KZero Radar chart Q2 2011
Hot off the heels of our updated Universe chart, we’ve just released the updated Radar chart for the same period (you can order the Q2 Radar here). The Radar chart shows virtual worlds by category and stage of development. Here’s one of the segments showing Education,/Learning, Fashion/Lifestyle and Music.
Major developments this quarter (and year)….. Education and Brands/IP are leading the charge in terms of new worlds in development. Continue reading “KZero Radar chart Q2 2011” »
New report, Virtual Worlds 2011+ now available
We’ve just made our latest report, Virtual Worlds 2011+ available. You can order it here.
This report identifies and explains the emerging trends in the virtual worlds sector and includes insight into:
- Kids, Tweens and Teens
- Platform convergence
- Music
- Gambling
- Online dating
- UGC
- Socnet extension
- Education
- Virtual goods (consumer and B2B)
- Mirror worlds
- Mobile devices
- Metabrands
- Branded virtual worlds
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Young Children’s Play in Online Virtual Worlds
This is a great article by Jackie Marsh from the University of Sheffield. The piece, ‘Young Children’s Play in Online Virtual Worlds’ is taken from the Journal of Early Childhood Research. If you’re in the kids virtual world or MMO space I’d recommend taking the time to read this. I’ve ‘bolded’ the parts that I think are particularly interesting.
Abstract
Virtual worlds for children are becoming increasingly popular, and yet there are few accounts of children’s use of these worlds. Young children are spending increasing amounts of time online as technology continues to create significant changes in social and cultural practices in the 21st century.
Some of children’s online interactions can be categorized as playful in nature; however, play and technology are frequently positioned as oppositional. In this article, I explore the tensions surrounding the relationship between play and technology and relate it to similar discourses concerning the concepts of ‘real’ and ‘virtual’. I then move on to consider the growing popularity of virtual worlds with young children and examine the way in which the worlds have been marketed to children and parents/carers on the basis of their propensity to offer online play in a safe environment. The article provides an overview of two virtual worlds currently targeted at young children and draws on a survey of primary children’s use of virtual worlds in order to identify the nature of play in these environments.
One hundred and seventy-five children aged 5–11 completed an online survey and 15 took part in group interviews in which their use of virtual worlds was explored. This article focuses on the data relating to 17 children aged from five to seven years who used virtual worlds. Findings indicate that virtual worlds offered these young children a wide range of opportunities for play and that the types of play in which they engaged relate closely to ‘offline’ play. The implications for early years educators are considered. Continue reading “Young Children’s Play in Online Virtual Worlds” »
Q2 Radar: Brands and Learning dominate new entrants into virtual worlds sector
We’ve updated our Radar Charts for Q2 2010. These charts show both existing virtual worlds and platforms in development (closed beta). This time we’ve included MMOs into the Radar charts and we’ll be building out this list over time.
As a whole, the virtual worlds and MMO marketplace is changing quite dramatically. Whereas 12 months ago a concept we called ‘Chasing the Penguin’ was the main thrust of activity. This related to completely new companies setting up shop funded on the basis and excitement caused by the Disney acquisition of Club Penguin. This led to a massive influx (60+ new worlds) entering the marketplace going after the lucrative kids and tween sectors.
Of course, there’s only so much time kids have available and only so many times these kids can convince their parents to part with their hard-earned cash – we’re seeing casualties now.
As our last post explained, the virtual world and MMO marketplace is now shifting to being brand dominated as companies with existing customers, channels and operations see the value in sliding the brands and offerings into immersive environments.
The uplift in new platforms being developed as a result of these brands can be seen in the Radar segment shown below.
The other key segment seeing increased activity from new entrants is Education and Learning with a wide range of companies across many different educational areas developing their offerings. Continue reading “Q2 Radar: Brands and Learning dominate new entrants into virtual worlds sector” »
Updated Radar charts for Q1 2010
Here we go folks, our updated Radar charts for Q1 2010. On an overall basis we’re seeing a shift from ‘Chasing the Penguin’ and now we’re seeing efforts in the following areas:
1. Learning and education. Expect a growing number of virtual worlds entering the marketplace focusing on various elements of learning, education and self-development. These are focused around the eight to 12 year old segment.
2. Real-world IP: We’ve discussed this particular segment in length for a long time. This relates to existing popular brands creating virtual worlds to accompany movies, toys, TV and other IP-led properties.
