Virtual goods in the context of Social networking service

An intangible good is something that provides utility which does not have a physical nature, as opposed to a physical good (an object). Digital goods such as downloadable music, mobile apps or virtual goods used in virtual economies are proposed to be examples of intangible goods.

Digital goods or e-goods are intangible goods that exist in digital form. Examples are Wikipedia articles; digital media, such as e-books, downloadable music, internet radio, internet television and streaming media; fonts, logos, photos and graphics; digital subscriptions; online ads (as purchased by the advertiser); internet coupons; electronic tickets; electronically treated documentation in many different fields; downloadable software (Digital Distribution) and mobile apps; cloud-based applications and online games; virtual goods used within the virtual economies of online games and communities; community access; workbooks; worksheets; planners; e-learning (online courses); webinars, video tutorials, blog posts; cards; patterns; website themes and templates.

A virtual economy (or sometimes synthetic economy) is an emergent economy existing in a virtual world, usually exchanging virtual goods in the context of an online game, particularly in massively multiplayer online games (MMOs). People enter these virtual economies for recreation and entertainment rather than necessity, which means that virtual economies lack the aspects of a real economy that are not considered to be "fun" (for instance, avatars in a virtual economy often do not need to buy food in order to survive, and usually do not have any biological needs at all). However, some people do interact with virtual economies for "real" economic benefit.

Despite primarily dealing with in-game currencies, this term also encompasses the selling of virtual currency for real money, in what is sometimes called "open centralised marketplaces".

Second Life is a multiplayer virtual world that allows people to create an avatar for themselves and then interact with other users and user-created content within a multi-user online environment. Developed for personal computers by the San Francisco-based firm Linden Lab, it launched on June 23, 2003, and saw rapid growth for some years; in 2013 it had approximately one million regular users. Growth eventually stabilized, and by the end of 2017, the active user count had fallen to "between 800,000 and 900,000". In many ways, Second Life is similar to massively multiplayer online role-playing video games; nevertheless, Linden Lab is emphatic that their creation is not a game: "There is no manufactured conflict, no set objective."

The virtual world can be accessed freely via Linden Lab's own client software or via alternative third-party viewers. Second Life users, also called 'residents', create virtual representations of themselves, called avatars, and are able to interact with places, objects and other avatars. They can explore the world (known as the grid), meet other residents, socialize, participate in both individual and group activities, build, create, shop, and trade virtual property and services with one another.

A microtransaction (MTX) video game business model is one where users can purchase in-game virtual goods with micropayments. Microtransactions are often used in free-to-play games to provide a revenue source for the developers. While microtransactions are a staple of the mobile app market, they are also seen on PC software such as Valve's Steam digital distribution platform, as well as console gaming.

Free-to-play games that include a microtransaction model are sometimes referred to as "freemium". Another term, "pay-to-win", is sometimes used pejoratively to refer to games where purchasing items in-game can give a player an advantage over other players, particularly if the items cannot be obtained through free means. The objective with a free-to-play microtransaction model is to involve more players in the game by providing desirable items or features that players can purchase if they lack the skill or available time to earn these through regular game play. Also, presumably the game developer's marketing strategy is that in the long term, the revenue from a micro transaction system will outweigh the revenue from a one-time-purchase game.

Dota 2 is a 2013 multiplayer online battle arena (MOBA) video game by Valve. The game is a sequel to Defense of the Ancients (DotA), a community-created mod for Blizzard Entertainment's Warcraft III: Reign of Chaos. Dota 2 is played in matches between two teams of five players, with each team occupying and defending their own separate base on the map. Each of the ten players independently controls a character known as a hero that has unique abilities and differing styles of play. During a match, players collect experience points (XP) and items for their heroes to defeat the opposing team's heroes in player versus player (PvP) combat. A team wins by being the first to destroy the other team's Ancient, a large durable structure located in the center of each base.

Development of Dota 2 began in 2009 when IceFrog, lead designer of Defense of the Ancients, was hired by Valve to design a standalone remake in the Source game engine. It was released for Windows, OS X, and Linux via the digital distribution platform Steam in July 2013, following a Windows-only open beta phase that began two years prior. Dota 2 is fully free-to-play with no heroes or any other gameplay element needing to be bought or otherwise unlocked. Valve supports the game as a service, selling loot boxes and a battle pass subscription system called Dota Plus that offer non-gameplay altering virtual goods in return, such as hero cosmetics and audio replacement packs. The game was ported to the Source 2 engine in 2015, making it the first game to use it.