The 
appreciates
your comments or suggestions
Emory University, Business 552E
An Executive Briefing of An Emerging Technology
November 9, 1996
Prepared by Derral Fralish, Crystal Mario, Elaine Mitchell, Matthew Peterson, and Lisa Smith
The appreciates
your comments or suggestions
Emory University, Business 552E
INTRODUCTION
The purpose of this document is to provide insight into two of the more
recently emerging trends relating to the World Wide Web and the Internet:
namely, Avatars and 3-dimensional chat rooms.
It is true that the World Wide Web, the Internet, and virtual reality are
no longer new topics in technology or in the marketplace; however, the
use of Avatars and 3-D chat rooms are definitely
new subtopics worth discussion.
EMERGING TRENDS
One of the newest trends on the Internet is for users to embody themselves in avatars. Avatars are defined as graphical or "cyber" representations of an Internet user, and can be anything from a person to an animal. An avatar is basically a character or personal representation of the Internet user. Avatars can be two-dimensional or three-dimensional representations. In this way, Internet users can enter two- or three-dimensional "chat rooms" (areas on the Internet) and discuss topics of interest with other Internet users. One of the earliest and greatest appeals of the Internet has been i's use as a tool for interactive dialog (chatting). And now with the combination of chat rooms' appeal with the World Wide Web's glitz, avatars are being considered the first wave of a new force in social computing, giving Internet users characters with which to interact and learn about the world.
Three-dimensional chat rooms and the use and creation of avatar
representation is viewed as an impetuous to the momentum of virtual
reality. These three-dimensional habitats have begun to pop-up on many
on-line services. Most virtual reality projects are written using VRML
which is emerging as the virtual reality standard language. There are other
languages available including a Java-like language that was created in
1993 by ParaGraph International.
MARKET POTENTIAL
At first glance the use of avatars may seem to have Internet appeal but very little market potential. However, the market potential for these Internet tools is truly significant. Many industries have begun to take notice of the use of avatars and chat rooms, and the potential for use in other industries is well worth exploring.
Obviously, the first industries to take notice and to make use of avatars are the game and entertainment industries. Companies have begun to offer virtual worlds and virtual universes. Sun, Autodesk, SGI, America On-line, Nintendo, Sega, Sony, Disney, and Crystal Dynamics are all working on technologies that incorporate 3-D chat rooms and avatars.
The larger implications for these technologies include the creation of 3-D "virtual planets" by Worlds, Inc.'s World Chat and AlphaWorld , Microsoft Network's V-Chat , and CompuServe's WorldsAway . These companies have launched Internet areas that allow users to shop in virtual malls, create virtual businesses, develop virtual plots of land, inhabit virtual homes and apartments, etc. World's hopes that AlphaWorld will become the ultimate 3-D front-end for business and entertainment on the Internet. For around $10 a month, an Internet user can become a "citizen" of AlphaWorld. The company expected to have a many as ten commercial businesses established in AlphaWorld at launch. Worlds, Inc. will charge only a "small percentage" of what their commercial uses earn in AlphaWorld. Worlds is also working on other projects that will be integrated into AlphaWorld. some of these projects include: a digital library for IBM, a "Kanji Cafe" for VIP (Japan's version of Club Med), and a medical project for the Army Surgeon General. Also of significant mention is a non-commercial joint-venture with motion-picture producer, Steve Speilberg, and the Starbright Foundation to create a 3-D multi-user world designed to bring sick and hospitalized children together using avatars in virtual space.
There are other potential markets for avatars and 3-D chat rooms. For example creation and adoption of avatars interacting in 3-D chat rooms and worlds will create potential for:
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Obviously, there will be some industries and markets that are more suited to the use of avatars and 3-D chat rooms. And it is also true that the development of the technology still has a long way to go. For example, currently there are limits to the range of interaction, expression, and motion that can be produced with avatars. While some companies offer avatars that can smile, shrug, appear sad, act silly, express anger, flirt, and wave; other companies offer avatars that can't move their legs or arms to walk or gesture. However, as with most technologies with market potential, the forces of competition will most likely lead to increased improvements in avatar capabilities and features. For example, companies do offer tools for Internet users to create their own avatars using photographs and animation. Users can download software from http://www.worlds.net/products/wchat/avatars.html.
As with many emerging technologies, the biggest questions are those of profitability and acceptance. When discussing profitability, Worlds, Inc. has received undisclosed amounts from VISA, Pearson PLC (the media company that owns The Economist and Penguin books) and UB Networks (formerly Ungermann-Bass and now a division of Tandem). In addition, Worlds and other companies are leveraging on the strengths of the Internet and it's steady growth.
In terms of acceptance, Microsoft, World's, and Compuserve feel that
the appeal of the Internet will only be enhanced by the use of avatars
and 3-D chat rooms versus the use of plain, typed-text dialogue.
CONCLUSION
Although it is clearly too early to measure the true dollar potential of these emerging technologies, we do think it is safe to say that companies might do well to consider the early successes of Internet entrants such as Netscape, Yahoo, and America On-line. And as was the case with these early entrants, the potential is there for the truly innovative companies that can read the trends and capitalize quickly. The more compelling consideration for these emerging technologies is that anything that currently exists in our "real" world has the potential to be duplicated and/or capitalized on in the virtual world.
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