Virtual Worlds Bauhinia July09

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Presentation to "Friends of Bauhinia" on 16th July 2009

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Virtual Worlds Bauhinia July09

  1. 1. IMMERSIVE 3D “VIRTUAL WORLDS” prepared for “Friends of Bauhinia” 16 July 2009, Hong Kong Claus Nehmzow Monday, 20 July 2009 1
  2. 2. 3D “Virtual Worlds” and their applications • Virtual Worlds - What are virtual worlds - Applications in business, education and public sector • Illustration of use for public policy consultation • Technology and Implementation • Costs, benefits, risks © Alcus International Ltd. 2009 Monday, 20 July 2009 2
  3. 3. VIRTUAL WORLDS Monday, 20 July 2009 3
  4. 4. Virtual world: a real-time, shared experience Presence Co-Presence Interactive Anonymous Spatial © Alcus International Ltd. 2009 Monday, 20 July 2009 4
  5. 5. Virtual worlds continue to attract investment and a growing number of consumers • Virtual worlds today have more than 300 million users - ... with 70% younger than 18 - 1 billion users predicted for 2012 • $919 million invested in virtual world companies for 12 month prior Oct ’08 - $1 billion prior to Oct ‘07 (Virtual Worlds Management) • Virtual goods represent a US$1.5 billion market - ... $40 million per month virtual goods traded in Second Life alone Source: KZero, July 2008, Park Associates: Oct ’08, Strategic Analysis, Oct ’08, Virtual Worlds Management, In-Stat, Nov ’08, Virtual Greats © Alcus International Ltd. 2009 Monday, 20 July 2009 5
  6. 6. Age 5 Virtual Worlds Registered Accounts Q4 2008 Utherverse Twinity 2009 Chugginton 15m Second Life 2m Woogiworld Age 30+ Handipoints Age 8 2008 1m HiPiHi Jumpstart GeoSim Amazing Chapatiz Philly Worlds My Animal Family Kidstudio Near 2007 Konstruction Zone Xivio ERepublic Hello Kitty 2m Buildabearville Football 2006 1m Webkinz Superstars Action Allstars Whirled Robot Galaxy Barbie Girls 15m Cyber Webcarzz Town 2005 Poptropica 20m Kidscom 1.5m Chobots Moshi Monsters Cars 1m Age 25 2009 2008 2007 2006 2005 2005 2006 2007 2008 2009 Age 10 Dizzywood MinyanLand Franktown LEGO Universe Mycosm Virtual Tweens 45m Neopets SceneCaster 2m Digital Dollhouse Club PonyPals 2005 Massively Me iheartland Whyville 3m Grockit Activeworlds 1m Planet Cazmo 10Vox Kiwi Heroes Onverse Medikidz Green Vizwoz 2006 SportsBLOX 19m Club Penguin Interzone Oddcast 1.5m ClubCooee Weblin My Mini Life Kaneva Spineworld Black Mamba KooDooZ There 2m 2007 100m vMTV 3m Coke Habbo Vivaty Studio 20m 6m Yoggurt IMVU EGO Faketown goSupermodel vLES sMeet SmallWorlds 2008 Visitoons Home Age 20 vSide WeeWorld Taatu Age 13 7m 24m 13m Muxlim Live or open beta Empire of Meez Gaia 21m Stardoll Sports Lively Launched in Frenzoo 2009 www.kzero.co.uk RocketonOurworld In development/private beta No data shown for worlds under 1m registered accounts. Includes estimates. Copyright K Zero 2008 Closed/closing © Alcus International Ltd. 2009 Permission required prior to republishing Age 15 Monday, 20 July 2009 6
  7. 7. Broadband is big and growing in Asia 175 Asia 157.2 Singapore NZ 4.2 Hong Hong Vietnam 23% 1.5% 150 5.5 Taiwan 24% 6.2 Australia 29% 6.8 India 0.6% Americas 15 Korea 31% 125 Europe 115.4 109.4 Millions of subscribers (non-mobile) 1.5 Chile Argentina 3.4 Mexico Greece 7.7 Ireland 30.6 Japan 24% 100 9.8 Canada 29% Norway Finland 10 Brazil 5% 23.6 Austria Portugal 25% Denmark Switzerland 75 Belgium Sweden Poland 5.9 Netherlands 36% 9.4 Spain 20% 50 83 USA 27% 11.6 Italy 19% 88 China 7% 17.6 U.K. 28% 25 18.3 France 29% 23 Germany 28% ##: broadband subscribers (millions) broadband per 100 people BICV: substantial growth potential? Source: OECD, ITU, Wikipedia, Alcus analysis © Alcus International Ltd. 2009 Monday, 20 July 2009 7
