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Weekend Whimsy

1. A Day Off

2. Foolish Frost – Lindens Lament (Live from the Cornfield – Second Life ft. OpenSim footage)

3. STUNT PLANE – AIR RACE Second Life

Popularity: 2% [?]

Merged realities: events and issues for virtual worlds

Two of our more popular features each week are our weekly mainstream news roundup, The Watch, and our weekly does of machinima, Weekend Whimsy. The former runs Mondays, the latter Fridays.

We’ve decided to add a new feature that will run in the middle of the week, called Merged Realities. It will be a handful of links to virtual world events, real-world events and non-mainstream coverage of virtual worlds issues. If you have an event that you think will be of interest, contact us with details. Either use our contact form or DM us on Twitter. If it’s Second Life related, feel free to IM Lowell Cremorne.

Onto the inaugural edition:

1. Mandy Salomon, Senior Researcher at the Smart Services Cooperative Research Centre, is giving a presentation on Second Life to the Women in Information & Communication Breakfast Series – if you’re Canberra based this is worth checking out.

2. Metaplace are having a stress test of their platform. If you’re a beta tester, you should have received an email with the details, otherwise log in to Metaplace to find out more. The stress test starts at 1pm PST on Thursday Feb 5th, which is 8am Friday the 6th of February AEDT.

3. Dancing Ink Productions have released the findings from their Understanding Islam through Virtual Worlds project, conducted in partnership with the Carnegie Council for Ethics in International Affairs. I particularly like the graphic novel option for the findings.

islam

4. The Synthetic Worlds Initiative at Indiana University is out its Greenland world into open beta:

To test some ideas, we have prepared a browser-based game of kingdoms, trade, diplomacy, and warfare in the stone age. The world is called Greenland and it enters open beta today. We invite those interested in such things to help us by testing the environment and contributing reactions and criticism to the forums.

To enter Greenland, go to http://greenlandgame.com/ and choose the Mercator server (the other two servers are closed for internal testing).You will need a code to register for the server; it is GLOPENACCESS.

5. Check out this superb video of avatars as music-makers (via New World Notes):


Bandbots – Second Life Musical Avatars from Chantal Harvey on Vimeo.

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2009: the year the ATO wakes up?

In recent weeks over on Terra Nova, Julian Dibbell has raised the issue again of taxation and virtual worlds. It’s worth a read purely to gain some insight into the complexity of the issue. As Dibbell states, it’s a lot more than the concept of taxing the sale of virtual goods, although that’s likely to be the driving force of any actions by governments.

linden-exchange

On the Australian front, back in October 2006 the Sydney Morning Herald and The Age reported on advice from the Australian Tax Office (ATO), which was:

People trading in virtual worlds should consider very carefully whether they are conducting a business or a hobby

Since then, there’s been no real change in approach from the ATO – I’m not aware of any campaign to enforce taxation on earnings in virtual worlds. One assumption would be that enforcement is so fraught with difficulties that it remains in the ‘too-hard’ basket, and rightly so. Even in the two or so years since the ATO made that comment, there are even more complicating factors, not least of which is the continued growth in virtual world platforms. Imagine trying to audit a virtual world entrepreneur who makes money in Second Life that he /she partly cashes out in US dollars whilst keeping the bulk in-world in Linden Dollars. If they then operate their business on an OpenSim grid with a different virtual currency, you can imagine the compliance nightmares for the entrepreneur, let alone the ability of the ATO to make any sense of the whole operation.

That said, in a real-world environment of shrinking tax revenues and the growing focus by the US Government on the issue, it’s hard to imagine the ATO are going to continue to sit on their hands for another year. A sensible start would be an inquiry into the challenges of virtual taxation, with the opportunity for virtual world users to provide submissions on a way forward. It would be potentially disastrous if a heavy-handed approach eventuated, that impacted on the multitude of small business people operating successfully in worlds like Second Life now.

The hobby/business continuum has always been a grey area – the only sensible approach for those operating business in virtual worlds is to assume they have a business, not a hobby. With that approach, whenever regulation does eventuate the transparency is already established. Increased regulation seems an inevitability – it’s how that regulation is implemented that will need to be watched closely.

What are your thoughts – can you see the ATO getting more active in the area or is the cost of ensuring compliance too great for the potential returns?

