More on Virtual Goods

In a previous post, I have mentioned that viral goods are projected to equal $920 million in sales for 2010. This is an incredibly large amount of money and the market is growing very fast.

Virtual goods are not tangible and have little if any cost to produce. Often the outcome of competitive situations, virtual goods are a form of status and in this regard have value to those who purchase.

The level of skill that social gaming employs is extremely sophisticated and exploits deep aspects of human nature. I remain skeptical that this type of business creates any sort of meaningful value. I would not want to build an economy based on virtual goods!

This is my previous post on virtual goods:

Building Virtual Value

To be fair, virtual goods are a form of entertainment. However, I do not think on an economic basis that virtual goods are the same as entertainment.