This document discusses Second Life, a virtual world where users interact through avatars. It is used for social and entertainment experiences like concerts and art, as well as shopping and education. Users can buy land, items, and currency with real money. While initially costly to develop, Second Life has few limits on the number of users and benefits from network effects. It faces competition from other virtual worlds and games but differs in allowing open-ended customization.
This document discusses massively multiplayer online role-playing games (MMORPGs) and virtual worlds as part of digital society. It notes that MMORPGs like World of Warcraft have millions of subscribers and the gaming industry is economically significant. However, digital society raises issues around regulation, privacy, and legislation. These spaces are primarily governed by end user license agreements that users must accept in order to play but are one-sided contracts that exert the developer's bargaining power. While users can create content, the EULAs state they have no intellectual property rights over their in-game creations. The document argues that EULA-based governance is inadequate and "wrong law" for virtual worlds and MMORPGs
The document discusses the evolution of location-based social apps from early check-in apps like Foursquare to current apps focused on social discovery and connecting people locally through shared context and meaningful experiences. It notes that while check-ins were once prevalent, apps are now focusing on proximity-based recommendations and delivering location-specific multimedia content to provide more context and build stronger communities. The document concludes that future social, mobile, and local technologies will focus more on niche interests and creating affiliation through shared local context.
The document summarizes a virtual workshop on using virtual worlds like Second Life for law librarianship. Over 100 people signed up for an intro webinar and around 25 participated in the in-world workshop. Participants created displays and presentations in Second Life, with topics like networking, education and outreach. Lessons learned included that everything takes more time than expected in Second Life, and it has strengths for events but weaknesses for accessing collections compared to the web.
The document discusses the history and evolution of the web, web 2.0, and virtual worlds. It outlines key developments like the first web server in 1990, the rise of blogs and wikis as examples of web 2.0, and early virtual worlds from the 1970s like MUDs and MOOs. It also provides statistics on usage of virtual worlds like Second Life, noting over 4 million user accounts and typical concurrent users of over 20,000.
A definition of virtual world asset classes, the virtual worlds ecosystem and the attendant accounting, valuation, taxation and legal issues that arise in virtual world economics.
Audio: http://feeds.feedburner.com/BroaderPerspectivePodcast
Virtual worlds like Second Life and World of Warcraft have grown hugely popular, with millions of active users each month. These worlds allow users to create avatars and interact in virtual environments. Some brands have experimented with marketing in these worlds, with varying degrees of success. Researchers have also used virtual worlds to study real-world problems like epidemic spread. While still in their infancy, virtual worlds could eventually become a mainstream form of digital communication, so some marketers recommend experimenting respectfully to understand user behaviors.
An overview of the strengths and weaknesses of Second Life, with particular reference to its use in education.
This presentation was used to support lunchtime seminars for IT staff in Bath and Manchester, UK.
This document discusses massively multiplayer online role-playing games (MMORPGs) and virtual worlds as part of digital society. It notes that MMORPGs like World of Warcraft have millions of subscribers and the gaming industry is economically significant. However, digital society raises issues around regulation, privacy, and legislation. These spaces are primarily governed by end user license agreements that users must accept in order to play but are one-sided contracts that exert the developer's bargaining power. While users can create content, the EULAs state they have no intellectual property rights over their in-game creations. The document argues that EULA-based governance is inadequate and "wrong law" for virtual worlds and MMORPGs
The document discusses the evolution of location-based social apps from early check-in apps like Foursquare to current apps focused on social discovery and connecting people locally through shared context and meaningful experiences. It notes that while check-ins were once prevalent, apps are now focusing on proximity-based recommendations and delivering location-specific multimedia content to provide more context and build stronger communities. The document concludes that future social, mobile, and local technologies will focus more on niche interests and creating affiliation through shared local context.
The document summarizes a virtual workshop on using virtual worlds like Second Life for law librarianship. Over 100 people signed up for an intro webinar and around 25 participated in the in-world workshop. Participants created displays and presentations in Second Life, with topics like networking, education and outreach. Lessons learned included that everything takes more time than expected in Second Life, and it has strengths for events but weaknesses for accessing collections compared to the web.
