Inside Virtual Goods: Tracking the US Virtual Goods Market 2010 – 2011, Is Here

With an up-to-$750 million acquisition of Playdom by Disney, an up-to-$400 million acquisition of Playfish by Electronic Arts, the acquisition of Tapulous by Disney, and hundreds of millions of dollars in venture investments, virtual goods are impacting businesses across the media landscape. Virtual goods, and the companies that create them, may be bringing the largest disruption entertainment, communication, and e-commerce infrastructure businesses have seen in years.

Inside Network is proud to announce the release today of a new original research report by Justin Smith and Charles Hudson that presents a comprehensive examination of the size and future of the virtual goods market in the United States, entitled Inside Virtual Goods: The US Virtual Goods Market 2010 – 2011. This is Inside Network’s second annual edition of the US Virtual Good Market report. The big picture? The US virtual goods market will reach $2.1 billion overall in 2011.

Where will the virtual goods market go in 2011 and what are the biggest opportunities left unclaimed? How will existing players fare as Facebook continues to reshape the social gaming landscape, and larger and more sophisticated players enter the market? Inside Virtual Goods: The US Virtual Goods Market 2010 – 2011 provides deeper insight into monetization, development, and the key questions facing the space in 2011 than you’ll find anywhere else.

Get the Annual Membership
Get Annual Membership (Includes Report + 3 Additional Quarterly Issues): $2,495
OR Buy Single Report: $995

About the Report

Inside Virtual Goods is a new report researched and created specifically for entrepreneurs, investors, and analysts interested in the growth of this exciting new category of online commerce that is fueling the growth of games-as-a-service businesses. During a research phase spanning the last few months, co-authors Justin Smith and Charles Hudson have spoken with dozens of executives and entrepreneurs from all parts of the ecosystem in order to form what we believe are the most detailed estimates, analyses, and predictions for 2010 and 2011.

We focused and organized the report around the following areas:

  1. Social Networks, Applications, and Games - The explosion of the virtual goods market on social networks is one of the biggest stories of 2010. We delve deeply into the trends, stats, key players, opportunities, and challenges facing the space this year and next.
  2. Casual MMOs and Virtual Worlds - Virtual worlds and casual MMOs continue to grow as a meaningful share of the virtual goods opportunity in the United States. Our study breaks down the key drivers for success in this segment, trends in monetization and engagement, and the prospects for the future.
  3. MMOs and Free-to-Play Online Games – Developers in the MMO / MMORPG space have been among the earliest adopters of the free-to-play model. We explore why free-to-play MMOs are succeeding, revenue and user trends, and the key issues facing this space as we head into 2011.
  4. Console Games – The console market is one of the most interesting new areas where microtransactions are beginning to establish a meaningful foothold in the market. Our study looks at the key opportunities and challenges facing this emerging space going into 2011.
  5. Mobile Games – Mobile application developers that have been early adopters of the free-to-play model are now seeing significant growth in 2010. Our study breaks down the key opportunities and challenges facing this emerging space going into 2011.

Each section contains:

  1. A brief history on the evolution and growth of this space in the US, including a description of key players.
  2. Estimates on the size of the US virtual goods market in 2010 in that area.
  3. A diagnosis of the key opportunities and issues facing the growth of that space, including our outlook and projections for 2011.

In addition, prior to delving more deeply into each market segment, we’ve provided an overview of the emerging payments ecosystem that is growing to serve these new businesses. Traditional e-commerce infrastructure providers only offer a partial solution, and the virtual goods payments layer is currently in a major state of flux. In the report, we describe the variety of solutions that have been brought to market to date, and the key challenges facing the industry from a payments perspective as a whole.

For more details, check out the full table of contents below.

The annual membership, which includes the report and three additional quarterly updates, is USD $2,495. Alternatively, you can obtain just this report for USD $995.

The annual subscription brings you a total of four comprehensive reports comprising months of original research. Recent reports have covered:

  1. The Future of Social Gaming. Social games make up over half of the US virtual goods market. This report provided detailed coverage of exactly how this industry has managed to thrive, who its most valuable players are, and deeper insight into monetization, development, and customer acquisition than you’ll find anywhere else..
  2. The Spending and Usage Patterns of the Social Gaming Audience. Who are the millions of users whose time, money, and engagement have made social games into household names and their developers into technology industry celebrities? This report presented the only independent, original research into user profiles, behaviors, and attitudes toward social games and virtual goods.

We are looking forward to continuing to cover the evolution of the space over the coming year. We look forward to hearing from you!

Table of Contents






About the Authors

justin-smith-headshotJustin Smith

Founder, Inside Network

Justin Smith is the founder of Inside Network, the first company dedicated to providing news and market research to the Facebook platform and social gaming ecosystem. Justin leads Inside Network’s Inside Virtual Goods and AppData research and data services, and serves as co-editor of Inside Facebook and Inside Social Games.

Prior to Inside Network, he was formerly Head of Product at Watercooler, one of the leading application and game developers on the Facebook Platform. Prior to Watercooler, Justin was an early employee at Xfire, the largest social utility for gamers, which was sold to Viacom in 2006. Justin holds a degree in Computer Systems Engineering from Stanford University.

charles-hudson-headshotCharles Hudson

Former VP Business Development, Serious Business

Charles Hudson is the former VP of Business Development for Serious Business, a leading social games developer on the Facebook platform.

