An introduction to Virtual Worlds for businesses and organisations

1. Virtual Worlds
David Burden
Managing Director
In Association with:

2. Who are we?
Virtual worlds agency

In Virtual Worlds since late 1990s, and Second Life

since 2004
Full Service virtual world developers

Specialist expertise in:

Web integration

Artificial Intelligence & Natural Language

Member Second Life Developers Directory

© 2007 www.daden.co.uk

3. Agenda
Virtual Worlds Overview

A Quick Tour of SL

Business Experience of Virtual Worlds

Business Models and Opportunities

Future Roadmap

Questions

© 2007 www.daden.co.uk

4. Virtual Worlds - a new medium
Synchronous and immersive

It won’t replace anything

“Not” the 3D Internet (or the

future of the Internet)
 Internet = Information
 Virtual Worlds = Experience
Not a mass media, perhaps a

“meta-media”
Expect other media to have to re-

invent themselves
It will bring its own formats,

language, stars and turkeys
© 2007 www.daden.co.uk

5. What’s Different?
Social Interaction
Inclusion
Social
© 2007 www.daden.co.uk

6. The Synthetic Environment Space
3D Chat
Mass True
Virtual
Worlds
MARKET
Game &
Media Teen
Worlds Worlds
Niche Kids
Worlds
& Games Community
Virtual Worlds
Simulation &
Serious
Games
Closed/MMO Open/VW
OPENESS
© 2007 www.daden.co.uk

7. Platform vs World
Supplier Platform Shared World
Linden Lab SL Grid Second Life
Forterra/
Makena Olive There
Multiverse
Sony Home
Active Worlds Alpha World
Kaneva
© 2007 www.daden.co.uk

8. Active Worlds
Status: Live c. 2000

Owner: ActiveWorlds Inc

Population: Not available

Demographic: c.20s-30s

Format: Shared & Private

Technology: Client/Server

Currency: In-world only

Revenue Model: Membership

Commercial Development:

 Minimal
Comment

 In decline, looking old hat
© 2007 www.daden.co.uk

9. There
Status: Live c. 2003

Owner: Makena Technologies Inc

Population: Not available

Demographic: Teens-20s

Format:

 There - Shared
 Forterra/Olive - Private
Technology: C/S, Industry stds

Currency: In-world only

Revenue Model: Membership

Commercial Development:

 There - Minimal
 Olive – MTV, DoD, DHS
Comment

 There - Teen orientated
 Olive - £1m projects
© 2007 www.daden.co.uk

10. Second Life
Status: Live 2003

Owner: Linden Lab

Population: 9.5m registrations

Demographic: Avg age 32

Format:

 Second Life - Shared
 Second Life Grid - Private
Technology: C/S, Proprietary

Currency: Exchangable

Revenue Model: Land+Premium

Commercial Development:

 Extensive & Decentralised
Comment

 Dominant virtual world
 Growing fast
 Almost too open
© 2007 www.daden.co.uk

11. Second Life Grid
Main Grid
Teen Grid
SL Grid
Media World
Bank World
School
World
© 2007 www.daden.co.uk

12. Second Life Grid
© 2007 www.daden.co.uk

13. Multiverse
Status: v1.0 Jul 2007

Owner: Multiverse Network Inc

Population: not yet available

Demographic: world specific

Format: Private

Technology: C/S, Industry stds

Currency: In-world at moment

Revenue Model: Revenue share

Commercial Development:

 Just beginning
 Private world based
Comment

 Little technical advance on SL
 Uses standard industry 3D
tools
 White label approach + limited
shared/social world
© 2007 www.daden.co.uk

14. Sony Home
Status: Launches 4Q07

Owner: Sony

Population: not yet available

Demographic: not yet available

Format: Shared, Closed

Technology: Console

Currency: In-world at moment

Revenue Model: Media sales

Commercial Development:

 Centralised
Comment

 PS3 based
 Sony chooses what you can
do
 More 3D chat than open world
© 2007 www.daden.co.uk

15. Other Virtual Worlds
© 2007 www.daden.co.uk

16. Features vs Cost
£1m Games Olive
Multiverse
£100k
SLG
Project
£50k
Cost
SL
£10k
£5k
Low High
Feature Set
© 2007 www.daden.co.uk

17. Uses of Virtual Worlds
© 2007 www.daden.co.uk

18. Socialising
It’s just another medium
© 2007 www.daden.co.uk

19. Entertainment
It’s just another medium
Over 10,000 visitors
over 1 weekend
© 2007 www.daden.co.uk

20. eCommerce
It’s just another medium
© 2007 www.daden.co.uk

21. eBusiness
It’s just another medium
IBM had 200 visitors a day for
Virtual Wimbledon 2007.
© 2007 www.daden.co.uk

22. eLearning
It’s just another medium
© 2007 www.daden.co.uk

23. Imagining
It’s just another medium
© 2007 www.daden.co.uk

24. Agenda
Virtual Worlds Overview

A Quick Tour of SL

Business Experience of Virtual Worlds

Business Models and Opportunities

Future Roadmap

Questions

© 2007 www.daden.co.uk

25. Virtual Worlds – Who’s There?
… and over 70m users and growing
© 2007 www.daden.co.uk

26. Aloft & American Apparel
© 2007 www.daden.co.uk

27. Wells Fargo
© 2007 www.daden.co.uk

28. ABN and ING
© 2007 www.daden.co.uk

29. VISA and BCV
© 2007 www.daden.co.uk

30. Race for Life
The American Cancer Society raised almost $90,000 from its sponsored Relay For Life in Second Life in 2007.
© 2007 www.daden.co.uk

