The fall of Wall Street and the rise of the virtual street

While the “real” economy has been tumbling for the past two years or so, social applications, online gaming, and the virtual economy have proven to be fairly resilient in the face of the economic slump. Some reasons for this resilience could be that people have more free time, and that they generally don’t mind making small payments on virtual goods. The worldwide virtual goods market (which is a subset of the virtual economy) is estimated to be around $5 billion, with 80% coming from Asia (China, South Korea, and Japan) and only $200 million to 400 million from the US. Several players have emerged to take advantage of this opportunity. Third-party developers on Facebook are projected to make $500 million this year, and while most end users think of social applications (and games) as the only players in the space, there are several others. In this article, I will touch on only one missing piece of the puzzle: the virtual economy. Next week, I will cover some other players which together with social apps and online gaming make up the social media and online gaming ecosystem. Read the full article »