Online merchants charge real money for virtual goods – ranging from farm crops to swords and shields – that people use in massively popular Internet games.

Now, a small Long Beach company has come up with its own variation on the theme: hard cash for virtual cars, parts and accessories so players can race to win.

The company even pays licensing fees to car manufacturers for selling their branded products.

“We transfer the emotions of real life into the virtual world,” said Justin Choi, 34, president of Cie Digital Labs LLC. “People spend money, not just to win races, but for the satisfaction of showing off.”

The company was founded a dozen years ago primarily to develop Web sites. But a breakthrough game it developed in 2008 is taking Cie to new levels.

Nitto 1320 Legends – named after a sponsoring Japanese tire company – allows its 1.1 million registered players worldwide to purchase virtual street cars for up to $25 apiece, and soup them up with accessories and engine parts that cost anywhere from a few bucks to a few pennies. The better the car – like a Chevy Camaro punched up with a turbocharger – the more likely it is to win races against online competitors.

In order to do business, Cie pays licensing fees to Ford, GM, Honda, Toyota, Nissan and Mazda, prompting Choi to quip: “At the moment, we’re one of the country’s best-selling car dealerships.”

The game is generating $2 million on an annualized basis, with a portion of the business driven by several high-rolling players, including a Seattle man who has spent nearly $100,000 on virtual cars and accessories since 2008, Choi said.