SSE VW Pestel Group3

Virtual World Industry, PESTEL Model Analysis - Focused on Economic Element Group3, January 2009 Yi Xiong [email_address] Qifeng Pan [email_address] Muhammad Faraz Khan [email_address] Jae Won Jung [email_address]

Outline

Virtual World Industry Overview

What is virtual world?

What does virtual world consist of?

Development of virtual world

PESTEL Model Analysis – Focused on Economic

World GDP trend

International trade

Inflation

Global outlook

Future Trend

Virtual World Industry

PESTEL Model Analysis

– Focused on Economic

Future Trend

1 2 3

Industry Overview

What is virtual world?

A virtual world is an interactive simulated environment accessed by multiple users through an online interface.

see more: http://www.youtube.com/watch?v=wMOqI3hH9Gs

(Virtual World Tour 2008)

What does virtual world industry consist of?

- Massively Multiplayer Online Games(MMOGs), eg Warcraft, CS ect

- Online Communities (eg, chatrooms, forums)

- Corporation Application (collaboration, traning, employee ‘on board’ , brand building)

- Education Application (training)

http://www.virtualworldsreview.com/ , Source: Christian & Sean 2008

The First Age The Second Age The Third Age The Fourth Age

1978 - 1985

Multi- User Dungeons (Text-base) built by initial inventors

1985 - 1989

Multi- User Dungeons (Text base) built by enthusiast users and amateur developers. Foreshadows of user-created-content

1989 - 1995

MUDs with scripting languages and birth of Object Oriented MUDs (MOOs)

1995 – 1997

Emergence of online dial-up services as mainstream vehicles for MUDs

Source: Christian & Sean 2008 Industry Overview The Fifth Age

1997 – now

Graphical worlds move from multiplayer to massivelymultiplayer online games

emergence of social and serious use of virtual world

technologies beyond game-focused applications

Industry Overview Virtual World Venture Activities, July 2007 to July 2008 Over one billion dollars were spent by the venture community on startups directly within or supporting virtual worlds between August 2007 and August 2008

Future Trend

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PESTEL Model Analysis Johnson & Scholes 1997 Politics and government Environment Technology Legal structure Social and Demographic structure International/ national economy Industry environment

World GDP Growth Trend

PESTEL Model Analysis Source: World Bank, Global Economic Prospects 2009 From World Bank indicate: The real GDP will go down to 0.9 in 2009 and 3.0 in 2010

Developed Countries GDP Growth Trend

PESTEL Model Analysis Source: World Bank, Global Economic Prospects 2009 GDP went down from Q3 and Q4, 2008 in developed countries

World GDP Growth Trend

PESTEL Model Analysis Source: World Bank, Global Economic Prospects 2009 Beside the economic depression, slow population growth is another reason for the weaker GDP

International Trade

PESTEL Model Analysis Source: World Bank, Global Economic Prospects 2009 First decline occur since 1982

PESTEL Model Analysis Source: World Bank, Global Economic Prospects 2009

Future Trend

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Future Trend Strategy Analytics has released a report claiming that by 2017, there will be nearly ONE BILLION virtual world registrants, with 22% of global broadband users having signed up for one or more virtual worlds Source: The Virtual Economic Forum

Investment in virtual world industry will slow down in the coming year

Virtual world investment goes to youth market

The training and education market will continue to drive widespread adoption of virtual world technology, as the broad experimentation within Second Life demonstrates