Saturday, November 07, 2009

The Goods May Be Virtual, but the Profit Is Real - NYTimes.com

Interesting times

Analysts estimate that virtual goods could bring in a billion dollars in the United States and around $5 billion worldwide this year — all for things that, aside from perhaps a few hours of work by an artist and a programmer, cost nothing to produce.

“It’s a fantastic business,” said Jeremy Liew of Lightspeed Venture Partners, a venture capital firm that has invested $10 million in several virtual goods companies. “Because it’s digital, the marginal cost for every one you sell is zero, so you have 100 percent margins.”

The Goods May Be Virtual, but the Profit Is Real - NYTimes.com

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