I received an email from Karen iReport (Second Life name obviously) that CNN have now moved on from a small ‘hub’ presence in Second Life and onto their own island – which now includes a ‘classic’ automotive theme. It is great to see a positive growth move from CNN given the exit of Reuters not so long ago – I quote from her press release / email to me.

As a matter of fact, CNN is no longer a hub within SL, we have moved to our own island!

The new space features ‘in-world’ geographic elements and meeting spaces, including a virtual drive-in theater, complete with a snack bar and vintage cars where visitors can view recent in-world iReports, pick up iReport gear to dress their avatars and check out the iReport.com/secondlife page.

As you can see, as others are abandoning their presence in the SL community, CNN’s mission for iReport within Second Life remains as it did upon launch in 2008: to provide Second Life residents a way to identify and share news and events happening within their virtual community through the submission of ‘SL iReports’.

To celebrate our expansion, please join the in-world iReport staff and SL residents on Tuesday, Feb. 3rd, from 12 noon ET noon to 6 p.m. ET (9am SLT – 3pm SLT). We’re going to have an open house including some very special guests, and island tour (click here to view screen shots of the enhancements) and even some dancing!

Hope you can make it…

and more from the official release on the CNN site

Building upon the popularity of iReport in the virtual world of Second Life, CNN has relocated to its own island. This island features new ‘in-world’ geographic elements and meeting spaces, including a virtual drive-in theater complete with a snack bar and vintage cars. CNN’s mission for iReport within Second Life remains as it did upon launch in 2008: to provide Second Life residents a way to identify and share news and events happening within their virtual community through the submission of “SL iReports.”

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I was looking for one place on the web that had a list of the mix of male and females across the ‘game/virtual world’ space. I have actually found it useful to quote many of these stats to clients who still believe console games, online ‘quest’ based games and virtual worlds are still the domain of twenty something, slightly overweight, couch potato, anti-social males. Nothing could be further from the truth. There are lots of Australian centric insights (eg: SMH here “Never too old to play“) But these are more global or US based. Read on and in no particular order!

“Games Women Play” Sep 08  from the Edge

• Online casual games bring in 150 million women every month– roughly half the population of the United States.
• Nearly two-thirds of women casual players online are over 35.
• Women play casual games 5 to 10 hours per day – significantly greater than the 7.4 hours per week by a survey by the Casual Gaming Association.
• Competition, rather than simple relaxation or escapism, motivates them to play.
• Female players who are 18 and older represent one third of the game-playing population while male players who are 17 or younger represent only 18 percent of casual gamers
• Playing casual games is often the first thing women do after waking. They check their ranking and play for on average of 2 ½ hours every morning.
• Women engage in trivia games with the family members but play action games alone.
• Most women players are married or in a relationship and have children.

Online Gaming Popularity Grows Among Youngest and Oldest Female Segments in the U.S. ComScore report.

• Significant user growth among teenage girls between the ages of 12 and 17 and women between the ages of 55 and 64.
• Growth in the 12 – 17 age range was 55% compared to the total female online gaming audience rate of 27%
• The over-55 age range grew 43%.

BBC 23 December 2008 “Battle of the Sexes”

• It found that the most hard-core players are female, that gamers are healthier than average, and that game playing is an increasingly social activity.
• Despite gaming being seen as a male activity, female players now make up about 40% of the gaming population.
• The study (detailed link here from Wiley interscience) looked at gender differences in more than 2,400 gamers playing EverQuest II.

Industry Facts from Entertainment Software Association ESA

• The average game player is 35 years old and has been playing games for 13 years.
• The average age of the most frequent game purchaser is 40 years old.
• Forty percent of all game players are women. In fact, women over the age of 18 represent a significantly greater portion of the game-playing population (33 percent) than boys age 17 or younger (18 percent).
• In 2008, 26 percent of Americans over the age of 50 played video games, an increase from nine percent in 1999
• Sixty-three percent of parents believe games are a positive part of their children’s lives.

Women Embrace Casual Games from RedHerring “Casual Gamers Anything But”

• Spend as much as 20 hours each week playing their favorite games.
• More than 70 percent said they play at night, and 58 percent have no children living at home.
• Results from the Harris research reveal that 67 percent of the women over 40 who play games do so at least four times per week. Nearly half play every day.
• Some 60 percent say they would rather play a casual game than talk on the phone or do projects around the home, while nearly 50 percent said they would rather play a casual game than go to a movie.

