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Virtual Worlds: more mainstream by the day

The US-based Technology Intelligence Group have released a report titled “Virtual Worlds Industry Outlook 2008-2009″. It’s a really well written document that both looks back at the past year and makes some solid predictions for the coming year.

The standout observation for me is the ‘mainstreaming’ of non-gaming virtual worlds:

Stanford SUMMIT has been leveraging simulations built on the Forterra OLIVE platform to train doctors on key critical thinking skills with trauma patients, 18 of the top 20 educational institutions own land in Second Life with many using it to teach courses, McDonalds has created a Happy Meal virtual world to reinforce their well known brand, and customer and staff meetings are being held by enterprises across multiple platforms.

There’s no doubt that virtual worlds are becoming more mainstream, something that was driven home to me earlier this year when I was asked to consult on a film project (there’ll be more information of that project later this year). The point is, the film in question has a story line with no direct relationship to virtual worlds. One part of the film will feature Second Life – not as a novelty, not in a high-tech context, but in an everyday (rural) life scene. It’s those increasing references in popular culture that will increase the mainstreaming momentum.

The report also states some confidence around the graphics issues besetting virtual worlds:

the current slate of graphics challenges associated with virtual worlds may soon be remembered in the same vein as 64k computers.

If ‘soon’ means in the next year to two years, then there’s another aspect of momentum building because at present the average ADSL broadband customer with a PC older than 18 months or so is still encountering great challenges.

Not surprisingly, the education session is seen as a continuing driver of widespread virtual world adoption:

The training and education market will continue to drive widespread adoption of virtual world technology, as the broad experimentation within Second Life demonstrates. Universities and other teaching institutions that initially experimented with Second Life are in the process of standardizing platforms for virtual classrooms, which will be a boom for companies that are already well positioned in this market, such as Proton Media and Forterra Systems.

The power of virtual world add-ons for traditional websites is emphasised – Google Lively is the high-profile recent example:

The frictionless nature of a ‘go to the meeting room’ button on a web page will lower the barriers to adoption

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There’s certainly a growing convergence of forces that increase the likelihood of virtual worlds reaching the mainstream. As always, there’ll be plenty of attrition, some conflict and a great deal of uncertainty. In that respect it’s situation normal.

The legal section of the report also makes fascinating reading with a number of precendents only starting to be established. You can view the report in full here.

What are your thoughts – does the report provide any surprises for you?

Australia and Virtual Worlds – 2008 predictions

It wouldn’t be the end of a calendar year without making some predictions for the coming twelve months. Here’s a handful of predictions – some are fairly safe, others push the envelope a little:

1. Australia will see its first legal action in regards to a virtual world – Second Life is likely to be the battlefield and it’s likely to involve an intellectual property dispute or financial regulation issues.

2. Second Life viability will remain under question – there’s not likely to be a sudden improvement in the technical issues confronting the platform. The reality for Australian users of Second Life is at least another 6 months of laggy virtual world experience. There’s been rumours of a deal between Linden Lab and Telstra to locate Second Life servers locally – we can only hope. Expect lots of negative mainstream and Second Life blogosphere press if the status quo remains.

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3. VastPark will flourish – we’ve covered the VastPark virtual world platform a few times and its evolution has been promising. If the platform delivers what it promises during 2008, much interest should be garnered. I wouldn’t be surprised to see VastPark acquired by one of the bigger players. Vastpark’s Australian operations make this one we’ll be watching closely.

4. Google will not launch a virtual world – they may have launched OpenSocial and continued to develop Google Earth but 2008 will not be the year of Google truly entering the virtual world domain.

5. There’ll be failures aplenty – World of Warcraft will remain the dominant gaming MMO and of the swathe of launches touted, some will obviously fail. Claims are being made about the Conan and Warhammer franchises making some serious inroads. I’m not convinced that either will be enormously successful although neither lack significant backing and associated marketing power. And it’s not as if Blizzard will be sitting on their hands – the Wrath of the Lich King expansion for World of Warcraft is on its way.

6. Australian business will remain conservative – 2007 saw the entrance of corporations like Telstra, the ABC and the REA Group into Second Life. I doubt there’ll be as many large presences launched in 2008. There’s still major skepticism out there about virtual worlds as a business tool – it remains only a research and development option in the eyes of business and 2008 is unlikely to change that. One disclaimer – if Google do launch a virtual world product, then all bets are off. On a related note – I predict Telstra’s SydSim development in Second Life will not cut the mustard for larger businesses and for those that do set up in that location, there’ll be consternation of how little traffic is generated.

7. Mainstream media will continue to get it wrong – aside from some of the more savvy technology journalists, mainstream media reporting on virtual world developments will remain hit and miss. 2007 had some real clangers and you can expect that to continue.

Most importantly, what are your predictions for the coming year? Make a comment here and see how right or wring you are when we revisit the predictions in a year’s time.