Facebook Credit
In April 2010, Facebook introduced and launched its official currency which was known as Facebook Credits that enabled users to utilize virtual currency more easily in Facebook games such as Pet Society, Restaurant City, Farmville, Mafia Wars, Frontierville and others. Facebook believed that the launching of Facebook Credit would bring substantial profit in long run (ZippyCart Ecommerce Software Reviews Content Team 2010). 
Pet Society
According to Watters, Facebook tends to obtain 30% from all proceeds by launching Facebook Credit which will bring huge profits to the company. The number of Facebook’s social gamers had increased to nearly 800 million players and this may result in a potential growth in virtual currency for Facebook and game as more players are willing to spend on virtual items in their gaming (Watters, 2010).
References:
OffGamers 2010, viewed 24 September 2010, http://www.offgamers.com/
Watters, A 2010, Read Write Web, Facebook consolidates Its Virtual Currency with Facebook Credits, viewed 25 September 2010, http://www.readwriteweb.com/archives/facebook_consolidates_its_virtual_currency_with_facebook_credits.php
ZippyCart Ecommerce Software Reviews Content Team 2010,Facebook Credits Expanding the Social Network’s Ecommerce Efforts, viewed 24 September 2010, http://www.zippycart.com/ecommerce-news/1263-facebook-credits-expanding-social-network-ecommerce-efforts.html
Hey guys, something to consider:
ReplyDeleteSo far, most of virtual currencies seem to apply to online games. Question is, how about in online shopping? Can virtual currencies be used for online shopping? IS there any evidence of this so far?
Try to a search and see what you can find.
I think the idea of Facebook credits is probably a step in that direction.
Hi Theresa and Yee Chyn. I am interested by your topics on virtual currency as online gaming is a big interest for me.
ReplyDeleteI agree with both of you that virtual currency is created to enable online trading of real cash. It allows companies to earn money through providing free gaming opportunities to players. As can be seen, you had quoted a few examples such as Facebook Credits and My MMO Shop.
What you had quoted are actually B2C business concepts. This is where businesses earn money by trading virtual monies to players(consumers) in exchange of real cash through credit card services or reload coupons (Cyprus 2010). This type of transaction are normal and frequent activities where online gaming providers earn the income.
However, there is another type of business transaction that happens between consumers to consumers (C2C). In other words, online players sell to online players! So how do they sell to each other?
As you all know, normally there are innovators, or what we call early adopters on an online game. These players normally train, work and play hard on these games to earn the best of the best. By such, when they get enough “fake” money in their respective games (e.g. maple uses Mesos as their “fake” money), they tend to sell/exchange it to other new players who wants to be rich in exchange for real cash currencies. This is a normal phenomenon occurring in all online games. Besides that, players could also use these “fake money” to exchange with the in-game reload coupons that can be used to buy exceptional items/level-up items. As such, players would go to retail store to purchase these coupons and sell it to other players in exchange with in-game money/items.
Therefore, we can see a complex relationship here where online game providers might still earn when players buy reload coupons for other players. It is not a normal course of trading. However, the issue is that online game providers had been prohibiting these transactions as they feel their stand being threatened. They are not able to earn that much when players trade between players. Online game providers provide free gaming to induce them into playing the game and uses real cash to buy virtual currencies. They are trying to ban these transactions by warning players and banning them as businesses wanted to gain the most profit and not share it among players.
In conclusion, although online game providers had been earning a huge fortune out of virtual currencies, problem/issues still exist where consumers are clever enough to not spend any real cash in exchange for virtual currencies. How? They find other consumers to help them! Interesting!
Reference
Cyprus, S 2010, What is B2C?, Conjecture Corporation, viewed 29 September 2010, http://www.wisegeek.com/what-is-b2c.htm.