Prior to Serious Business, he was formerly the Sr. Director for Business Development at Gaia Interactive, a leading online hangout for teens. Prior to Gaia, Charles worked in New Business Development at Google and focused on new partnership opportunities for early-stage products in the advertising, mobile, and e-commerce markets. Prior to joining Google, he was a Product Manager for IronPort Systems, a leading provider of anti-spam hardware appliances that was acquired by Cisco Systems for $830 million in 2007. Charles holds an MBA and BA from Stanford University.

Get the Annual Membership

The annual membership, which includes the report and three additional quarterly updates, is USD $2,495. Alternatively, you can just download this report for USD $995.

Get Annual Membership (Includes Report + 3 Additional Quarterly Issues): $2,495
OR Buy Single Report: $995

List of Related Companies: 6waves, A Bit Lucky, Acclaim, Activision, AdParlor, Aeria Games, Amazon, Applifier, Appstrip, Artix Entertainment, Bebo, Bigpoint, Blackhawk, Boku, Boomerang Networks, Booyah, Challenge Games, CrowdStar, Digital Chocolate, Digital River, Disney, Electronic Arts, Facebook, Frogster, Gaia Online, Gala-Net, Gambit, Gameforge, GMG, Google, GratisPay, gWallet, HeyZap, Hi5, IMVU, InComm, iovation, Jagex, Kabam, Kontagent, Limasky, Lolapps, Meez, Metaplace, Microsoft, MindJolt, MySpace, News Corporation, Nexon, ngmoco, Nintendo, Offerpal Media, OMGPOP, Outspark, Papaya Mobile, PaymentPin, PayPal, PeanutLabs, Playdom, Playfirst, Playfish, PlaySpan, Rekoo, Riot Games, Rixty, RockYou, Rovio, Scoreloop, Second Life, SGN, Six Degrees Games, Slashkey, Slide, SocialGold, Sometrics, Sony, Sony (Free Realms), Sparkplay Media, SponsorPay, Sulake (Habbo Hotel), Super Rewards (Adknowledge), SupersonicAds, SurfPin, Tapulous, Tencent, TheBroth, ThreatMetrix, Three Rings (Puzzle Pirates), TokenAds, TrialPay, Turbine, Viacom (MTV), Viacom (Neopets), Viximo, WeeWorld, Wooga, ZipZapPlay, Zong, Zynga

Strategic Mobile Marketing

Mediabistro Course

Strategic Mobile Marketing

On October 21. work with the digital strategy director for Saatchi & Saatchi to develop a marketing strategy for smartphones, tablets, and mobile devices! You’ll learn how to optimize content for mobile, create responsive landing pages, and track all mobile efforts. Register now!

 

Leave a Reply

6 Responses to “Inside Virtual Goods: Tracking the US Virtual Goods Market 2010 – 2011, Is Here”

  1. Virtual Nonsense All the Way Down the Drain. A Twisted (?) View of US vs China says:

    [...] Inside Virtual Goods: Tracking the US Virtual Goods Market 2010 – 2011, Is Here (insidefacebook.com) [...]

  2. 虚拟交易喷发,2011年将达到21亿美元是2009年的两倍 | GamerBoom.com 游戏邦 says:

    [...] 浏览原报告,请点击Inside Virtual Goods: Tracking the US Virtual Goods Market 2010 – 2011, Is Here [...]

  3. Virtual Goods sales will pass $2 Billion in 2011 « Social Game News says:

    [...] Goods sales will pass $2 Billion in 2011 Jump to Comments Inside Network releases findings from their Virtual Goods forecast report that shows Virtual Goods sales will be [...]

  4. Join us at the Virtual Goods Summit « The Tapjoy Blog says:

    [...] a report from Inside Virtual Goods estimated that the U.S. virtual goods market will grow to $2.1 [...]

  5. Three Things You Need To Know About 2011 Mobile App Predictions - W3i Blog says:

    [...] were free, of those most revenues were driven by virtual goods. Just how big will it get in 2011? The Inside Network projects a $2.1 billion market in just the U.S. alone. The 2009 Virtual Goods market hit $1.1 [...]

  6. Three Things You Need To Know About 2011 Mobile App Predictions | SmartApp Marketing says:

    [...] were free, of those most revenues were driven by virtual goods. Just how big will it get in 2011? The Inside Network projects a $2.1 billion market in just the U.S. alone. The 2009 Virtual Goods market hit $1.1 [...]

Get the latest news in your inbox
interested in advertising with inside facebook?

Social Media Jobs
of the Day

Social Media Account Manager for Beauty PR Agency

Creative Media Marketing
New York, NY

SEO Specialist

Creative Circle
Atlanta, GA

Vice President, Social

Start-Up Social Media Firm w/ Established Clients
New York, NY

Communications Coordinator

National Science Teachers Association
Arlington, VA

Community Editor

Chalkbeat
New York, NY

Featured Company

Join leading companies like this one and recruit from the nation's top media job seekers on the Mediabistro Job Board. Every job post comes with our satisfaction guarantee. Learn More
 

Our Sponsors

Mediabistro A division of Prometheus Global Media home | site map | advertising/sponsorships | careers | contact us | help courses | browse jobs | freelancers | content | member benefits | reprints & permissions terms of use | privacy policy Copyright © 2014 Mediabistro Inc. call (212) 389-2000 or email us