Editing Virtual world (section)

===Commercial===

As businesses compete in the real world, they also compete in virtual worlds. As there has been an increase in the buying and selling of products online (e-commerce) this twinned with the rise in the popularity of the internet, has forced businesses to adjust to accommodate the new market.

Many companies and organizations now incorporate virtual worlds as a new form of advertising. There are many advantages to using these methods of commercialization. An example of this would be Apple creating an online store within Second Life. This allows the users to browse the latest and innovative products. Players cannot actually purchase a product but having these “virtual stores” is a way of accessing a different clientele and customer demographic. The use of advertising within "virtual worlds" is a relatively new idea. This is because Virtual Worlds is a relatively new technology. Before companies would use an advertising company to promote their products. With the introduction of the prospect of commercial success within a Virtual World, companies can reduce cost and time constraints by keeping this "in-house". An obvious advantage is that it will reduce any costs and restrictions that could come into play in the real world.

Using virtual worlds gives companies the opportunity to gauge customer reaction and receive feedback.  Feedback can be crucial to the development of a project as it will inform the creators exactly what users want.<ref name="Wasko 2011">{{cite journal
 |last1        = Wasko
 |first1       = Molly
 |last2       = Teigland
 |first2      = Robin
 |last3       = Leidner
 |first3      = Dorothy
 |last4       = Jarvenpaa
 |first4      = Sirkka
 |year        = 2011
 |title       = Stepping into the Internet: New Ventures in Virtual Worlds
 |journal     = MIS Quarterly
 |volume      = 35
 |issue       = 3
 |pages = 645
 |url         = http://nordicworlds.net/PPublic/wp-content/uploads/2011/11/MISQ-SI-on-VWs_intro1.pdf
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20120425132301/http://nordicworlds.net/PPublic/wp-content/uploads/2011/11/MISQ-SI-on-VWs_intro1.pdf
 |archive-date = 2012-04-25
|doi = 10.2307/23042801
 |jstor = 23042801
 |s2cid = 61249322
 }}</ref>

Using virtual worlds as a tool allows companies to test user reaction and give them feedback on products. This can be crucial as it will give the companies an insight as to what the market and customers want from new products, which can give them a competitive edge. Competitive edge is crucial in the ruthless world that is today's business.

Another use of virtual worlds business is where players can create a gathering place. Many businesses can now be involved in business-to-business commercial activity and will create a specific area within a virtual world to carry out their business. Within this space all relevant information can be held. This can be useful for a variety of reasons. Players can conduct business with companies on the other side of the world, so there are no geographical limitations, it can increase company productivity. Knowing that there is an area where help is on hand can aid the employees. Sun Microsystems have created an island in Second Life dedicated for the sole use of their employees. This is a place where people can go and seek help, exchange new ideas or to advertise a new product.

According to trade media company Virtual Worlds Management,<ref>{{cite web |url=http://www.virtualworldsmanagement.com/ |title=The leading virtual worlds trade media company. in New York |publisher=Virtual Worlds Management |access-date=2012-07-29 |archive-date=2010-11-15 |archive-url=https://web.archive.org/web/20101115190634/http://www.virtualworldsmanagement.com/ |url-status=live }}</ref> commercial investments in the "virtual worlds" sector were in excess of US$425 million in Q4 2007,<ref>{{cite web |url=http://www.virtualworldsmanagement.com/2007/q4.html |title=Virtual Worlds Management |publisher=Virtual Worlds Management |date=2008-01-23 |access-date=2012-07-29 |archive-date=2012-05-29 |archive-url=https://archive.today/20120529175820/http://www.virtualworldsmanagement.com/2007/q4.html |url-status=dead }}</ref> and totaled US$184 million in Q1 2008.<ref>{{cite web |url=http://www.virtualworldsmanagement.com/2008/q1.html |title=Virtual Worlds Management |publisher=Virtual Worlds Management |date=2008-04-22 |access-date=2012-07-29 |archive-date=2009-05-15 |archive-url=https://web.archive.org/web/20090515135614/http://www.virtualworldsmanagement.com/2008/q1.html |url-status=dead }}</ref>  However, the selection process for defining a "virtual worlds" company in this context has been challenged by one industry blog.<ref>{{cite web |url=http://www.worldsinmotion.biz/2008/04/analysis_virtual_worlds_and_in.php |title=Worlds In Motion - Analysis: Virtual Worlds And Investment, Q1 2008 |publisher=Worldsinmotion.biz |access-date=2012-07-29 |archive-date=2020-07-29 |archive-url=https://web.archive.org/web/20200729095657/https://en-musubi.biz/charm/1.html |url-status=live }}</ref>

