The Watch – virtual worlds in the news

1. Globe and Mail (Canada) – For God’s sake, get a Second Life (or not). “Lois King has an avatar. Her avatar is a tall, shapely blonde who lives in a virtual world called Second Life. She wears a snappy business suit, which is appropriate because she teaches serious courses in finance at York University in Toronto. She teaches traditional classroom courses, as well as distance courses on the Internet.

2. Law.com (USA) – Intellectual Property in Virtual Worlds. “It is not surprising that copyright and trademark issues arise frequently in virtual worlds, given the fact that they are products of copyrightable software code and thus by their very nature implicate intellectual property analysis. Additionally, MMORPGs, such as Second Life and WoW, have developed marketplaces for the sale and barter of virtual goods for real money or virtual money that may later be converted to real money. As in any marketplace, there is also a need to identify the source of virtual goods, especially in virtual worlds such as Second Life, which allows its users to generate their own virtual content and retain intellectual property rights in the content they create. “Second Life Residents To Own Digital Creations,” Nov. 14, 2003; Second Life Terms of Service §3.2. Some entrepreneurs in Second Life have applied to the U.S. Patent and Trademark Office for registration of their avatars (the user-created character representation of the virtual world participant in the virtual environment) and other marks for their virtual businesses.”

3. Virtual Worlds News (USA) – In Virtual Worlds, Games, $400M Will be Spent on Virtual Goods. “Viximo founder Brian Balfour states that Americans will spend between $400 and $600 million on virtual goods in 2009, as reported by the San Francisco Business Times. Balfour states that US spending on virtual goods was roughly half that in 2008, in the $200 to $300 million range, and between $25 and $50 million in 2007. Balfour values the global market for virtual goods in 2009 at $5.5 billion, an estimate consistent with Plus Eight Star’s evaluation of the virtual goods market in Asia alone at $5 billion.”

4. VentureBeat (USA) – Roblox raises $2.3M to help kids build casual games. “Roblox, a casual games and virtual world site aimed at children, has raised about $2.3 million in a first round of funding, according to a regulatory filing. It looks like Roblox allows users to create free games using building blocks that look kind of like Legos, though the site emphasizes that the Redwood City, Calif., company is not affiliated with Lego or similar products. The Roblox site also says the product is still in early alpha testing and describes it as “straddling several rapidly-developing aspects of internet entertainment: virtual worlds, casual gaming, and user-constructed content.”

5. Kotaku (USA) – IRS: Second Life Saves Taxpayers Millions. “he Internal Revenue Service isn’t all about taking your money. It’s also about saving you money by foregoing NASCAR sponsorships in favor of a virtual presence in Second Life. See, instead of spending millions of dollars on recruitment advertising no one will actually see, the IRS instead spent thousands of dollars to create an IRS Careers Island in Second Life which no one will actually see. That’s much cheaper! I actually visited the island as soon as I heard about this, and one can definitely see how they saved millions. It’s a bunch of booths with clickable information signs, and a couple of lounges with some very pretty penguin clip art that must have cost them a small fortune to secure. Frank Stipe, Virtual Worlds & Social Networking Project Manager for the IRS, explains why the IRS needs a Virtual Worlds & Social Networking Project Manager.”

6. Internet Evolution (USA) – Designer Fights for Second Life Rights. “When Gospel Voom was approached by a client to recreate a highly detailed, three-dimensional section of the famed French Quarter in New Orleans for use in the virtual online community of Second Life, I’m sure the last thing on his mind was that he would end up fighting a battle to protect his intellectual property rights. Voom (his chosen Second Life name), is a London-based industrial designer in real life with over 14 years of professional experience, who has developed, among other things, a variety of projects for universities and businesses in Second Life. So it was as a real-life businessman that he was careful to communicate the terms of his commission with his client, on more than one occasion, to ensure he would retain and protect his creative rights and credit.”

