Virtual Goods News

The US market for virtual goods in 2009 will reach $1 billion dollars in value, according to a report released this week by Inside Virtual Goods. The report projects the size of the market growing to $1.6 billion in 2010, citing social games as a likely driver. Until recently, attempts to evaluate the entire world's market value for virtual goods often cited values of about $1 to $2 billion dollars. 

Those early estimates clearly undervalued the Asian market for virtual goods, which research firm Plus Eight Star estimated at over $5 billion dollars, but may have been undervaluing the US market, too. In August of this year, Viximo founder Brian Balfour estimated the value of the US virtual goods market for 2009 at only $400 to $600 million, roughly half the Inside Virtual Goods estimate. 

"Virtual goods may be bringing the largest disruption entertainment, communication, and e-commerce infrastructure companies have seen for a long time," said Charles Hudson, VP of Business Development at Serious Business and co-author of the report, in a press statement.