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Spring 2008

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The Reality of Virtual Worlds, Revealed
By Alma Freeman

Right now, roughly 0.3 percent of the global population is involved in some sort of virtual world, said Indiana University’s Edward Castranova at the two-day conference in February “Virtual Worlds and New Realities in Commerce, Politics, and Society.” If this rapidly growing percentage rate doesn’t seem overwhelming, he continued, consider that the gross sales transactions that take place in these virtual worlds already rival those of some small countries.

Virtual worlds allow a person to create a digital character, or avatar, representing him- or herself, who interacts with other computer-generated avatars and virtually-run global businesses and in-world institutions in real-time.

Through on-line communities such as Second Life, which according to its website is “an on-line, 3-D virtual world imagined and created entirely by its residents,” avatars interact with millions of residents from around the globe to buy, sell, and trade “virtual” property, furniture, and equipment. A number of sales of goods in the virtual world have resulted in demand in the real world for those equivalent items. Avatars have the opportunity to engage in a multitude of entertainment events such as fashion shows, St. Patrick Day parades, art exhibition openings, nightclubs, and more.

Co-sponsored by The Halle Institute, Goizueta Business School, and the Federal Reserve Bank of Atlanta, the Emory forum brought together academics, entrepreneurs, social scientists, and experts on synthetic worlds as panelists to explore the potential influences and possibilities the virtual world phenomenon can – and already does – have on the real world. A Sunday afternoon expert workshop brought more than 60 scholars and practitioners together for informal discussions and debate. During the public conference the next day, an audience of more than 160 scholars and practitioners had the opportunity to engage on the topic with nearly 20 panelists, including pioneering entrepreneurs such as Chris Klaus, founder and CEO of Atlanta-based virtual world Kaneva, and John Zdanowski, CFO of Linden Lab, creator of Second Life.

While there have been many forums on the topic of virtual worlds, explained conference co-chair and George S. Craft Professor of Business Administration Benn Konsynski, most have been made up of either technical or current users who share their own, isolated experiences. Emory’s conference, however, offered the rare convergence of panelists and participants who offered a range of backgrounds and areas of study.
“Through this conference, Emory has been able to assemble a remarkable and unique mix of researchers from the United Kingdom and North America, including social scientists, information systems specialists, economists, bankers, lawyers, health care leaders, media and military representatives, and academic researchers from public and private institutions,” Konsynski said. “I told the audience in the beginning that this event would look like the bar scene from Star Wars. It was just the right mix of backgrounds to generate many perspectives.”

The impetus for the conference grew from a paper published on the history and growth of virtual worlds by Konsynski, who has his own island in Second Life called “SIMsim,” and PhD candidate David Bray. After generating significant interest online, the idea emerged to offer a course for both political science and business students on the topic. Taught by Konsynski and political science professor Holli A. Semetko, with assistance from Bray, the course was offered in fall 2007. Konsynski and The Halle Institute are planning a similar conference for next year.

Moderated by Cornell University’s Robert Bloomfield the final panel, a mixed reality event, took place in three worlds: the real world at Emory and the virtual worlds of Second Life and Kaneva. Panelists at Emory were joined by Second Life CFO Zdanowski live from Second Life. While his avatar, known as “Zee Linden,” sat casually in a svelte, black suit, participants discussed the future of virtual worlds and the challenges that exist with technology, currency, and regulations. Konsynski and Bloomfield were both in Atlanta and in Second Life with Zdanowski, while Chris Klaus was both in Atlanta and in Kaneva.

“In a virtual world, anything can be created or imagined. What we’ve seen is that there’s a big demand for that type of freedom and flexibility,” said Zdanowski, who describes Second Life as having “handed over the creation keys to its residents.” Yet, this level of user-generated flexibility comes at a cost, presenting unique challenges in regulation and real world procedures, he continued.

Kaneva, which claims 750,000 users at present, serves mostly as a virtual social world, with a touch of entrepreneurship. The company uses entertainment as a hook to encourage people to adopt the technology, said Kaneva CEO Chris Klaus. Kaneva partners with a number of real world companies, including Atlanta-based Turner Broadcasting, to create virtual world programs. Last year, the company signed a one-year contract with Kaneva to build virtual world spaces using an embedded video player to stream content. As technology advances, Klaus predicts that an increasing number of companies will catch on to the possibilities of virtual worlds. Gartner, a leading research and technology company, predicts that over 250 million people will be in virtual worlds by 2011.

What will virtual worlds look like in five years? It’s hard to say, said Klaus. “It’s a similar parallel to asking someone in 1994 or ‘95 ‘where is the web going?’ No one would have predicted an Amazon, a Google, or an eBay, but ultimately those did manifest themselves using a new technology platform. I think [virtual worlds] have the same potential,” he said.


Alma Freeman is the communications specialist for the Office of International Affairs and The Halle Institute.
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