Here’s the first segment (Education/Learning, Fashion/Lifestyle and Music). The full report can be ordered here.
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Updated Radar charts for Q3 2009
Earlier this week we published the updated Universe charts for Q3 2009. You may have noticed we’ve slightly changed the format between the Universe and Radar – the Universe chart now only shows live or open worlds. Worlds in development, semi-stealth and closed beta are now only shown on the Radar chart.
In terms of new virtual worlds, growth is slowing down in the casual gaming and socialing segments for KT&T. This is actually a good sign because there’s some over supply here, caused by a rush of VC money into the space in late 2007/early 2008 – we call it ‘Chasing the Penguin’.
Segments seeing an uplift in terms of pending worlds include fashion (Chasing the Stardoll?), education and development (here’s an interesting podcast on this theme) and thirdly branded worlds. We expect branded worlds to be a dominant force in 2010 – real world brands creating virtual platforms for their IP. In fact, we’ve just completed a business planning and strategic project for Ubisoft in this category – more about that later.
Here’s a segment from the Radar chart. The full set can be seen and high-res versions ordered here.
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Talking with RezEd about education in virtual worlds
Our friends over at RezEd continue to be great ambassors and advocates of the VW space – their speciality being educational usage. RezEd is an ‘online hub providing practitioners using virtual worlds with access to the highest quality resources and research in the field to establish a strong network of those using virtual worlds for learning‘.
I was interviewed for their latest podcast, discussing growth areas in the educational virtual worlds space as explained further in our latest report – Virtual Worlds 2010+. The podcast also features Raph Koster from Metaplace.
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Growth forecasts for the Virtual Worlds sector
We’re excited about the growth in virtual worlds, very excited in fact. As we release our forecasts for the sector, perhaps it’s time to have a quick look back over a frantic few years…
In an unfortunate way, the global credit crunch got in the way a little (the understatement of the year – not just for VWs of course). Late 2006 was the start of things. Sure, worlds like Habbo, There and Second Life were around pre-2006, but it wasn’t until brands started moving into SL that media awareness grew and, of course, users began to notice the metaverse.
Without a doubt, 2007 was the year of Second Life, with over 100 brands setting up islands. This created major attention, good and bad. And nevertheless, while No Brand is and Island, this marketing surge took virtual worlds mainstream. Linden Lab has a lot to be thanked for – Virtual Worlds were on the map in 2007. Additionally, we can’t forget about the Disney acquisition of Club Penguin – the catalyst for Kids, Tweens and Teens (KT&T) related business plans to pop up at an astonishing rate, ‘Chasing the Penguin’ as we call it.
2008? This was growth across many segments. Mirror Worlds came into play, more KT&T worlds were launched and suddenly the sector was rocking. The longer established worlds continued to grow their multi-million registered user bases and the new worlds started to battle it out.
Then we moved into 2009. Everything was looking rosy until the economy stepped in and slowed the launch of new worlds due to lack or drop-off in funding. Interestingly, ARPPU’s didn’t really take a hit, as users continued to spend money in-world. However, generally the growth and momentum seen in the sector upto the end of 2008 was impacted. But, as we start to move towards 2010, what does the future have in store? One thing’s a dead cert – we’ll be producing lots more charts – you can see them all here.
Lot’s of brand-new concepts in the VW space is one area that’s really exciting. More KT&T worlds? Absolutely – we think this age segment will continue to drive growth. And we’re optimistic about older worlds catered towards adults (in an ‘adult’ sense as well as propositions aimed at more mature audiences), with learning and education plus gambling being key genres to watch.
Here’s our forecast for the growth in the number of virtual worlds. By the end of this year we’ll be at the 150 mark for total worlds. We forecast this number to double by the end of 2010.
A rapid increase, driven largely by media sector companies creating IP-driven platforms for the toys, TV programmes, films and other properties. Just as almost every KT&T property has a website, we expect them to have a VW or at least presence in virtual worlds – along the ‘Theme-Park’ approach discussed in the past.
We expect growth past 2010 onwards to come from multiple areas. Education and older age ranges will supplement KT&T growth. Also socnet extension from ‘pages to places‘ is a natural movement. Combine all of this and we get to our 2012 forecast of 900 virtual worlds.
