Selling Virtual Items Online

Had a chance to see first hand how Internet companies in China are benefiting from selling online virtual items. A friend of mine, a Tencent's QQ user, demonstrated to me how addictive (and expensive!) it is to take care of a virtual pet. The pet needs food, clothes, going to school, medical care, etc.. They all cost money. If not taken care of, it will die from starvation or illness. But don't worry, a dead pet can be revived - if you buy a pill from Tencent. The games are so cleverly designed and funny, it's not difficult to see why QQ users, mostly young girls and boys, become so addicted to them.

I was also impressed by the payment system. They call it Small Amount Payment (reminding me of SMS, or Short Message Service). You place a phone call to a designated number and China Telecom or another carrier of your choice will charge you 10 Ruan on behalf of Tencent.

Because of the "games" are so addictive, the 10 Yuan may only last a couple of days. Time to re-charge.