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Pew Research has just published results of a study into American teens focusing on video games and civics, entitled (oddly enough) Teens, Video Games and Civics. Almost all teens game, but few are into MMOGs and virtual environments.

Overall, 97% of teens (99% of boys, and 94% of girls) were gamers, with 80% of teens generally playing five or more different genres of games. Racing, Puzzle and Sports games topped the list (with 74%, 72% and 68% respectively), while MMOGs like World of Warcraft, et al came in at second-last place with just 21% and virtual environments (Second Life, Habbo Hotel, and so) in last place with only 10%.

The five most popular games among teens were Guitar Hero, Halo 3, Madden NFL, Solitaire, and Dance Dance Revolution ranging in ratings from E for Everyone to M (Mature).

Where is it all going? With an MMOG you already know: Content updates, free and paid expansions, and so forth. A broadening and sometimes also a deepening of the game experience.

Virtual environments tend to be a bit hazier, largely supported by microtransactions they may include game-elements (like Entropia Universe), sci-fantasy settings (like the upcoming Blue Mars), specific celebrity events (Habbo) or merchandise and marketing-focused experiences (Virtual MTV, Barbie Girls Online and more).

In a very real sense the virtual environments industry is largely about focus. Targeting a market, wooing a demographic, and showing them where you are going to take them in the coming days.

Interesting, then, that the world's best-known virtual environment, Linden Lab's Second Life lacks the answers to fundamental questions, the answers to which directly impact every user and organization who participates (or who might participate in future). In fact, hardly anyone is asking those questions. Now isn't that peculiar?

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	Are you a part of the most widely-known collaborative virtual environment or keeping a close eye on it? Massively's Second Life coverage keeps you in the loop.

One hundred million. 100 million. 100,000,000. No matter how you look at it, it's an extraordinarily large number. It's the number of colors most women are capable of seeing. It's the number of websites that existed in 2006. It's a song by the rapper Birdman. It's also, rather incidentally, the number of avatars created to date in the simple and spectacularly successful Habbo Hotel.

Naturally, that doesn't correlate to 100 million users (Habbo usually clocks in at about 8 million a month), but it's still a testament to the power of a simple virtual world aimed at an extremely active demographic. The lucky sap who created the actual 100 millionth avatar was awarded one of those fancy new Macbook Airs, as well as a slew of in-game goodies like a specially designed room, in-game currency, and rare items. Here's hoping they see 100 million more!

And not just likenesses. Metaverse developer Millions of Us intends to market likenesses, hair-styles, catchphrases, dance moves, signature moves, clothing lines, furniture collections -- you name it -- based on well-known celebs all under the banner business name of Virtual Greats. These appearances and digital accessories would be sold in dozens of virtual worlds, though you'll probably see them in Gaia Online, Habbo and Second Life first.

Deals have already been done with Justin Timberlake, Elvis Presley Enterprises, Snoop Dogg, Paris Hilton, Raven Symone, Marvel (for The Incredible Hulk), and Tila Tequila, and more are in the works.

One dollar per user per month may not sound like a huge revenue for any game, but when you start thinking in the terms of the user base of games like Habbo Hotel, Club Penguin and RuneScape you start to realize how much a dollar is really worth.

Lightspeed, a venture capital firm, recently did a few calculations to come up with the figures of how much revenue is generated by a single user in today's most successful free-to-play, microtransaction supported MMOs. What they came up with is a pretty interesting look at how much a "successful" MMO will make. For example, Habbo Hotel pulls in around $1.30 on average for each of their active users per month, while RuneScape pulls in 84 cents per active user per month.

The one figure that stood out from the pack was Second Life, which pulled in 9 dollars per user per month thanks to things like land ownership and the premium subscription that land owners have to buy to be able to own property. Even with Second Life in the mix, it's interesting to see that these types of MMOs don't make much per user, yet still can pull in great amounts of revenue by entertaining huge player bases.

[Via Kotaku]

Market research and consulting firm Strategy Analytics has forecasted a surge in virtual world registrations over roughly the next decade. The firm's study is titled 'Market Forecasts for Virtual World Experiences - from Habbo Hotel to Second Life and Beyond - 2008 to 2017.' It posits that roughly 22 percent of global broadband users will participate in one or more virtual worlds on some level. The end result will be a global virtual world market with one billion registrants. That throng of virtual world residents will provide an estimated eight billion USD in service opportunities for companies that learn how to do business effectively in these spaces.

Strategy Analytics has been keeping a close eye on virtual worlds of late. The firm released another report on the growing market in May, as well as a presentation seemingly geared towards fledgling companies wishing to capitalize on what might seem to them an abstract, if not bizarre, new market. Adrian Bowles, Executive Director of Virtual World Strategies at Strategy Analytics, writes, "For this generation it is as natural to interact with a friend represented by a flying cat as it is for real world senior citizens to gather in a town center and reminisce," for his 'Finding Business Value in Virtual Worlds' presentation. The Strategy Analytics next-decade projections are specifically for non-gaming virtual worlds. Were they to include the massively multiplayer online market, the global figures would likely be drastically higher.

Kishore Swaminathan, chief scientist for IT consulting firm Accenture is skeptical about the long-term success of non-game virtual worlds that lack interoperability. Swaminathan believes that interoperability of accounts, assets and a common currency are key to the success of virtual worlds.

Swaminathan draws parallels between closed virtual worlds like Habbo Hotel and Second Life with closed services such as Compuserve -- although seems to neglect that services such as Compuserve were established in a time where interoperability pre-existed.

Nevertheless, despite something of a heady rush of corporations towards closed worlds, Swaminathan sees them outgrowing those worlds very quickly, and looking towards more open and interoperable systems. 'I don't think, two years from now, there will be a Second Life...', he said.