Popularity: 5% [?]

Companies and 3D Virtual Worlds: one detailed analysis

stavros There’s an ever-growing pile of books on virtual worlds available, ranging from tour guides to detailed ethnography.

One publication that slipped under the radar for me at least (it was published in May 2008) is Companies and Virtual 3D Worlds – Analysis of Business Model at the Example of Second Life. Written by Stavros Pechlivanidis, a Managing Consultant and IT Specialist for IBM Global Services, this book is actually a Masters Thesis for Pechlivanidis’ MBA studies, and it shows. I mean that in a positive way, in that it’s apparent a lot of research has gone into the final product. That said, this isn’t a book for the faint hearted and is probably only suited to people working in business who are taking an in-depth look at the applicability of virtual worlds for their enterprise. Publisher VDM Verlag kindly provided me a review copy, so read on for my thoughts below.

What has impressed me with this book is the strategic view it takes. There’s plenty of information on the macro environmental factors impacting virtual worlds (political, social, economic and technological), including some great evaluation of these factors:

Other aspects covered include virtual world industry segmentation and their individual success factor, and a business model overview for virtual worlds. This leads directly into the guts of the thesis: analysing the different business models within Second Life. Everything from Anshe Chung to currency exchanges are examined in the context of the research literature on business models more broadly. Three broad categories are cited: C-Business (creative business models), I-Business (interconnectedness between real world and virtual world or between different virtual worlds as a way of doing business) and V-Business (virtual business occurring solely in a virtual world). It provides Pechlivanidis a springboard from which to analyse the strategic opportunities for business across all three spheres.

Overall, this is an extremely comprehensive book that is aimed squarely at business. It’s breadth and rigour make it a desirable reference source as business shows more interest in virtual worlds. It stands out for its provision of new information rather than just summarising information found elsewhere, which isn’t unexpected given its academic underpinnings.

You can buy the book from our bookstore by clicking here or if you’d prefer we not get a (very small) cut, the direct Amazon link is here.

Popularity: 4% [?]

The Watch – virtual worlds in the news

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.”

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Growth predicted in virtual events for enterprise

on24 A survey released a couple of weeks back by virtual event solutions provider, ON24, shows again the momentum in virtual worlds for enterprise. ON24 surveyed ten thousand or so enterprise executives – no details are provided on the survey sample demographics or method. We’ve contacted ON24 to clarify that and will update this story with any response they provide.

Update: ON24 have responded with the following: “The survey sample included 10,000 decision makers of corporate events and marketing within the Fortune 2500 segment in North America. The sample included all industries.”

ON24 provide four key results from their survey on trends in meeting attendance:

42% expect participation in physical trade shows to be down by as much as 50%
64% expect to have fewer physical sales kick off seminars – or none at all
60% expect training, management and other internal events to be down 20 – 50%
A full 76% said their company has already begun using virtual events (53%) or plans to begin using them (23%) to supplement some of their physical events in 2009

The promising findings in regard to views on virtual meetings were:

While 61% said they would miss seeing people in person, less than half felt they would miss traveling to other locations (34%), enjoying the social activities (36%) or seeing speakers in person (20%). Respondents found several aspects of virtual participation to be particularly appealing:

75% appreciated that there is no travel required
64% liked that they can attend the virtual sessions on their own time schedules
58% found it useful to be able to “forward” to their colleagues virtual sessions that they thought would be of interest to them

More than one third of respondents cited the social networking benefits of virtual events, including the ability to see a list of all attendees in advance (35%); to contact other attendees online throughout the event (40%) and to get information on people (32%) and companies (34%) they meet electronically.

Essentially, the argument is that the economic difficulties business faces at present will make virtual events more desirable from a cost viewpoint. This is a very valid argument, but one that needs to be made in combination with a well-integrated virtual meeting solution. Those are already hitting the marketplace, so perhaps virtual worlds for enterprise will continue to defy the economic trends in the real world.

Locally, Ross Dawson’s Future Exploration Network is running its Enterprise 2.0 Executive Forum again this year. I had the pleasure of facilitating a small-group discussion on virtual worlds and business last year and I’m looking forward to doing something similar again this year by facilitating a 20-minute mini-workshop.

Thanks to VW News for the heads-up on the ON24 survey.

Popularity: 4% [?]