Diablo 3's Controversial Auction House Would Have Been Removed Faster If Not For Legal Concerns

Diablo III's controversial real-money auction house could have been removed far sooner had Blizzard not been worried about the possible legal ramifications of doing so, according to the lead designer Jay Wilson.

The real-money auction house allowed players to buy and sell in-game items from other players in exchange for gold or real world cash. It caused a backlash almost immediately upon Diablo III's release, as players found themselves unable to progress through the game's higher difficulty without buying better items through the auction house (with Blizzard taking a small cut off the top of every transaction). The auction house was eventually removed roughly two years after the game's launch.

Speaking as part of a Diablo Retrospective panel at the Portland Retro Gaming Expo (via PC Gamer), Wilson said it became clear early on that the auction house was a major problem. However, Blizzard was afraid of removing the feature immediately since it was featured prominently on the game's physical box as an in-game feature. Removing the feature could have opened Blizzard up to lawsuits and other legal headaches.

"The reason we did not get rid of it right away when we saw it was a problem was legally we didn't think we could because it was advertised on the boxes," Wilson said. "We actually took a long time to try and work out all the legal issues before we finally said, 'Okay, we think it's worth trying it, if we get a lawsuit, oh well.'"

When it came to why the auction house was implemented in the first place, Wilson reiterated what has been stated multiple times over the years: that the reasoning behind Diablo III's auction house was to crack down on gold sellers and hackers, not to make money.

"The reason we wanted to do the real money auction house was security, no other reason," Wilson said. "It was not to make money. We didn't honestly think it would make that much money."

Wilson said he would be surprised if the auction house made more than $10 or $15 million dollars in the two years it existed, which he said sounds like a lot but was a drop in the bucket compared to what Blizzard's flagship title World of Warcraft was making at the time. When asked in a later question about Activision's influence over Blizzard (Activision acquired Blizzard in 2008), Wilson said Diablo III wasn't affected by Activision's business pressures since it was a "premium box model" as opposed to a subscription-based model or free-to-play business model.

Blizzard released the first free-to-play entry in the Diablo series, Diablo Immortal, earlier this year. It was quickly criticized for its microtransactions. Diablo Immortal also includes an auction house where players can buy and sell certain items from other players, with a recent update clarifying some confusion about which consumable items allow for the selling of items on the auction house.

When it comes to the upcoming Diablo IV, Blizzard has made clear the game won't include any ways for players to purchase player power, though the game will feature a cosmetic shop.