PDF report by Pew Internet. “Adults and Video Games”

• More than half – 53% – of all American adults play video games of some kind
• Independent of all other factors, younger adults are still more likely to play games.
• Among older adults 65+ who play video games, nearly a third play games everyday, a significantly larger percentage than all younger players, of whom about 20% play everyday.
• Gaming consoles are the most popular for young adults: 75% of 18-29 year old gamers play on consoles, compared with 68% who use computers
• Computers are the most popular among the total adult gaming population, with 73% of adult gamers using computers to play games, compared with 53% console users, 35% who using cell phones, and 25% using portable gaming devices.

BBC 17 Sep 2008 “Online gamers are not unhealthy“

• The “couch potato” image of computer gamers is unfounded, with many in better than average shape, claim US researchers.
• More than 7,000 players of the online game EverQuest II were quizzed about their health by scientists.
• They found gamers’ body mass index (BMI) tended to be lower than the US average – with many taking “proper” exercise more than once a week.

Driving Force in Video Gaming: Women and Baby Boomers. Reported on PC World Aug 2008.  IBISWorld claims that:

• 38 percent of US gamers are women
• The average player is 35 years old
• 24 percent are over 50.
• The percentage of female video gamers climbed from 33 to 38 percent in five years bolstered in part by Nintendo’s Wii, but also “interactive group games” such as Singstar, Rock Band, and Lips, as well as The Sims, The Movies, Nintendogs and NeoPets.

Demographics of the top 3 games on Facebook – from Bret on Social Games

• Scramble which is the only game among the top three developers dominated by women(63%).
• The age of Zynga players is spread more evenly among the three age segments, but with ~50% in the 22-25 age bracket.
• Blake Commagere’s Monsters games also have ~50% of their users in the 22-25 age bracket.
• They also have a fairly even male-female ratio.

Second Life demographics and usage – reported by Lost in Bananaverse

• 83.79% of the population is 25 years and older, and the older users spend far more time in Second Life than younger users
• Females spent nearly twice as long online in Second Life as males. Females make up 45.5% of the Second Life population.
• Total user hours for April totaled 29,069,684 hours
• Those 45 and older continuing to be the heaviest users on average.
  • 45 and older: 70.17 hours per user per month
  • 35-44: 66.06 hours per user per user per month
  • 25-34: 55.55 hours per user per user per month
  • 18-24: 37.84 hours per user per user per month
  • Teen grid: 24.67 hours per user per user per month

The demographics of World of Warcraft (useful but old 2005 data from Nick Yee)

• The average age of the WoW player is 28.3
• 84% of players are male
• 16% are female. Female players are significantly older (32.5) than male players (28.0)
• On average, they spend 22.7 hours per week playing WoW.
• There are no gender differences in hours played per week.

ESSENTIAL FACTS ABOUT THE COMPUTER AND VIDEO GAME INDUSTRY 2008 SALES, DEMOGRAPHIC AND USAGE DATA (full report from ESA at Scribd)

• 13 is the average number of years adult gamers have been playing computer or video games. Among most frequent gamers, adult males average 15 years for game playing, females for 12 years.
• 59% of gamers play games with other gamers in person. This is a rise from 56% in 2007 and from 51% in 2006.
• The average age of the most frequent game purchaser is: 40
• 56% of online game players are male 44% are female.
• What is the One Type of Online Game Played Most Often?
  • 12% Other
  • 47% Puzzle/Board/Game Show/Trivia/Card
  • 16% Action/Sports/ Strategy/Role-Play
  • 14% Downloadable Games Such as Bejeweled and Diner Dash
  • 11% Persistent Multi-Player Universe

Women are hardcore gamers from bNet in 2006

• Electronic Arts’ casual game site Pogo.com draws 11 million unique users per month. Fifty-five percent of those are women.
• On the subscription side, 75 percent of the more than 1 million subscribers are women over the age of 35.

Study: Women Gamers Outnumber Men in 25-34 Age Group – from GameDaily 2006

• Consumer Electronics Association study found that 65 percent of women in the 25-34 age bracket play video games, while only 35 percent of men in that group said that they play video games. The key factor involved with these findings is the increasing popularity of casual games, especially among women. (These casual titles are typically found on web portals like Yahoo!, AOL Games, PopCap Games, EA’s Pogo.com and elsewhere.)
• Women were found to be slightly less likely than men in the 25-34 bracket to play traditional console games on systems like PlayStation  or Xbox.