The document discusses the history and evolution of the web, web 2.0, and virtual worlds. It outlines key developments like the first web server in 1990, the rise of blogs and wikis as examples of web 2.0, and early virtual worlds from the 1970s like MUDs and MOOs. It also provides statistics on usage of virtual worlds like Second Life, noting over 4 million user accounts and typical concurrent users of over 20,000.
A definition of virtual world asset classes, the virtual worlds ecosystem and the attendant accounting, valuation, taxation and legal issues that arise in virtual world economics.
Audio: http://feeds.feedburner.com/BroaderPerspectivePodcast
Virtual worlds like Second Life and World of Warcraft have grown hugely popular, with millions of active users each month. These worlds allow users to create avatars and interact in virtual environments. Some brands have experimented with marketing in these worlds, with varying degrees of success. Researchers have also used virtual worlds to study real-world problems like epidemic spread. While still in their infancy, virtual worlds could eventually become a mainstream form of digital communication, so some marketers recommend experimenting respectfully to understand user behaviors.
An overview of the strengths and weaknesses of Second Life, with particular reference to its use in education.
This presentation was used to support lunchtime seminars for IT staff in Bath and Manchester, UK.
This document summarizes the growth and commercial uses of virtual worlds. It notes that virtual worlds like Second Life allow users to create content and sell virtual goods, with some users earning real-world income. Many large companies have used virtual worlds for marketing, though some have left. The document also discusses regulatory issues around virtual world economies and property rights.
Challenges and Oppotunities in the Videogame Industrydiglondon
The document discusses the challenges facing the video game industry and opportunities for the future. It outlines the economics of console game development and used game sales. Recent industry trends are examined, including rising development costs, financial difficulties for some studios, and new business models emerging around free-to-play and microtransactions. The presentation predicts increasing monetization of existing games, a potential crisis in creative content, and growth in transmedia storytelling across multiple platforms.
This document provides an overview of virtual worlds, specifically contrasting virtual world games and social spaces. It defines key terms and examples of each category. Virtual world games like World of Warcraft have over 60 million active users and $4.5 billion in revenue, while social spaces like Habbo Hotel and Webkinz have around 30 million active users and $400 million in revenue. The markets and business models for each category are compared, with games dominated by subscription and retail models while social spaces utilize free-to-play and virtual item sales models more. Trends are discussed including the growth of web-based and free-to-play virtual worlds and increasing focus on kids' spaces and Asia.
The document discusses opportunities for media companies to engage audiences in virtual worlds. It outlines strategies such as extending valuable intellectual property, building communities, increasing viewer loyalty, and driving returns on investment. Specific tactics mentioned include creating deeper stories through transmedia, programming worlds with social entertainment and new content, games, machinima, broadcasting live media into virtual worlds, and reporting on virtual worlds from within them.
This document discusses Second Life, a 3D virtual world, and provides information about its features and popularity. It notes that Second Life has over 10 million total users with 25,000-50,000 active users daily. Billions of dollars are spent in the virtual economy. The document also outlines several other popular virtual worlds and notes there are over 80 million total users across 55 virtual world platforms. It concludes by stating investment and adoption of virtual worlds continues to grow as the technology matures and offers more value to both consumers and businesses.
Second Life is an online virtual world platform that allows users to interact with each other through avatars. While initially focused on gaming, many businesses are now using Second Life to showcase products, host meetings and events. This represents an opportunity for B2B publications to engage with readers and add value by leveraging the Second Life platform through hosting how-tos, new product showcases, and interactive forums. Doing so allows magazines to generate new and visually engaging content for readers. As virtual worlds become more popular, especially with younger audiences, it is increasingly important for publications to understand this technology and how businesses are using it.
The document discusses the history and evolution of virtual worlds from text-based MUDs and MOOs to modern 3D virtual worlds like Second Life. It describes how MOOs allowed users to modify content and were used for some educational purposes. It then outlines the rise of massively multiplayer online games like World of Warcraft before focusing on Second Life as a general purpose virtual world that allows users to build content, engage in commerce, and is used by some educational institutions and businesses. It concludes by discussing challenges of using virtual worlds in education and proposing the creation of a learning community focused on virtual worlds at the University of Western Scotland.
