Vivaty, a company that provided technology for user-generated, three-dimensional virtual scenes, sold its intellectual property to Microsoft this summer, after closing down last spring, according to his report.
So what's with this interest in virtual worlds? It makes sense to me in light of the avatars used in Microsoft's Xbox Live dashboard and selected games. The latest example is the virtual lobby in the ESPN interface in the latest Xbox Live update. Past examples have included the discontinued "1 vs. 100" live video game show.
Not hard to imagine the company taking that a step further with a more comprehensive virtual world. The question, in 2010, is how to do it without coming off as somewhat outdated. At the very least, should be an interesting area to watch.