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	<title>Digital Daily &#187; virtual</title>
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	<link>http://digitaldaily.allthingsd.com</link>
	<description>by John Paczkowski</description>
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		<title>Like Snowflakes, No Two myTouch 3Gs Alike&#8230;</title>
		<link>http://digitaldaily.allthingsd.com/20090622/like-snowflakes-no-two-mytouch-3gs-alike/</link>
		<comments>http://digitaldaily.allthingsd.com/20090622/like-snowflakes-no-two-mytouch-3gs-alike/#comments</comments>
		<pubDate>Mon, 22 Jun 2009 19:00:24 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Apple]]></category>
		<category><![CDATA[Digital Daily]]></category>
		<category><![CDATA[Google]]></category>
		<category><![CDATA[John Paczkowski]]></category>
		<category><![CDATA[digital]]></category>
		<category><![CDATA[hardware]]></category>
		<category><![CDATA[innovation]]></category>
		<category><![CDATA[mobile]]></category>
		<category><![CDATA[software]]></category>
		<category><![CDATA[telecom]]></category>
		<category><![CDATA[Andrew Sherrard]]></category>
		<category><![CDATA[Android]]></category>
		<category><![CDATA[applications]]></category>
		<category><![CDATA[battery life]]></category>
		<category><![CDATA[BlackBerry Tour 9630]]></category>
		<category><![CDATA[camera]]></category>
		<category><![CDATA[carrier]]></category>
		<category><![CDATA[contract]]></category>
		<category><![CDATA[customers]]></category>
		<category><![CDATA[customization]]></category>
		<category><![CDATA[G1]]></category>
		<category><![CDATA[handset]]></category>
		<category><![CDATA[iPhone 3Gs]]></category>
		<category><![CDATA[keyboard]]></category>
		<category><![CDATA[landscape]]></category>
		<category><![CDATA[megapixel]]></category>
		<category><![CDATA[mode]]></category>
		<category><![CDATA[myTouch 3G]]></category>
		<category><![CDATA[News.com]]></category>
		<category><![CDATA[Palm]]></category>
		<category><![CDATA[phone]]></category>
		<category><![CDATA[portrait]]></category>
		<category><![CDATA[Pre]]></category>
		<category><![CDATA[Research in Motion]]></category>
		<category><![CDATA[T-Mobile]]></category>
		<category><![CDATA[virtual]]></category>

		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=19951</guid>
		<description><![CDATA[In a summer of handset debuts that already includes the Palm Pre, Apple’s iPhone 3GS, and soon, Research in Motion’s BlackBerry Tour 9630, add one more: The myTouch 3G, T-Mobile’s second Google Android phone. The carrier officially introduced the device today and said customers can begin reserving it on July 8.]]></description>
			<content:encoded><![CDATA[<p><img src="http://digitaldaily.allthingsd.com/files/2009/06/t-mobilemytouch3g-lg2-128x300.jpg" alt="t-mobilemytouch3g-lg2" title="t-mobilemytouch3g-lg2" width="128" height="300" class="alignright size-medium wp-image-19952" />In a summer of handset debuts that already include the Palm (PALM) Pre, Apple’s (AAPL) iPhone 3GS, and soon, Research in Motion’s (RIM) BlackBerry Tour 9630, add one more: <a href="http://digitaldaily.allthingsd.com/20090617/mytouch-seriously/">the myTouch 3G</a>, T-Mobile’s second Google (GOOG) Android phone. The carrier <a href="http://www.t-mobilemytouch.com/">officially introduced the device today</a> and said customers can begin reserving it on July 8. Price: $199 with a two-year contract. </p>
<p>Sleeker than the somewhat boxy G1, the myTouch boasts longer battery life&#8211;up to six hours of talk time, one more than its predecessor&#8211;a 3.2-megapixel camera, a virtual keyboard that orients automatically from portrait to landscape mode and, more importantly, better customization. </p>
<p>Now that the Android Market has 5,000-strong range of applications, devices like the myTouch offer a more compelling proposition than even before. “No two myTouch devices will be alike,&#8221; <a href="http://news.cnet.com/8301-1035_3-10269459-94.html">Andrew Sherrard, vice president at T-Mobile, told News.com</a>. &#8220;They will be as unique as the users that own them. What we have found is that once consumers know how to customize a device and they add everything they want on it, they respond very well to having a phone that is specially designed for them.”</p>
<p>Yep, <a href="http://digitaldaily.allthingsd.com/20090622/apple-more-than-1-million-iphone-3gs-models-sold/">they sure do</a>. </p>
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		<title>MSFT-YHOO-Facebook in Bizarre Love Triangle?</title>