The document discusses virtual worlds and organizations' activities in virtual worlds like Second Life. It summarizes what companies are doing in Second Life (marketing, branding, sales, recruiting), challenges (lack of return on investment and critical mass), and potential future scenarios for virtual worlds in 2012. It considers whether virtual worlds will become more widely used and integrated with real world or remain limited and fragmented.
The Evolution of the Internet: Using "Virtual Worlds" to Enhance Teaching, Le...SUNYIT
The document discusses virtual worlds and their potential uses for teaching, learning, and research. It provides examples of how virtual worlds like Second Life have been used by various academic institutions and researchers. Some concerns about virtual worlds are addressed, such as issues related to privacy, adult content, and costs, but it is argued that virtual worlds can enhance education without replacing other technologies or raising unique issues compared to other online platforms. Challenges of the evolving technology are acknowledged but it is suggested to explore new technologies rather than reject them without consideration.
Social media expert Roger Harris outlines a view of gaming from the perspective of the changing world of social media. This presentation was given at the Triangle Gaming Conference, May 30, 2009.
An update of virtual worlds as of May 2008, including a definition of virtual worlds, economic, tax, accounting and legal issues and data visualization and 3d data centers.
An online study found that:
1. Online games are growing four times faster than the internet and are worth $164 USD per second currently.
2. Games have evolved from single player "Games 1.0" to more social "Games 2.0" that allow multiplayer interactions.
3. Popular online games include massively multiplayer online role-playing games (MMORPGs) like World of Warcraft as well as social games on Facebook.
Second Life is a 3D virtual world where users create avatars to represent themselves and generate all content. Users can explore, create, and socialize for free or gain additional abilities like owning land by paying a monthly subscription. Universities are using Second Life for classes in subjects like art, science, and medicine by developing virtual environments where students can practice skills like diagnosis. Compared to traditional online classes, Second Life allows for richer experiences through visuals, sounds, and simulations.
The document discusses business opportunities and examples in Second Life, a popular virtual world. It outlines challenges such as security issues, technical problems, and brand credibility. Many well-known companies use Second Life for collaboration, research, simulations, events, and education. Examples given include Adidas, Dell, MTV, and universities. Businesses are encouraged to recognize Second Life's social nature and interact with the community to promote their brand.
Adrian Crook's speech at GDC 2008, entitled "The Power of Free To Play". Focuses on free to play revenue models in games, design tips, growth challenges and market trends. More info at www.FreeToPlay.biz
Product Based Virtual Worlds For College RecruitingAndrew Hughes
The document discusses virtual world options for educational institutions. It provides information on commercial virtual worlds like Second Life, open source options like OpenSim, and browser-based virtual worlds. It also introduces 3D Virtual Campus Tours, a product designed by Designing Digitally specifically for higher education recruitment. Key features highlighted are that it is fully browser-based, specialized for enrollment, and can replicate a campus in high quality graphics. Potential downfalls discussed are higher pricing and lack of editing tools compared to other virtual worlds.
Second Life is a free online virtual world where users can generate content. Users can exchange the virtual currency, Linden Dollars, for real money. Key industries include real estate, adult entertainment, and fashion. Some users exploit the system by creating weapons to annoy others or using third-party viewers to crash clients and copy content illegally. In response, Linden Lab banned over 10,000 users and tightened policies around virtual weapons and third-party viewers.
Storytelling is an incredibly valuable tool to share data and information. To get the most impact from stories there are a number of key ingredients. These are based on science and human nature. Using these elements in a story you can deliver information impactfully, ensure action and drive change.
This document summarizes the growth and commercial uses of virtual worlds. It notes that virtual worlds like Second Life allow users to create content and sell virtual goods, with some users earning real-world income. Many large companies have used virtual worlds for marketing, though some have left. The document also discusses regulatory issues around virtual world economies and property rights.