7. CNET (USA) – Dell nurtures a virtual life for youngsters. “Dell has partnered with Nickelodeon and Whyville.net to give life to its latest version of the Mini10v. According to Dell, the kids’ Netbook has been designed with safe computing, education, and entertainment in mind. At a glance, Dell is only trying to reach another market (children), but if you look a little closer, the Netbook may represent a change in the way the next generation of preteens and children will learn to socialize and develop their decision-making skills. The Netbook comes with desktop animations which link to Whyville.net, a virtual world where kids of all ages chat, shop, and visit places in town that engage them in science, nutrition, art, and business activities.”

8. eMarketer (USA) – Virtual Goods Mean Real Dollars. “Virtual goods represent one of the strongest ways that marketers and retailers can get involved with virtual worlds, and their popularity in social networks has increased with the opening up of the Facebook platform. For example, fashion marketers and retailers have offered virtual versions of current in-store clothing, along with links to buy the items in real life, on sites such as Stardoll. Branded items are also available to decorate social network profile pages or to send to friends.”

9. iTWire (Australia) – Australia bans another game. “Another one bites the dust, this time the role playing game (RPG) Risen has fallen on the bad side of the Australian Classification Board due to chatting up prostitutes and smoking imaginary drugs. It is comforting that our government is looking after us so well, protecting the adult populace from the evils of virtual worlds. This time the game in the Classification Board’s sites is the multiplatform title Risen, a typical sword and sorcery role play game from developer Pirhana Bytes, makers of the well received Gothic series.”

10. Portfolio.com (USA) – The Virtues of Virtual. “Surging online sales of digital goods — everything from digital pets to “currency” for online game-playing to virtual roses for a love interest — is driving growth and reshaping business plans among Internet companies small and large, particularly around video gaming, offering new revenue streams as web advertising rates have fallen. The trend is fueling growth and innovation among game publishers, dating sites, advertising agencies, payment processing companies and purveyors of industry analytics. For now, the mac daddy of North American virtual goods is Zynga, the Potrero Hill, California, online social gaming company founded in 2007, which gets two-thirds of its projected $100 million-plus annual revenue selling virtual goods ranging from digital farm buildings to poker chips.”

Linden Lab founder and CEO give a glimpse of Second life’s future

mlindenDaniel Voyager has tweeted the keynotes from M and Philip Linden at SLCC 2009. You can view M Linden’s 104 presentation slides here.

Key tweets from Daniel that interested me in particular were:

1. Philip Linden

There will be lots of change. The prairie where we are now can become New York City

Hmm, interesting perspective. Some people actually like living on the prairies – this has the smell of progress at expense of lifestyle all around it. I do see the point but it’s an unfortunate metaphor.

Things are changing extremely rapidly and the impact will be revolutionary not evolutionary

Extremely common corporate speak that pretty much says the same thing as the first point.

Try and understand we’re at the very beginning, we’re going to have to weather tremendous change

See points one and two above – I’m waiting for the ‘duck and cover’ lecture.

We are at the very beginning. We’ll not like all the changes. It is inevitable. Try to work with us, let go a bit

I get the picture Philip, I really do. How about some vision behind the revolution warning system? To be fair, I’m sure he said a lot more than what Daniel was able to Tweet, but there’s still a lot of ‘worlds in crisis’ talk.

To scale large, we need: More decentraliztion of services. But we have “right napkin drawings”

I’m giving the benefit of the doubt on this one, assuming he means the bright, radically changed future in store. If he meant that the ongoing organic growth of Second Life is still reliant on good ‘napkin drawings’, then I hope some people at SLCC in person threw things.

2. M Linden

We’re coming out of the trough of disillusionment. In the middle of a top to bottom renovation

The Trough of Disillusionment – that has to be a movie or album title if it isn’t already. Snap it up while you can! Or was it the title of the focus group report after the introduction of Jar Jar Binks into the Star Wars franchise?

We’re at SL 1.0 heading to 2.0. We probaly need to get to 10.0 for billion users

Hard to argue with this. That said, I think the game will have changed so irretrievably in the next few years that the idea of Second Life having a billion users may be just a little fanciful in what’s likely to be one big field of competitors,

SL will bring more of the web into second life and more of second life into the web

Absolutely – it’ll be how embeddable Second Life is that really determines its ongoing success.

