US Virtual Goods Market To Hit $2.9 Billion In 2012, With Facebook Games Maturing, Mobi... - 0 views
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The overall market for virtual goods in the US is headed towards $2.9 billion for 2012, according to the Inside Virtual Goods report. That’s up from $2.2 billion this year, and $1.6 billion in 2010.
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Virtual goods on Facebook are continuing to comprise more than half of that, going from $835 million in 2010 to $1.2 billion this year to $1.6 billion next year. The gains each year are around $400 million, which means growth is going from 50% down to around 35%. While the report doesn’t break out company-specific numbers publicly, Zynga’s pre-IPO filings indicate it made more than $300 million last quarter. Assuming that number stays around the same, look for Zynga to continue to its historical dominance with about 75% of the Facebook virtual goods market.
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Mobile has also been coming into its own in the last 18 months, report co-author Charles Hudson tells me. The report estimates that mobile virtual goods (for games only, not including other digital media like iTunes songs) made $350 million this year, and will grow to $500 million next year.
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But mobile has its own limitations. Facebook provides a single venue for developers to build, grow and monetize their games, while the dueling mobile platforms have weaker social features and additional development costs; iOS also has the 30% tax on virtual goods sales, same as Facebook.