All posts tagged closure

  • The Vine story: ‘What Was Silk Road? A eulogy for an online drug revolution’, October 2013

    A story for TheVine.com.au. The full story appears below.

    What Was Silk Road? A eulogy for an online drug revolution

    The Vine story: 'What Was Silk Road? A eulogy for an online drug revolution' by Andrew McMillen, October 2013

    Prior to its seizure by the Federal Bureau of Investigation in the early hours of Wednesday, October 3, Australian time, a website named Silk Road was the holy grail for illicit drug users of all stripes. Since mid-2011, dealers and consumers had been drawn to the site like iron filings to a magnet. Their reasons for downloading a Tor browser and copy-pasting the complex URL that housed Silk Road (SR) can be reduced to two key motivating factors: cash and product.

    For drug dealers – or, in SR-preferred parlance, ‘vendors’ – the lure of a steady supply of international buyers was enough to motivate the investigation of innovative, stealthy shipping techniques that would see their packages of powders, crystals and pills delivered to intended addresses without raising the alarms of border security. This quickly became a point of pride among the most dedicated vendors, some of whom marketed their packaging options as ‘undetectable’ and cherished buyer feedback that praised innocuous, ingenious delivery methods. Subterfuge was the name of the game.

    It helped, too, that SR offered vendors the opportunity to turn the risky, dangerous job of face-to-face dealing into the ultimate work-from-home gig. When I began poking around the site in late 2011, while researching a feature story for Australian Penthouse, I interviewed several vendors via SR’s plain-text messaging system. One told me that SR was “better and cleaner” than dealing drugs offline. “Customers are more educated and nice, and it leaves you more spare time to study, play with the kids, and clean the house,” I was told. “It’s telecommuting at its finest.”

    This was the defining image of Silk Road: a mild-mannered, sober, white collar professional who casually fielded an order for a gram or two of cocaine, printed the buyer’s address and applied it onto an anonymous envelope, vacuum sealed the illicit product inside and dropped the package into a random mailbox – with the correct amount of postage stamps attached, naturally.

    That image clashed violently with that of the stereotypical drug dealer, who stands on a street corner and controls his territory and product distribution through coercion, extortion and violence. Both operate outside of the law through necessity, since the supply, traffic and use of many drugs remains illegal in all but a handful of countries, most notably Portugal.

    Where once small-time dealers were confined to a few inner-city blocks, or their regular clients within nightclubs on Saturday nights, enterprising Silk Road vendors were limited only by their own ingenuity and imagination. Both online and off, intelligence is what set apart savvy dealers from those behind bars. In February, a 32 year-old Victorian – SR username ‘shadh1’ – was sentenced to three and a half years in jail for importing and reselling drugs purchased on the site, with reckless disregard for anything resembling security, self-preservation or stealth, three of the essential values on which SR was founded.

    It is telling and troubling for long-time SR users, too, that even the man alleged to have established the site was not above careless security slip-ups; he advertised his personal Gmail address on public forums requesting an “IT pro in the Bitcoin community” to assist with the site’s early growth, according to an FBI affidavit.

    Cash aside, the motivating factor for users was always the product. Cocaine, heroin, LSD, MDMA, cannabis, methamphetamine, psilocybin; Silk Road did not synthesise any of these compounds, nor discover the natural substances. It simply revolutionalised their distribution. My interview with a newbie SR buyer for Australian Penthouse was emblematic of what the site offered buyers.

    “I’m interested in taking drugs casually, but I hate the process,” the 24 year-old Brisbane resident told me. “I don’t know any dealers. Even if I want to get weed, I don’t know anyone, so it always becomes this drawn out process of finding someone who knows someone who knows someone. It’s a real pain in the arse. Whereas this way, it’s so direct and private. I didn’t leave my room, and then nine days later there was something in the mailbox that was for me. It’s discreet and exciting. Imagine the fun of shopping on eBay, but then you can also get high.”

    While Silk Road’s days are numbered, and its founder seems set for a long prison sentence, the cat is certainly out of the bag. The site was a brilliant intermediary between drug dealers and users right up until it wasn’t. But to imagine that humans will suddenly cease synthesising, cultivating, pursuing, distributing and ingesting substances that alter mind and mood is at least wishful thinking; at worst, high folly.

    The Federal Bureau of Investigation, Drug Enforcement Administration, Department of Homeland Security and associated organisations can today congratulate themselves for a job well done in seizing Silk Road and its significant stockpile of assets and intelligence. It is their job to catch criminals. Although the plug has been pulled on the most open illicit drug marketplace that the world has ever seen, tomorrow is a new day.

    The seemingly infallible Silk Road has been beheaded, but two heads will appear in its place, hydra-like. Right now, its competitors will be quadruple-checking their security practices and managing server loads, while new registrations and orders pour in. The mail won’t stop. At the heart of this conversation is the fact that humans like to get high, and they’re willing to pay for that privilege. This is but a stumble on a very long walk. Absolutely nothing has changed.

