Virtual Worlds

How 'Avatar' may predict the future of virtual worlds

Update at 2:10 p.m. PDT: This story has been modified to reflect both Jon Landau and James Cameron's membership on the advisory board of virtual world platform developer Multiverse.

Since the release of his massive hit "Avatar," director James Cameron has gotten plenty of deserved attention for his filmmaking innovations, having invented a camera system that captured live footage of his actors and integrated it immediately into fleshed-out scenes from his fictional world of Pandora.

But movies may not be the only medium Cameron's innovation is pushing toward the future. In fact, the technology … Read more

Virtual goods continue to make (real) serious money

The U.S. market for virtual goods will reach $1.6 billion in 2010, with social gaming contributing $835 million of that, according to a new report released Tuesday by research firm Inside Network. Virtual good sales were expected to clear $1 billion in 2009, a substantial increase year-over-year.

International sales of virtual goods have outpaced the U.S. rather dramatically, as witnessed by the explosive growth in South Korea and China, which had 2009 sales estimates of $3.5 billion to $4 billion with the market expected to reach $5.5 billion by 2012.

"Inside Virtual Goods: The Future of Social Gaming&… Read more

Making movie games more faithful than ever

Thanks to a new technology that allowed people to drive a rover across the world of Pandora from the smash hit film "Avatar," we might soon see a wide range of games or other projects that use the exact same 3D models as the films they're based on.

In December, McDonald's launched a game called PandoraRovr, in which anyone could explore James Cameron's fantastical moon. While an otherwise normal Flash-based promotion put together on behalf of one of the film's corporate partners, what made the game unusual is that the imagery in it was … Read more

Korea rules virtual currency as good as cash

Virtual currency has been one of the more confusing areas of gaming and social networking, with different sites, games and even countries treating currency and goods differently.

South Korea has decided that virtual currency is the equivalent of real-world money bringing to light some very real ramifications for users not just in Korea but in other countries as well.

The ruling allowing "cyber money" is the first in Korea and was based on the acquittal of two gamers indicted on charges of illegally making money by selling goods earned in the game Lineage.

In-game or in-site currency has … Read more

Charting a course from virtual reality to the White House

Editor's note: This is the second in a series of articles discussing how people in the tech industry are working with or around federal and state governments.

Can you chart a logical path from a 2003 academic conference on the legal issues surrounding virtual worlds and online games to Barack Obama's first executive action as president?

Beth Noveck can.

If you're not familiar with her--and few outside her specific professional and social circles would be--Noveck, a 38-year-old lawyer originally from Toms River, N.J., is Obama's deputy chief technology officer for open government.

Precisely what &… Read more

FTC: Kids can find adult content in virtual worlds

The FTC seems to have discovered something the rest of us already knew. Kids are easily able to access adult content in virtual worlds.

A report released Thursday by the Federal Trade Commission found that minors are exposed to violent and sexually explicit content in online virtual worlds. The congressionally mandated report, "Virtual Worlds and Kids: Mapping the Risks," discovered that while most of the adult content appeared in virtual worlds geared toward teens and adults, some showed up on virtual sites designed for kids. Further, some of the virtual worlds for teens and adults allow or encourage … Read more

Obama's open-government director opens up

On Tuesday morning, the Obama administration formally unveiled its Open Government directive, an effort aimed at weaving the philosophies of openness, transparency and participation into the DNA of the federal government and its agencies.

That directive comes as a direct result of President Barack Obama's first executive action, on January 21, only hours after the hoopla from his inaugural parade and parties had died down, when the new chief executive issued the so-called Memorandum on Transparency and Open Government.

That document, which began, "My administration is committed to creating an unprecedented level of openness in government," was … Read more

Nintendo's Dunaway: What, Wii worry?

Correction at 4:50 a.m. PDT November 18: Cammie Dunaway incorrectly described Wii's October sales figures compared with other next-generation game consoles. Wii sales were nearly the total of its rivals combined.

Stung by lower Wii sales and a couple of down quarters, Nintendo may be a bit off its game this year. But Cammie Dunaway, Nintendo of America's executive vice president of sales and marketing, keeps focused on the company's strengths and positive numbers.

The recession and a paucity of blockbuster titles have taken a bite out of the overall video game industry this year, with revenue down from record levels in 2008. Nintendo certainly hasn't been immune. For the first half of the year, earnings fell about 50 percent from 2008, while Will sales dipped.

In the midst of this atmosphere, I spoke on Thursday with Dunaway, known to many video game buffs for her high-spirited appearances at E3.

Though I asked Dunaway about the company's revenue decline, lower console sales, and potential competition, she continually championed Nintendo's assets, including its Wii and DS consoles and recent popular games like Wii Sports Resort and Wii Fit Plus, as well as new titles like Super Mario Bros.

