So what are these virtual goods? This can involve anything from avatars to clothing for characters to furniture to land. One thing that has led to the rise of virtual goods is probably the rise of casual gaming. Another report from the first quarter of 2012 supported this by showing how those playing massively multiplayer online role-playing games accounted for 5 percent of respondents, while casual gamers accounted for 25 percent of respondents in the US and this trend is quite palpable elsewhere too. “The virtual goods industry has experienced a tremendous amount of growth over the past couple of years. Virtual goods were made popular by games like Farm Ville and Habbo Hotel and this trend is quite popular in US, Europe and Japan.” says Ayyappa, the founder at Possibillion.
There are a few factors which have led to this growth of virtual goods sales; the viral promotion owing to integration with social networking sites introduces these games to a whole new bunch of people is one. Also, the smart phone penetration plays a huge role here. The report also had a few interesting reasons why the mobile makes ‘virtual goods’ sales so thinkable:
Taking context into picture, all this looks merry but anyone staying in India would know that the general Indian mindset is a wee bit different. Shan, who has developed some fantastic apps in the form of PlayText and others, has a point in case, “Right now Virtual goods can be used only virtually but not in real world.This has to be changed and it can be done by offering real world coupons or discounts for those who buy virtual goods in a game.This would not only increase the user interaction for the games but also it would bring in lot of advertising opportunities for the stores in major cities.But someone needs to think more innovative to incorporate this. With a large market, I see a potential for lot of virtual goods based games in India.”
There are many other innovative ways that have come up to monetize via apps but virtual goods with a physical real world incentive seems the way ahead for the Indian market. What are your thoughts?
[If you're looking for funding in this space, Qualcomm has an appetizing opportunity]