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Gamers are spending billions on virtual goods in the U.S.

When a lot of people think of gamers, they automatically think of mostly male teens who sit around a game console or computer screen all day playing alone. The reality is that the average gamers today are in their 30's and have a significant disposable income to support the expensive hobby. More and more women are also becoming gamers.

A new study recently found that women tend to be more hardcore gamers than men are, but they also tend to lie about how much time they spend playing games. More and more people are also playing games that are closely tied to social networks like MySpace and Facebook.

These gamers often report that they play the games not so much for the game itself, but to interact with friends and family. The virtual economy that was created to cater to the goods that many of these social games sell is booming. BBC News reports that the virtual economy in the U.S. is set to make billions selling goods that don’t really exist. The sale of virtual goods is one of the hottest trends in technology and is showing no signs of letting up.

Venture Capitalist Jeremy Liew said, "This [virtual goods] is just an exploding part of the gaming business right now. It is the most exciting area in gaming."

Liew's company Lightspeed Venture Partners has invested about $10 million in virtual goods so far. He said, "We have seen companies go from nothing in the last 18-24 months to tens and hundreds of millions of dollars in revenue."

Virtual goods like fertilizer and seeds in farming games are big sellers and there are a myriad of other games that sell virtual goods to players seeking to get ahead. Social gaming firm Playfish says that virtual goods are key to its success.

Playfish's Tom Sarris told BBC News, "Virtual items within the Playfish games are the centre point of the way in which Playfish derives its revenue." He continued saying, "We have two different revenue models. The primary is the sale of virtual goods and the second is in-game advertising, but that is a very minor aspect at this stage."

Liew says that making the lion's share of revenue from digital goods is very common for social gaming companies. He says that virtual goods often make up 90-95% of the revenue for the game developers. Virtual goods and the games that sell them are attracting women in increasing numbers and the players don’t consider themselves to be average gamers.

Social gamer Emma Cox told BBC News she only plays to keep in contact with friends and family. She said, "I am not a traditional gamer. I don't buy console games or go out and spend $40 on a game for my PlayStation." She continued saying, "I am playing online games for a different reason and it's instant gratification, playing with friends, showing off to others and have them see all the virtual goods you have bought for yourself and even for them."

Cox and other players like her buy things like digital birthday cards, bottles of digital champagne, seeds and fertilizer, and other items for virtual games. Gamers and the game firms behind the popular titles liken the buying of digital goods to renting movies. Cox said, "The way we look at it is it's no different from paying money to go and see a movie or rent a DVD. What you are paying for is the experience and that notion of entertainment."



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RE: Disturbing
By Hakuryu on 12/30/2009 11:14:21 PM , Rating: 4
I have to agree to a point... personally I find alot of this virtual economy to be a rip-off, yet if people will spend money on these things, then I can't fault a company to try and make a profit off it.

The problem as I see it, is not selling virtual goods, but the direction many game developers and publishers seem to be gravitating towards - releasing incomplete games with the purpose of charging for content after release.

As an example, Assassins Creed 2 came out lately, and the developers mentioned how an upcoming DLC was in the works and meant to be part of the final game, yet now will be a DLC at a cost of $10 or so. If you have played the game, you might notice the large area in the main city that isn't accesible... you'll have to pay extra to go there when the DLC comes out.

AC 2 was a great game, and I didn't miss the DLC parts as part of the game, but eventually I can see this type of thing becoming a problem. I heard about Gran Turismo, the Playstation hit, taking their newest title into this pay after purchase scheme - instead of releasing a ton of cars and tracks (like previous versions), you get like 6 cars and 3 tracks and have to pay for the individual remaining 300 cars and 40 tracks... each individually. Instead of paying $59.99 for a great game, you will parting with $200 plus for the same content as previous games. I find that disturbing for future gamers.


RE: Disturbing
By jonmcc33 on 12/31/2009 9:24:55 AM , Rating: 2
You are kidding me? I wasn't aware of that (about the new Gran Turismo going DLC). What a disturbing thing to read. I was going to purchase a PS3 soley based upon Gran Turismo coming out for it. Now I think I will pass on both.


RE: Disturbing
By driver01z on 12/31/2009 11:43:17 AM , Rating: 2
I would like to see a source for this before I believe it.


RE: Disturbing
By Omega215D on 12/31/2009 1:41:15 PM , Rating: 2
I've come across articles about that in publications or sites like Game Informer and IGN.

They plan on giving you a decent amount of vehicles and tracks to start off on and you add/ purchase them as you go along. GT5 Prologue was supposed to be an example but since I don't have the game I don't know.


RE: Disturbing
By nafhan on 1/4/2010 10:37:05 AM , Rating: 2
For most games, you can get around this and save a lot of money by not being an early adopter. Buy the "Game of the Year" edition in 12 months, and you'll get the game + important DLC for $20.


"When an individual makes a copy of a song for himself, I suppose we can say he stole a song." -- Sony BMG attorney Jennifer Pariser

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