1. SiliconValley.com (USA) – Some startups adding muscle in tough economy. “MVU Chief Executive Cary Rosenzweig used to make his living pushing practical products such as Tide, Clorox and QuickBooks Payroll. Now he leads an Internet “virtual world” company where visitors spend actual money for something as seemingly frivolous as a new wardrobe for their digital alter egos and gifts for avatar pals. Yet IMVU recorded four consecutive quarters of record revenue in 2008, accelerating even as the economy crashed, Rosenzweig says. With the holiday season over, business was expected to slow a bit — but January delivered another uptick, he said. Why? One theory suggests that people with maxed-out credit cards were substituting low-cost shopping sprees in the virtual realm for trips to the mall.”

2. AsiaOne (SIngapore) – Romance isn’t dead, it’s online. “According to a poll of 128,000 teens, romance isn’t dead, it just went online. The poll, conducted by Habbo, the world’s largest virtual world for teenagers, revealed that 76% of respondents believed that romance is still alive and well in today’s digital age. They believe too, that taking romance online actually makes thing easier – about two-thirds, or 64% of teens polled believe that virtual winks and MSN hearts actually make it easier for young people to flirt with each other. But that doesn’t’ mean that Singapoean teens have totally dismissed seeming ‘old-fashioned’ forms of communication. More than a quarter (27%) still prefer to flirting face-to-face than going virtual.”

3. The Jakarta Post (Indonesia) – Online gaming, good for some, disastrous for many. “High school student Ade spends his days in class like any other kid, but after school he morphs into a sword-carrying warrior, fighting ogres, monsters and dragons in the fantasy world of online gaming. Ade and other online gamers have become part of the furniture at Internet cafes throughout Jakarta, which are now sprouting up around university campuses and schools.”

4. The Guardian (UK) – The Man is in your virtual world. “Maybe it’s because it’s tax time, or coming up to the end of the financial year, but several high-level government bodies are weighing in on virtual worlds. Specifically, the bodies are interested in the financial and security implications of these multi-user, networked spaces. The first report comes in from the European Network and Information and Security Agency. According to Metaverse Law, they’ve released a position paper called Virtual Worlds, Real Money: Security and Privacy in Massively-Multiplayer Online Games and Social and Corporate Virtual Worlds”.

5. Sydney Morning Herald (Australia) – No classification: online games legal minefield. “Video game publishers and retailers are risking hundreds of thousands of dollars in fines by illegally selling online role playing games such as World of Warcraft without age classifications. The games industry believes there is a legal loophole exempting online games that don’t have a single player component from classification requirements but this view is contradicted by the federal and state attorneys-general.”

6. MyCustomer.com (UK) – Twinity offers new forms of customer interaction. “Virtual worlds offer customers and businesses new ways of interracting online, creating innovative brand extensions and sales channels for companies, and giving customers new forms of brand experience – that’s the view of Dr Mirko Caspar, co-founder and CMO of Metaversum, the Berlin-based company behind the development of virtual online environment Twinity. Unlike the superficially similar Second Life, which many brands and organisations already have a presence in, Twinity aims to model real-world cities as virtual locations that customers can ‘walk around’ in avatar form. Its first virtual city, Berlin, is online. More cities, including London, are planned.”

7. VentureBeat (USA) – Social network hi5 aims its 60 million users at casual games. “Social network hi5 is introducing a casual games section to its site today, complete with its recently-launched virtual currency (called “Coins”) and a range of more than 40 arcade, casino, card, sports and strategy games. It’s the latest move in the company’s effort to focus on “social entertainment” — later this year, it plans to introduce instant messaging (wrapped into games, as well), avatars and eventually a full-blown virtual world.”

8. This Is London (UK) – Welcome to cyber-London. “A virtual recreation of London is attracting hundreds of thousands of visitors every day. An online version of the capital, complete with Big Ben and Marble Arch, is featured on the 3D virtual world website Second Life. The online city boasts five areas of London –— Mayfair, Kensington, Chelsea, Westminster and Hyde Park. Users who sign up free of charge can create an avatar of themselves, and can walk or fly around while interacting with other users via text or speech.”

9. VentureBeat (USA) – PlaySpan makes virtual goods transactions more convenient. “In-game commerce network PlaySpan is taking one of the hassles out of trading virtual goods. In the past, gamers had to engineer a risky drop-off inside a game world in order to trade valuable virtual goods between game characters. The gray-market system (often not sanctioned by game operators) required that player arrange to meet inside a virtual world and was also rife with fraud, as many people didn’t show up as promised.”

10. Silicon.com (UK) – Virtual meetings to ground two million airline seat. “irlines could be hit hard as workers ditch face-to-face meetings in favour of cheaper virtual link-ups.
The worldwide economic downturn will boost videoconferencing tech, according to analyst house Gartner that predicts virtual meetings will replace more than two million airline seats per year by 2012. Telepresence systems – such as Cisco’s TelePresence and HP’s Halo – use high definition video, stereo audio and purpose built videoconference suites to help make participants feel as if they are meeting in the same room as each other.”

