Our usage and tracking data show that these visitors are devoting considerable time to the virtual expressions of their lives, especially compared to the amount of time one commonly expects people to spend on a web page, which is measured in seconds. In contrast, the average stay of a visitor to the NMC’s virtual campus in Second Life is 42 minutes.
In terms of typical engagement studies, spending three-quarters of an hour on any activity is consummately rare in today’s fast-paced world. More than any other aspect of virtual worlds, it is the ability of the technology to keep people’s attention that is driving interest in virtual worlds within the education and training sectors, and that interest is widespread. Over the past two years, an estimated 4,000 educational projects have emerged within Second Life alone, and of the 13,400 regions in Second Life that were active at the time of this writing, more than 1,400 of them were being operated by bona fide educational institutions. Add to this more than a hundred other projects on open-source platforms like Project Wonderland, Qwak, and Croquet.
Education is growing so fast in virtual worlds that it is no longer possible to maintain an accurate list of all the examples of education and training that exist. Immersive, high-fidelity examples can be found in dozens of fields and disciplines, and the list grows daily. Among the fields in which many examples may be easily found are these:
- Emergency Response
- Homeland Security
- Health Care and Wellness
- Biotechnology
- Nanotechnology
- Government Outreach
- Civic Participation
- Cultural Awareness
- Global Warming
- The Environment and Ecological Action
- Civic & Economic Development
- Business
- Languages and Cultures
- The Arts
The not-for-profit sector is not yet as active as education, but a number of key organizations, such as the Annenberg, Sloan, and MacArthur foundations, and the American Cancer Society have significant projects, along with hundreds of smaller not-for-profits.
Commercial development in the typical sense of how one might think of it on the 2D web has found less opportunity in virtual worlds, and there have been a few high profile experiments by companies like American Apparel and the Starwood Hotels that did not find the success they hoped for. In other areas, however, the economy of Second Life, while small in overall terms, is doing quite well.
The most notable aspect, as least in the popular press, is the burgeoning micro economy that is fueled by the virtual Linden dollar, which typically trades at about 265 to the US dollar. The latest numbers from Linden Lab identify about 55,000 small business owners operating in Second Life, but this number is somewhat misleading. By far, most make less than US$100 per month; only about 150 individuals actually make more than US$5,000 per month operating businesses completely within Second Life. Most of the businesses that operate within Second Life produce virtual goods that can be used to build out the world, provide entertainment and other services, or customize one’s appearance.
A much less chronicled aspect of the Second Life economy involves the businesses operating in the ecosystem of Second Life for whom their work in virtual worlds is a real world enterprise. These companies, of which the NMC is one, operate using real currency, real contracts, and standard business practices. A recent survey by Linden Lab identified about 385 such companies who together are expected to produce about US$60 million in revenues this year. These businesses employ about 4,400 people who deliver goods and services in the virtual world, but who work and are paid within the real world economy. The average annual revenue projected for these companies in 2008 is about US$156,000. A little more than a third of all the regions added to the grid by Linden Lab are developed using the services of these ecosystem companies.
Posted by NMC on March 30, 2008
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