A supporting presentation for the series of KZero articles explaining the evolution of the virtual worlds sector moving towards Social Virtual Reality.

1. VirtualWorlds3.0HowVirtualRealityWillCreatetheNextGenerationofVirtualWorlds

2. AboutKZeroConsulting,Analytics,Insight

3. Sectors:Virtualworlds,virtualgoods,virtualreality,socialgaming,MMOs,
augmentedreality.
Start-ups/Pre-launch:Businessplanning,marketsizing,financialmodeling,
strategicguidance,launchplanning.
Operationalcompanies:Marketingstrategy,productdevelopment,user
analysis,marketentryplanning,partnerships/busdev.
Brands:Mediaplanning,campaigncreation,virtualbrandstrategy.
ForVC’s/Investors:Deal-flow,investmentanalysis,marketsizing.
KZeroservices

4. KZeroClients

5. MediaReferences

6. Thispresentationexplainstheevolutionofvirtualworlds.
Frominitial2.5Dand3Dplatformsaccessedviaweb-browser.
ToVirtualWorlds3.0:virtualworldsexperiencedinvirtual
reality.
Focussesonsocialvirtualworldsasopposedtogaming-based
MMOs.
Aboutthispresentation

7. VirtualWorlds1.0VisualSocialNetworksandBrandedExperiences

8. Definition:Areal-timemulti-uservirtualenvironmentthatcannotbe
alteredbytheuser.
Kids,TweenandTeen(KT&T)VWsresponsibleformajorityofgrowthand
usage.
Registeredaccountgrowthupto1bn.Activeusersgrowthto250m.
Primarily2.5Daccessedviawebbrowser.
CombinationoforiginalIPVWs:ClubPenguin,MoshiMonsters,Wizard
101,Neopets,Habbo.
andBrandedVirtualWorlds:MonkeyQuest,PlaystationHome.
VirtualWorlds1.0

9. VirtualWorlds1.0

10. VW1.0wassocialnetworkingbefore‘socialnetworks’.
Allowedsynchronoususertouserinteractionsin‘thesameplaceatthe
sametime’.
BrandedVWsallowedfans/followerstogetclosertotheirfavouriteIPs.
Allowedtwodifferenttypesofsocialengagementanduserexpression:
Augmentalists:UsingsocialVWsasanextensionoftheirreal-world
identity.
Immersionalists:UsingsocialVWsasanalternativetotheirreal-world
identity.
ExplainingthePopularityofVirtualWorlds1.0

11. AugmentalistsvsImmersionalists

12. VirtualWorlds2.0UserGeneratedContentandUserSelf-Expression

13. Definition:AVWthatallowstheusertocreate/modifytheir
environment.
UserGeneratedContent(UGC)playsapivotalroleindrivingwiderVW
usage.
Registeredaccountgrowthupto1.3bn.Activeusersgrowthto350m.
Mixof2.5Dand3Daccessedviawebbrowserandtabletwithmixofthird
andfirstpersonview.
SecondLife,IMVU,Stardoll,MinecraftandRobloxarethedominantUGC
VWs.
Virtualsandboxesprovideplatformforuserself-expression,creativityand
viralgrowth(e.g.sharingcreationsonYouTube).
VirtualWorlds2.0

14. VirtualWorlds2.0

15. It’sallabouttheUGC.Users(ofallages)lovetheabilitytocreateand
share.
‘ComeandplayinMYworld’.
‘SeewhatI’VEcreated’
ThreelevelsofUGC:
Level1-Avatar:Userscustomisingtheiravatarappearance.
Level2-Object:Userscreatingnewobjectslargeandsmall.
Level3-Environment:Userscustomisingtheirsurroundings.
(terraforming)
ExplainingthePopularityofVirtualWorlds2.0

16. UniverseChartsPopularityofVirtualWorlds1.0and2.0

21. VirtualWorlds3.0VirtualWorldsExperiencedinVirtualReality

22. VirtualWorlds3.0
Definition:Avirtualworldexperiencedinvirtualreality.
Threemainapplications:
SocialVirtualReality(akeyreasonfortheFacebookacquisitionof
OculusVR).
UserGeneratedSpaces(UGS).
BrandedVirtualReality.
Enabledbytheemergenceofconsumervirtualrealityheadsets.
VW3.0takesalltheengagingelementsofVW1.0and2.0andinjects
greater ‘presence’.

23. PresenceandSelf-Expression
TwokeydriversfortheadoptiononVW3.0
Presence
How‘realitfeels’totheuser.Themore realitfeelsthemoretimeauserwillspend
in-world.
Doesitfeeltheyare‘in’theenvironmentorcontrollingremotely.
Presencecreatesanemotiveandexperientialbond.
Self-Expression
Howauserisabletoexpressthemselvesinthevirtualenvironment.
UGCcreatedbytheuserfortheuserand/orotherusers.
Synchronouscommunicationwithotherusers.
Self-Expressioncreatesasenseofownershipandcuration.

24. Self-Expressionvs.Presence
High
Presence
!
!
Low
Low Self-Expression High
Social
Virtual
Reality
User
Generated
Spaces
VW3.0
VW1.0
ClubPenguin,Moshi
Monsters,Neopets
etc.
Branded
Virtual
Reality
VW2.0SecondLife,IMVU,
Minecraftetc.

25. SocialVirtualReality(SVR)
SocialVirtualRealitysimplymeansalltheattributesandfeaturesofVWs
asweknowthemtoday,withtheaddedelementofpresence.
Theabilitytoexperienceareal-timemulti-uservirtualenvironmentwithother
people.
Thisisthenextevolutionofsocialnetworking,movingfromasynchronous
interactiontofullysynchronous.
Chatroomswiththeuseractually‘inside’theroom.
AkeyreasonfortheFacebookacquisitionofOculusVR.
OculusCEOBrendanIribe:"ThisisgoingtobeanMMOwherewewanttoput1
billionpeopleinVR”.
WeexpectasmallnumberofSVRplatforms.

26. TypesofTextChatinExistingVWs

27. UserGeneratedSpaces
TakingthepopularityofUGCVWssuchasSecondLifeandMinecraftand
creatingvirtualrealityequivalents.
VRsandboxes.
Theabilityforuserstocreatetheirownvirtualsurroundingsandobjects,
theninteractwiththemaloneorwithfriends.
Thiswillbeacategorydriveninitiallybytweensandteens.
Weenvisageahighnumberof ‘mini-worlds’createdbyusers.

28. WorldBuilder-AGlimpseintothefuture
http://www.youtube.com/watch?v=VzFpg271sm8

29. OtherKZeropresentationsyoumaylike
SocialVirtualReality:Theevolutionofvirtualworlds.
BrandsinVirtualReality:Officialandunofficialbrandsinvirtualreality.
VirtualRealityMarketSizing:Unitsales,activeusersandrevenueforecasts
fortheconsumerVirtualRealitysector.
VirtualRealityStateoftheMarket:Anassessmentofthecurrentstateof
theConsumerVirtualRealitymarketplace.
Orderthesereportsfromourwebsite.

30. kzero.co.uk
@KZeroWorldswide