Old (2000) but interesting item on ‘gender bending’ in games from womengamers.com

• 6% of subjects play female characters for 25% or less of their gaming time
• 24% play females for 26-50% of their gaming time
• 15% play females for 51-75% of their gaming time
• 42% play females for 76-100% of their gaming time
• 12% did not answer this question

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Senor Hontar: “We must work in the world. The world is thus.”
Father Altamirano: “No Senor Hontar…thus have we made the world. Thus have I made it”
Final lines of the film ‘The Mission’

As well as the increase in venture capital investment across all virtual worlds, the time spent in them, measured in user hours, is growing too. While this is partly due to existing users spending longer it is often the about the typical new user who after the initial log-in hurdles becomes highly engaged for 3-18 months or longer with a particular personally resonant virtual world service. Virtual worlds that offer something beyond mall-like activities (PS3Home springs to mind) or just a glorified chat channel (there are quite a few in this category) will obviously increase engagement. The personalization factor, to make the virtual space YourSpace either by customising other community members work or by creating it from scratch yourself, naturally increases your personal investment. Second Life has always been about Your World and one of the major driving factors is aspirational lifestyle and peer appraisal.

We partly escape, we are often out to impress, we love the control but most importantly we like to co-create and communicate with those we like on our terms and in areas we make.

Linden Lab who run Second Life have just published figures looking at 2008 and as in several presentations I have been giving around the world, it shows that SL and other worlds are far more ‘sticky’ than traditional 2D social networks such as Facebook and MySpace. From the Linden Lab (second life creators) Blog:

Second Life Residents logged nearly 400 million hours in 2008, growing 61% over 2007
Thursday, January 15th, 2009 at 12:33 PM by: Zee Linden

Linden Lab is pleased to announce results for Q4 and 2008.  User hours increased by 61% over 2007, highlighting the tremendous growth rate in user engagement that Second Life maintained throughout 2008.  User hours increased steadily each quarter, culminating in a record-setting 112 million user hours in Q4.  In addition:

• Peak concurrent users were up 31% over 2007
• Land owned by Residents increased 82% over 2007
• Exchange Volume increased 33% over 2007
• User-to-user transactions in Q4 increased 54% over Q4 of 2007.

Financially 2008 was an outstanding year for the company from a profitability and cash flow perspective. We are in a strong position to weather the economic downturn while continuing to invest in the Second Life platform.

Looking at Q4 in more detail:

Q4 user hours grew 47% from the same quarter last year. In Q4, Residents spent 112 million hours in Second Life which was an increase of 9% from Q3. Peak concurrent users of 76,000 grew 6.7% over Q3 and approximately 30% over Q4 of last year.

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…and a little end of 2008 Virtual Worlds, State of Play… it has been suggested several times recently that games & social virtual worlds especially will really suffer in this economic downturn and may not survive. Which leads to the point of this post to put things in a little perspective.

IS THERE REAL INVESTMENT?

First lets look at investor confidence in them. From Virtual Worlds Management Reports there was $1 billion US invested in 35 virtual world companies between Oct 06-07 – and since Oct 07 to the present day there has already been $918 million trusted to the success of this particular industry. This breaks down roughly as:

• Q3 08 – $148.5 million invested in 12 VW companies
• Q2 08 – $161 million in 16 VW companies
• Q1 08 – $184 million in 23 VW companies
• Q4 07 – $425 million in 15 VW companies

As a topical reference, and to put things into heritage media perspective the total spend on all film and tv drama in Australia in 07-08 was $420 million US (at current exchanges). Now the majority of these worlds invested in are youth based but many specialised ones aimed at the Gen Y hole (see kzero.co.uk charts for more info) that are focusing on key niches. These start to fill in the gaps that ‘generic’, jack-of-all-trades, social virtual worlds such as Second Life cannot truly cut the mustard as sub-builds inside the service. So we have recently had in the last week the to user launches of a dedicated real life buy with real cash Virtual eShopping just in time for XMas and what will be a real winner in my view (having just tried it finally) the social sports virtual world, Football Superstars which combines EA-like footy with there.com-like social activity and even has a bit of WoW-like quest giving challenges.

The social aspect of virtual worlds are not lost on the big consoles either with the Launch of XBox and PS3 virtual worlds that I covered in a recent post and also the Inquirer’s article Sony, Microsoft begin battle of Virtual Worlds. I was going to talk a lot about how during hard economic times people turn to escapist activities. In the past it used to be film or TV, but now there are many more choices and as we haven’t seen a global economic downturn of this scale since the 2nd world war – the escapism of choice is now immersive interactive media. This will not be lost on advertisers who also need to optimise their spend across the many variants of shared social worlds.

BUSINESS WAKES UP

Savvy businesses have now moved beyond the hype bubble of Second Life’s superficiality and realise the power of social collective collaboration. As well as education and science virtual worlds as ‘tools’ are developing into major economic government initiatives. The Athena Alliance have released a report called “Virtual Worlds and the Transformation of Business” with some optimistic summary lines.