Continue reading “Growth forecasts for the Virtual Worlds sector” »
Opportunities and growth in the educational sector
We get asked a lot to offer our thoughts on growth areas in the virtual worlds space. This presentation, delivered at the London VW Expo from the end of last year outlines at a high level where we see this growth coming from.
Specifically for the educational sector, I’ve just done a podcast for RezEd produced in conjunction with Global Kids. Here’s the link to the podcast.
Predictions for 2009: Education and Personal Development
The majority of new virtual world launches in 2008 have been in the casual gaming space. We anticipate an emerging sub-sector in this demographic segment in 2009 for worlds based around education and development.
Although a common view shared when considering educational spaces is that kids/tweens are unwilling to participate/engage with learning themes, we disagree and feel this is a sector ripe for both success and growth.
Importantly, parental involvement with respect to encouraging and allowing kids/tweens to engage with educational worlds could also provide extra stimulus for take-up. In other words, VW’s focusing purely on gaming could potentially face tougher times competitively.
Continue reading “Predictions for 2009: Education and Personal Development” »
Bantam Dell Books
Bantam Dell Books. The concept of communities in virtual worlds is one of the most compelling factors driving usage.
Communities exist in Second Life around many different subjects. One popular theme, particularly with new residents is virtual recreations of real places. The reason for the popularity and therefore generation of a category-specific community is based on having a sense of context and familiarity in a sometimes chaotic environment.
Music is another binding factor proving effective at growing a base of interest-driven individuals.
With the entrance of Bantam Dell Books into Second Life, the company is hoping to harvest their own communities – based around the different literally-themed aspects of the books they publish.
The project, designed by the Electric Sheep Company claims to be the ‘First North American Publisher To Enter the 3D Virtual World of Second Life‘ – unlike sectors such as Automobiles and Technology, the publishing category has been slightly slower in adopting metaverse strategies.
So, what’s on offer?
Firstly, and unsurprisingly, the venue is a virtual bookshop, complete with tables and chairs, books (phew), and a coffee bar, in other words, an environment designed to create dwell time in-world.
UK academia in Second Life
UK academia in Second Life. Not-for-profit professional IT services group Eduserv, has recently completed an evaluation of UK academic instiututions in Second Life.
The report (available here) is a ‘state of play’ evaluation of several colleges and universities present in Second Life.
Education gathers pace in the UK
Education gathers pace in the UK: Interesting article from the Guardian on UK academia and Second Life.
SL academia no.3: Nova Southeastern
SL academia no.3: Nova Southeastern. NSU is a Florida-based University with over 25,000 students. American colleges have taken the lead in terms of having a presence in SL and this venue acts primarily as an information tool for potential students. The build quality is average, so probably done in house, but at least functionality has been considered.
Information for potential students can be obtained in the admissions area via hyperlinks back to their website as well as via downloadable brochures. Continue reading “SL academia no.3: Nova Southeastern” »
SL academia no.2: Sprott Shaw
SL acamedia no.2: Sprott Shaw: As first reporting by AK over on Rambling, Canadian private college Sprott Shaw joins the growing number of universities and colleges in Second Life.
The island build has been completed well and the venue has a nice campus/retreat feel to it. The island itself has been modelled on the real world, which is not always a great idea but in this instance it works well.
Encouragingly, Sprott Shaw has recognised the importance of integrating SL activity into other channels and supports the venue and initiaitive with a dedicated blog. Continue reading “SL academia no.2: Sprott Shaw” »
SL academia no.1: Insead
SL academia no.1: Insead. The international business school INSEAD launched their SL presence on March 20, 2007. The venue is part of a larger plan to integrate SL into their MBA, EMBA and Executive Education programmes. Here is their press release and a quote:
As an international business school with participants from around the world, INSEAD embraces innovative approaches to learning that will enable us to develop leaders who are prepared to operate in a constantly evolving global business environment, said Antonio Fatas, Dean of the MBA Program at INSEAD. We recognise the growing importance of the digital marketplace and want all of our participants to have the opportunity to experience it first-hand.
Really, considering the reputation of this school and its relationships with major brands (already in SL) it makes sense for them to use SL as a platform for students, potential students and of course employers.
What makes slightly less sense is the fact that half the island is still being developed (and therefore off limits), thus creating an unsatisfactory experience when visiting. Also, slightly too much emphasis has been placed on created a futuristic design. This is further supported by the display on show of the 3D rendering. Continue reading “SL academia no.1: Insead” »