Overall, there’s not a lot surprising in the details: you’d expect a CEO and Board member to cite the need for ongoing good growth, a commitment to innovation and an upbeat assessment on the future. With the cynicism meter lowered a little, it’s fair to say M Linden has overseen some improvements in the usability and stability of Second Life. Add to that the ongoing good growth in the number of residents and the overall economy and it seems the revolution may happen. Whether it’s a bloodless one is yet to be seen.

Weekend Whimsy

1. California Legacy in SL – Episode 4: Dickens in Camp by Bret Harte

2. Second Life Tribute To RichGirl Starring Oceanna Gable,Neveah Niu, MentalKoas Akina, Evalucia Smalls

3. Second Life- Ice Caverns Gallery – August / September – 2009

VastPark ‘vs’ Second Life: is it really a contest?

vastpark Serge Soudoplatoff is a French entrepreneur and VastPark investor I had the opportunity of spending a morning with on his recent Australian visit. He has written an interesting piece comparing Second Life and VastPark from an IT architecture viewpoint. There’s not a lot to disagree with, but I do wonder whether VastPark is going to gain the momentum it needs to ensure its arguably superior architecture gets the widespread adoption it may deserve.

It’s an increasingly aging comparison, but it’s like the VHS vs Beta days – in the end it comes down to popularity and in that respect, VastPark currently isn’t in the game when compared to Second Life. The test for the underdog is to secure that first big win in market share – it’s a strategy I have no doubt is being explored by VastPark in parallel with the very methodical approach to development displayed over recent years. Not that it should be a linear competition: it’s the ability for any company to offer a highly interoperable platform that’s likely to have ongoing success.

Additionally, I don’t believe VastPark see themselves in the ‘keeper of the world’ role that Linden Lab occupies. In that respect, Metaplace is probably a better comparison, with the end-user purchasing a world and using the supplied tools and plugins to create. Second Life certainly has content creation at its core, but Linden Lab also run the ‘government’ and economy, with the myriad of ramifications that has. VastPark will no doubt have it’s own terms of service, but I’d be surprised if they don’t have a different focus than Linden Lab’s.

Without wanting to sound like a fence-sitter, both VastPark and Second Life have incredible things to offer. Hopefully both will provide key components for an ever-improving virtual worlds experience. The only certainty is that neither will do it on their own.

Brands under the hammer in Second Life

smolinaro-aug2009 The Second Life blogosphere is igniting with the news that the listing guidelines for Second Life’s marketplace, xStreetSL, have been tightened up.

Essentially, it’s now prohibited to sell any virtual goods that resemble a real-world brand. That’s no shock and probably reasonable. The contention is over the ban on avatars that resemble actual celebrities. It’s a pretty silly ruling that’ll be essentially unenforceable outside of the xStreetSL website. Admittedly, protecting brands is a balancing act for any company, but this appears to be an over-protective move.

Let me throw out another conundrum likely to occur in the future as a result of this decision. Let’s say an avatar becomes a celebrity in its own right. Its shape, clothing and skin may have been created from scratch or different aspects purchased from vendors. Could said avatar argue they are now a brand and prevent people creating avatars that resemble them? Avatars-as-brands well and truly exist now – it’s the policy developments like these that continue to push well beyond the traditional boundaries of intellectual property law. It’s going to take some serious legislative work in the medium term to create some solid ground under virtual world content creators.

The Watch – virtual worlds in the news

1. Abeceder (UK) – Virtual world experiences increases racial bias. “They say you should walk a mile in a person’s shoes before judging them. Virtual reality technology offers this possibility by allowing us to control a digital representation of another person. Unfortunately, the first ever investigation of racial perspective-taking in an immersive virtual environment has found that assuming a different racial identity leads to increased racial bias, not less. Victoria Groom and colleagues invited 98 participants, half of whom were of White ethnicity, to view a photograph of either a Black or White person of the same gender as themselves, and to imagine they were that person. Next the participants donned a virtual reality headset which transported them to an empty room where they were interviewed for a job, still playing the role of that other person. Crucially, half the participants could see their new identity in a mirror in the virtual room, and as they answered some introductory questions they spent at least a minute observing their adopted selves in the mirror.”