====E-commerce (legal)====
A number of virtual worlds have incorporated systems for sale of goods through virtual interfaces and using virtual currencies. Transfers of in-world credits typically are not bound by laws governing commerce. Such transactions may lack the oversight and protections associated with real-world commerce, and there is potential for fraudulent transactions. One example is that of [[Ginko Financial]], a bank system featured in [[Second Life]] where avatars could deposit their real life currency after converted to [[Economy of Second Life|Linden Dollars]] for a profit. In July 2007, residents of Second Life crowded around the ATM's in an unsuccessful attempt to withdraw their money. After a few days the ATM's along with the banks disappeared altogether. Around $700,000 in real world money was reported missing from residents in Second Life. An investigation was launched but nothing substantial ever came of finding and punishing the avatar known as Nicholas Portocarrero who was the head of [[Ginko Financial]].<ref>Talbot, David. [https://www.technologyreview.com/Biztech/19844/ “The Fleecing of the Avatars.”] {{Webarchive|url=https://web.archive.org/web/20120326171721/http://www.technologyreview.com/Biztech/19844/ |date=2012-03-26 }} Technology Review 111.1 (Jan. 2008): 58-62.</ref>

Civil and criminal laws exist in the real world and are put in place to govern people's behavior. Virtual Worlds such as ''[[Eve Online]]'' and ''[[Second Life]]'' also have people and systems that govern them.<ref name="Haskins">Haskins, Walaika (July 31, 2008), [http://www.linuxinsider.com/story/64002.html Who polices Virtual Worlds?] {{Webarchive|url=https://web.archive.org/web/20191017105147/https://www.linuxinsider.com/story/64002.html |date=2019-10-17 }} Access date: February 2013.</ref>

Providers of online virtual spaces have more than one approach to the governing of their environments. ''[[Second Life]]'' for instance was designed with the expectation being on the residents to establish their own community rules for appropriate behaviour. On the other hand, some virtual worlds such as ''[[Habbo]]'' enforce clear rules for behaviour,<ref name="Haskins"/> as seen in their terms and conditions.<ref>Habbo Hotel (blog), [http://blog.habbo.com/house-rules/ Habbo Hotel House Rules] {{Webarchive|url=https://web.archive.org/web/20130310041947/http://blog.habbo.com/house-rules/ |date=2013-03-10 }} Access date: February 2013.</ref>

In some instances, virtual worlds do not need established rules of conduct because actions such as ‘killing’ another avatar is impossible. However, if needed to, rule breakers can be punished with fines being payable through their virtual bank account, alternatively a players suspension may be put into effect.<ref name="Haskins"/>

Instances of real world theft from a virtual world do exist, Eve Online had an incident where a bank controller stole around 200bn credits and exchanged them for real world cash amounting to £3,115.<ref>BBC (July 3, 2009), [http://news.bbc.co.uk/1/hi/technology/8132547.stm Billions stolen in online robbery] {{Webarchive|url=https://web.archive.org/web/20220423051317/http://news.bbc.co.uk/1/hi/technology/8132547.stm |date=2022-04-23 }} Access date: February 2013.</ref> The player in question has now been suspended as trading in-game cash for real money is against Eve Online's terms and conditions.<ref>Stockley, Mark (October 1, 2009), [http://nakedsecurity.sophos.com/2009/10/01/guest-blog-polices-crime-virtual-world/ Who polices crime in a virtual world?] {{Webarchive|url=https://web.archive.org/web/20220220150218/https://nakedsecurity.sophos.com/2009/10/01/guest-blog-polices-crime-virtual-world/ |date=2022-02-20 }} Access date: February 2013.</ref>