Virtual worlds with a Kiwi flavour

You might think you live in a small world, but thanks to Auckland software development company Outsmart you can now do just that in its 3D virtual world SmallWorlds.

Outsmart co-founder Mitch Olson says SmallWorlds has a "social entertainment focus" and allows users to create cartoon avatars and their own room or space - as they would create a profile on social networking sites such as MySpace or Facebook.

SmallWorlds, being released today in beta form, is integrated with Web 2.0 media such as photo sharing site Flickr and YouTube, he says.

"You can create your own space within SmallWorlds as an expression of who you are as a person. You can put photos in picture frames on walls and connect these to Flickr. You can show your favourite videos on the TV, and play your favourite music on the stereo so when people visit your room, your favourite music is playing."

Outsmart, which has 20 staff, spent between $1.5 million and $2 million developing SmallWorlds and received funding from an investor in the United States.

The company will look to set up an office in Los Angeles later this year.

SmallWorlds users can play games such as draughts and strategy game Tower Defence either by themselves or with others.

Users can invite friends into their space by giving them their personal URL, Mr Olson says, and when the complete version of SmallWorlds is released in August, they will be able to embed their 'space' in any webpage, in the same way YouTube videos are embedded in a webpage.

SmallWorlds runs inside a computer's Web browser, meaning no downloads of software are required.

Upon joining SmallWorlds, users will be given orientation missions to complete, including using tokens to purchase virtual lounge suites and pot plants for their virtual rooms.

The SmallWorlds economy will become more sophisticated, Mr Olson says, and in the next few months, users will be able to purchase virtual currency with real money or subscribe and receive a monthly income of virtual currency and access to "restricted" items.

Virtual currency can be spent on items including avatar clothing and accessories.

Users will also be able to make money themselves, for example by setting up a bar or a club and charging entry.

As well as generating revenue from currency purchases and subscriptions, SmallWorlds will also earn money through advertising and sponsorship, Mr Olson says.

"What we're looking at doing is partnering with entertainment oriented brands to bring content into SmallWorlds.

"For instance, TV networks losing their audience to the Internet - they are looking at how they can reclaim users from that particular audience."

Entertainment companies will be able to make money through SmallWorlds by selling virtual items, and users will be able to convert virtual currency they earn back into real money, he says.

A version of SmallWorlds will be developed for mobile phones.