The global virtual goods industry put up some very impressive numbers this year. From special Easter eggs to virtual ad campaigns, virtual goods sales have grabbed their share of headlines over the past twelve months. Now with social gaming on the rise and everyone from your teenage nephew to your grandma to your old rugby teammate buying a “little something” to sweeten their online game, here is a look a back at the year in virtual goods sales.
$7,300,000,000: expected global revenue generated by the virtual goods industry in 2010. This is huge, considering the $60 billion generated in 2009 by the video game industry as a whole, and clearly shows that browser-based gaming is making great strides.
$2,100,000,000: The projected size of the US virtual goods market in 2011. → Read More
Just three years ago, IMVU was burning cash at a rate of half a million per month and still not profitable. The 3D virtual world, where souped-up avatars run amok, was gaining users but not on a path to sustainability.
Fast forward to 2010, IMVU is increasing its staff by 50% (going from 60 to 90 employees) and is on track to double sales this year. Currently, the company is at an annual revenue run rate of $40 million— and according to CEO Cary Rosenzweig the Palo Alto based company should hit a $60 million annual revenue run rate by the end of this year. For the last two years, revenues have roughly doubled from $11 million in 2008 to $22 million in 2009 and now $40-plus million in 2010. That’s a lot of real world dough for a company whose fortune is based on virtual currency and an endless factory of avatar accessories. IMVU says the next stage of growth will be defined by new international markets, Macs and of course, Facebook. → Read More
Thanks to reader tips we’ve had a chance to see IMVU’s racey new animated banner ads showing two women kissing as they fall downwards horizontally. The ad includes the message “live the lifestyle you’ve always dreamed of.” I signed up immediately.
The ad was spotted on Ustream, which prohibits content that is obscene or includes “pornography, erotica, child pornography or child erotica.” As far as I’m concerned this ad is none of that, but the Prop 8 supporters may disagree.
Watch the animated version: → Read More