2. Virtual Worlds News (USA) – Weblin Closes, Users Transitioned to Club Cooee. “Layered virtual world Weblin is ceasing operations, according to a company newsletter sent to registered users today. Media reports attribute the closure to a lack of funds. Weblin users are being invited to transition Club Cooee, a site run by the former Weblin principals Jan Andresen and Christine Stumpf.”

3. Escapist Magazine (USA) – Virtual Worlds and MMORPGs: The Best and Worst of Humanity. “The three years Juan Carlos Piñeiro Escoriaza spent making his MMORPG documentary Second Skin were a bit of a wild ride, as he saw how much good these worlds could do for people, and just how badly they could spiral out of control. Juan Carlos Piñeiro Escoriaza was a life-long console gamer until a friend introduced him to the MMOG space via SOE’s Star Wars Galaxies. Though Escoriaza would eventually quit SWG due to the time investment, the experience – and the idea of real people choosing to take on virtual responsibilities – stuck with him. The seeds from that eventually blossomed into his feature-film documentary, Second Skin, which premieres tonight.”

4. Newsweek (USA) – The Sound of One Hand Clicking. “Luis Figueroa lives down the street from UC Merced, the newest campus in the University of California system. So it’s not surprising that the 21-year-old studies from the comfort of his own home. But he’s not enrolled at Merced: from his living-room computer, Figueroa is earning his bachelor’s degree in business administration at Columbia College in Missouri, some 2,000 miles away. At $630 per course—about $1,800 per semester—his online degree will cost far less than even in-state tuition at UC. Not only that, Figueroa is able to continue working full time in a management-training job with AT&T in Merced, a job he feels lucky to have in the current economic climate. “Once I realized I had time constraints, I knew the traditional classroom wouldn’t work,” he says. “Courses online are open 24 hours a day, and I’m able to go there any time I want.”

5. PSFK (USA) – Digital Immortality and Death 2.0. “Without coming across as too macabre and curmudgeonly, we’ll simply say that with dawn of the internet, the business of death has gotten a lot more complicated these days. Consider that wills once existed for the sole purpose of ceding ownership of physical objects, and quests for immortality – things like cryonics, transhumanism, fountains of youth and religion (ahem) – remained firmly planted in the realms of fantasy, but as the lines between our real and digital worlds continue to blur, these customs have changed. The things we leave behind, from virtual businesses to entire online lives, now have an immaterial existence and longevity all their own.”

6. CNET (USA) – Second Life for returning veterans. “Veterans are often reluctant to seek therapy for service-related conditions, but rather than write them off, scientists are creating a virtual online community where servicemembers can find the camaraderie and resources to ease their return to civilian life. The “Transitional Online Post-deployment Soldier Support in Virtual Worlds” created by the University of Southern California’s Institute for Creative Technologies (ICT) will be ensconced within a corner of the virtual landscape of Second Life, a popular online 3D grid where people interact through avatars (PDF). Also known as Coming Home, this world will contain three main areas: one for social activities, one for competitive and collaborative gaming, and one for resources. The resources area will be staffed by artificial intelligence-driven virtual characters available 24-7 to steer veterans to the appropriate support and therapies.”

7. Times Online (UK) – The top seven social networking sites for kids. “How do you know when a social networking site isn’t cool anymore? The day that your dad joins up. A new study has found that young people are turning their backs on sites such as Facebook and Twitter. Meanwhile, the number of 35 to 54-year-olds using such sites has rocketed by 25 per cent in the last year. So what can you do if you don’t want to be poked by your mum or added by your gran? Here’s a round up of the coolest sites and virtual worlds for children – just make sure you hide this page from your parents.”

8. Mass High Tech (USA) – Viximo seeks to turn virtual goods into real profit. “It’s hard enough for online retailers to get consumers to spend money on real goods and services — but one Cambridge company is betting that sites will want to get into the business of selling virtual goods. Venture-backed Virtual Goods Market Inc., which does business as Viximo, provides a white-label virtual goods store with gifts and personal accessories designed to complement online identities and messages. When Viximo launched in 2007, the company’s founders thought publishers of virtual worlds like Second Life and massively multiplayer online role-playing games would be among its core customers, said co-founder Brian Balfou.”

