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Frustration and disappointment was squarely behind the creation of the kid-friendly online space Club Penguin. Co-founder and general manager Lane Merrifield was sick and tired of the MMO industry's "cynicism" when it came to children. Merrifield and his partners went forward with the gamespace as a side project, a world unsupported by VC money or expectations.

GamesIndustry.biz sat down for a chat with the man, and delved into the context behind one of the most successful kid-oriented titles on the market. In his words, he'd be "silly" not to be surprised by the game's runaway success and the purchase by Disney. The human element, he offers, has been critical to their success. "Merrifield also thinks that there is an over-reliance on technology that ignores the human element, which is why they've decided to devote two-thirds of the company's staff to positions such as safety moderators and customer service. 'We know the limits of technology, even though I would put our filtering software up against anybody's, especially because of that human element - we're adding 500 to 1000 words every day to the filters, simply because of slang that works its way into the language.'"

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?

Last week, Disney Online merged multiple online divisions into a single entity now called Disney Online Studios. I had a chance to talk to the Senior Vice President in charge of it all, Steve Parkis, about the vision for one of the world's most recognizable brands as it tackles the fast-rising casual online gameplay market.

Before now, Disney's online efforts spanned over many different areas: developing Flash based casual games; acquiring the online community, Club Penguin; and building the successful family-oriented MMORPGs ToonTown Online and Pirates of the Caribbean Online. Steve's mission is to bring all of those together to make Disney.com a dedicated casual games destination.

He believes that casual players are more than just Women 35+ and that there is a large, untapped market of players that Disney's brand can draw in. But how does he plan to do that?

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.

The Virtual World News site took the time to pick through an earnings call from the house of Mouse, and found that Disney had a ton to talk about when it came to Virtual Worlds. From comments made during the call by company President Robert Iger, their purchase of Club Penguin last summer and the launch of Pirates of the Caribbean Online was just Disney clearing its throat. In addition to an online world based on the film "Cars", the company plans to spend some $100 million on virtual worlds in the coming years.

Iger clarified that there were a few reasons for Disney's shift to the virtual. First, the company's franchises are being re-examined for new opportunities. VWs fit in nicely alongside plush dolls, action figures, and kiddie clothing in a marketing agenda. Second, it's much easier to develop and staff a virtual world than it is to design and build a new theme park attraction. That's historically been the only place fans could really get 'inside' their favorite Disney products, and Virtual Worlds are a nice alternative. Finally, he notes that for a younger audience online worlds are just plain more important than they are for older generations. Yet more evidence of the growing cachet of online gaming.

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.

UK-based virtual world consulting and research firm Kzero have put out a predictions for virtual worlds for 2008. Note, of course that this covers the 'Metaverse' class of virtual worlds, that is primarily non-game.

The chart they use is a wonderful piece of at-a-glance display, showing age-groups, time of establishment, current population, projected age-groups, and projected populations all in one straightforward (if large) chart.

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]