		<link>http://digitaldaily.allthingsd.com/20080519/ddv20080519/</link>
		<comments>http://digitaldaily.allthingsd.com/20080519/ddv20080519/#comments</comments>
		<pubDate>Mon, 19 May 2008 18:00:49 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Apple]]></category>
		<category><![CDATA[Digital Daily Live]]></category>
		<category><![CDATA[Facebook]]></category>
		<category><![CDATA[John Paczkowski]]></category>
		<category><![CDATA[Microsoft]]></category>
		<category><![CDATA[Yahoo]]></category>
		<category><![CDATA[advertising]]></category>
		<category><![CDATA[music]]></category>
		<category><![CDATA[3G]]></category>
		<category><![CDATA[Gartner]]></category>
		<category><![CDATA[iPhone]]></category>
		<category><![CDATA[IPO]]></category>
		<category><![CDATA[iTunes]]></category>
		<category><![CDATA[labels]]></category>
		<category><![CDATA[Mark Zuckerberg]]></category>
		<category><![CDATA[metaverse]]></category>
		<category><![CDATA[price]]></category>
		<category><![CDATA[pricing]]></category>
		<category><![CDATA[ringtone]]></category>
		<category><![CDATA[search]]></category>
		<category><![CDATA[Second Life]]></category>
		<category><![CDATA[valuation]]></category>
		<category><![CDATA[virtual]]></category>

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		<title>Not With a Bang But a Fatal Error</title>
		<link>http://digitaldaily.allthingsd.com/20080104/not-with-a-bang-but-a-fatal-error/</link>
		<comments>http://digitaldaily.allthingsd.com/20080104/not-with-a-bang-but-a-fatal-error/#comments</comments>
		<pubDate>Fri, 04 Jan 2008 18:49:02 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Digital Daily]]></category>
		<category><![CDATA[John Paczkowski]]></category>
		<category><![CDATA[big bang]]></category>
		<category><![CDATA[computer]]></category>
		<category><![CDATA[universe]]></category>
		<category><![CDATA[virtual]]></category>
		<category><![CDATA[virtual reality]]></category>

		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/20080104/not-with-a-bang-but-a-fatal-error/</guid>
		<description><![CDATA[Our universe could be the hobby of some Cartesian Evil Genius who runs our lives the way one might play The Sims. That&#8217;s the gist of the argument proffered in &#8220;The Physical World as a Virtual Reality,&#8221; a new scientific paper from Massey University professor Brian Whitworth. &#8220;[L]ogically the world could be an information simulation [...]]]></description>
			<content:encoded><![CDATA[<p><img src='http://digitaldaily.allthingsd.com/files/2008/01/braininvat.jpg' class='centered' style="border: 1px solid #000;" alt='braininvat.jpg' />Our universe could be the hobby of some <a href="http://en.wikipedia.org/wiki/Evil_genius">Cartesian Evil Genius</a> who runs our lives the way one might play The Sims. That&#8217;s the gist of the argument proffered in <a href="http://arxiv.org/abs/0801.0337">&#8220;The Physical World as a Virtual Reality,&#8221;</a> a new scientific paper from Massey University professor Brian Whitworth. &#8220;[L]ogically the world could be an information simulation running on a three-dimensional space-time screen,&#8221; posits Whitworth. </p>
<p>Sounds like someone&#8217;s been spending a little too much time with the Matrix RPG Society, eh? Either that or he&#8217;s the long-lost third <a href="http://en.wikipedia.org/wiki/Wachowski_brothers">Wachowski Brother</a>.</p>
<p>That said, Whitworth&#8217;s argument does have its merits. Top among them: It offers a handy answer for troubling questions like: “What existed before the big bang?” <a href="http://arxiv.org/pdf/0801.0337">Writes Whitworth</a>:</p>
<blockquote><p>
&#8230; the virtual-reality hypothesis means the big bang is much easier to explain. No virtual reality can have existed forever, since it depends upon a processor to create it. All virtual realities come into being, or &lsquo;start up,&#8217; at a specific moment of time. They typically begin with a sudden influx of all the information necessary to initiate the virtual world. Whenever one starts a computer game or boots up a computer, such a &#8216;big bang&#8217; happens. From the perspective of the virtual world itself, the creation is always from &#8216;nothing,&#8217; as before the virtual world start-up there was indeed no time or space as defined by that world. There was nothing relative to that world, because the world itself did not exist. It is a hallmark of virtual realities that they must come into existence at a specific point in their space and time, which event also initiates the VR space-time fabric. Note that in a virtual world there is no logical reason why all initiating information cannot initially &#8216;point&#8217; to a single arbitrary location, i.e. no reason why an entire universe cannot exist at a single point. In this view, then, the big bang was simply when our universe was &#8216;booted up.&#8217; &#8221;
