What is There?
San Jose Mercury News
New virtual world being launched
MENLO PARK FIRM BILLS `THERE' AS ONLINE GETAWAY FOR SOCIALIZING
By Dean Takahashi: October 27, 2003
Computer game publishers thought they had hit on a bold new idea when they came out with a new type of online entertainment in which people interact through virtual worlds -- like "The Sims Online." But online virtual worlds have failed to gather much following beyond hard-core gamers.
That isn't stopping new entrants from pursuing virtual worlds for mainstream consumers. The latest virtual world effort, being unveiled today, comes from Menlo Park-based There, which is billing its "There" world as an online getaway for socializing.
There executives say they've learned from the mistakes of companies like Electronic Arts, whose Sims Online has proved to be a big disappointment in online gaming since it launched a year ago.
Will Harvey, a former Electronic Arts game developer who founded There five years ago, says today's launch follows an earlier, free release of a test version of the game.
Anyone who joins now gets a discounted monthly rate of $4.95 a month, plus a $19.95 one-time registration fee. There will raise the rates when it kicks off more features next year. This extended launch schedule will help alleviate pressure from too many users trying to log on at the same time, a common complaint in past virtual world launches.
"We're being careful with our launch," Harvey said. "We're trying to get online socializing right."
While analysts like There's innovative approach to socializing, they are skeptical of its chances for widespread success given the weak track record of other multi-player online entertainment products.
The Sims Online's subscriptions have ranged from only an estimated 70,000 to 105,000. Another virtual world, "Second Life," created by Linden Lab in San Francisco, has targeted a relatively modest 10,000 subscribers. More narrowly focused games like Sony's "Everquest" and "Star Wars Galaxies" have done better at signing up hundreds of thousands of players.
"Doing massively multi-player online games has proven to be very difficult," said Schelley Olhava, an analyst at International Data Corp. in Mountain View. "They're trying to get at a more diverse set of players than traditionally play online."
In There, Harvey's team has developed a world where players create their own characters, or avatars, tailored to their own liking. You can craft the way you look, the clothes you wear, and you can communicate through gestures like smiling or laughing.
You can spend real money with your credit cards to buy "ThereBucks," which allow you to buy property in the game or gain some special privileges. Besides hoisting imaginary drinks with friends at virtual parties, players can ride dune buggies, play with paintball guns, and play with pet dogs.
The timing is getting better for online worlds as broadband reaches more of the U.S. population and computers deliver the richer visuals necessary to immerse someone in an online world.
There's business plan got endorsements from Nike and Levi Strauss, which both allow There users to use ThereBucks to purchase branded clothing and shoes for characters to wear in the game. There is also announcing today that it will build an online region within the game for iVillage, a Web site dedicated to women.
The company also won a $3.5 million contract from the Army to help build a large battleground simulation where thousands of soldiers can train at the same time.
So far, There has had 27,000 unique visitors, roughly half women. There's traffic is dwarfed by "Star Wars Galaxies," another virtual world launched in June that has more than 300,000 subscribers.
Sue Glasheen, a high school computer lab assistant in Albany, N.Y., has been visiting There for 10 months. Among her favorite activities are getting newcomers used to There, attending quiz-show events and buying virtual clothes for her Sue--G avatar with her ThereBucks.
"We have some awesome member designers in There," she said.
There is not without its challenges. The company, with 175 employees, is trying to recruit a new top executive after its chief executive officer, Tom Melcher, resigned a month ago. There has raised $37 million so far and is in the midst of closing a new round of funding. Even with some revenue coming in, it doesn't expect to be profitable until next year.
©2010 Makena Technologies, Inc. All rights reserved.