Virtual Worlds and Web 3.0: Examined, Compared, Analyzed

SUMMARY

Summary

Virtual worlds are online, computer-generated simulations of life-like or fantasy environments where users guide their “avatar,” or digital representation of their physical selves, to accomplish various goals. Typical virtual world activities include meeting and socializing with other avatars, buying and selling virtual items, playing games, and creating and decorating virtual homes and properties.

Within the context of the evolution of the Internet from Web 1.0 to Web 3.0, Virtual worlds - especially the 3D kinds - are classified under the Web 3.0 category because of their profound ability to integrate multiple types of content, information sources, and feeds into one highly engaging and interactive format. In addition to Web 3.0 applicability, In-Stat has identified nine other critical components of virtual worlds, including user-generated content, social networking, virtual items, an economy, and business integration, to name a few. In-Stat then rated each virtual world company according to these ten components. All ten platforms scored the maximum points possible in the social networking category, which emerges as the one critical element to virtual worlds.

Virtual world companies earn close to 90% of their revenue from the sale of virtual items, currency, land, and fees associated with these items. Total registered users of virtual worlds are expected to exceed 1 billion and total revenue is expected to exceed US$3 billion by 2012.

TABLE OF CONTENTS

• Executive Summary
• Introduction
  • Definition of Virtual Worlds
  • Brief History of the Virtual World Industry
  • Industry's Growth
  • The Significance of Virtual Worlds
  • From Web 1.0 to Web 3.0
• Examining the Virtual World Components
  • Overview of the Ten Components of the Virtual World Pyramid
    • 1. Storyline/Context
    • 2. Social Networking
    • 3. User-Generated Content (UGC)
    • 4. Virtual Items
    • 5. Economy
    • 6. Graphical User Interface (GUI)
    • 7. Ease of Use
    • 8. Business Integration
    • 9. Population Quality
    • 10. Web 3.0
• Comparing the Main Virtual World Platforms
  • Summary
  • Club Penguin (Disney)
  • Entropia Universe (Mindark)
  • Gaia Online
  • Habbo (Sulake)
  • IMVU
  • Kaneva
  • Second Life (Linden Lab)
  • There.com (Makena Technologies)
  • Weblin (Zweitgeist)
  • WeeWorld
• Other and Upcoming Virtual Worlds
  • ActiveWorlds
  • Cyworld
  • Hipihi
  • Lively (Google)
  • Multiverse
  • New Xbox Experience (Microsoft)
  • Olive (Forterra)
  • PlayStation Home (Sony)
  • Unisfair
  • Vivaty
• User Demographics and Revenue Market Shares
  • Virtual World User Market Shares and Demographics
  • Virtual World Revenue Models and Market Shares
• Forecast and Conclusion
  • Registered Users and Total Revenue Forecast
  • Conclusion
• Methodology
  • Development of Criteria for Ten Components
  • General Sources
  • Revenue and User Forecasting Methodology
• Glossary
• Related In-Stat Reports
• Appendix

List of Tables

• Table 1. Total YTD Registered Users of Virtual Worlds (in Thousands)
• Table 2. Year-To-Date (YTD) 2008 Estimated Revenue Market Shares (US$ in Thousands)
• Table 3. Total Registered Users (in Thousands) and Revenue (US$ in Millions) Forecast, 2007- 2012
• Table 4. Ten Main Platforms and Scores Summarized, from Highest to Lowest
• Table 5. First Five of the Ten Main Platforms and Scores in Detail
• Table 6. Second Five of the Ten Main Platforms and Scores in Detail

List of Figures

• Figure 1. Total Registered Users (in Thousands) and Revenue (US$ in Millions) Forecast, 2007- 2012
• Figure 2. Avatars in Entropia Universe
• Figure 3. From Web 1.0 to Web 3.0: The Evolution of the Internet
• Figure 4. The Virtual World Components Pyramid
• Figure 5. Ten Main Virtual Worlds Scored by Ten Components
• Figure 6. Avatars in Club Penguin at a Pet Toys Shop for “Puffles”
• Figure 7. Avatars Chatting in Gaia Online
• Figure 8. Avatars Hanging Out and Chatting in Habbo
• Figure 9. Avatars in IMVU Chatting in a Boat Scene or “Room”
• Figure 10. Avatars at a Dance Club in Kaneva
• Figure 11. Avatars Buying Shoes in Second Life
• Figure 12. UniModal's SkyTran: an Example of Product Testing in Second Life
• Figure 13. Avatars in There.com Playing a Game of Paintball
• Figure 14. Weblin Avatars Layered on Top of a YouTube Webpage
• Figure 15. Avatars in WeeWorld's 2D GUI
• Figure 16. Total Year-To-Date (YTD) Registered Users of Virtual Worlds (in Thousands)
• Figure 17. Youth and Adult Users of Virtual Worlds
• Figure 18. YTD 2008 Estimated Revenue (US$) per Registered User
• Figure 19. Total Revenue Five-Year Forecast (US$ in Millions), 2007- 2012