</p></blockquote>
<p>If that is indeed the case, the world will presumably end with some sort of fatal error. What was it T.S. Eliot wrote in &#8220;The Hollow Men&#8221;?</p>
<blockquote><p>
This is the way the world ends<br />
This is the way the world ends<br />
This is the way the world ends<br />
Not with a bang but a BSOD.&#8221;
</p></blockquote>
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		<title>300+ New Features! That's Not an OS &#8230; It's a Space Station</title>
		<link>http://digitaldaily.allthingsd.com/20071016/leopard-ships-oct26/</link>
		<comments>http://digitaldaily.allthingsd.com/20071016/leopard-ships-oct26/#comments</comments>
		<pubDate>Tue, 16 Oct 2007 12:54:01 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Apple]]></category>
		<category><![CDATA[Digital Daily]]></category>
		<category><![CDATA[John Paczkowski]]></category>
		<category><![CDATA[applications]]></category>
		<category><![CDATA[backup]]></category>
		<category><![CDATA[desktop]]></category>
		<category><![CDATA[Jaguar]]></category>
		<category><![CDATA[Leopard]]></category>
		<category><![CDATA[Mac]]></category>
		<category><![CDATA[OS X]]></category>
		<category><![CDATA[Panther]]></category>
		<category><![CDATA[Steve Jobs]]></category>
		<category><![CDATA[Tiger]]></category>
		<category><![CDATA[virtual]]></category>

		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/20071016/leopard-ships-oct26/</guid>
		<description><![CDATA[Like Jaguar, Panther and Tiger before it, Leopard will be &#8220;the best upgrade to Mac OS X that Apple&#8217;s ever released.&#8221; This according to CEO Steve Jobs, who today said Leopard will arrive at market Oct. 26, as expected.
Priced at $129 for a single-user license, Leopard offers some 300 new features&#8211;&#8220;Even Leopard innovations have innovations,&#8221; [...]]]></description>
			<content:encoded><![CDATA[<p><a href="http://www.joyoftech.com/joyoftech/joyimages/920.gif"><img src='http://digitaldaily.allthingsd.com/files/2007/10/gates.jpg' class='centered' alt='gates.jpg' /></a>Like Jaguar, Panther and Tiger before it, Leopard will be &#8220;the best upgrade to Mac OS X that Apple&#8217;s ever released.&#8221; This according to CEO Steve Jobs, who today said <a href="http://www.apple.com/pr/library/2007/10/16leopard.html">Leopard will arrive at market Oct. 26</a>, as <a href="http://digitaldaily.allthingsd.com/20071004/leopard-iphone-sdk/">expected</a>.</p>
<p>Priced at $129 for a single-user license, Leopard offers some 300 new features&#8211;<a href="http://www.apple.com/macosx/features/300.html">&#8220;Even Leopard innovations have innovations,&#8221;</a> says Apple&#8211;among them, <a href="http://www.appleinsider.com/articles/07/10/08/road_to_mac_os_x_leopard_finder_10_5.html">a solution to the &#8220;Fix the F-ing Finder&#8221;</a> problem, a significant <a href="http://www.appleinsider.com/articles/07/10/15/road_mac_os_x_leopard_mail_3_0.html">update to Mail</a>, a virtual desktop application <a href="http://forums.appleinsider.com/showthread.php?threadid=79740">called &#8220;Spaces&#8221;</a> and Apple&#8217;s eagerly awaited backup solution, <a href="http://forums.appleinsider.com/showthread.php?threadid=79784">&#8220;Time Machine.&#8221;</a></p>
<p>Looks to be an impressive release. Certainly, Wall Street expects it to be. Just last week Piper Jaffray &#038; Co.&#8217;s Gene Munster predicted Leopard would add $240 million to Apple&#8217;s next quarter,  nearly double the $125 million in revenues that Tiger brought in during its opening quarter.</p>
<p>Chris Swenson of the NPD Group, too, figures Leopard will outperform its predecessor. &#8220;Tiger was the best launch of Mac OS X ever according to our data,&#8221; <a href="http://www.computerworld.com/action/article.do?command=viewArticleBasic&amp;articleId=9042758">he told ComputerWorld</a>, &#8220;and I expect Leopard to do even better.&#8221; </p>
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		<title>Sun-Microsoft Deal Creates Rift in Space-Time Continuum</title>
		<link>http://digitaldaily.allthingsd.com/20070913/ddv20070913/</link>
		<comments>http://digitaldaily.allthingsd.com/20070913/ddv20070913/#comments</comments>
		<pubDate>Thu, 13 Sep 2007 18:00:29 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Digital Daily Live]]></category>