[via Virtual Worlds News]

The Silicon Alley Insider has the latest iteration of its "World's Most Valuable Digital Startups", a list of 25 privately-held companies with products or services on the Web. They say 'iterative', because they plan to continually update the list as market values change.

Companies of note on this list are Webkinz, the purveyors of virtual pets, valued at an estimated $2 billion dollars; Habbo, makers of Habbo Hotel, valued at $1.25 billion; and Linden Lab, the hosts of Second Life, valued at $1.1 billion dollars. If you're wondering about how they've come up with these valuation numbers, they explain their methodology, which essentially consists of four main components: implied valuations in recent financing, financial performance, market share and market size, and growth rate.

The Webkinz model is well-supported by now; it's essentially Beanie Babies in digital. Habbo Hotel is doing well enough to almost become a household name. Second Life gets the lion's share of public eyes on it by being the target of everyone's assumptions. Honestly, we're surprised that all three of these companies are still privately owned. Any bets on how much longer that will last?

In Bad News Week, we take an irregular peek at some of the most mixed up and counterfactual reporting that the mainstream media performs on virtual worlds and MMOs, and lay it out for your interest and entertainment. The UK Mirror's Jon Clements reports "Police probe Second Life over virtual crime wave" from which you might reasonably infer that there is a crime wave going on in Second Life, and that you're about to read about it.

Well, you'd essentially be wrong. Let's take a look and what the Mirror had to say.

Take an advertising/marketing operation and mix it with a virtual world, and what do you get? No, not There -- well, maybe them, but that's not who we mean. The answer is Riplounge.

Browser-based and 2.5D (2D sprites in a pseudo 3D environment), Riplounge is for ... umm. Well, actually we're not quite sure. We think it is aimed largely at the wannabe-hip, under-25, knows-about-the-same-about-computers-as-your-granny demographic. Or maybe the I-wish-I-was-15-again demographic.

Tuesday afternoon, Michael Acton Smith, CEO of Mind Candy, presented attendees at the GDC's Worlds in Motion summit with an interesting look at the confluence between real goods and virtual worlds. For some background on where Smith is coming from, Mind Candy "creates games and puzzles that span multiple media.... [they] use all forms of technology to tell stories and interact with... [their] audiences." They run Perplex City, an alternate reality game that uses clues puzzles in the real world combined with web-based resources to create a unique type of gameplay. Their upcoming game Moshi Monsters is an adoptable pet game geared towards kids. Smith says it's a "new type of virtual pet experience." The pets will be very alive with their own emotions (driven by a behavior engine which will cause your pet to act different ways depending on how you treat it) that will be reflected in the pet's animations. The game will also incorporate a number of social tools, so both you and your pet monster can hang out with friends. And, of course, there will be toys, oh glorious toys. (Some already available, though the game itself is still in beta and closed to the public.)

Sulka Haro, lead designer on the wildly popular Habbo Hotel virtual world, yesterday gave the Worlds in Motion summit audience an in-depth half-hour rundown on the Habbo phenomenon. At its core, the Sulake company project is a meeting space for teens - a place to hang out and be someone else for a few hours. The fact that the company can boast millions and millions of unique users worldwide, though, speaks to something many have grasped for and few have succeeded at: a virtual world where people feel truly comfortable.

Haro offered up a peak behind the curtain, at the origins of Habbo as the four room 'Hotel Goldfish'. He discusses the successes they've had in markets abroad, their surprise at the game's adoption by teens, and the numerous ways they allow players to acquire in-game currency. He also notes that Habbo is a world-record setting title in at least one way: they've probably sold the most virtual reindeer poop ever in the history of man.

Read on for a dissertation on a poop-selling, smashing success story.

It being the end of the year, people are prognosticating like mad. Analysts for Second Life and virtual worlds are no exception. This time it's Gartner again, but with a "future of education" slant. There is also a "future of virtual world economics" post, which highlights the future of education in virtual worlds, so next year will be the year of the virtual teacher. (With my teaching in Second Life hat on, I might argue it's the year of the Johnny-come-lately virtual teacher, there is a lot of education already happening in Second Life.)

In summary, the pieces on Virtual Worlds News suggest:

1. Education will be big next year
2. Second Life, World of Warcraft and Habbo Hotel (amongst others) will continue to grow
3. The usage by children/tweens will be a big growth area

Challenges are:

1. Ease of use and induction
2. Spreading platforms that can access virtual worlds
3. Interoperability
4. Globalisation

Please, go read both articles and add your comments here or there!

A new MMOSG (that's Massively Multiplayer Online Social Game, which I don't recall seeing before, but sure, why not?) has sprung up, and it's called Sociotown. Now, not to knock something before it's even been released, but when I hear 'socio-' anything, I immediately think sociopath. And that's not the image you want to send across for a virtual world.

Regardless, from looking at the latest footage, there are a few things I need to comment on. Won't you follow along with me?

First of all, point-and-click movement is awkward. I've never liked it, despite the fun to be had in Diablo and Mythos, and prefer WASD movement. Second of all, the look of this world is similar to a lot of other similar social spaces, so no innovation there. Third, there is some interest in not being able to immediately see another person's name, forcing you to introduce yourself to him/her. Fourth, 'Socio dollars' is just more awkwardness -- why not SoBucks?

UK-based virtual world consulting and research firm Kzero have put out a predictions for virtual worlds for 2008. Note, of course that this covers the 'Metaverse' class of virtual worlds, that is primarily non-game.

The chart they use is a wonderful piece of at-a-glance display, showing age-groups, time of establishment, current population, projected age-groups, and projected populations all in one straightforward (if large) chart.