s the case with Diablo III as well. The item-based nature of Diablo gameplay has always lent itself to an active trade-based ecosystem, and a significant part of this trade has been conducted through unsecure third-party organizations. This has led to numerous customer-service and game-experience issues that we’ve needed to account for. Our primary goal with the Diablo III auction house system is for it to serve as the foundation for a player-driven economy that’s safe, fun, and accessible for everyone.

What’s Blizzard’s cut?

As with other online auction sites and real-world auction houses, our fee structure will vary by region. However, we plan to collect a nominal fixed transaction fee for each item listed in the auction house. This fee consists of a fixed charge to list the item, which is assessed whether or not the item is successfully sold, and an additional fixed charge that is assessed only if the item is sold. The listing portion of the fee, which helps encourage sensible listing prices and discourage the mass posting of items that are very low quality or would be of little interest to other players, will be waived for a limited number of transactions per account. For players who opt to have the proceeds of their auction house sales go to their third-party payment service account instead of to their Battle.net account, Blizzard will collect a separate “cash-out” fee. Specific details regarding these fees will be announced at a later date.

Why would I even want to use the gold-based auction house?

We recognize that not all players would prefer or have the means to participate in the currency-based auction house, and it was important to us to provide these players with a full-featured alternative.

Can we buy gold from the currency-based auction house?

Players will be able to buy and sell gold through the currency-based auction house at whatever the current market price is, as established by the player community.

If I no longer need an item I bought in the auction house, can I relist it in the auction house?

Yes. Once you've purchased an item you can do anything with it that you could if you had acquired it through your own adventures, whether that be using it yourself, or, after a cool-down period, trading it to another character or relisting it on either the gold-based or currency-based auction house. In fact, you can generally do any combination of these things -- for example, you can purchase an item in the auction house, use it for a while, and then relist it or trade it to another character. Aside from certain quest items, there will be very few (if any) items that will be “soulbound” to your character and therefore untradable. Please note that the duration of the cool-down period mentioned above will be discussed at a later date.

What items can be traded in Diablo III?

Nearly everything that drops on the ground, including gold, can be traded with other players directly or through the auction house system. Aside from certain quest items, there will be very few (if any) items that will be “soulbound” to your character and therefore untradable. We are also planning to allow players to buy and sell characters in the auction house at some point in the future and will have more details to share on that at a later date.

What is "smart searching"?

When players launch the auction house interface, they’ll be able to select any Diablo III character associated with their Battle.net account. The "smart search" feature will assess which item slots have available upgrades and will sort items available in the auction house based on which upgrades would be most beneficial to the character. You can also search for specific stats to match the requirements of a particular character build.

How does bidding work?

Players will be able to place a current bid as well as a maximum bid if they wish to engage in automatic bidding. In addition, they’ll be able to check the status of their bids on the "Currently Winning" page and the "Outbid" page in the auction house interface.

Can I buyout items that I want to purchase immediately?

Yes, the Diablo III auction houses will support a buyout feature as well as standard bids.

How do I pay for items?

For the gold-based auction house, purchases will be made using in-game gold. For the currency-based auction house, players can make purchases using a registered form of payment attached to their Battle.net account. As with other popular online-purchase services, players will also have the option to charge up their Battle.net account with a balance of funds that can be drawn from for purchasing items in the currency-based auction house. Note that this process might be different for certain regions; we’ll provide further region-specific details as we get closer to launch.

How do I receive the items I’ve won?

After winning an auction, the item will be available to pick up through the built-in auction house interface in the Diablo III client. Players will then be able to immediately send that item to their shared stash (storage shared among all the characters on a Battle.net account) or repost the item in the auction house after a cool-down period. The duration of the cool-down period will be discussed at a later date.

How do I sell items?

From the auction house interface, players will be able to select items from their shared stash or from a specific character's inventory. They will then be able to post items for sale by listing a starting bid and buyout price.

How do I cash out from the currency-based auction house?

As an advanced feature, players will have the option of attaching an account with an approved third-party payment service to their Battle.net account. Once this has been completed, proceeds from the sale of items in the currency-based auction house can be deposited into their third-party payment service account. “Cashing out” would then be handled through the third-party payment service. Note that this process will be subject to applicable fees charged by Blizzard and the third-party payment service. Also, any proceeds from the sale of items in the currency-based auction house that have been deposited into the Battle.net account will not be transferrable to the third-party payment service account. Not all regions will support this advanced feature at launch. Region-specific details, as well as details regarding which third-party payment services will be supported and the fee that Blizzard will charge for the cash-out process, will all be provided at a later date.

Will buying or selling items in the auction house reveal my identity?

