Virtual Goods Forecast Taps Opinions of Industry Leaders

By Team Engage On January 11, 2010 · Leave a Comment

Today Engage Digital Media,
owner of this blog and of the upcoming Engage Expo, released its Virtual Goods
Industry Forecast 2010. The forecast, a study which includes data as well as
opinion and predictions from over 30 leaders in the virtual goods and virtual
goods-related space, contains information solicited in the past 30 days,
something which emphasizes the report's timeliness as well as usefulness.

The forecast, well over
11,000 words in length, asked business leaders a set of five questions,
including what their trend predictions are for 2010, what they see as the most
significant challenges ahead for the virtual goods industry, and who they
think will have the greatest impact on the virtual goods sector in the coming
year.

Respondents are an eclectic
group, ranging from venture capitalists to entrepreneurs to CEOs. Each offered
their undiluted and often frank observations — and not all were boosters of
the sector nor advocates of unbridled growth, yet each in their own way offer
insight worth knowing and often, advice to follow.

Among the contributors to
the study: Jeremy Liew, Managing Partner at Lightspeed Venture Partners;
researcher Vili Lehdonvirta, PhD. at the Helsinki Institute for Information
Technology, Digital Chocolate founder and CEO Trip Hawkins, and Playmesh
founder Charles Ju.

Among the topics the
forecast addresses are: the amount of money to be spent on virtual goods, which
platforms will dominate, the rise of cross-platform currency, the increase
presence of brands, and the legal ramifications of a more frictionless and
pervasive goods marketplace.

"The top gaming
companies, EA, Ubisoft, Activision, will move more of their models to virtual
goods monetization, even for shrink-wrapped games," says BOKU CEO Ron
Hirson. AdNectar CEO Nir Eyal says to watch out for major brands which will "jump in, spending big bucks to create and
distribute socially endorsed branded goods." And everyone agreed the revenue goods will drive is set to spike, with 2010's dollar figure in the US to tally $1-2
billion. And the virtual goods model is
set to explode beyond entertainment properties and apps. Benjamin Joffe,
CEO at +8* and a partner at app developer Cmune, predicts "Virtual goods
[will] expand beyond online games, social games and virtual worlds to be used
in various online media properties."

The complete study is
available for download and reading here.

Have your own opinion about
the virtual goods space? Get in touch with readers by leaving a comment below.