“The rise of the collaborative enterprise that is likely to result from the successful deployment of Virtual World technologies will usher in a new era of business. It will change the way firms compete with one another for customers in both goods and services industries. It is our firm belief that if our nation accelerates the development and maturation of Virtual Worlds, it will encourage a more collaborative and enterprising form of business. This will lead to greater innovation, sustained productivity, and competitive growth in the world economy.. the companies and workers can use the tools of Virtual Worlds to transform the United States into a collaborative enterprise-driven economy.”

The use of virtual worlds for simulation is not lost on the military either. This goes way beyond using first person shooter games to train late teens for an army life using well, first person shooter game technology in war zones. Last week the largest global simulation conference ever was held “The Interservice/Industry Training, Simulation and Education Conference (I/ITSEC)” focused on the use of more social virtual worlds for training and education for military and scientific use. It was keynoted by General Wallace, the Commander, United States Army Training and Doctrine Command who talked with other big government players about the likely hundreds of billions of dollars that will be invested in virtual simulation technology. As we know most media developments have come about from love and death, porn and war. So this growth as always will resonate in the commercial entertainment industry. An example of how military and education are mixing here is The University of Florida recently announced too that it will be spending $1.25 million on building a Second China for the US Foreign Service and Military to understand the culture without the need to go there and fail-forward.

“The goal of the federally funded research project: To educate and prepare foreign service or other government professionals to arrive in the country prepared and ready to work.”

SHOW ME THE VIRTUAL MONEY

On the money side there is a great deal of research now going into how virtual world economic models and currencies will evolve from a range of closed systems to a state that may become viable alternatives to ‘real world’ currencies. The Virtual Economy Research Network just had an interesting article on the VW freemium model – free-to-play but encourages the adoption of the inworld currency rapidly, for example.

A brief look forward and in terms of users of these worlds there is going to be a big acceleration over the next 3 years with a recent Instat report suggesting that “registered users of virtual worlds are expected to exceed 1 billion” by 2012 and total revenue is expected to exceed US $3 billion. The majority of this revenue is not from an expected subscription or advertising but “90% of their revenue from the sale of virtual items, currency, land, and fees associated with these items”. Finally a reason why there is even more investment in youth worlds “70% of the more than 300 million registered users of virtual worlds are younger than 18.”

Forester and MillionsOfUs have just published a report looking at how traditional corporate business will begin to flourish in these spaces and to quote their executive four point summary:

1. It grants unprecedented depth of engagement with consumers. Second only to inperson
   consumer meetings, virtual worlds allow marketers to get up close and personal
   with individual consumers. Using these interactions to allow for feedback, creative tasks,
   and just plain fun creates brand and product advocates in the user base who go far beyond
   in-world influence.
2. It taps into an audience that is difficult to reach via other channels. Today’s virtual
   world users are seen as a minority vanguard for future usage, but they are also difficult to
   reach via other channels. This is especially true of youth groups and deeply creative
   communities supported by various virtual worlds.
3. Newer worlds offer better opportunities for cross-channel tracking and more
   targeted audiences. Early virtual worlds, while technically groundbreaking and providing
   the necessary foundation for future worlds, often lacked audience-tracking tools and were
   open playgrounds without a specific purpose. New, recently launched worlds or those just
   around the corner will offer better tools for customer tracking and tend to target gamers,
   youth, conversation, or other specific tasks, rather than just being open. This allows better
   brand alignment and campaign integration.
4. Virtual merchandizing resonates with youth — and can be very cost-effective. Virtual
   items and other digital assets resonate with Gen Y consumers far more than with older
   (physical-media-loving) consumers. They appreciate novel, unique items and accept brand
   involvement in these items and their distribution — provided it has been thought through.
   Needless to say, the creation, storage, and distribution of virtual items can be very costeffective
   compared with traditional merchandise like t-shirts and caps.

There is no decline happening. So journos, nay sayers, please look at your own industries please. To reiterate the above examples are social or simulation virtual worlds and there are around 78 currently being used by 360 million people. I haven’t touched on online game worlds or offline games which starts to turn the whole affair into a $40-50 billion industry overtaking movies (including home entertainment elements too). All suggestions are that VWs and Games will be the dominant entertainment form and a widely used tool for business and education and revenues will start to match that of the $300 billion TV industry within five years time. A big issue for me is the lack or real courses in higher education in this space too. Most training is on how to use software to make fps console-type games, there needs to be a paradigm shift otherwise media education will be irrelevant as the heritage media linear form falls into the background.

Now tell me again that these wacky 3D worlds are about to disappear?

To finish I will be adding a presentation I gave at the Online Distribution and Business Collaboration Conference two weeks ago as it contains many references to the above post…hold your breath…

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