Virtual Economy is Booming, Real Economy Still Stinks

virtual-worldWhen 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.”


Cars

Peloton’s tech lets truckers play follow the leader to boost fuel economy

Peloton Technology can help semi trucks save fuel by running close together on the highway. Using short-range wireless communications, the trucks get a kind of super cruise control.
Home Theater

The best movies on Netflix in December, from 'Buster Scruggs’ to 'Roma'

Save yourself from hours wasted scrolling through Netflix's massive library by checking out our picks for the streamer's best movies available right now, whether you're into explosive action, witty humor, or anything else.
Movies & TV

The best shows on Netflix, from 'Haunting of Hill House’ to ‘Norsemen’

Looking for a new show to binge? Lucky for you, we've curated a list of the best shows on Netflix, whether you're a fan of outlandish anime, dramatic period pieces, or shows that leave you questioning what lies beyond.
Gaming

If we get a Nintendo 64 Classic, it needs to have these games

The Nintendo 64 introduced a long list of top-tier games, but which were the iconic platform's best? From Mario Party to Ocarina of Time to NFL Blitz, check out our picks for the best N64 games.
Gaming

Dataminers discover SNES games, more emulators for Nintendo Switch Online

Nintendo Switch Online may soon launch SNES games and more emulators, according to data miners. The list of hidden SNES titles include Breath of Fire 2 and Star Fox 2, while the other emulators may be the Nintendo 64 and Nintendo GameCube.
Gaming

‘RollerCoaster Tycoon 2’ ride takes 12 years to complete

A RollerCoaster Tycoon 2 player has constructed a coaster in the game that will take more than 12 years to complete from beginning to end, and is actually a tiny ride taking up a small portion of the landscape.
Product Review

'New Super Mario Bros. U Deluxe' is 2D platforming wizardry

New Super Mario Bros. U Deluxe is the latest Wii U game to come back from the dead on Switch. And wow, it’s much better than we remembered.
Gaming

‘Battlefield V’ adds Squad Conquest mode in ‘Lightning Strikes’ update

Electronic Arts and DICE have detailed what is included in the Battlefield V update Lightning Strikes. The update includes access to the mode Squad Conquest through the end of January.
Gaming

Here's everything you need to know to trade in 'Pokémon Go'

After literally years of waiting, Pokémon Go finally gives trainers the option to trade Pokémon with others. It's not easy, though, and the cost is quite high if you try trading with strangers.
Gaming

You're never too broke to enjoy the best free-to-play games

Believe it or not, free-to-play games have evolved into engaging, enjoyable experiences. Here are a few of our favorites that you can play right now, including Warframe and the perennially-popular League of Legends.
Gaming

‘Rocket League’ is the latest game to get full cross-platform play

Psyonix has announced that Rocket League now supports full cross-platform play across PlayStation 4, Xbox One, Nintendo Switch, and PC, joining Fortnite as the only games to do so.
Gaming

Here's what you need to know about 'World of Warcraft: Battle for Azeroth'

World of Warcraft: Battle for Azeroth is the latest expansion for the now 14-year-old MMORPG. It goes back to the roots of the Alliance vs. Horde conflict. Here's what you need to know.
Virtual Reality

Think virtual reality is just for games? These awesome apps will change your mind

Virtual reality isn't all about gaming. Swim with turtles, paint in 3D, and immerse yourself in some unique experiences the platform has to offer with our curated list of the best VR apps.
Gaming

Latest ‘Fortnite’ update channels Halo with a scoped revolver

The latest update for Fortnite, update 7.20, is now available, and it brings a new Scoped Revolver weapon to the game alongside the returning Glider item and a limited-time Snipers-only mode.