MMOWs: Massively Multiplayer Online Worlds

MMORPGs (Massively Multiplayer Online Role Playing Games) have been around for a while.  They are compelling because they mix gameplay,  and the social environment of hanging out in groups.   They have gained a lot of traction in Asia (especially China, Korea, and Japan) - where consumers have a strong need to express themselves freely given the societal constraints (and where other forms of entertainment are much more expensive) - and even a few have done well in the US (like EverQuest).   

I have seen several startups focused on the next trend - massively multiplayer worlds started for the sake of community and "hanging out" vs gameplay.  I believe this will become more of a permanent entertainment/communication habit on the internet - especially for young people.  The trends of increased bandwidth, social networking, addictive use of IM by teens (I have heard that teen buddy lists have over 100 people on them!), and more powerful computers to support 3D  worlds all play in its favor.    Examples of current worlds include Second Life, Habbo Hotel, and Gaiaonline. 

With the IM networks beginning to open up, entrepreneurs can create these online hangouts and get quick crowd formation by tapping into pre-existing buddy lists (one example is users customizing their "away" messages to "i'm hanging out in XYZ world - come join me").    The barriers to entry are somewhat higher than a typical website in terms of quality of the "world" (especially 3D), managing the many simultaneous users, and constantly evolving it (and allowing users to evolve it).  I like that it's a sticky application as users customize their identity and avatars and create a bunch of digital goods (e.g. house, pets, cars) that one values dearly.  It's also pretty viral as the instinct of the participants is to invite their friends in - what's a "hangout" without your friends?

I believe there will be more than one MMOW that wins out - kinda like a thriving universe - expanding and contracting with people's diverse interests and pop culture trends.  You don't need the same network effect as in ebay - you're there to hang out with interesting people - four maybe  just as good as 400.  For now, it will be tough to move across worlds as you need to re-create your digital identity as you travel from world to world - but perhaps there will be "open world standards" or "virtual teleportation" agreements in the future : )

From a business standpoint (and ability to invest in keeping the world fresh, cool, and cutting edge), critical mass will be important as I see this being driven primarily by advertising - mainly brand advertising as there is no "search intent" that will lead to action - the user is too busy chatting away and hanging out.  This will be a compelling means for brand advertisers to reach the elusive teen and youth generation who is not watching much TV or reading magazines.    There is also an interesting business model in buying selling goods via a "virtual economy" but that's difficult to monetize for the youth demo who doesn't have the bucks or payment means.

I expect a proliferation of worlds in the next 6-12 months and I look forward to helping the "world builders" make it happen!  Contact me if you have a great idea here...

Comments

[David Evans]

Worlds Inc, OZ Interactive a long list of failed entrants into this market. I built my first virtual worlds as part of the first VR group of the Boston Computer Society in 1992. We took worlds we created on high-end SGI gear to SIGGRAPH way back in the day when you were terrified the head-mounted display would electrocute you.

There are a bunch of add-in 3D worlds for chat clients most appear similar to windows 3.1, slow crude and crash-prone with not a lot to do when you get it loaded (can you say heavy Java client?)

Oddcast and it's competition would work as an IM client enhancement and recently Skype did a deal with Reallusion to add-in their CrazyTalk avatar plug-in. That is going to rock if it's lightweight enough and can be branded.

Randal Farmer is doing the Yahoo Avatars, can't wait for the Mac version. The branding has been pretty lame to date. My avatar has been standing for almost two years, when is he going to be able to take his first steps?

Agree about portable, persistent identities, much like open profile in dating and social networking.

Lot's of great ideas that I'll share when we launch ;-)

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