No. All player transactions in the gold-based and currency-based auction houses will be anonymous, and neither your real name nor your character name will be revealed to other players.

Will there be a mobile or Web-based auction house?

We're always on the lookout for opportunities to enhance the game experience and keep our community connected to our games through the Web or mobile devices. However, we do not have any plans to share along those lines at this time.

When will this be available for testing?

We'll share more information on our auction house testing plans as we get closer to launch.

REGIONAL AUCTION HOUSE DETAILS

Which regions will have currency-based auction house support?

We plan to roll out the currency-based version of the auction house in as many regions as possible with the launch of Diablo III. In regions where the currency-based auction house will not be available, players will still have access to a gold-based auction house. We'll share more details in the future.

Will there be separate auction houses in each region? Will I be allowed to bid on items from players outside my own region?

Due to various factors, including technology, language, and currency, there will be multiple separate auction houses serving different player communities around the world. We’ll share specific details on how the auction houses will work for each region as we get closer to launch.

If I live in Australia/New Zealand/Southeast Asia, what server will I play Diablo III on?

As with StarCraft II, players who purchase the Australia/New Zealand/Southeast Asia version of Diablo III will have their own regional servers, offering lower latency and more action during peak hours. While we encourage players to play on these servers, we recognize that many have longstanding friendships with North American players and would like to continue playing with them. Because of this, we're again giving Australia/New Zealand/ Southeast Asia gamers access to both regions' servers so they can choose where they'd prefer to play.

How does this impact the items I have purchased in the auction house?

Auction house purchases are bound to the servers in the region in which they're bought. Any items acquired on the Australia/New Zealand/Southeast Asia servers, in-game or otherwise, are bound to those servers and are not transferrable to the North American servers (and vice versa). Please keep this in mind when making purchases in the auction house.

What currencies will be available? What currency will items in the auction house be viewed in? Can players purchase items using local credit cards or bank accounts?

Our goal is to make the auction house experience in each region as seamless as possible for players, and we are currently exploring various currency and payment options to help achieve that goal. We’ll provide further details as we get closer to launch.

AUCTION HOUSE GAMEPLAY ISSUES

Will I be able to use third-party mods to track auction prices? For a variety of gameplay and security reasons, we will not be supporting bots or mods in Diablo III, and they’ll be expressly prohibited by our terms of use for the game.

Can Hardcore-mode characters use the currency-based auction house?

No. Hardcore characters will only have the option to buy and sell items together with other Hardcore characters via a separate "Hardcore-only" gold-based auction house; they will not be able to use the currency-based auction house. Hardcore mode is designed as an optional experience for players who enjoy the sense of constant peril that comes with the possibility of permanent death for a character. All of a Hardcore character’s items are forever lost upon that character’s death, so to avoid the risk of a player spending real money on items that could then be permanently lost when the character dies, we decided to prohibit the use of the currency-based auction house in Hardcore mode.

If my character dies in Hardcore mode, will I lose the items that I purchased in the "Hardcore-only" gold-based auction house for that character?

Yes. Again, Hardcore-mode characters will only have access to a "Hardcore-only" gold-based auction house, not the currency-based auction house, and will not be able to trade with non-Hardcore characters. Hardcore is an optional mode designed for players who enjoy playing with the risk of permanently losing their character if the character dies, and that includes the items they acquired with that character.

Can I just buy the most powerful items and breeze through the game?

Items will be level-restricted, meaning your character won't be able to use an item until he or she is at the appropriate level for that item.

AUCTION HOUSE CUSTOMER SUPPORT

What happens if a player does not receive a purchased item?

The auction process is automated, but if a player purchases an item and for some reason does not receive it, he or she will be able to contact our customer service team to look into the issue.

What happens if there is a patch and the item I purchased is altered?

It's important for us to ensure that Diablo III remains balanced and fun for years after launch. To that end, it may be necessary to change stats or alter abilities of items from time to time. It’s very important to note that Blizzard will not be providing refunds or making other accommodations if a purchased item is later altered in a patch. Given this, it's up to players to determine whether they're comfortable purchasing items in the currency-based auction house.

Someone bought an item on my account without my permission. Can I get a refund?

Please note that account sharing will be forbidden in Diablo III's Terms of Use. In cases of compromise, our customer service team will look into the situation and determine the appropriate course of action.

I accidentally lost or dropped an item I just purchased -- can I get a refund?

No. After a purchase is made, players will be responsible for what they do with the item.

How will you address bots or cheaters?

We take cheating very seriously, and we've designed Diablo III and Battle.net to include measures to detect and prevent unfair play. In addition, we will have anti-cheating policies in place and will take action to address any issues as they arise.