The value of our virtual goods is highly dependent on how we manage the economies in our games. If we fail to manage our game economies properly, our business may suffer. Paying players purchase virtual goods in our games because of the perceived value of these goods which is dependent on the relative ease of securing an equivalent good via non-paid means within the game. The perceived value of these virtual goods can be impacted by an increase in the availability of free or discounted Facebook Credits or by various actions that we take in the games including offering discounts for virtual goods, giving away virtual goods in promotions or providing easier non-paid means to secure these goods. If we fail to manage our virtual economies properly, payers may be less likely to purchase virtual goods and our business may suffer.
Three years ago, Steve Blank told me that more and more tech companies in the future would employ virtual economists. Zynga’s S-1 is showing just that. (via cacioppo)
(via garychou)
Source: sec.gov
