November 22, 2019

Yesterday, we looked at how video game companies earn billions of dollars annually by selling virtual products to an ever-growing market. Inspired by the success of this unusual industry, some clothing companies have started selling digital outfits that don’t exist in the real world. For instance, the fashion label The Fabricant recently sold a virtual dress for $9,500 to the wife of a San Francisco tech executive. Although she cannot actually put on her expensive new outfit, she can Photoshop Continue reading

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November 21, 2019

Analysts estimate that last year consumers spent more than $50 billion on virtual items in video games like Counter-Strike and World of Warcraft. This lengthy but highly informative video explains why the market for virtual items has grown bigger than global box office returns for the movie industry. 

Questions:

  1. How are in-game economies similar to real-world economic systems?
  2. What are the advantages and disadvantages of online marketplaces that sell virtual goods?
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