9. IGN (USA) – Artificial Emotions at Gamescom 2009. “The future of computer games in all facets awaits visitors at the trade show “gamescom 2009″. Held in Cologne for the first time, Europes leading games industry gathering draws not only the interested public, but first and foremost, experts and professionals from across the globe. At the Artificial Technology GmbH booth (Hall 4.2, Booth K27) the heads of the company, Frank Gwosdz, Serein Pfeiffer and Daniel Renner, will shed light on the inner workings of EKI One 2.0, their new full-version modular middleware for emotional and artificial intelligence. ”

10. Wired (UK) – Does a healthy virtual life mean a healthy real life? “pparently having a slim avatar encourages Second Lifers to get healthier in real life. Researchers at RTI International have published a report in the Journal of Virtual Worlds Research, which reveals that a healthy virtual life can impact attitudes towards fitness in real life. The team interviewed 29 Second Life residents. According to Science Daily: “Half the participants were interviewed by a thin avatar and half the participants were interviewed by an obese avatar.” They were then quizzed about their levels of physical activity both in the virtual and real worlds. “

Weekend Whimsy

1. Munich in Second Life

2.The Phoenix Embers Showcats (Second Life)

3. Second Life Tribute to Where the hell is Matt

Beautiful Kate – behind the scenes glimpses

As I’ve mentioned before, the Australian film Beautiful Kate sees its full Australian launch today, with other localities to follow soon.

To coincide with this, I’ve created a short machinima showing a glimpse of the scene in which Second Life is featured and some other stills of the process that led to the final product:

International release details will be posted as soon as they become available. Those who live near Toronto Canada can view it at the Toronto International Film Festival in September.

For the Second Life related details, read on here.

Merged realities – events and issues for virtual worlds

sl-fun 1. The US Department of Defense continues its exploration of virtual worlds as a support mechanism for troops.

2. Tateru Nino has an excellent piece on the recently published anthropological study of Linden Lab by Thomas Malaby. Our copy arrived in the past few days and we’ll have more on it in the near future.

3. Twinity’s Virtual Singapore is launching on the 9th August:

Twinity extends a warm welcome to pioneering virtual Singapore residents from around the world. Prime retail and residential real estate is now available, so claiming your stake in virtual Singapore has never been easier. Explore the city, locate the perfect apartment, and make yourself at home.

Virtual Singapore is also open for business and the commercial opportunities are endless. Set up shop in a premium neighborhood or open a gallery, music venue, bar or restaurant. Show your allegiance to Singapore and welcome Twinizens from other parts of the virtual world to your home city.

4. Pooky Amsterdam has an interesting treatise on reasons to use Second Life as a media platform.

The Watch – virtual worlds in the news

1. InformationWeek (USA) – 1 In 10 Internet Users Buys Virtual Goods. “Virtual weapons, Facebook favors and other forms of digital currency are a growing market, according to a survey released Thursday, with 12 percent of Americans saying they spent real money on these items in the last year.
The heaviest buyers of these objects — which are bought over the Internet and exchanged through online games, social networks, and virtual worlds such as Second Life — appear to be young and middle-aged women ages 12 to 44, although they were also purchased by young men.”

2. The Guardian (UK) – Virtual worlds are getting a second life. “We haven’t heard much recently about so-called virtual worlds such as Second Life, in which you move around with your own avatar. Critics must be hoping they have disappeared up their own ether. Actually, they are booming. The consultancy kzero.co.uk reports that membership of virtual worlds grew by 39% in the second quarter of 2009 to an estimated 579 million. Not all these members are active but I can’t think of anything, anywhere, that has grown so fast in the recession this side of Goldman Sachs bonuses.”

3. Hypergrid Business (Hong Kong) – Copyright in virtual worlds. “As the virtual worlds grow and develop — and evolve into the next 3D Web — the issue of copyright is being debated again. In some ways, virtual worlds copyrights may require changes in the way we think of and use copyrights. But, in most respects, virtual worlds copyrights are no different than the copyrights we currently have today. For example, today, if a content producer makes an original work and sells to a buyer, then, by default, what is sold is single-time use only.”

