My youth was spent jumping turtles, killing 16-bit Nazis, connecting kickflips with manuals and nube tubing. Haaaaadouken! Like most boys and young men during the '80s and early '90s, I loved video games. Our passion for games and our willingness to pay $49.99 to purchase the latest Zelda or Mortal Kombat fueled the industry?s growth. For two decades, selling hard and soft copies of games proved to be a very lucrative business. However, this model is ultimately flawed because the revenue potential per player is capped. In 1998, a game studio by the name of Iron Realms Entertainment became the first to sell virtual goods in their games. A decade later everyone is building virtual economies into their games. Zynga, which recently went public and has a market value of around $10 billion, makes the majority of their revenue by selling items like virtual strawberries.Source: http://feedproxy.google.com/~r/Techcrunch/~3/Nwq7HFUjPi8/
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