The virtual goods economy is here to stay. When virtual food and clothing first appeared on social networks a few years ago, I thought that the fad would come and go. Whereas the collection of virtual goods had grown into a full-fledged market in Asia, I remained skeptical of the long-term lifespan of consumerism around digital items in the U.S.
With the growth of social gaming, fueled by the mainstream adoption of Facebook, the accumulation of virtual wares has exploded. Though the concept of people paying hard currency for virtual goods remains foreign to a large segment of the population, the reach of these digital economies continues to spread. Americans spent just over $1 billion on virtual goods in 2009, a 100 percent increase over 2008, according to research firm Inside Network
Games like Farmville and Mafia Wars are commanding an ever greater amount of attention from online users. More people are opening their real wallets to purchase in-game items. The convergence of social networking and causal gaming is fostering communities that bend the boundaries of our digital and physical worlds. As the line between what’s real and that which is imagined fades, so too do the constructs that support independent economies in these worlds.
Our digital lives, as represented in places like social networks, consumer forums, and gaming communities, are becoming indelible parts of our identities. We are moving toward a world in which our digital and physical selves are forever linked. It’s impossible to argue that the ripples from one’s virtual existence don’t extend to the real world. Therefore, the accumulation of virtual goods could come to play a greater role in how we are defined by society.
