Web 2.0 Featured Article

Report: Social Networking Part of 'Web 3.0' Virtual Worlds Trend

By Nitya Prashant, TMCnet Contributor

Move over blogging. The next big thing has arrived. A new report by In-Stat indicates that virtual worlds are where the action is: the number of registered virtual world users is expected to exceed one billion and create total revenues exceeding $3 billion by 2012.

 

A virtual world is an online, computer generated environment which users can inhabit with digital representations of their real selves, called avatars. These virtual worlds may be close in structure to real life or be completely fantastical.

 

According to the In-Stat (News - Alert) report, common 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.

 

Researchers have traced the evolution of the Internet from Web 1.0 to Web 3.0. In-Stat said Web 1.0 is generally defined as being static and not interactive, whereas Web 2.0 tends to be more of social networking. Sharing of information and resources by blogging, commenting on current news and attending events online — activities that tend to decentralize the news industry — are examples of Web 2.0.

 

According to the report, virtual worlds, specifically those featuring 3D environments, are classified as Web 3.0 because of their ability to integrate multiple types of content, information sources, and feeds into one into one interactive format.

 

The In-Stat report identified ten critical components of virtual worlds, including Web 3.0 applicability, user-generated content, social networking, virtual items, an economy, and business integration. The report then rated virtual worlds based on these ten components.

 

Social networking is the one critical element to virtual worlds, scoring the maximum points possible on all platforms, the report concluded.

 

“Evidence supports the conclusion that the ‘killer application’ that is critical to virtual worlds — and, by extension, to Web 3.0 — is, in fact, already here and it is none other than social networking,” said In-Stat analyst  Vahid Dejwakh, in a statement.

 

Listing global market statistics, In-Stat said that 70 percent of the more than 300 million registered users of virtual worlds are younger than 18. Further, it points out that virtual world companies earn close to 90 percent of their revenue from the sale of virtual items, currency, land, and fees associated with these items.

 

The report also included analysis of this new form of gaming and social networking with profiles of 17 virtual worlds, including user demographics and market shares.

 

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Nitya Prashant is a contributing editor for TMCnet. To read more of Nitya's articles, please visit her columnist page.

Edited by Mae Kowalke