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War is waged not just with blades, but also with coin. Battles of economy are quite common in MMOs, although we may not think of them as PvP. Yet, in games with player run economies, where players can set the prices of their goods, they are in direct competition with each other in a truly capitalist fashion. Everything from Auction Houses, where players continue to try and undercut each other, or set higher prices and hope for a more coin in the end than their competitors even if it takes longer, to player vendors such as was seen during the heyday of Star Wars Galaxies. Oh, if your game of choice lacks a player run economy, as long as there is the ability to trade items, you will still likely see players shouting out competing prices in populated areas, either for a price to sell and item or a payment they are willing to make for the item.

To be fair, you could start to dissect MMO systems and find many cases of indirect competition if you really try to look for it; like who can get into a group, who gets a mob first, etc... But, that isn't my point and it'd get silly after a while. Rather, what this should be highlighting is that there are many ways to have players competing with each other, beyond just killing each other, be that competition directly between players or not. Heck, Sony Online Entertainment even has a collectible card game for both EverQuest games now.

Indirect PvP systems, and systems that don't rely on player killing are entirely possible, although they are not commonly featured as highlights of games. Yet, I have a feeling we might be seeing more of them.

Competition Fueling the Community
It is difficult to talk about how much indirect PvP affects a player community - not enough of it has been done in the past. It did get some attention in Final Fantasy XI, but to be fair, I don't believe it was quite as earth shattering as it could have been. Regardless, it does have potential. Player run economies on the other hand are pretty much a staple for MMOs these days.

One way or another, I am very willing to say that competition in general does have an impact on player communities. Sometimes it can be fairly hit or miss, sometimes it can draw in bad players - but, to be fair, I can say the same about PvE-focused games as well.

Competition has a tendency to draw people together. If you have ever played on a sports team, there is a certain bond between fellow teammates as they go through a season of games. The same can be said about online environments. Whether you are charging out together with allies to fight off the enemy team, banding together with friends for survival in a dangerous world, trying to undercut your competition as you wheel and deal with other players, or just grabbing a friend for a duel, competition between players can form a bond that can help strengthen a community. This competition may not need to be direct, and it does not have to be a form of 'traditional PvP', so to speak, but for a game to lack some form of competition between players is for it to lack a tool to help build a stronger community.