  8. 8. Mobile phone usage in Asia exceeds the rest of the world and is still growing Asia 1,742 1,750 Korea, Bangladesh, Malaysia, Taiwan, 205 Australia, HK, Sri 86% Lanka, Sg, NZ, ... 1,500 68 Philippines 76% 70 Vietnam 79% 79 Thailand 124% 88 Pakistan 53% 1,250 110 Japan 86% 141 Indonesia 60% 1,000 Americas 347 India 29% 744 750 Europe 90 other Latin America 82% 27 Venezuela 96% 537 41 Columbia 89% Millions of Mobiles 47 Argentina 116% 67 other Europe 122% 500 75 Mexico 70% 14 15 Greece Portugal 20 Netherlands 116% 50 Poland 151 Brazil 78% 41 Spain 634 China 47% 58 France 250 76 U.K. 124% 89 Italy 150% 292 USA/CAN 88% 107 Germany 130% mobiles (millions) mobiles per 100 people © Alcus International Ltd. 2009 Source: OECD, ITU, Wikipedia, Alcus analysis Monday, 20 July 2009 8
  9. 9. Private and public sector organizations are using virtual worlds for serious business •recruiting •surgeon training, •training operating theatre •conferences •developer partner network •design collaboration management •b2b marketing •health care seminars •academic education •internal collaboration •conferences •consumer marketing •IT training •cruise missile launch •Internal sales training conferences •recruiting •collaboration •training •Recruiting •b2b marketing, conferences © Alcus International Ltd. 2009 Monday, 20 July 2009 9
  10. 10. Hong Kong: “Frenzoo”, youth fashion world, incubated by Cyberport/SERAP • Teenage girl fashion consumers • Skype founders invested in 2007 • Incubated/based in Hong Kong but global reach 3D Fashion World 3D Avatars Fashion • 1st to market • Proven biz model 30 Million Users • Unique technology 25 Million Users 10 Million Users © Alcus International Ltd. 2009 Monday, 20 July 2009 10
  11. 11. Singapore is aggressively investing in building 3D virtual world capabilities • Singapore Issues Tender For Youth Olympics Aug 2010, Educational Virtual World • Interactive, user generated content, games/activities • Extensible beyond games • Part of a larger investment fund Source: Virtual World news, Singapore government RFP, March 2009 © Alcus International Ltd. 2009 Monday, 20 July 2009 11
  12. 12. Obama used virtual worlds to encourage live (!) discussions of his Ghana speech • Broadcasted into Second Life and Metaplace • Avatars gather to watch and discuss • Virtual panelists: musician and activist, D.N.A.,, Ambassador Kenton Keith, and African historian Professor Tim Burke. • Embedded into Facebook, Twitter, digg, etc. © Alcus International Ltd. 2009 Source: Draxtor Despres, Rikomatik.com, July 2009 Monday, 20 July 2009 12
  13. 13. Cigna has launched a virtual healthcare pilot, integrating web... • Custom brand experience • Registration easy and simple • Consistent branding, visual language, graphic design • Circular, extensible design • Emphasis on human interaction © Alcus International Ltd. 2009 Monday, 20 July 2009 13
  14. 14. ... virtual seminar, social community, interactive learning, and games Source: Cigna, vielife © Alcus International Ltd. 2009 Monday, 20 July 2009 14