4. PBS (USA) – Virtual Worlds Show Promise for Newspaper Communities. “In my previous post, I talked about the browser-based virtual environment Metaplace, which I think may provide a way to boost interaction with our community on newspaper website Mediafin. To test how well virtual worlds could be used to build a community, I undertook some experiments in organizing “conferences” in worlds like Metaplace and Second Life. And the results turned out to be quite promising. How can we at newspaper websites experiment with new media without upsetting the community or — possibly even more — our colleagues? Virtual environments are not yet universally accepted as useful for newspaper communities, so the question of how to introduce community and colleagues to these spaces is especially pertinent.”

5. The Globe and Mail (Canada) – Avatars come alive in workplace. “Avatars will become the big buzz this year, thanks to director James Cameron’s pending flick of the same name. They’ve been all the rage among video gamers for years. Now they’re also sprouting up in the workplace, and experts predict they will emerge as a key trend in the coming years. For puzzled employers and perplexed employees, what’s the sense of using a digital person rather than a real one?”

6. Singularity Hub (USA) – Haptics Unleashes Virtual Reality and Telepresence Revolution – Awesome Vids. “Whoah! Prepare to be blown away with this post! Here at the Hub one of the things that we are all about is the coming merger of the physical world with the virtual world. Programmable matter, moving beyond the outdated mouse and keyboard interface model, immersive environments, and so on. Now we are here to tell you about a seriously game changing technology that is absolutely busting apart the traditional barrier between the physical and virtual worlds. Its called haptics, and if you haven’t heard about it yet then read on and prepare to be thrilled.”

7. San Jose Mercury News (USA) – Stanford’s virtual reality experiments transport knowledge to new vistas. “Even as it gained acceptance on college campuses during the 1990s, “virtual reality” could never quite escape having just a whiff of junk science. The graphics created for early virtual worlds were so clunky and slow they conjured up bad LSD trips. Giant helmets immersed subjects in fantastical environments far more virtual than real. It was like conducting a seance in a hat. “Until five or six years ago,” says Jeremy Bailenson, director of the Virtual Human Interaction Lab at Stanford, “when I told people what I did for a living, they laughed.”

8. ReadWriteWeb (USA) – How To: Use Virtual Worlds for Business. “Despite the hype, only 11% of enterprises have adopted virtual worlds to augment their work, says a new report by Forrester. Virtual worlds have been around since about 1995, but it took businesses half a decade to realize the potential value within the enterprise. But the research released this week isn’t just an outline of the market: it’s a how-to guide for doing business in a computer-generated universe. Vendors may not have done a very good job of marketing themselves to the enterprise to date, but there’s still a huge opportunity for your company to get virtual, if you know how.”

9. Xinhua (China) – Virtual reality – a new world awaits… “Virtual reality is no longer a concept of the future, innovative 3-D technology can now transform a desktop computer into an interactive world of adventure, fashion, fun and entertainment. Using the Internet as an entry platform, the new technology is blurring the lines of the real and virtual worlds. In contrast to a traditional two-dimensional interface, the 3-D environment provides a completely immersive and highly social world, enabling access to people and places that would be virtually impossible in the real world. Through the use to avatars, a virtual replica of yourself, or whoever you want to be, life can literally take on new dimensions in cyberspace.”

10. Virtual Worlds News (USA) – Augmented Reality To Get iPhone Push. “ugmented reality is quickly gaining a foothold among entertainment brands. In the last few days, Mattel’s foray into augmented reality, with its upcoming Avatar line of action figures, has resulted in a wave of coverage. Now, iPhone developers are coming out of the woodwork with uses that coincide with the September release of version 3.1 of the iPhone software. The new iPhone software, and the subsequent listing in AR-enhanced applications in the App Store, will mark a turning point. Some dozen or so companies, according to reports, are gearing up for the day. And just yesterday, according to AppleInsider, Apple provided iPhone developers with a third beta of iPhone 3.1 software.”

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