Challenges and Oppotunities in the Videogame Industrydiglondon
The document discusses the challenges facing the video game industry and opportunities for the future. It outlines the economics of console game development and used game sales. Recent industry trends are examined, including rising development costs, financial difficulties for some studios, and new business models emerging around free-to-play and microtransactions. The presentation predicts increasing monetization of existing games, a potential crisis in creative content, and growth in transmedia storytelling across multiple platforms.
This document provides an overview of virtual worlds, specifically contrasting virtual world games and social spaces. It defines key terms and examples of each category. Virtual world games like World of Warcraft have over 60 million active users and $4.5 billion in revenue, while social spaces like Habbo Hotel and Webkinz have around 30 million active users and $400 million in revenue. The markets and business models for each category are compared, with games dominated by subscription and retail models while social spaces utilize free-to-play and virtual item sales models more. Trends are discussed including the growth of web-based and free-to-play virtual worlds and increasing focus on kids' spaces and Asia.
The document discusses opportunities for media companies to engage audiences in virtual worlds. It outlines strategies such as extending valuable intellectual property, building communities, increasing viewer loyalty, and driving returns on investment. Specific tactics mentioned include creating deeper stories through transmedia, programming worlds with social entertainment and new content, games, machinima, broadcasting live media into virtual worlds, and reporting on virtual worlds from within them.
This document discusses Second Life, a 3D virtual world, and provides information about its features and popularity. It notes that Second Life has over 10 million total users with 25,000-50,000 active users daily. Billions of dollars are spent in the virtual economy. The document also outlines several other popular virtual worlds and notes there are over 80 million total users across 55 virtual world platforms. It concludes by stating investment and adoption of virtual worlds continues to grow as the technology matures and offers more value to both consumers and businesses.
Second Life is an online virtual world platform that allows users to interact with each other through avatars. While initially focused on gaming, many businesses are now using Second Life to showcase products, host meetings and events. This represents an opportunity for B2B publications to engage with readers and add value by leveraging the Second Life platform through hosting how-tos, new product showcases, and interactive forums. Doing so allows magazines to generate new and visually engaging content for readers. As virtual worlds become more popular, especially with younger audiences, it is increasingly important for publications to understand this technology and how businesses are using it.
The document discusses the history and evolution of virtual worlds from text-based MUDs and MOOs to modern 3D virtual worlds like Second Life. It describes how MOOs allowed users to modify content and were used for some educational purposes. It then outlines the rise of massively multiplayer online games like World of Warcraft before focusing on Second Life as a general purpose virtual world that allows users to build content, engage in commerce, and is used by some educational institutions and businesses. It concludes by discussing challenges of using virtual worlds in education and proposing the creation of a learning community focused on virtual worlds at the University of Western Scotland.
The document discusses virtual worlds and organizations' activities in virtual worlds like Second Life. It summarizes what companies are doing in Second Life (marketing, branding, sales, recruiting), challenges (lack of return on investment and critical mass), and potential future scenarios for virtual worlds in 2012. It considers whether virtual worlds will become more widely used and integrated with real world or remain limited and fragmented.
The Evolution of the Internet: Using "Virtual Worlds" to Enhance Teaching, Le...SUNYIT
The document discusses virtual worlds and their potential uses for teaching, learning, and research. It provides examples of how virtual worlds like Second Life have been used by various academic institutions and researchers. Some concerns about virtual worlds are addressed, such as issues related to privacy, adult content, and costs, but it is argued that virtual worlds can enhance education without replacing other technologies or raising unique issues compared to other online platforms. Challenges of the evolving technology are acknowledged but it is suggested to explore new technologies rather than reject them without consideration.
Social media expert Roger Harris outlines a view of gaming from the perspective of the changing world of social media. This presentation was given at the Triangle Gaming Conference, May 30, 2009.
An update of virtual worlds as of May 2008, including a definition of virtual worlds, economic, tax, accounting and legal issues and data visualization and 3d data centers.
An online study found that:
1. Online games are growing four times faster than the internet and are worth $164 USD per second currently.
2. Games have evolved from single player "Games 1.0" to more social "Games 2.0" that allow multiplayer interactions.
3. Popular online games include massively multiplayer online role-playing games (MMORPGs) like World of Warcraft as well as social games on Facebook.