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		<category><![CDATA[Microsoft]]></category>
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		<category><![CDATA[analog]]></category>
		<category><![CDATA[Boeing]]></category>
		<category><![CDATA[cable]]></category>
		<category><![CDATA[FCC]]></category>
		<category><![CDATA[Federal Communications Commission]]></category>
		<category><![CDATA[Gulfstream]]></category>
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		<category><![CDATA[Scott McNealy]]></category>
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		<title>Reason for Leaving Last Job: GOOG Trading at $500+</title>
		<link>http://digitaldaily.allthingsd.com/20070829/reason-for-leaving-last-job-goog-trading-at-500/</link>
		<comments>http://digitaldaily.allthingsd.com/20070829/reason-for-leaving-last-job-goog-trading-at-500/#comments</comments>
		<pubDate>Wed, 29 Aug 2007 13:00:39 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Digital Daily Live]]></category>
		<category><![CDATA[Google]]></category>
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		<category><![CDATA[John Paczkowski]]></category>
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		<category><![CDATA[Cindy McCaffrey]]></category>
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		<category><![CDATA[dissent]]></category>
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		<category><![CDATA[police]]></category>
		<category><![CDATA[Rolla Huff]]></category>
		<category><![CDATA[virtual]]></category>
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		<title>It Looks Like You're Searching for Information About Falun Gong. Would You Like to Reconsider?</title>
		<link>http://digitaldaily.allthingsd.com/20070828/china-virtual-cops/</link>
		<comments>http://digitaldaily.allthingsd.com/20070828/china-virtual-cops/#comments</comments>
		<pubDate>Tue, 28 Aug 2007 20:21:44 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Digital Daily]]></category>
		<category><![CDATA[Internet]]></category>
		<category><![CDATA[John Paczkowski]]></category>
		<category><![CDATA[China]]></category>
		<category><![CDATA[Communist Party]]></category>
		<category><![CDATA[dissent]]></category>
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		<category><![CDATA[security]]></category>
		<category><![CDATA[virtual]]></category>

		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/20070828/china-virtual-cops/</guid>
		<description><![CDATA[If the 137 million Chinese who surf the Web weren&#8217;t already aware that online dissent is an impossibility, they will be soon.
Beginning Sept. 1, animated beat cops will begin patrolling the nation’s 13 top portals, warning citizens away from material the ruling Communist Party finds politically or morally threatening.
According to the Beijing Public Security Ministry, [...]]]></description>
			<content:encoded><![CDATA[<p><img src='http://digitaldaily.allthingsd.com/files/2007/08/virtualpolice.jpg' width=280 height=137 class='centered' style="border: 1px solid #000;" alt='virtualpolice.jpg' />If the 137 million Chinese who surf the Web weren&#8217;t already aware that online dissent is an impossibility, they will be soon.</p>
<p>Beginning Sept. 1, <a href="http://www.washingtonpost.com/wp-dyn/content/article/2007/08/28/AR2007082800543.html">animated beat cops will begin patrolling</a> the nation’s 13 top portals, warning citizens away from material the ruling Communist Party finds politically or morally threatening.</p>
<p>According to the Beijing Public Security Ministry, the Sanrio-esque characters will begin showing up on all sites that are registered with the government by the end of the year. &#8220;We will continue to promote new images of the virtual police and update our Internet security tips in an effort to make the image of the virtual police more user-friendly and more in tune with how Web surfers use the Internet,&#8221; it said.</p>
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		<title>March of the Preteen Consumers</title>
		<link>http://digitaldaily.allthingsd.com/20070802/clubpenguin-disney/</link>
		<comments>http://digitaldaily.allthingsd.com/20070802/clubpenguin-disney/#comments</comments>
		<pubDate>Thu, 02 Aug 2007 07:01:51 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Digital Daily]]></category>
		<category><![CDATA[John Paczkowski]]></category>
		<category><![CDATA[Bob Iger]]></category>
		<category><![CDATA[Club Penguin]]></category>
		<category><![CDATA[Disney]]></category>
		<category><![CDATA[Mickey Mouse]]></category>
