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Technologically, they have all key components: 3D technology (Google Earth), virtual building technology (SketchUp), and a wholly distributed world-wide grid with close to a million servers. They just need avatars, which are not terribly hard to create.

So what are they waiting for? I think that they’re looking into the business model. As described on those posts, this model would never make any money — it would just be something “cute”, and possibly even heavilly used, but not generate a revenue stream for Google.

The idea that companies would pay Google to be able to have their virtual headquarters, closely modeled after their real ones, has lots of conceptual issues. Technically it’s possible, but… what if Apple decides to create a virtual Apple Shop on top of the Microsoft HQ, and pays Google for that? Who will decide where you can drop your virtual presence on Google Earth? Google themselves? So would Google become a huge organsiation of lawyers looking through all the claims of “owning” a bit of the virtual world because they can prove they own the corresponding plot on the real one, too? Or would they be like DNS — “first come, first get” and sort it out on court? Would Google really enjoy a rain of lawsuits while companies outbid each other to occupy virtual space that has no relation to where they are in real life? But if the place you are becomes irrelevant, what possible benefit does a company get from renting virtual space from Google — compared to getting it in Second Life, where virtual location is not tied to the real location? The Web doesn’t “demand” real location either, eg. you can be a NYC company hosting in LA — or in Russia — and that doesn’t matter…

So I’m sure that Google is figuring out the tricky legal implications first, and how to generate some revenue from that too, before committing to anything. A friend of mine who is a manager at Google told me that they’re “baffled” at the excitement about virtual worlds (and their 50 million users) and have no clue on how to make money out of them.

Then again, that never stopped Google from investing in “cute” technology Only time will tell…

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But as the Roman Empire once they hire even more people to do even more things beside their main businesses - for instance creating a 3D metaverse. The 3D hype came and went several times before, as did Video on the Web, Mobile, e-Commerce search etc.

Google tries to rule it all but should learn lessons from history.

And then disappointed.

It’s too bad they can’t tie in the flickr geotagged photos. Unless they buy Yahoo
Microsoft has some crazy app that can take multiple photos of the same place and generate something (3d image?) off of it. I think it was buzzing around last November.