Second Life is a 3D virtual world where users create avatars to represent themselves and generate all content. Users can explore, create, and socialize for free or gain additional abilities like owning land by paying a monthly subscription. Universities are using Second Life for classes in subjects like art, science, and medicine by developing virtual environments where students can practice skills like diagnosis. Compared to traditional online classes, Second Life allows for richer experiences through visuals, sounds, and simulations.
The document discusses business opportunities and examples in Second Life, a popular virtual world. It outlines challenges such as security issues, technical problems, and brand credibility. Many well-known companies use Second Life for collaboration, research, simulations, events, and education. Examples given include Adidas, Dell, MTV, and universities. Businesses are encouraged to recognize Second Life's social nature and interact with the community to promote their brand.
Adrian Crook's speech at GDC 2008, entitled "The Power of Free To Play". Focuses on free to play revenue models in games, design tips, growth challenges and market trends. More info at www.FreeToPlay.biz
Product Based Virtual Worlds For College RecruitingAndrew Hughes
The document discusses virtual world options for educational institutions. It provides information on commercial virtual worlds like Second Life, open source options like OpenSim, and browser-based virtual worlds. It also introduces 3D Virtual Campus Tours, a product designed by Designing Digitally specifically for higher education recruitment. Key features highlighted are that it is fully browser-based, specialized for enrollment, and can replicate a campus in high quality graphics. Potential downfalls discussed are higher pricing and lack of editing tools compared to other virtual worlds.
Second Life is a free online virtual world where users can generate content. Users can exchange the virtual currency, Linden Dollars, for real money. Key industries include real estate, adult entertainment, and fashion. Some users exploit the system by creating weapons to annoy others or using third-party viewers to crash clients and copy content illegally. In response, Linden Lab banned over 10,000 users and tightened policies around virtual weapons and third-party viewers.
Storytelling is an incredibly valuable tool to share data and information. To get the most impact from stories there are a number of key ingredients. These are based on science and human nature. Using these elements in a story you can deliver information impactfully, ensure action and drive change.
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1. Virtual Worlds: The Second Life Example
Ibrahim Shafi
Semantic Contexts, LLC
ibrahim@shafi.org
2. Massively Multiplayer Online Games (MMOG)
In the video game genre
Played online
Supports thousands of players simultaneously
Variety of gameplay types (role-playing, first-person
shooter, real-time strategy)
Virtual currency
Unlike SL, most don’t trade into real currency
Run by graphical, physical, and network engines
Most charge a bimonthly fee
Few have client-side AI like SL does
Issues: server overload, hacking, internet delays
5. Traditionally physical goods
Islands, buildings, clothing, food, nature
Social, entertainment, and cultural experience
Avatar interaction, music concerts, clubs, create and view art
Consumer experience
Shopping outlets
Marketplace
Information goods sold in Linden Dollars (250 L$ = 1 US $)
Corporate functions
Conferences, product testing, business ventures, promotion
Education
Holding courses, debates, conducting social experiments
6. Economies
of Scale
Initial high and sunk
fixed cost to create
the SL infrastructure
Costs nothing to
serve another
customer; MC -> 0
Virtually no limit to
amount of
consumers added
Experience
Good
Must access SL in
order to understand
its value
Reviews and word-
of-mouth
Public
Good
Non-rivalry: More
Avatars increase,
not decrease,
individual SL
experience
non-excludability:
Creations in SL can
be enjoyed by
everyone equally
7. SL has many
features and can
become
confusing
Allows users to
become familiar
with interface
Increase
switching costs
• Allow user to
customize avatar
• Meet people and
build social network
Build Network
Effects
• Give away API to
developers
10. • Casual, dedicated, creative, businesses, etc.
• Price according to their needs in SL
Identified
segments of users
• API for developers to build SL tools and interfaces
• Buy and sell land, user creations, L$, real money
• L$ stipend to entice users to move to high end
Develop
complements to
extract more value
• High end features not available to low end users
Avoid
cannibalization
11.
