Searching for a new virtual life

Creating an avatar, an online representation of you, and living in a virtual world has been a possibility for years now.

Users already populate one world or another in the hope of living their dream life, at least virtually.

With massively multiplayer online games (MMOG) like World of WarCraft it was relatively easy to build a user base, after all, those virtual worlds were built on an already successful genre - video games - where the goal might be to carry out a task or slay a giant monster.

But in non-game virtual worlds the purpose is somewhat vague. The user can invest huge amounts of time, and sometimes money, fully exploring these worlds and not really achieving much.

Marketing tools

Many companies, including traditional media, are jumping on the bandwagon early so they will not be left behind in the three-dimensional revolution.

Virtual worlds like CSI: New York can be used to reach new audiences

Some are banking on the power of the current virtual worlds, others are designing their own to suit their clientele.

The American TV network CBS recently took their smash hit CSI: New York and extended it into Second Life.

At home you can become a crime scene investigator and solve crimes in virtual New York. Game play is far from perfect and, to be honest, it gets a little tedious after a while.

But from the outset it achieves its goal - namely to create another space for grabbing more advertising revenue away from the traditional TV screen and reach a new generation of audiences who consume more content on the web.

Valerie Williamson, vice-president of marketing and business development at The Electric Sheep Company says: "Before virtual worlds on the web, all they had were 30 second television spots.

"Now with virtual worlds you can integrate the product into the experience so the user wants to voluntarily interact with a sponsor's product," she adds.

Realistic environments

There are plenty of other imaginative approaches to extending brand recognition.

Multiverse will offer video streaming from sites such as YouTube

For example, Vodafone's Inside Out, where phone calls and SMS messages to the real world and back are now possible.

Second Life may be the most high profile virtual world, but there is plenty of competition hoping to give it a run for its money.

There.com is a virtual world which is trying to appeal to a younger audience. "There" is rated PG 13, meaning there is no adult content on the site.

Activities include beach parties, driving races, and, should it take your fancy, being seduced by 50ft (15m) high virtual billboards of Paris Hilton, who has sniffed an opportunity to use virtual commerce to promote her new perfume.

I saw a demo from a soon-to-be-released version of the virtual world Multiverse, showing a glimpse of a likely future for the platform.

The new version offers more realistic environments, streaming from video sharing sites like YouTube, and the ability to populate its spaces with up to 1,500 avatars in one space which is way more than the competition.

Virtual taxes

Governments are also gearing up to a future in virtual worlds.

Could tax mean that virtual goods cost as much as ones in real life?

There is a diplomacy island in Second Life where you can find the virtual embassies of the Philippines, Malta and the Maldives.

But the government interest in virtual worlds might go beyond just participating.

Following the lead of South Korea, where virtual worlds are most popular, the UK and Australia are already formulating plans to impose taxes on virtual profits.

Meeting spaces

And like the web, virtual worlds are set to impact enormously on the workplace.

Justin Bovington, head of virtual worlds design company Rivers Run Red says: "People are actually using [virtual spaces] for having meetings.

"We have recently had conferences of over 160 people coming together to discuss specific ideas.

"They are using the same business tools that we would use in the real world, things like PowerPoint and Word documents," he adds.

IBM employee Holly Stewarts says: "I think the main thing is that it is much richer experience, a much more immersive experience."

"If you imagine being on a traditional old-fashioned conference call, everyone picks up the phone dials in, writing e-mail at the same time. It is quite hard to know whose turn it is to talk.

"When you have a real life meeting, people will gather around the water coolers or the coffee machine, before the meeting after the meeting. People will form small groups just chat and network, it is much more like we do as human beings in real life, " she adds.

Tipping point

But like the web, the success of virtual worlds will depend on ease of use and access.

All these worlds are processor-heavy to run and need a lot bandwidth to function properly. And if your connection or your computer is not up to the job you can find yourself wandering around aimlessly in a monochrome universe.

And let us be honest, a mouse and a keyboard is not exactly the most intuitive way of navigating your way around.

Paul Ledak, vice president for IBM Digital Convergence says: "Virtual worlds are still in a very early adopter stage of technology, but it is something that we expect is going to get much more popular."

We will hit a tipping point, he said, but there has to be a reason for people to want to be in the virtual worlds.

Business and entertainment have to be able to connect into virtual worlds and you have to have interoperability, he adds.

High expectations

So what does interoperability mean? The idea is to create one avatar to roam in different virtual worlds.

Currently those who want to log-on to virtual worlds have to plump for a particular platform in which to live their alternate lives

For example, I might not be able to take my wardrobe with me, but I should be able to take is my personal preferences, like my blonde hair, green eyes and most importantly my online reputation.

But for now interoperability is a watchword that the industry is talking about - and as is so often the case in the tech world, never comes to fruition.

Currently those who want to log-on to virtual worlds have to plump for a particular platform in which to live their alternate lives.

Virtual worlds will not become truly mainstream for some time. Their progress will be driven, unsurprisingly, by the younger generation.

They will be expecting a lot from them too - not just places to take social networking to the next level, but environments which are genuine useful - and which, crucially, can provide a real alternative to the 2D virtual world they are already inhabiting.

The demise of HD-DVD

In a high definition rerun of the VHS/Betamax conflict of the 1970s and 1980s, the two rival formats have slugged it out over the last two years in a battle for our hearts, minds and wallets.

