Virtual Goods Conference 2008 - a niche in a niche
Well, I’d say the Virtual Goods Summit 2008 was a huge success. There were tons of smart people representing a host of game companies, and of course, I was over-dressed.
Being such a “noob” industry, there are many issues that need to be dealt with concerning the sale of virtual goods. The major issues that I caught, included:
- Fraud & Security
- Cashouts & Increased Risk
- Elitist Games & Stickiness
- Statistics Tracking & Product Development
- Time Vs Money & Valuating Currency
- Primary & Secondary Markets
I really enjoyed the Session A: “Metrics for Virtual Goods Businesses: The Whirled Case Study” presentation by Andrew Chen & Daniel James. They had their $hit together, and presented some very interesting statistics they track. I learned that children that played “Puzzle Pirates” made an average of $0.20-$0.25 cents per hour. That’s $40.00 per month. Funny how it seems just low enough to disinterest the formation of sweatshops abroad, who may work to create virtual currencies if the time value of money is high enough for that game.
Some of those smart people were panelists, and some of them sure did bring their egos to the conference. It was kind of funny at one point, because I don’t think the panel moderator had much idea of what they should be talking about, so panelists started asking the audience, “what do you people want to know?”
Actually, it sounded like everyone faced the exact same issues.
One fascinating part of the conference for me was talking to an attending PayPal representative, Renata. You see, PayPal charges a minimum of $1.00 for micro transactions, and were losing big in this market and many others to newly founded micro transaction leaders rushing to fill the market gap. Imagine getting charged $1.00 to send $1.00 to a friend. That’s pretty bad pricing analysis, and I expect to see a big change come form them soon.
I won a guitar hero game and plastic guitar for the Wii on my way out of the conference. God, I love the conference organizers! Special thanks to Charles Hudson, VP of Business Development for Serious Business.
I took the gift to Best Buy yesterday, with gift receipt, and exchanged it for Mario Kart and wheels.
I have to say that I’m not so impressed. I mean, its like the same old game with worse controls.
Anyhow, I digress. If I talked to you and never got back to you, shoot me an email!
