PC World

LAS VEGAS - Is there a There in your online entertainment future?

There.com hopes so. The Menlo Park, California-based company is betting $33 million that its new 3D virtual world, where users create a virtual version of themselves and then interact with like-minded people, can leverage the popularity of instant messaging, Web logging, online multiplayer gaming, and avatar-based 3D social environments.

The company announced Tuesday at the Consumer Electronics Show here the release of a free public beta of its virtual world. There, which will also compete with products such as Linden Lab's Second Life 3D world, expects to launch its virtual world sometime in summer 2003 as a subscription service. Pricing will be around $10 monthly.

The product will directly compete with the successful formula being used by Electronic Arts with its Sims Online product.

Representatives also said There.com is receiving technology and marketing support from retailers including Nike, Levi Strauss, ATI, HP, Intel, and Discreet, a division of Autodesk.

Those are impressive credentials, but it remains to be seen whether avatar-based online communities, which merge live chat with graphical representations of people, objects, and places, can actually capture the public's imagination. To date, virtual communities have fared poorly as business ventures--except for the Sims Online, which has a very strong gaming character.

Online Socializing

Avatar-based virtual communities have had problems catching on because they "were trying to sell new behavior and new technology at the same time," suggests Tom Melcher, There.com chief executive officer. Advances in technology, especially better graphics cards, faster modems, and broadband, have now made it possible to create a compelling and entertaining 3D environment for a typical home computer user, he says.

Even more important, live online socializing, especially among young adults and teens, has become commonplace thanks to instant messaging clients and chat rooms. The popularity of multiplayer gaming, including games that require monthly subscriptions, is also strong evidence that people are willing to pay for an online experience if it is fun and engaging, Melcher says.

While gaming is an element of There.com's virtual world, Melcher says the primary focus is on "avatar-centric communication." This means users create a virtual version of themselves and then interact with others who are also represented by avatars. This interaction can be social or competitive.