E-Books Look To Stuff Stockings This Holiday

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If you're wondering about what's going to be a hot ticket item this holiday season, you'd be making a safe bet banking on e-books.

Way back in the day, Sony had the only game in town with a huge cumbersome e-reader. Eventually Amazon stole the show with their Kindle. For the longest time, Kindle has been the go-to device for e-reading with its plethora of content and grayscale, easy-on-the-eyes screen. However, the growth of the e-reader market has exploded with competitors looking to take over Kindle's throne. A recent article from Fast Company noted that e-books are now a $1 billion industry. With that market size comes more aspiring "Kindle Killers" to take a piece of that pie.

Barnes and Noble's Nook has seen a facelift of late with the release of the Nook Color. This device not only provides a sleek 7-inch color touchscreen to enhance the reader experience but also runs on an Android platform. The Nook upgrade also has a kid-friendly feature in its "Read to Me" application, a feature that has a professional narrator reading select children's books aloud via the device. In addition, Nook Color is a social device, making sharing book discussions a seamless experience for users via Facebook, Twitter and Google.

Other e-readers look to mix things up to. Sony's e-reader provides a lightweight portable device with one redeeming feature - battery life. Sony claims that users are able to enjoy up to two weeks worth of reading enjoyment on one single battery charge (in comparison to Nook Color's eight hour lifespan). Another device that will also crash the e-reader party will be the iPad. Though it's not first and foremost an e-reader, its iBooks application provides a very interactive reading experience for its users and looks to make even more waves in the e-reader scene.

The e-reader market has grown exponentially over the last couple of years. Do you see this being over-hyped? Or will these devices really be a holiday hit?

The New iPod Family: Merch Monday

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Apple is at it again. They've taken the time to update not just one iPod but made changes to most of their iPod family in some form or another. 

The new iPod touch received what was probably the most intriguing new feature, though it wasn't a cosmetic addition. Remember how the new iPhone 4 had this clever little front-facing camera with an application called "FaceTime" attached to it? You guessed it, the new iPod Touch now boasts that same feature (accessible only through a Wi-Fi service of course). 

The most dramatic changes were probably seen by the newest version of the Nano. The last time we featured a Nano update, the new device featured a video camera but still kept it's same basic aesthetic look. However this new version has seem almost an entire overhaul. The Nano has not only been significantly reduced in size (now a 1.54 inch display) but has an added touch screen feature. Even though there is that additional feature, it lacks it's once awesome video camera. 

Could the Nano realistically get any smaller? Especially with a touchscreen? What are your thoughts on the new Apple updates?

Social Gaming and Incentive Awards: Merch Monday

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Typically our Merchandise Monday posts focus on tangible merchandise rewards. We've talked about ergonomic knives, vacuums with tattoos and even some "technically" intangible awards like phone time and music downloads. This week is a bit different however since we will be diving into even more abstract awards that have become a booming business online.  

Social gaming.

In a recent report from Mashable, over 56 million people are playing social games. You know those Farmville and Mafia Wars that junk up your Facebook news feed? That annoyance has captured the time and purse strings of millions of people. The report estimates that at least one out of every five people over the age of six have played a social game at least once in their life. This form of gaming is evolving from a hobby exclusive to "web geeks" to something for the average person - even those who aren't traditional gamers. Most people who use social games have never played traditional video games (35% according to Mashable's article). 

A Hot "Commodity"

Along with these social games comes the economic part - virtual goods. Virtual goods are a huge form of currency online and generated around $2.2 billion (that's "billion" with a B) in revenue in 2009 alone. You know, 2009...when the economy was in the toilet? Spending for these goods is estimated to hit around $6 billion by 2013, meaning that virtual goods will become an even more popular commodity.

What is a virtual good?

Virtual goods are by definition non-physical objects  that are purchased for use in online communities or online games. For example, in Farmville, users can use real money to buy "coins" in the Farmville world. These coins are used to purchase things in the online store to help further their success in the game, such as buying seeds to grow more virtual crops (which can eventually be resold), animals and buildings. Sure coins have the ability to be earned but why not expedite your success with your wallet? 

These goods aren't limited just to gamers but have other places out in the market. Is it someone's birthday on Facebook? Use your Facebook credit account to purchase them a virtual birthday gift to post up on their wall. These "gifts" were initially free during their introductory period but as usage grew so did cost, making this a very lucrative component of Facebook's business.

Virtual Meets Reality

It was only a matter of time until the virtual world of social games and brick and mortar establishments cross pollinated. Within the last week, Target announced that it will begin selling gift cards for Facebook credits. This business endeavor is expected to make up at least one third of Facebook's revenue. They aren't the first to embark on this path. Back in March, Zynga (creator of social games Farmville and Mafia Wars) announced that it would be selling prepaid game cards at retailers like Best Buy, Game Stop and Target. This puts these Zynga prepaid cards at over 12,800 different locations. What does this mean? Individuals can use their real money to purchase fake online money to use as a birthday card insert or future stocking stuffer. It's an abstract yet booming business.

So what's this have to do with incentive programs?

We've already seen how prepaid credits for social games have entered the gift card market. An obvious first thought would be program participants redeeming for these gift cards in a points-based rewards system. Where things could really take off would be taking out the middle man that is the gift card. What if the points that employees gained in their rewards system at work were transferrable into the virtual world? This method could blur the lines of the "cash vs. noncash" debate seeing how this type of redemption system would be most closely related to a cash reward. 

With that in mind, virtual awards could take things a step further. Instead of using points for "social currency," points would be redeemed for actual virtual goods. For example, in a Farmville setting, instead of redeeming points for "coins," one could redeem points for what those virtual coins would buy (such as seeds for crops buildings etc mentioned above). This method would completely eliminate any middle men of gift cards or virtual currency to truly make this concept more of a "noncash" incentive plan. These redemptions would be great solutions for low-cost gift choices and would help achieving work goals positively affect employee hobbies like gaming. The only way employees would be able to gain more levels and earn more potential on their social games would be to achieve work goals and earn points for those redemptions. 

The market for intangible awards is on the verge of explosion.

Or is it?

What do you all think?