12. Subsidize Content Creators
Make platform code open source
Encourage development of tools, creations, extensions
Example: Creating a themed island in SL
One island could potentially attract thousands of users
Increases users’ willingness to pay subscription fee
17. Pictured: Midian City, dynamic interactive cyberpunk
novel with thousands of players/storytellers
18. Strength of Network Effect
Very strong across the board
Multi-homing costs
Low to moderate for both sides
Demand for differentiated features
High – limitless possibilities
Platform enables customization
Not a Winner-Take-All Market
19. Sole Sponsor: Linden Labs
Controls who can participate in SL
Develops rules
Multiple Providers
Many content creators
Plays by the rules
Compete for the market
20. Weak Substitutes
Other MMOG’s
Add SL-like features to existing games, e.g. World
of Warcraft
HiPiHi – Chinese SL
MetaPlace, Multiverse, etc.
Weak Complements
E-commerce transactions
Vulnerable to intermodal attacks
21. Find a Big Brother/Build alliances
Linden Labs is partnering with IBM
SL Land auctions on eBay
Bundling
Hardware accessories to use with SL
Merchandising
Become the common platform for virtual world
collaboration
Education
Meetings/speeches
Showcasing Design
29. Online virtual world and social network
People represented by “Avatars”
Communication via chat/instant messaging
Currently, attracting attention of retailers, film
companies, music groups, hotel chains, and
colleges/universities
From an advertising perspective, offers:
Product placement
Market research potential (trendwatching)
Product testing/Consumer feedback
Editor's Notes
High Threat of substitutes:
The existence of close substitute products increases the propensity of customers to switch to alternatives in response to price increases
The customers have a high propensity to substitute with other activities (outdoors and other MMOGs Massive Multiplayer Online Games )
The customers have high switching costs
High level of product differentiation ?
Low threat of the entry of new competitors:
Although Second Life can be a profitable market, yielding high returns, the existence of barriers to entry such as patents ?? and high capital requirements as well as the network effects which will be explained later, enhances the possibility of Second Life to stay alone.
High intensity of competitive rivalry:
The industry is increasing at a high rate with a high level of innovation and marketing.
There is a high number of competitors (Substitutes?) which are very diverse in nature
High bargaining power of customers:
The market of outputs.
Customers may put Second Life under pressure
Customers are very sensitivity to price changes.
bargaining leverage
The customers have low switching costs relative to Second Life switching costs
Additionally there are a high volume of existing substitute products available
Low ? bargaining power of suppliers
The market of inputs.
Suppliers of raw materials, components, and services (such as expertise) to the firm can be a source of power over the firm. Suppliers may refuse to work with the firm, or e.g. charge excessively high prices for unique resources.
supplier switching costs are lower than Second Life’s switching costs
There is a High degree of differentiation of inputs
High presence of substitute inputs
supplier concentration to firm concentration ratio
threat of forward integration by suppliers relative to the threat of backward integration by firms
cost of inputs relative to selling price of the product
Very strong network effects throughout.
Same-side effects:
Users (Social networking)
Advertisers (Competitive, agency pressure)
Developers (Validity, legitimacy)
Advertisers want to be where the most eyeballs are; users, in the case, appreciate presence of advertising because it brings more products/services and opportunity to participate in development process
Developers can obtain funding from advertisers and advertisers use developers to build robust platforms that stand apart
Users like developers because they continue to enhance the online environment
And more users create more demand for development, which developers need to stay in business
Penetration pricing
Switching costs
Unlike social networking sites, which have yet to develop a successful revenue model,
Second Life has its own economy and even its own stock market!
For network effects, this means that users, advertisers, and developers all have a vested interest in being on Second Life to get a piece of pie.
This also creates moderate multi-homing costs. Users put a lot of money into the development of their personal avatars, advertisers into the development of their online presence (whether virtual store or island), and developers cannot transfer their applications to anything else that is currently out there.
Interestingly, the demand for differentiated products and features strong. This is basically an online world which, like the real world we live in, can only continue to grow and expand its features and benefits.
As a result of the strong network effects, moderate multi-homing costs, and strong differentiation demand this is not a WTA market.