Webkinz

The thousands of happy kids that care for their 'kinz online every day now have a new way of playing. Ten Ton Hamster has the word that Webkinz will now allow players to trade their virtual pets in an online trading room. It's much the same way that kids trade their real world plush. Players are allowed to trade with a given person only once per day, and the official site stresses that "the only trades allowed in Webkinz World are made in the Trading room!" An official notice went up reinforcing this concept, proving that RMT and player-to-player sales are a problem even in worlds aimed at the smallest of players.

A post on the TTHamp site earlier this month discussed this new game element in greater detail. You'll only be able to trade in the Clubhouse, and there are a number of security elements behind the scenes that required the once-per-day-per-person trading limit. The interview with the folks at Ganz points out that new chat elements were added to facilitate trading, and that (someday) Kinz Chat Plus might return. Check out the piece for the entire lowdown.

The Silicon Alley Insider has the latest iteration of its "World's Most Valuable Digital Startups", a list of 25 privately-held companies with products or services on the Web. They say 'iterative', because they plan to continually update the list as market values change.

Companies of note on this list are Webkinz, the purveyors of virtual pets, valued at an estimated $2 billion dollars; Habbo, makers of Habbo Hotel, valued at $1.25 billion; and Linden Lab, the hosts of Second Life, valued at $1.1 billion dollars. If you're wondering about how they've come up with these valuation numbers, they explain their methodology, which essentially consists of four main components: implied valuations in recent financing, financial performance, market share and market size, and growth rate.

The Webkinz model is well-supported by now; it's essentially Beanie Babies in digital. Habbo Hotel is doing well enough to almost become a household name. Second Life gets the lion's share of public eyes on it by being the target of everyone's assumptions. Honestly, we're surprised that all three of these companies are still privately owned. Any bets on how much longer that will last?

Our Robin Torres writes a column called Gamer Interrupted, about mixing real life with gaming, and it's a wonderful read. In a recent post, the subject turned to how to make MMOs more child-friendly. A few specific titles were covered as well, including WoW and ToonTown Online, but it's worth asking if there are other good first MMO titles that are not only child-safe, but actively worthwhile for a kid to play, either alone or with a parent.

Obviously, we can mention Webkinz and Club Penguin, but are there others? Are there, in fact, any non-child MMOs that are safe for children to play?

We spent most of Monday ensconced in the GDC Worlds in Motion summit track, which made "standing room only" seem extremely spacious -- most of the sessions were packed to the gills and then some. It seems like more than a few industry types are interested in the intersections between gaming and virtual worlds. Case in point, the following session we've paraphrased (hopefully not too liberally!) from Reuben Steiger, CEO of Milllions of Us, a company that builds marketing campaigns and content for virtual worlds.

Reuben: Storytelling is the bedrock of human culture. (Looking at a slide with a real campfire on the left and a user-created campfire in Second Life on the right) -- users in virtual worlds are recreating this storytelling tradition. I'm going to make a contention: the internet has failed as a storytelling medium. Instead, the norm is bathroom humor and ridiculous jokes.

So virtual worlds: are they games or not? What defines a game -- linguists and semioticians get real worked up about it. The audience might say "virtual worlds are games without rules, competition, goals or fun." And it's hard to blame them. Extreme openness has defined virtual worlds, where fun can be in a way you define as opposed to what some game developer feels is fun. But the appeal of virtual worlds is that we can tell stories on a broader and less walled playing field.

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According to an Internet Investment Guide released by JP Morgan, and graciously digested for us by the fine folks at Virtual World News, the wide world of the massively multiplayer is not one large mass of gaming goodness as we typically believe. According to JP, from the perspective of potential investors, there are two segments of the MMO market worth looking at; there's the part of the industry aimed at adults with which we typically concern ourselves, and there are virtual worlds aimed at children. While adult MMOs are likely to be an area of growth in the new year, they recommend that investors be "bullish" on children's MMOs because they're already incredibly mainstream, and represent a surer avenue for growth.

