November 7, 2009
Must read on virtual goods (even if you don't work with it)
Must-read presentation for anyone working with online in general and virtual goods in particular. Some takeaways (read the entire report for everything):
* Virtual goods can be as big as search ($30 billion/year) in the US (based on market size in China, Korea, Japan)
* Examples of leading sites and games in Korea, China and Japan (Cyworld, Maple Story, Pigg, NicottoTown, Poupee Girl, QQ Pet, Meet-me, Nurien, Mixi, Gree, QQ, Renren, Kaixin001, 51.com, and others)
* The history of farming games (a'la Farmville). Sim Farm was released in 1993. Innovation in gaming, social and viral aspects.
* Business model evolution: 1) packaged software, 2) online + subscriptions, 3) virtual goods, 4) social games
* 8 listed Chinese online games companies and Tencent (QQ) have a combined market capitalization of $52 billion. Leading Western games companies Electronic Arts, Activision, UBI Soft and Take Two have $22 billion in market capitalization.