Abstract:

Massively multiplayer on-line role-playing games (MMORPGs), a computer-simulated environment are also called virtual worlds or synthetic worlds (Castronova 2005) and include such games as EverQuest, Second Life. These are not only places for escape but also markets for trading virtual goods such as magic weapons, virtual lands etc. (Newwitz 2006; Hof 2006; Lichtarowicz 2002; Knowledge@Wharton 2005; Grady 2006; Wahl 2006) According to BBC news on March 29, 2002, Norrath, a fictional planet in the EverQuest universe, has a gross national product per capita of $2,266, bigger than China and India. In this study, motivated by the ability to generate real revenue from the virtual worlds, the author investigates businesses running in the virtual worlds. What are these business models emerging in the virtual worlds? Are they any different from those of the real world? What influence might they have on shaping business models in the future? What kind of business model will most likely be flourishing in the computer-simulated environment? By applying the Internet Business Graph Analysis Models (IBGAM) (Wang and Chan 2003) to analyze businesses running in the virtual worlds, the author found the following preliminary results: (1) The graph business models for the virtual world’s businesses are hybrid business models which are made up of a combination of at least two of the three basic BGAM building blocks, Indirect Model(IM), Direct Exchange Model(DEM), or Gift Model(GM).(2) All these hybrid graph business models studied contain one Type I IM as a portion inside the real world. (3) The graph business models for businesses which are able to generate revenues must have at least one DM for currency exchange which exists between the real world and the virtual world.(4) The trading activities inside the virtual worlds are still limited to simple Direct Exchange Model or Gift Model.