If you've ever witnessed the ravenous hunger with which 'tween girls pursue Webkinz, the collectible stuffed animal - MMO crossover, you'll immediately recognize the salience of JP's findings. Parents support these sorts of games because they represent closed areas of the internet where kids can safely entertain themselves on the computer without much concern about illicit content or child predators. Kids like the games because they're usually specifically tailored to their tastes and age level. And developers support them because they're comparatively easy to develop and, with the appropriate retail tie-in a la Webkinz, make companies money hand over fist. So if you're looking for a good investment, look past an Activision Blizzard, and pick up a kid-oriented company instead.

It's just a sign of the times: online worlds are increasingly a part of America's collective unconsciousness. From World of Warcraft's truck commercial to the popularity of Barbie Girls, young and old have come to accept online gaming as a part of our society. For better or worse, that means MMOs are now a part of the vicious rumormill that swirls online ... and the result is as disturbing as it is funny.

It seems there's been a rumor going around since early last year concerning the perhaps-too-popular kiddie-world Webkinz. The story goes that some sort of malware can 'kill your Webkinz' inside the game. The accounts vary, but many seem to come back to an evil version of one of the in-game NPCs coming after your huggable critters with a weapon. While the image of a chainsaw-wielding duck is evocative, Snopes sets things to right: it's completely untrue.

The site categorizes these rumors as expressions of anxiety over treasured friends/objects; much like a young person would fear a bully ripping the head of their stuffed animal off in real life, so they fear the virtual equivalent. And no, they note, neither Club Penguin nor NeoPets have anything to do with these rumors.

[Via Cleolinda]

It's that's time again, gentle reader: the New York Times are taking a look at the financial side of virtual worlds, and analyzing the potential for growth within the market. But instead of focusing on Second Life or World of Warcraft, it's ... WebKinz and Club Penguin.

Despite my mental age, until now I've known the bare minimum about either. But now they're big business, and the virtual worlds market is entirely under their thrall. Or so the article claims. There are a few flaws in the article, but there's plenty of food for thought -- could virtual worlds overtake television in the children's entertainment sector? Is there big money in virtual worlds aimed at kids? Or, like the conference last month discussed, how will this influence our children?

Nobody really knows, I suspect. Analysts are notorious for being unable to predict what children want, beyond jumping on the bandwagon when it comes into town -- it's not like the 'adult' virtual worlds market, where further growth is guaranteed. I guess we'll just have to wait and see.

Here's a CNet article about a USC panel discussion concerning how virtual worlds are affecting children, sponsored by the MacArthur Foundation, who are investing in research in virtual worlds. Telling points from the discussion:

Spaces like Club Penguin and Webkinz encourage consumerism as part of being a good citizen. Well, this is true, but let's lift our heads from the monitor and realize that American culture itself embraces that model, and virtual worlds are merely the latest iteration of that concept. If we're not careful, these things will become yet another scapegoat for undesirable behavior, just like videogames have been and continue to be.

Educators continue to extol the virtues of virtual worlds as beneficial for learning. One of the strengths of online distance learning is its ability to provide the chatroom experience, which is inherently social, with the ability to immediately gratify the desire to search for background information. Being in your class in Second Life and Googling facts at the same time brings to your education a valuable 'live' experience that is difficult to match with standard real life classrooms. Add to that the playful nature of speaking through a customizable avatar, and this is a worthy new color in any educator's palette.

Real world ugliness is promulgated throughout virtual worlds, including bullying, racism, and homophobia. The problem is that, no matter how you view virtual worlds, either as utopias or dystopias, human behavior is a learned thing, and that frequently begins at home. Respect for your fellow humans must be taught. If it isn't taught, it isn't learned. Of course online spaces are filled with abusive behavior; life itself is filled with it. Like consumerism, this is a problem that virtual worlds are only bringing into sharper relief, not engendering themselves.

[Via CNet]