But for the group assembled Wed. at a CES panel discourse on the business of virtual products and online gaming, 2009 was a good year indeed. Some vendors guesstimate that US money grew from an immaterial base in 2008 to US$1.2 bill in 2009, with projections to at least double in 2010. ( the international market, controlled by Pacific Rim, is predicted at $6 bn.. ). "The idea of virtual products is exploding beyond virtual worlds," recounted Cary Rosenzweig, president and Boss of IMVU, a social network and 3D virtual world.

Like the other panelists, he credits social networking with convincing more folks to buy virtual products. The very popular Farmville game on Facebook might be the killer app opening up the virtual products market to a new and more adult demographic, the members of social networking communities. "Twelve months back we were not even thinking about that demographic," announced David Laux, world executive for games and interactive entertainment at IBM. Farmville has demonstrated that "Midwestern housewives are ready to spend" on virtual products, he explained. Folk purchase virtual goods for basically the same reasons that they buy real products, according to Karl Mehta, Playspan's founder and Manager . Items may give them a performance edge, whether or not they are the latest skis in actuality or a forceful weapon in an internet game. Vainness -- the need to inspire with a real Rolex watch or dress an avatar in a standout virtual outfit -- also plays a part. And ultimately, folks buy virtual products online as social gestures just as they buy discernible gifts for acquaintances and family.

Interacting with unknown avatars in old-style virtual worlds may not have held much main line appeal. But because Facebook permits folks to play and interact in virtual environments with their "real friends" the industry is now reaching people who were never identified as gameplayers, Schneider asserted. It is the "cheapest type of client signup on the planet," expounded Craig Sherman, Boss man of Gaia Online, another social networking virtual world. In numerous cases, users spend around $12 to load up on virtual currency, which they spend in increments of less than a dollar, according to Rosenzweig. The infrastructure to support micropayments is now maturing, though , announced Matt McAllister, promoting director of Offerpal, in an interview after the panel session. But in the final analysis folks will only buy what they need or think they require. Developers must design their virtual products part into games and virtual worlds from the start if they need to cash in on the market, panelists claimed. *Other names and brands might be claimed as the property of others.