The Rise of Virtual Goods Monetization

The article explores the growing intersection of games and social websites, focusing on the use of virtual goods for monetization. The author highlights the rapid growth of the casual MMOG market, with numerous companies poised to enter the market in the next year.

• The author discusses the standardization of the user interface for virtual item sales, with common elements like avatars, item collections, and "Buy" buttons.
• While the interface standardizes, the backend infrastructure remains varied and fragmented. Key issues include payment policies, alternative payment methods, user-to-user sales, and currency systems.

The "Amazon" of Virtual Item Sales

The author poses the question: "Who will be the Amazon of virtual item sales?" This question alludes to the potential for a dominant platform that streamlines the backend infrastructure for virtual goods sales, akin to how Amazon revolutionized e-commerce.

Amazon.com and its Applicable Techniques

The article highlights the key factors contributing to Amazon's success in e-commerce, which could be applied to the virtual goods market.

• Product recommendations
• Price testing
• Product bundling
• Search, browse, and navigational hierarchy
• Reviews, ratings, lists, and metadata
• Affiliate programs
• Ad targeting

The Future of Virtual Goods Infrastructure

The article questions whether a single game or game platform will emerge as the dominant provider of virtual goods infrastructure, or if a third-party vendor will fill this role.

• The author invites suggestions for companies exploring this space, recognizing the significant potential for innovation in virtual goods infrastructure.

The Impact of Amazon on Virtual Goods

The article emphasizes the potential for an Amazon-like platform to revolutionize the virtual goods market, similar to how Amazon transformed e-commerce. The author envisions a platform that offers a comprehensive and standardized approach to virtual goods sales, addressing the fragmented backend infrastructure currently prevalent in the industry.

Potential for Growth in the Virtual Goods Market

The author highlights the growing popularity of casual MMOGs and the increasing intersection of games and social websites, suggesting significant growth potential in the virtual goods market. This growth is driven by user demand for personalized in-game experiences and the monetization opportunities offered by virtual goods.

The Importance of Standardized Infrastructure

The article emphasizes the need for standardized virtual goods infrastructure to facilitate seamless and efficient transactions. This infrastructure should address key challenges like payment policies, alternative payment methods, user-to-user sales, and currency systems.

Amazon's Influence on the Social Web and Social Games

Amazon's success in e-commerce provides a valuable blueprint for the development of a dominant virtual goods platform. By leveraging Amazon's proven strategies for product recommendations, price testing, and user experience optimization, a platform could revolutionize the way players acquire and interact with virtual goods.