31. Dell
© 2007 www.daden.co.uk

32. Pontiac vs BMW
© 2007 www.daden.co.uk

33. Other Worlds
© 2007 www.daden.co.uk

34. Agenda
Virtual Worlds Overview

A Quick Tour of SL

Business Experience of Virtual Worlds

Business Models and Opportunities

Future Roadmap

Questions

© 2007 www.daden.co.uk

35. Virtual Worlds Business Ecosystem
Over $1Bn invested in
Middleware and
Software Component
2007 in Virtual Worlds
Providers
companies
Authoring Tool
Providers
Server & Workstation
Manufacturers
Management
Consultant
Virtual Worlds
Virtual Worlds Enterprise
Creator
Platform Developer Customer
Systems Integrator
Direction of (Potential) Revenue Flow
Hardware
Enterprise Manufacturers Communications Providers
Integration Tools
Source: SRIC-BI Providers
© 2007 www.daden.co.uk

36. Why Engage with Virtual Worlds?
Learning

Generic Brand Building (RL or VW)

Internal/Partner Communications & Collaboration

Service delivery

Recruitment

Information Visualisation and Analysis

New Concept Development

CSR

 Green issues
 Disability issues
Revenue

© 2007 www.daden.co.uk

37. Revenue Models
In Uncharted
PAYMENT MADE
Virtual territory
World In-world
(VW) retailing/rentals
In Virtual Worlds for:
Real • marketing
Life • sales • VW Consultancy
(RL) • support • Design & build
In Real Life In Virtual World
(RL) (VW)
DELIVERY OF SERVICE/PRODUCT
© 2007 www.daden.co.uk

38. Approaching Virtual Worlds
What's the aim?

Who's the audience?

Private world or public world?

Which world?

Which engagement model?

How do you implement?

How do you market?

How do you staff?

How do you maintain interest?

© 2007 www.daden.co.uk

39. Virtual Worlds Opportunities
NO ANALOGUE
Raw Materials Search
Inventory
Logistics
Social Media
Physical Health
Transfer
Food & Drink Recommendation
Identity
Reputation
Banking
Communication
Security
Leisure
Virtual Worlds
Governance Entertainment
Tours
Advertising
Avatar Building Housing
Design
Marketing Sports
Retail
Sales
Terraforming &
Education Transportation
Landscaping
Art Personal Services
Legal Agents
Consulting Systems
Design
© 2007 www.daden.co.uk

40. Engagement Models
Inward looking Look at us....

Sponsorship Look at them....

Event focussed For only 3 days....

Education focussed Did you know that....

Facilitation Look at you.....

Object based Look at this....

Service based Let's help you.....

Game based Let's have fun...

Private Presence Don't look!

© 2007 www.daden.co.uk

41. Models of Fidelity – Stone 2007
CONTEXT FIDELITY (local, remote): the design of appropriate “background”

sensory and behavioural detail (including avatar/agent styles and behaviours)
to compliment – and not interfere with – the task being performed and the
learning outcomes.
TASK FIDELITY: the design of appropriate sensory and behavioural features

into the end user’s task that support the delivery of the desired learning effect.
INTERACTIVE FIDELITY: the degree to which input (control) and display

technologies need to be representative of real life human-system interfaces
and, where they do not, the careful management of control-display mapping
and acknowledgement of human stereotypes. Understanding the benefits/
limitations of virtual vs. real control set-ups.
“HYPO-” and “HYPER-” FIDELITY: the inclusion of too little, too much or

inappropriate sensory and/ or behavioural detail (task, context and interaction
systems) leading to possible negative effects on serious game/simulation
performance and on knowledge or skills transfer.
© 2007 www.daden.co.uk

42. Virtual Worlds Marketing
In World
VW Blogs/Podcasts etc
Conventional Media
© 2007 www.daden.co.uk

43. Approaching Virtual Worlds
What's the aim?

Who's the audience?

Private world or public world?

Which world?

Which engagement model?

How do you implement?

How do you market?

How do you staff?

How do you maintain interest?

© 2007 www.daden.co.uk

44. Characteristics
GLOBAL
DIGITAL
SOCIAL
© 2007 www.daden.co.uk

45. Agenda
Virtual Worlds Overview

A Quick Tour of SL

Business Experience of Virtual Worlds

Business Models and Opportunities

Future Roadmap

Questions

© 2007 www.daden.co.uk

46. The Future
© 2007 www.daden.co.uk

47. The Future
Physics
Virtual Functionality
Agents
User
Interface
Avatar
Interaction Rendering
Avatar
Appearance
© 2007 www.daden.co.uk

48. The Future
Early adopter, no “hard” ROI

Many, separate worlds

Short Term Few standards

( 0 – 5 years) Primarily social and “for fun”, or organisational

learning and PR/marketing
Emerging standards and consolidation

Medium Term Becomes viable business tool, and then “business as

usual”
(5 – 20 years)
Trusted transactions (social, financial, commercial)

Challenging game, then TV, then film media

Global standards and interconnected worlds

Long Term Rise of agents

(15 – 50 years +) Persistent Presence becomes the norm

Possibility of significant societal changes

© 2007 www.daden.co.uk

49. My Second Life...
© 2007 www.daden.co.uk

50. One last thought....
“80% of active Internet
users (and Global 500
companies) will have a
'second life' by 2011”
- Gartner Group April 2007
© 2007 www.daden.co.uk

51. David Burden
Managing Director
david.burden@daden.co.uk
www.daden.co.uk
IM: Corro Moseley