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The Nitty and Gritty: Challenges of the Day PDF Print E-mail
Written by Bonnie Boglioli Randall   
Wednesday, 28 March 2007 12:14

Six-hundred people make their way in and out of the lecture hall, demo room and dining areas, anxiously texting messages on their Blackberry’s or competing to find one of the sparsely located outlets to recharge their laptops. We sip freshly brewed coffee while discussing the intricacies of the virtual world with colleagues, and the constant exchange of business cards and recited résumé’s can be heard throughout the echoing halls. The feeling in the air is one of excitement much like in the age of sea exploration or even space. The exhilaration trickles from one person to the next, each eager to make their connections and learn more about the possibilities that virtual reality presents to them.

But despite the magnificently grand and optimistic backdrop to the 2007 Virtual Worlds Conference, there is a dose of sobriety hiding underneath many of the attendees. The CEO of The Electric Sheep Company, Sibley Verbeck, perhaps best summed up this restrain. “VR is trendy now. There is very high interest in exploring it and many questions raised, but not many answers,” Verbeck told the audience as he discussed the challenges of pitching VR to businesses. His Electric Sheep Co. is the largest company dedicated to designing experiences and additional software for virtual worlds, and Verbeck is no stranger to convincing businesses of the benefits of virtual worlds. Speaking candidly, he stated that the lack of viable competition within the industry is a hindrance that will hopefully change. Given the numbers of potential businesses in virtual worlds, the small number of choices has the adverse affect of curbing their enthusiasm. The fact is that the platform that works for one company may not work for another, and without enough options, a business may prematurely get involved with one platform, making a less than perfect match.

The fan-favorite Second Life inadvertently assumes some of the blame, at least according to some. Clearly, they are the darlings of the industry, providing the platform for which businesses can easily market and manage their products in VR. James Bower, Founder of Whyville.net, boldly contended that Second Life’s domination of the industry is hampering it, a sentiment that was quietly whispered in certain circles throughout the day. If the industry sprouts new competitors, such as Verbeck and others hope, then companies will be well informed of virtual worlds and have the ability to choose a platform of their choice that suits their needs. Until that time, however, Second Life has the ability to create the much-needed buzz both within and outside of the industry. What’s more, they seem most interested in pushing the bounds of VR by embracing all of its possible opportunities, unbeknownst to us now, and keeping their route going full force ahead.

Now let’s match this idea up alongside another issue that needs to be resolved: the identity crisis. Convincing the business sector that virtual worlds are not ‘games’ can be more than a challenge as many individuals told me. As Joe Miller (Linden Lab) explained, virtual worlds are indeed related to traditional mmog’s, yet they are distinctly different, as they are not meant for role-playing. Of course, a company such as MindArk is in a unique position, encompassing both the modern and traditional elements. The optimistic aspect of this problem can be solved in the numbers in my opinion. Millions of teenagers have used Habbo Hotel, a quirky virtual world that is moderated for younger generations, for seven years. Second Life has seen 3 million accounts, and others cite big success. Linda Zimmer, CEO of MarCom:interactive, utilizes her marketing background to assess the current situations in virtual worlds. Through extensive market research and scientific surveys, she and her colleagues have found some fascinating statistic that clearly show the broad growth of the VR population: people aged 40-50 are becoming very involved and they may actually outnumber other generations in certain platforms. Other results are that women tend to partake in virtual worlds as much, if not more, than their male counterparts, and younger generations are so intrinsically linked to technology that it is becoming uncommon to find a teenager who hasn’t been involved in some virtual world. Clearly, the more people partake in virtual worlds, the easier they will be to ‘sell’ the idea to interested businesses.

The last topic that I feel fits into the ‘nitty and gritty’ aspects of virtual worlds is one that was merely touched upon by the panelists, but one which I took liberty to discuss with others: the legal questions. Intellectual property rights are definitely of key concern to many, as nothing has yet been contested and no precedent is set. This limits the industry, of course, and rightfully so. As an example, surveys have shown that, overwhelmingly, Second Life participants are eager to co-create branding items with companies. While this may appeal to a company, it also has the potential to fall under copyright laws around the world if the created branding falls into the wrong hands. Likewise, Sundance Film Media VP Christopher Barry (which has a presence in SL) cites issues that arise with actor’s guilds, contracts, etc, when they try to stream their latest films. Beyond the fact that laws have not yet been specifically decreed for virtual worlds, if and when they are implemented we must deal with international laws. Clearly, what is much needed (and was a topic of a personal discussion) is a think-tank group that watches laws and takes into consideration the interests of virtual world participants and companies. It will be very interesting to see some of these issues arise so that we may better gauge the future environment of virtual worlds.

The industry is clearly in a bullish phase, opportunistic and optimistic at what lies ahead. But along with the excitement is a slight air of caution as we eagerly wait to see events that unfold in the very near future. Until then, the most refreshing aspect of the difficulties virtual worlds face is that these thoughts are being harbored and intelligently thought through. While there is no doubt a line of eagerly awaiting marketers at the gates, there are more than a few leaders in the community who aren’t afraid to tackle these issues head on.

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