The US virtual goods market opportunity is HUGE.
Driven by the increasing popularity of Facebook applications, virtual worlds and massively multi-player games, the US virtual goods market has strongly grown in the past 2 years, but it's still an early stage market. Think Equity Analyst Atul Bagga has projected that the U.S. virtual goods market will double in 2010 to an estimated $2 Billion.
The team at Inside Virtual Goods released a
comprehensive report on the state of the virtual goods sector, including the
following chart showing the strong momentum in the
Given that Asia already has an estimated $5 Billion virtual goods market with a regional GDP far lower than the United States, this easily justifies 5-year projections for the U.S. to have a virtual goods market of $10 Billion or more, as the online entertainment market shifts heavily into the virtual goods category.
What's clear to market players is that lack of suitable payment instruments is one of the factors holding back the market from even faster growth -- which is the key problem Zeus Research is solving.