Blizzard had a problem. In the previous Diablo games

[MeadeDorian]

But playing offline, as it was in the first two games, wasn't an option. As such, enthusiastic fans were left with nothing at all as Blizzard sorted out the server problems. This issue was not completely out of the blue: Prior to the game's release, and based off the playable test gamers were already raising concerns over the requirement for being always online.

"Right now, in the state it's in, it's a fundamentally defective product" written John Walker for RPS. "A single-player video game that won't slow down, and if keep it running, it will shut you out and halt all progress."

However, Blizzard continued to follow the plan, and the launch-day disaster was the final blow. Adding to the frustration, the need to always be online seemed to be tied to another online feature, and one that was most important to the game's struggles in its early years.

Blizzard had a problem. In the previous Diablo games, this possibility to trade items had created the possibility of a black market for loot. Players hungry for the best equipment were willing to pay, and this left an open door for untrustworthy third-parties and price-gouging. Blizzard realized the dangers of an unregulated, non-official marketplace for Diablo items, and thought it could do it better by creating a legitimate, licensed one.

"The auction house was founded out of the need to legitimateize trading on third party sites so that players would stay in the game to do their business, rather than going to third party sites, and in the process, cut down on fraud as well as spamming, scams, and the revenue generated by hacking the game, making dupes and other dupes.," former game director Jay Wilson said in an interview with DiabloII.net following his departure from the company.

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