VentureBeat reports that VCs backed some 23 virtual worlds to the tune of $184 million during the fourth quarter, suggesing that even during hard times, consumers -- and investors continue to gravitate toward fun and games and what many regard as frivolity.
There are a couple of ways to look at the latest funding figure. It is down from fourth-quarter virtual-world VC investments of $425 million, but the comparison isn't really fair since one single company, Zenimax Media Inc., received $300 million of last quarter's total. So on the balance, interest in virtual communities appears as strong as ever.
It will be interesting to see if the excitement about these virtual worlds actually increases through a prolonged economic downturn. They are, arguably, an excellent form of escapism, and, although you'd think money would flow away from frivolous goods and toward the bare essentials, money often moves in counterintuitive ways. As the lipstick indicator suggests, non-essential, feel-good products and services often thrive in tough economies. -Andrea Orr
See April 22 post on virtual world funding from VentureBeat
See April 17 post on Stable Media from Tech Confidential
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