The growth is coming from the 90 percent of the population who are not self-identified as gamers. They are drawn into the social games because they are frictionless. They are light and they are social. You are expanding the pie. The whole world is going social. You don’t have to be gamers to play these games. Meanwhile, the recession is eating into hardcore game sales. More gamers are buying used games and doing secondary game trades. More people are simply not going to retail to buy goods anymore. It’s the same for packaged CDs.
Tim Chang (Norwest) in an informative interview he gave Venture Beat last fall. I just found this tonight and thought it was pretty useful as I’m trying to learn more about virtual goods and economies.