    Further reading: Australian Penthouse story: ‘The High Road: Silk Road, an online marketplace like no other’, February 2012

  • GameSpot story: ‘The State of the Aussie Game Development Industry in 2012’, September 2011

    A feature story for GameSpot. Excerpt below.

    The State of the Aussie Game Development Industry in 2012

    In the wake of THQ’s studio closures in Brisbane and Melbourne, GameSpot AU investigates the path forward for the Australian game development industry.


    The State of the Industry

    Fortitude Valley, Queensland. Four years ago, this suburb functioned as the central nervous system of the tight-knit Australian game development industry. Employees of the five big studios–THQ, Krome, Pandemic, Auran, and The Creative Assembly–all worked within walking distance of one another. It was an extraordinary period of growth, wherein contracts to build licensed games for overseas publishers were relatively easy for development houses to secure, and to profit from. Studio executives, developers, and the Queensland government’s “Smart State” flag wavers toasted each other’s success.

    One by one, these companies were faced with insurmountable difficulties: new IP failing to attract adequate market attention; cost reductions by overseas headquarters; and licensed game contracts drying up, due to a rising Australian dollar. In early August 2011, another death knell sounded across the community: THQ’s sudden “right-sizing” saw the shuttering of its Brisbane and Melbourne studios, resulting in the loss of around 200 jobs. Less than a year ago, Krome Studios–once the country’s largest independent game development company, home to more than 400 employees across three cities–ground to a halt.

    Around 40 of Krome’s best talent were kept on and quietly folded under the banner of KMM Brisbane, a local arm of Kennedy Miller Mitchell’s Sydney-based animation and development studio. Yet, recent online rumours suggest that once KMM Brisbane’s current project, Happy Feet 2, is completed, the studio’s lights will be switched off. (GameSpot AU contacted a KMM Brisbane producer for comment, but they would not respond; an anonymous source said that four artists were laid off in the first week of August, that “most” would be laid off at the end of the month, and that “a core few” would stay until October, when the game ships.) Once again, some of this country’s most experienced and talented developers will return to an ever-contracting job market.

    On the first floor of an unremarkable office building, on Warner Street in Fortitude Valley, sits Sega Studios Australia, an 80-strong outfit that was known as The Creative Assembly until June 2011. They’re deep into the development of London 2012, an Olympic Games tie-in for the Xbox 360, PlayStation 3, and PC. The walls are adorned with interesting artwork and materials that can’t be described, due to the nondisclosure agreement signed upon entry.

    “We’re now the biggest developer in Brisbane, and probably Australia,” says Gareth Gower, director of studio marketing. “We’ve got a bit of a responsibility to nurture as much talent as possible, and help the industry that way.” They’ve got only two vacancies at the moment, both high-level positions: studio art director and senior engine programmer.

    “It’s brutal. Absolutely brutal,” says studio director Marcus Fielding of the job market. He held the same role at Krome at the time of its closure in late 2010. “I’m seeing people at the local gym who can’t believe it’s happened again. They’re asking the question of me, ‘Is Sega secure?’ All I can do is work really hard to ensure that we are secure.”

    Of the studio’s 80 employees, 60 are full time; the other 20 are contractors, mostly animators. Fielding introduced GameSpot AU to several staff from a range of disciplines. Senior environment artist Chris Conte began his career with online gambling developer Eyecon in 2004 and then spent nearly five years with Krome and, later, KMM Brisbane. Senior animator Adam Dowley started with Ratbag Games, an Adelaide-based outfit that was acquired by Midway Games in 2005. After being closed by Midway, Krome rehired many of Ratbag’s staff and established Krome Studios Adelaide before eventually closing the doors in August 2010.

    “It throws your entire life into disarray,” recalls Dowley of the closure. “When Krome went down, I’d just bought a house in Adelaide.”

    “I’d just bought a house here in Brisbane, too,” says Conte. “It’s scary. It puts you in a mind-set where you don’t know what’s going to happen. I think we’re pretty good here at Sega, but there’s always that thought at the back of my mind now: ‘What happens at the end of this game?’ It’ll be there probably for the rest of my career, now; once we get to wrap-up time, what’s going to happen? Are we going to be able to do another project?”

    “It’s a fear that’s in the back of every developer’s mind,” says technical director Mark Rowley. “As an industry, it’s far more fragile than most.”

    “The problem is that people are very specialised in this industry,” adds Dowley. “They don’t have skill sets that are applicable to other industries. Game designers; where can they go? I can animate; how do I use that outside of games or film?”

    “You’ve specialised yourself for the love of the job,” replies Rowley.

    “You love it so much that you’ve kind of doomed yourself!” concludes the senior animator. He and his colleagues laugh knowingly.

    For the full story, visit GameSpot.

    Further reading: A Matter Of Size: The State of Triple-A Game Development in Australia