1. Escapist (USA) – World of Warcraft: A Religion? “To say that hardcore WoW players are fanatics is one thing, but to call them religious is another. That’s what a graduate student at the University of Colorado is arguing, though. Citing the French sociologist Danil Hervieu-Lger’s definition of religion, Theo Zijderveld argues that though World of Warcraft isn’t a religion proper, it certainly contains the four key ingredients: community, ethics, culture and emotion. The communal aspect, Zijderveld says, comes from playing with people and making friends within the game. As for the ethics, the rules of the game (and presumably the rules of the community) constitute that.”

2. PC World (USA) – Second Life Profitable Despite Interface Woes. “In exclusive interviews with The Industry Standard, Linden Lab’s two top executives have confirmed that the company is still profitable and Second Life is continuing to grow users and expand its enterprise services. However, Linden Lab founder and chair Philip Rosedale and CEO Mark Kingdon admitted that the in-world experience still takes too long for new users to master, an issue that will require significant amounts of technological work to rectify.”

3. CBC News (Canada) – Strangers in Paradise. “Around the world, millions have gone on-line to create a virtual life for themselves — a simulated fantasyland where the economy booms, the sun shines and everyone looks gorgeous. For many “second lifers,” the game is just that, a game. But, for others, it takes on a life of its own. Hana Gartner introduces us to two women who fell in love with their fantasy life and lovers. They gave up everything, husbands and children, to meet the man behind their fantasies. Find out, if the real thing measured up.”

4. Second Thoughts (USA) – Stranger Than Paradise: Is Second Life Really Like This? “Having gone over to the CBC to watch this, I have to say: no, SL isn’t like this. I haven’t seen a guy with nose-rings and eyes that bug open like that waiting at the bottom of a waterfall that I jumped off — well, ever — ROFL.”

5. LA Times (USA) – ‘Heroes’ hops on to Habbo’s virtual world. “If you haven’t heard of Habbo, you’re probably older than 16. Among younger teens, Habbo is one of the more popular virtual hangouts on the Web, with about 2.8 million unique U.S. visitors in December, up 110% over a year earlier, according to ComScore. That’s why NBC Universal struck a deal with Habbo’s Finnish developers, Sulake, to drum up interest in the show “Heroes.” NBC is introducing a new spin-off character there named Syn Anders. Though she doesn’t appear on “Heroes” itself, she’ll be Habbo residents’ virtual guide to the series, assigning players with quests and puzzles that mirror the show as it continues into its third season.”

6. Israel21C (Israel) – Getting the kids to save the world. “When was the last time you saved the world? Now, there’s a challenge. Ekoloko, a new, green-themed virtual world not only gives kids a chance to chat and play games, they can also help to save the world from destroying itself. “All of the content is around the environment and social awareness,” says Guy Spira, CEO of Ekoloko. “We feel passionate about the mission. Kids can get involved with the adventures, have a total fun experience and at the same time absorb values and knowledge.”

7. CNET (USA) – Daily Tidbits: $594 million for virtual worlds in ’08. “Virtual Worlds Management, a company that provides research on the growth of online virtual worlds, said $594 million was invested in 63 virtual worlds during 2008. Gaia Online and PlayFish were two of the most prominent recipients of venture funding during the year. That said, investments in virtual worlds declined as the year wore on. In the first quarter of 2008, virtual worlds received $184 million in funding. By the fourth quarter of that year, investments dropped to $101 million. Virtual Worlds Management expects a further decline in funding in virtual worlds during 2009.”

8. TMCnet (USA) – Linden Lab Bolsters Leadership Team. “Linden Lab, creator of the virtual world Second Life, announced the appointments of Brian Michon as Vice President of Core Development and Judy Wade as Vice President of Strategy and Emerging Business. Reporting directly to CEO Mark Kingdon, Michon and Wade join a recently expanded executive team that will help drive Linden Lab to the next level in 2009.”

9. The Industry Standard (USA) – Second Life continues global expansion, but China remains on the back burner. “Linden Lab CEO Mark Kingdon says that growing Second Life’s presence in certain international markets is a strategic goal for the company. However, he said that expansion in the country with one of the world’s largest Internet populations — China — is not a priority. In an interview with the Industry Standard at the company’s San Francisco headquarters, Kingdon described the company’s recent efforts to localize Second Life for residents who do not use English.”

10. WebWorkerDaily (USA) – Conferencing and Market Research Services Get Second Life. “Depending on who you ask, Second Life is either an early pioneer in what promises to be a brave new virtual world of peer-to-peer interaction, rife with business opportunities, or a non-starter that got way too much hype way too early and won’t live up to any of it, no matter how long we wait. I believe my fellow WWD writer Aliza Sherman is very much on the former side of the fence. I’ll only say that Second Life’s rise hasn’t been as meteoric as Twitter’s, for instance, but that I still see potential for it to grow.”

1. VentureBeat (USA) – iMafia, a social game for iPhone with new virtual goods model. “Social games have taken off on networks like Facebook, and now mobile platforms like the iPhone. One of the newest examples is the iMafia game from PlayMesh, which has found a clever way to integrate virtual goods — a challenge for most iPhone apps. Social games like Mob Wars are already hugely popular online. But Charles Ju, co-founder of PlayMesh in San Francisco, believes the time is right to migrate the concept to the iPhone, which is capable of supporting the same features that draw audiences on the web. The result, iMafia, was released on Friday and already ranks No. 88 in the Apple AppStore.”

