Virtual Good

Definition of 'Virtual Good'


A good or product traded in the non-physical realm, typically in online communities and games. A virtual good has no tangible substance and no real intrinsic value; its value resides solely in what the user is willing to pay for it. The virtual good industry has recorded exponential growth in recent years, in line with the surging popularity of Facebook and other social media sites.

Investopedia explains 'Virtual Good'


Prominent purveyors of virtual goods include Zynga, Tencent and Playfish. Zynga's Farmville, which requires the user to manage a virtual farm, is one of the most popular markets for virtual goods. The game owes much of its popularity to Facebook, where it has been offered as an application since June 2009.

The lines between the world of physical and virtual goods may get increasingly blurred in the years ahead. There have already been a few instances of some users spending outrageous amounts of cold, hard cash for virtual real estate or other virtual goods. In March 2012, Zynga announced a partnership with Frito-Lay through which buyers of the latter's chips and snacks would receive Farmville and other virtual goods through codes packaged in these snacks.



comments powered by Disqus
Hot Definitions
  1. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another market so that it balances out. So when examining a specific market, if all other markets are in equilibrium, Walras' Law asserts that the examined market is also in equilibrium.
  2. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another.
  3. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following:
  4. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option is purchased and the lower premium option is sold - both at the same time. The higher the debit spread, the greater the initial cash outflow the investor will incur on the transaction.
  5. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious debt when government leaders use borrowed funds in ways that don't benefit or even oppress citizens. Some legal scholars argue that successor governments should not be held accountable for odious debt incurred by earlier regimes, but there is no consensus on how odious debt should actually be treated.
  6. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares.
Trading Center