Dunaway's optimism about Nintendo may have been borne out by the latest results. Though overall video game revenue fell in October, the Wii bounced back to recover its spot as the top selling console, according to NPD.

Last month, Nintendo sold 507,000 Wiis, compared with 320,600 Sony PlayStation 3s and 249,700 Microsoft Xbox 360s. Coming in second in video game hardware sales was Nintendo's portable DSi and DS Lite, with gamers scooping up 457,000 units.

Four of Nintendo's titles also did well in October, finishing in the top 10. The company sold 232,000 copies of Wii Fit Plus alone, and 209,000 of Wii Fit Plus bundled with the Balance Board. Wii Sports Resort scored with 179,000 copies sold, while Kingdom Hearts 358/2 Days for the DS found 169,000 new customers.

I spoke with Dunaway by phone before before NPD released the October sales figures. But she certainly knew ahead of time that the numbers would look good for Nintendo.

Q: The question on everyone's mind is Nintendo's performance this year. For the first half, earnings were down about 50 percent. Sales for the Wii have dropped. Your president, [Satoru] Iwata, recently admitted that sales of the Wii have stalled. What do you pin as the reasons for this downturn, both for the company and for the Wii itself? Dunaway: Let's talk about the U.S., and let's break it down into the separate platforms. So, speaking first about the Wii--what's important to understand is that in 2008, we sold 10 million units of the Wii, which was a record for any console ever in history. And so it's a high mark.

What's also important to understand is that the pacing of our software this year was quite different than it was in 2008. In 2008, our big titles were released early in the year. And this year's huge title, released a few weeks ago in October, Wii Fit Plus, is doing quite well. And then arguably, the largest title of the year, New Super Mario Bros. for the Wii, only releases Sunday [November 15]. So we believe that going into the holiday season, consumers will continue to look for the products they see as representing the best value and the most fun.

Now on DS, we also had a record setting year last year, selling over 10 million units, and we are actually 16 percent above that pace year-to-date in 2009. So the combination of DS Lite and our new product DSi is really resonating with consumers.

Then on software, here in the U.S., our software for both Wii and Nintendo DS is actually up over a year ago. So despite the fact that our big titles are yet to come, we still have had a good year overlapping a tremendous year with our software.

Can you talk about some of the new titles Nintendo has in store for the holidays and next year? You mentioned Super Mario Bros. is a key title for the holidays. Are there others? Dunaway: Looking to some of the additional titles for the holidays, New Super Mario Bros., for the first time enables four people to play a Mario game together. And it is going to be something that provides tremendous challenge to experienced gamers, and something a brand new gamer can jump in with their friends and family and enjoy. So that one will be a monster hit.

We also on the DS side have a new Zelda title--Zelda Spirit Tracks--coming on December 7. And Zelda titles are always strong performers, and it's a franchise that loyalists look forward to, line up to get copies of. And it's a title that we also think expanded market consumers will enjoy because of its heart. It's really about solving puzzles and going on an adventure, which is something that really anyone can have a good time doing.

Then as we go into next year, while we haven't announced timing, we have announced that we'll be launching a new Pokemon Gold and Silver, which has broken all records on its launch in Japan. [We're also launching] a title that will be great for loyalists called Sin & Punishment and a title called Endless Ocean that really provides a wonderful family experience on the Wii.… Read more

Virtual goods: Duping the masses?

I attended the Virtual Goods Summit on Friday and walked away struggling to figure what topics might be interesting to write about. My net takeaway is that not much has changed in the year that I've been writing about social gaming and virtual goods, with the exception of two facts:

1. Virtual good providers are being lauded as the next big thing to replace advertising 2. There's something weird going on with the ads and offers that have taken over the more traditional banner advertising role

There is no question that virtual goods have become an integral part of social network revenue streams. And the mainstream media has finally started to catch on.

But, I didn't realize the oddities of the way users are being monetized until I attended the event and saw the heavy emphasis not just on monetizing users but on doing so in a way that was transparent and non-intrusive. Theoretically, it's a good idea, but in practice, many of the "offer" providers are purposely or inadvertently running Ponzi schemes.

TechCrunch's Michael Arrington arrived at my second point above and took the theory much further with data that shows many social gaming offers and advertising practices amount to little more than a complicated scam that gets people in the door for free only to take advantage of their lack of understanding of what they've technically agreed to in the various offers.

In short, these games try to get people to pay cash for in game currency so they can level up faster and have a better overall experience. Which is fine. But for users who won't pay cash, a wide variety of "offers" are available where they can get in-game currency in exchange for lead gen-type offers. Most of these offers are bad for consumers because it confusingly gets them to pay far more for in-game currency than if they just paid cash (there are notable exceptions, but the scammy stuff tends to crowd out the legitimate offers). And it's also bad for legitimate advertisers.

… Read more