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These sorts of enviroments are a fascinating phenomenon to me, not necessarily from the standpoint of the environments themselves, or the experiences they help facilitate, but with the degree of engagement, dedication and time investment that people willingly and independently put into them.

why the obsession with delineating where learning stops and open-ended fun begins? Why must there be a distiction?

It is more useful, and perhaps more complete, to see virtual worlds, games, and simulations as points along a continuum, all instances of highly interactive virtual environments (HIVEs).

The ease with which the children in the pool, the students in the virtual class, and the pilot in the flight simulator move from exploratory virtual-world behaviors to structured but simple games to taking on rigorous simulation challenges illustrates both the differences across these three instances and the connections that link them. It is only by building from open experimentation to increasingly rigorous rules, structures, and success criteria that children learn transferable water survival skills and pilots learn critical flying skills.

A virtual world will not suffice where a simulation is needed. The virtual world offers only context with no content; it contributes a set of tools that both enable and restrict the uses to which it may be put. An educational simulation may take place in a virtual world, but it still must be rigorously designed and implemented. Organizations routinely fail in their efforts to access the potential of virtual worlds when they believe that buying a virtual world means getting a simulation. Likewise, a game is not an educational simulation. Playing SimCity will not make someone a better mayor. Some players of, for instance, World of Warcraft may learn deep, transferable, even measurable leadership skills but not all players will. The game does not provide a structure for ensuring learning. Just because some players learn these skills playing the game, that does not mean either that most players are also learning these skills or that it should be adopted in a leadership development program. Conversely, a purely educational simulation may not be very much fun. The program may have the three-dimensional graphics and motion capture animations of a computer game, but the content may be frustrating. Specific competencies must be invoked, and students' assumptions about what the content should be, likely shaped by their experiences with games, will be challenged.