

Fred Wilson's Investment Themes for 2010 - cwan
http://www.avc.com/a_vc/2010/01/areas-of-interest.html

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thafman
Not taking Fred seriously until we hear an explanation from him of how much he
knew about Zynga's shady offers business. He has been disturbingly quiet about
this.

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pclark
> i've tried hard to stay out of that debate because it is a false debate

> zynga makes almost all of its revenue on virtual goods

> i said in my etsy/san telmo post the other day that more tractors are sold
> every day in farmville than are sold in the US every year

> that's where the money is in social gaming

> the "scammy ads" thing is total red herring that everyone got excited about
> but is almost entirely irrelevant

in the comments to that post: [http://www.avc.com/a_vc/2010/01/areas-of-
interest.html#comme...](http://www.avc.com/a_vc/2010/01/areas-of-
interest.html#comment-27834334)

~~~
davidw
> i said in my etsy/san telmo post the other day that more tractors are sold
> every day in farmville than are sold in the US every year

The supply of real tractors is limited by a large number of things that cost
real money including raw materials, labor, and so on. The supply of virtual
tractors is not really limited by anything (marginal cost is pretty much 0),
so the cost ought to be 0 or awfully close. Granted, there are costs to
'develop' virtual tractors, but those don't limit the production of them once
they've been created.

~~~
immad
Virtual tractors in fv only have one supplier. Therefore the pricing will be
monopolistic and would not trend to zero.

~~~
davidw
They _ought to be_ zero were it in any way a sensible market, but it's not. I
think people buying that stuff are a bit batty.

