taxation inside video games?

http://www.legalaffairs.org/issues/January-February-2006/feature_dibbell_janfeb06.msp Extremely interesting link. The author talks about the idea of selling in game items, currency, etc. over either online auction sites, such as ebay.com, to people you know, or whoever you decide to sell your in game stuff too. His thought is should those items and the money being collected for them be taxed as if they are coming from a department store? I thought it was a fascinating idea. This guy played an MMO game over a years time and earned 11,000 dollars from selling stuff over ebay.com. He then reported his income to the IRS and read the appropriate information regarding the taxation of his money. He then realized that in the listed taxable incomes you were supposed to be taxed on the income you make in game and out. which then brings up his point of why tax in game gains if you aren't making any real currency from them. Very interesting and a must read!