Thursday, September 27, 2007

Second Life

Second Life

Most everyone is fascinated by video games and virtual reality in this day and age. Games such as The Sims show just how people are obsessed by living and creating things in a virtual world. A few years ago, a computer game called Second Life emerged as a pioneer of internet virtual reality. Second Life is a growing community of people living and creating their world around them while walking around with their character, or avatar. Recently, businesses have been using this virtual world as a business to business tool that includes product placement and testing, advertising, store layout design and market research.



Everything in game, from houses to clothing is created by the users and is sold for real currency through the game money called Linden Dollars. People have been making a living creating clothing, accessories, pets as well as houses, and there is already a virtual real estate millionaire in the game. With over two million users and the amount of press this second world is getting, it just makes sense for businesses to tap into this vast market, and they have done just that.


Companies such as Amazon.com, American Apparel, Telus and Cisco Systems have been communicating with customers online as well as creating virtual stores. Avatars can browse through, and buy books at an online Amazon.com store where they can preview books and talk about books to other visitors of the store. American Apparel sells their clothes online for the avatars to wear, as well as having a real online store where customers can purchase real clothes. American Apparel have employees online who communicate with consumer avatars who collaborate with them on new possible product designs.


Other companies have been using this world as a market research and business to business tool. Some companies have conferences online linking people from around the world with their in-game avatars. Cisco Systems employees help Second Life have discussions with customers regarding their services; this interaction enhances the relationship between the consumer and the producer, which is good for any company There are also many other innovations that Second Life offers and will be offering in the near future for businesses as well as the consumers. There are a few potholes in this quest for virtual business. Firstly, the market is still not very big and quite limited to the people who play the game online. Second, the privacy of in-game meetings is virtually non-existent since other avatars can come into the conversations. There is also not that much profit to be made since a lot of people create their own things in the game.


Overall, this innovation is new, but can pave the way to new virtual commerce online, where a customer will enter their favorite clothing store online and ‘walk’ through and browse clothes buy things at a real register. This simulated store scene could boost online sales for stores since the customer feels as comfortable as when he or she would shop in real life. To top all of this off, Harvard is going to start offering online classes in their virtual campuses in Second Life, and all of the US presidential candidates have avatars on Second Life. Wow, that's pretty exciting!


http://many.corante.com/archives/2006/12/12/second_life_what_are_the_real_numbers.php

http://youtube.com/watch?v=b72CvvMuD6Q

http://www.informationweek.com/blog/main/archives/2007/04/using_second_li_2.html

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