Industry Profile - Online Virtual World
From Information Systems at Pitt Business
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Contents |
[edit] Definition:
A computer-based simulated environment intended for its users to inhabit and interact via avatars. Some, but not all, virtual worlds allow for multiple users.
Virtual world is the world being computer-simulated typically appears similar to the real world, with real world rules such as gravity, topography, locomotion, real-time actions, and communication. Communication has, until recently, been in the form of text, but now real-time voice communication using VOIP is available.
The origin of virtual world is game-oriented, but some virtual worlds today evolve into social networking oriented. The social networking oriented online virtual worlds typically tend to appear similar to the real world and enhance social networking or communication functions such as VoIP. Besides, some virtual worlds provide advanced features such as currency system, creation or outside connection capability.
[edit] Market Size:
- Screen Digest has found that the market value for massively multiplayer online games in the West hit $1bn for the first time in 2006. The North American subscription market was worth $576m, while Europe was worth $299m.
- Screen Digest forecasts that by 2011 over 10 million subscription accounts will generate $1.5bn in consumer spending on this growing sector of the online games market. Over the forecast period Europe will enjoy the strongest growth between the two Western regions.
- Key finding
- Market value for massively multiplayer online games (MMOGs) in the West hit $1bn for the first time in 2006. Market growth has been helped by the introduction of more casual MMOG experiences and new business models.
- The North American subscription market was worth $576m, while Europe was worth $299m.
- By 2011 the MMOG subscription market will be worth over $1.5bn and Europe will enjoy the stronger growth between the two Western regions
- Over the five year period, Germany will remain the largest subscription market in Europe, followed by the UK.
- France will see the most significant value growth of over 16% CAGR over the term, whilst Spain and Italy will both experience subscription value CAGR of more than 15%.
- World of Warcraft is by far the most popular subscription game, accounting for 54% of the subscription market in 2006, generating revenue of $471m. Its next nearest competitor was Runescape from UK developer/publisher Jagex.
[edit] Size, structure, and composition of the industry:
[edit] Industry Leader - Second Life:
Features
- Entertainment (Game)
- Social Networking / Community gathering
- Embedded Market
- Available Talent Pool
- Global Presence
Population
Potential Application
Besides the game and social networking function, a combination of Linden Lab granting Second Life Residents the copyright over their contents. Residents can create their own content and exchange with “Linden Dollar”. Also the legal trading of the in-world currency "Linden Dollars" (L$) has encouraged the creation of solely in-world businesses, the creation of legally registered companies that were previously solely in-world, and the in-world participation of previously unrelated companies and organizations.
The following could be the potential application for using virtual world.
- Training Course:
- Harvard Law School and Harvard Extension School offered a course called "CyberOne: Law in the Court of Public Opinion" within Second Life in 2006.
- Distribution Channel:
- American Apparel opened a branch inside the virtual world selling digital renderings of clothing modeled after real-life merchandise.
- Dell sells PCs in Second Life
Economic Statistic: Second Life has its own economy and a currency referred to as Linden Dollars (L$). Residents regularly create new goods and services, and buy and sell them in the Second Life virtual world. As of February 2007 it is reasonably stable at around L$ 270 to one U.S. dollar.
Issues for Online Virtual World:
- Infrastructure Requirement
- Sufficient hardware to support high traffic and high graphic performance
- Stability of System
- The user information, friend list, property must be state correctly and easy to access.
- Ease of Use
- Easy use interface can decrease the barrier for users to start using virtual world
- Collaboration
- More resources available in virtual world can increase the usage
- Innovative and Creativity
- The ease for users to create their content and high creativity of system designed can attract users.
- Customer Relationship
- Keeping provide new function or providing an easy interactive environment for users to connect users can maintain user keep active in the virtual world. Also, the stability of the system and easy-use interface will encourage consumers to start trail.
[edit] Future of Virtual World:
The issues of real money trading (RMT) will need to be take care of for future operation of virtual world and need to consider by business people. How can business people use this tool to expand their business, increase cash flow and how can virtual world operator to cooperate with these businesses to create the attractiveness for users.
[edit] Career Plan & Research
Professional Profile
Professional Development Plan
Industry Profile - Online Virtual World
Firm Profile - Linden Lab
Critical IS Management Issue - Issue Identification & Definition: Information System for Collaborative Learning
Critical IS Management Issue - Current Knowledge and Background: Information System for Collaborative Learning
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