Playfish sees social games as industry driver

* CEO says social games can grow video games market

* Paradigm shift seen away from consoles and software

* Playfish sees huge market for virtual goods

By Matt Cowan

LONDON, Nov 4 (Reuters) - The video games sector has yet to gain from a downturn where consumers stay home to play, but social games creator Playfish says the industry is just beginning a new growth spurt.

The company that invented Pet Society, Restaurant City and Who Has The Biggest Brain? -- games played by tens of millions on sites such as Facebook and MySpace -- believes the $50 billion industry has many more converts to win.

Two-year-old start-up Playfish makes games for people to play on ordinary computers with their family and friends, unlike traditional video games that need dedicated consoles.

The London-headquartered company is backed by Accel Partners and Index Ventures, and is already profitable -- thanks to the virtual goods such as clothes, furnishings and weapons it sells for real money within its games.