Virtual worlds ‘worth $1B’? Oh no!

With news on Monday of Google buying in-games advertising firm Adscape Media, it should come at no surprise, really, that the market for massively multiplayer online games (MMOGs) in the West is said to now be worth more than $1 billion.

BBC.co.uk reports on research by analysts Screen Digest, which says that millions of people are flocking to inhabit virtual online worlds.

But it is a surprise to me, much like the faddish rush to Second Life for corporate giants and media outlets.

It must have taken Google a bit by surprise as well, as it is now chasing Microsoft, which last year acquired in-game ad company Massive for $200 million.

The BBC report notes that a number of new MMOG genres are emerging, including:

— Virtual world building games, such as Second Life

— Virtual pet rearing games, such as Neo pets

— More casual MMO puzzle games

— Sports games in which you have to buy items and build up your character

Where is this all headed? With falling newspaper sales as the clarion call for the media industry, a big reshaping is in the works. User-generated is all the buzz now, but with Reuters on-board in Second Life, is mainstream media all aboard for another ride into the unknown as it makes desperate moves to reach the cagey new generations of game players who eschew movies and traditional media?

I say hold on. I tend to think this is a lot of hooey. Over time, good old human nature will kick in, as people look past whiz-bang for the solid nuggets of information that the information age is short on.

SeekingAlpha has a good post up that cites the limitations of user-gen, and a look at where it is working, with news giant Gannett.

I just hope the neato 3D world hoopla does not replace real media. Having worked at New Media magazine, which predicted CDs would reshape the media landscape on launch, it all sounds a bit been-there.

That’s not to say online media cannot cherry-pick from the best new ideas in delivery. SeekingAlpha’s post posits that old media can adapt by producing its rich text and other media as an anchor and let users generate content around that.

Now, that sounds reasonable. I’d hate to see what the world would be without real reporting on issues such as the Walter Reed hospital scandal in the Washington Post. It’s a case study of “anchor” content — drop the bomb, and turn over the whistleblowing to the public for where else the problem lies. No whiz-bang or virtual world need apply.

Or maybe virtual worlds are the great escape from such a scary world of war and government malfeasance? What do you think?