Japanese manufacturer Toshiba launched HD-DVD, confident that the format, which was based on existing DVD technology, would be perfectly placed to take advantage of the rise in sales of high definition TVs.

After all, they reasoned, even though HD-DVDs were not able to store quite as much data as a Blu-ray disc, the discs and players were cheaper to produce than Sony's format, and the pictures and sounds were just as good.

HD-DVD was also, just, first out of the traps and initially had strong support from Hollywood. But the expected sales never materialised, just one million in total, as consumer indifference and confusion set in.

And of course, there was Sony's trump card. The Blu-ray playing Playstation3 may have underperformed commercially as a gaming console, but in the past 18 months they have managed to get six million of them into our living rooms.

More and more movie studios got behind Sony's format, and Warner Brothers' announcement at the beginning of the year that it would exclusively support Blu-Ray effectively signalled HD-DVD's demise.

The final nail was hammered into the format's coffin earlier this month, when the worlds largest retailer, Wal-Mart, threw its considerable weight behind Blu-ray.

So, Toshiba and its partners will now cease producing HD-DVD hardware and Blu-ray is left with a clear run at the high definition market.

To find out how this happened, and what it means for the consumer, we spoke to Screen Digest's Helen Davis-Jayalath.

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How Google gains from MS-Yahoo war

SEATTLE: Neither Microsoft Corp nor Yahoo Inc wants to blink first in the software giant's proposed $41.7 billion takeover of the Web pioneer but as the gamesmanship drags on, arch rival Google Inc, the merger's raison d'etre, is the biggest beneficiary.

Not much has progressed since Microsoft offered to buy Yahoo on February 1, a proposal that was rebuffed by Yahoo's board as under-valuing the company. Microsoft has countered by saying its offer was fair and urged the board to take a second look.

The union of its two biggest Web rivals could eventually loosen Google's grip on online search and advertising, but a messy takeover battle followed by a complicated integration could give Google ample time to build on its advantage.

"Google benefits if Yahoo is in a state of limbo," said RBC Capital analyst Jordan Rohan. "The longer the uncertainty persists, the greater lead Google has in online advertising."

The impasse between Microsoft and Yahoo has lasted almost a full month and while analysts think that the two companies will eventually strike a deal, the stand-off shows no signs of a quick resolution.

Microsoft has not ruled out a proxy fight to win Yahoo and Yahoo continues to probe for other options. A proxy fight could stretch until July, the latest it could hold its annual meeting this year, followed by a strict regulatory review process in the United States and Europe.

After clearing those hurdles, Microsoft and Yahoo will have to merge two different advertising systems and consolidate completely separate back-end computer systems. Already, Microsoft is seeking to absorb its $6 billion purchase of advertising services company aQuantive from mid-2007.

All the while, Microsoft has to figure out how to head off a feared mass exodus of Yahoo employees while paring back redundant brands.

Microsoft expects the Yahoo transaction to close in the second-half of 2008, but analyst Marianne Wolk at Susquehanna Financial Group said a deal may not be finalized until early 2009, meaning Google may not face a stronger number two in Web search and advertising until 2010.

Google dominance
Google has proven what it can do when given an opportunity to build on a lead. Over the last year, Google's US Web search market share has jumped 11 percentage points, while Yahoo and Microsoft have both posted steady declines, according to research firm comScore. Factor in Web searches done overseas and Google's lead is daunting -- with three-quarters of the world market.

Its profitable search engine allows Google to devote more money toward research and development for growth areas like Web video advertising and search on mobile phones.

Google's $3.1 billion acquisition of DoubleClick, due for completion later this year, should also shore up its position in display advertising, banner ads placed on Web sites, where it has only begun to make inroads against Yahoo.

Without a clear number two to challenge Google, advertisers and Web site publishers may opt to stick with the status quo. "In the short term, Google is likely to continue to see renewals and traffic wins as various players realize that because of
the merger and the time that could take that neither Microsoft or Yahoo could catch up for some time," said Susquehanna's
Wolk.

Microsoft and Yahoo, however, will become a "substantial force" in the online market over time, according to Wolk. At the same time, Google faces its own challenges. Two Wall Street analysts, UBS and BMO Capital, cut stock price targets on
Google on Tuesday, citing a comScore report that showed a decline in advertisements delivered by the site in January, even
though searches increased in the same period.

Google has raised concerns about a Yahoo-Microsoft deal, saying that coupling the two most often-visited Web portals with Microsoft's desktop software monopoly could undermine competition.

Mountain View, California-based Google could also see its R&D advantage shrink with a combined Yahoo-Microsoft. According to Wolk, Google spends about the same amount of money on Web R&D as Microsoft and Yahoo combined, but as separate entities, there is a lot of overlap in that investment.

"There is a lot of redundant development going on..., and at the end of the day, you don't need both," Microsoft Chief Research and Strategy Officer Craig Mundie said at the Goldman Sachs Tech Investment Symposium.

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Digital Polaroid photo frame concept brings it all rushing back

Polaroid film may be gone, but for some of us with fond memories of the format -- for no discernible reason, Polaroids were slow, blurry and expensive -- this digital picture frame concept seems a fitting tribute. There's a dry erase portion on the bottom, and the frame can stand on its own or be pinned to a cork board for added realism. "Standard" mode emulates a regular digital frame, while "Classic" mode slowly fades the picture into view. Yeah, maybe a little too cute for its own good, but maybe we like it that way.

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