2. The Industry Standard (USA) – Virtual worlds getting a dose of reality. “Virtual worlds, at least those looking for funding, are meeting the all-too-real world of the worsening economy, according to a new report. Prepared by Virtual Worlds Management, a provider of market research and events related to the virtual worlds industry, the report says investments in 63 virtual-world related companies declined by 58 percent from 2007 to 2008, shrinking from $1.4 billion to $594 million. This year will see more contraction, Joey Seiler, editor of Virtual World News, told The Standard. ”

3. VentureBeat (USA) – Updated: Game and virtual world fundings top $885 million in 2008. “In 2008, VentureBeat chronicled lots of game and virtual world fundings. Our updated list shows 93 game companies that raised more than $885.6 million worth of venture capital and angel funds. That’s nothing compared to the $4.1 billion that went into U.S. deals for clean tech, according to the National Venture Capital Association. But it’s certainly a big chunk of the $2 billion that went into 407 media and entertainment companies in 2008. It’s probably one of the biggest years for venture investment in video game companies. Many of these companies may shut down because of the recession.”

4. BusinessWeek (USA) – Architect Designs Sony’s Virtual World. “Back in July 2007, architect Kenji Ikemoto got an unexpected call from a contact at Sony Computer Entertainment, Sony’s (SNE) video game unit. Was he interested in designing an online virtual world for the company’s PlayStation 3 gaming console? Ikemoto, 37, was intrigued. The founder of Jota Associates had worked on residential and commercial buildings around Tokyo, but had no experience in video games and no clue why Sony would want to hire a real-world architect for such a project. The offer began to make sense when he met with officials at Sony Computer Entertainment’s office: They wanted to create a virtual cityscape rivaling hip areas of Tokyo.”

5. Web Worker Daily (USA) – Enhance Live Events With Virtual Ones. “I’ve talked about live blogging events as a way to enhance and promote a real world event, literally as it is happening. But lately, I’ve been asked to host virtual world events simultaneous to real world events. Mike Gunderloy and I also included planning and hosting virtual events in our 10 More New Ways to Make Money back in August. The virtual events I hosted recently were both held in Second Life. Clearly, Second Life is not dead.”

6. Ars Techica (USA) – New cafe space coming to PlayStation Home. While the original iteration of Home was very light on content, Sony is attempting to remedy that with the addition of more spaces for users to socialize in. Following the release of Red Bull Island, Sony has announced a new cafe space for the virtual world. Unfortunately, it looks to be just as devoid of content as the rest of Home. A batch of screens for the new space were released on the PlayStation.com message boards, which show off the modern looking cafe area. While no details have been released, the early images don’t show much promise for additional activities.”

7. PC World (USA) – Teleconferencing will be Big in 2008, Gartner Says. “Current economic conditions are set to drive uptake of video telepresence in the next three years, with the travel industry losing out, according to Gartner. The analyst firm predicts that high-definition-based video meeting solutions will replace 2.1 million airline seats annually, costing the travel and hospitality industry US$3.5 billion per year. This is one of the firm’s top 10 predictions for the year.”

8. Times of India (India) – Virtual 3D worlds or Web 3.0? “While the world debates over what Web 3.0 could actually comprise, Sudhir Syal explores the virtual 3D World and realises that it could well be a serious contender. It was in the summer of 2004, during a conversation between internet evangelist Tim O Reilly and MediaLive International that the now inescapable term Web 2.0 was first coined. Just after the dotcom bust, Web 2.0 was meant to signify the resurgence of the World Wide Web and it was to reinforce this that the Web 2.0 Summit was first held. ”

9. Scoop (New Zealand) – Virtual Islam: Peace, Love, and Some Understanding. “In these times of rockets and bombs exploding in Israel and the Gaza Strip, Islamophobia alive and well in the homeland, an uptick in anti-Semitism in Europe, a lively Rapture Index, and the economy still in a shambles, it may be worth your while to step away from these realities and enter conversations that haven’t yet gotten as much attention and support as they may deserve. Dozens in Egypt, Morocco, Italy, Portugal, Saudi Arabia, France, and the United States gather to protest the recent attacks in the Gaza Strip; American University in Cairo launches a Virtual Newsroom with James Glassman, the US Undersecretary of State of Public Diplomacy, in conversation with eight Egyptian political bloggers who covered the 2008 US presidential campaign; people from around the world join in a pilgrimage to Mecca and witness a burning synagogue depicting Kristallnacht.”

10. Massively (USA) – Linden Lab arrivals and departures. “The lineup of staff at Second Life virtual environment developer/operator, Linden Lab changes on a month by month basis. There’s been a bit of motion since the last high-profile hire. Judy Wade, formerly Entrepreneur-in-residence at Kapor Enterprises Inc, has been hired as the vice president of Strategy and Emerging Business. That’s the same Kapor as Mitch Kapor who has a seat on the board of directors as the Lab.”