  15. 15. IBM, Intel, Sony, Lenovo, Sun are using virtual worlds for sales & training • IBM - $320,000 savings on $80k inv. - >200 participants • Sony Electronics - replaced 15 city tour - 50% savings • Lenovo - training 15-20% of sales force - from 25 to 40% conversion • Intel - $265,000 savings on 35k inv. - 150 participants Source: Nortel, ThinkBalm, VentureBeat, January 2009, BM/Linden Lab case study, March 2009 © Alcus International Ltd. 2008 Monday, 20 July 2009 15
  16. 16. POTENTIAL USE FOR PUBLIC CONSULTATION Monday, 20 July 2009 16
  17. 17. Today’s public consultation example: West Kowloon redevelopment • Website, online “discussion” boards, “multi-media” • Low res pictures of small models • Discussion events in Hong Kong venues © Alcus International Ltd. 2009 Monday, 20 July 2009 17
  18. 18. Website and discussion forums: one way communication, some dialogue © Alcus International Ltd. 2009 Monday, 20 July 2009 18
  19. 19. “Multi-Media”: pictures of officials © Alcus International Ltd. 2009 Monday, 20 July 2009 19
  20. 20. Pictures: poorly representing the true future experience © Alcus International Ltd. 2009 Monday, 20 July 2009 20
  21. 21. Live discussions in Hong Kong venues © Alcus International Ltd. 2009 Monday, 20 July 2009 21
  22. 22. Future consultation including a virtual world • Real-time dialogue between officials and citizens, “embedded” in relevant media • Experience in midst of a much more realistic simulated environment • Easily accessible: young people, handicapped • Contest and competitions possible • International reach © Alcus International Ltd. 2009 Monday, 20 July 2009 22
  23. 23. TECHNOLOGY AND IMPLEMENTATION Monday, 20 July 2009 23
  24. 24. There are multiple technical platforms out there to support business virtual worlds • “Second Life” by Linden Lab (Public, TeenGrid, “Nebraska”) • “Olive” by Forterra • Open Sim, open source • “Wonderland” by Sun, open source • “Lucid” by HK Polytechnic University • Protosphere • Qwaq • Game engine combinations, eg Unity • others © Alcus International Ltd. 2009 Monday, 20 July 2009 24
  25. 25. A virtual world experience should be integrated into wider “Web 2.0”(PC & mobile) Virtual World © Alcus International Ltd. 2009 Monday, 20 July 2009 25
  26. 26. COSTS, BENEFITS, RISKS Monday, 20 July 2009 26
  27. 27. Cost varies widely, but one can start small • Cost components include - Design & implementation - Software licenses, hardware hosting - Web and other integration • Easily extended and scaled, starting with prototypes and pilots and scaling up to full production systems © Alcus International Ltd. 2009 Monday, 20 July 2009 27
  28. 28. Risks are both real and perceived • Monitor and censor transient, real-time verbal “content”/ conversations • Too much openness • Security © Alcus International Ltd. 2009 Monday, 20 July 2009 28
  29. 29. Business usage increases significantly, mostly for training, meetings, conferences ~30%: US$50k to <1mio • Business users expect significant economic value in 2009 (based on previous success experience) • Immersive meetings, internal and external, training Source: ThinkBalm Immersive Internet Business Value Study, Q2 2009 © Alcus International Ltd. 2009 Monday, 20 July 2009 29
  30. 30. Benefits stem from cost savings, broader marketing reach, and higher effectiveness • Cost savings: reduced travel and time savings, no need for physical venues • Better reach: “Generation Y” • Effectiveness: better results through virtual world characteristics • Other benefits include - inclusiveness - health benefits, risk mitigation © Alcus International Ltd. 2009 Monday, 20 July 2009 30

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