		<category><![CDATA[Puffles]]></category>
		<category><![CDATA[virtual]]></category>

		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/20070802/clubpenguin-disney/</guid>
		<description><![CDATA[Club Penguin, the online virtual world for children that is part of a worldwide trend, has finally been sold. Not to News Corp. for $200 million.  Not to Sony for $450 million. But to Disney for a sum that could eventually hit $700 million. The Mouse House will pay $350 million up front for [...]]]></description>
			<content:encoded><![CDATA[<p><img src='http://digitaldaily.allthingsd.com/files/2007/08/clubpenguin.jpg' class='centered' style="border: 1px solid #000;" alt='clubpenguin.jpg' /><a href="http://www.clubpenguin.com/index.html">Club Penguin</a>, the <a href="http://money.cnn.com/magazines/business2/business2_archive/2007/04/01/8403359/index.htm">online virtual world for children</a> that is part of a <a href="http://kara.allthingsd.com/20070802/kara-visits-weeworld-in-london/">worldwide trend,</a> has finally been sold. Not to <a href="http://gigaom.com/2007/05/16/sony-clubpenguin/">News Corp. for $200 million</a>.  Not to <a href="http://www.paidcontent.org/entry/419-sony-in-advanced-talks-to-buy-kids-social-network-clubpenguin/">Sony for $450 million</a>. But to Disney for a sum that could eventually hit $700 million. The Mouse House will pay $350 million up front for Club Penguin and an additional $350 million if it meets certain performance goals through 2009. Not bad for<a href="http://www.theglobeandmail.com/servlet/story/RTGAM.20061113.wxclubpenguin13/BNStory/Technology/home"> a site created by three 20-something fathers</a> from the British Columbia Interior and built largely by word of mouth.</p>
<p>Not bad for Disney, either. The site currently boasts 12 million registered users, 700,000 of whom pay $5.95 a month for the ability to customize their penguin characters and decorate their igloos. How many more will do that once Disney throws its global marketing might behind the site? &#8220;Disney&#8217;s technological know-how, online capabilities and international reach will support global expansion of the Club Penguin franchise,&#8221; <a href="http://media.seekingalpha.com/article/43218">Disney CEO Bob Iger said yesterday</a> during the company&#8217;s earnings call. &#8220;We plan to rename it Disney&#8217;s Club Penguin and to immediately use our Disney-branded properties such as Disney.com, Disney Channel, Radio Disney and our parks and resorts to raise its profiles. &#8230; We believe virtual worlds can extend and expand on the life of a franchise, expand our global reach for our entertainment content, and allow us direct contact with our consumers in a more personalized and engaging way.&#8221;</p>
<p>In other words, it&#8217;s only a matter of time before Buzz Lightyear and the Disney princesses appear as Club Penguin costume options and great piles of Club Penguin Puffles show up in local Disney stores. As Walt Disney&#8217;s brother Roy once said,  “<a href="http://www.timesonline.co.uk/tol/comment/columnists/guest_contributors/article767606.ece">The sale of a doll to any member of a household is a daily advertisement</a> in that household for our cartoons and keeps them all ‘Mickey Mouse Minded.’ ”</p>
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		<title>Do You Accept the iPhone as Your Personal Savior?</title>
		<link>http://digitaldaily.allthingsd.com/20070625/ddv20070625/</link>
		<comments>http://digitaldaily.allthingsd.com/20070625/ddv20070625/#comments</comments>
		<pubDate>Mon, 25 Jun 2007 17:18:03 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Apple]]></category>
		<category><![CDATA[Digital Daily Live]]></category>
		<category><![CDATA[Google]]></category>
		<category><![CDATA[John Paczkowski]]></category>
		<category><![CDATA[AdWords]]></category>
		<category><![CDATA[AT&T]]></category>
		<category><![CDATA[eBay]]></category>
		<category><![CDATA[iPhone]]></category>
		<category><![CDATA[IRS]]></category>
		<category><![CDATA[tax]]></category>
		<category><![CDATA[virtual]]></category>

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		<description><![CDATA[[ See post to watch video ]]]></description>
			<content:encoded><![CDATA[<div class="video-wsj"><embed src="http://s.wsj.net/media/swf/microPlayer.swf" bgcolor="#FFFFFF" flashVars="videoGUID={1029828942}&playerid=4001&plyMediaEnabled=1&configURL=http://wsj.vo.llnwd.net/o28/players/&autoStart=false" base="http://s.wsj.net/media/swf/" name="microflashPlayer" width="320" height="240" seamlesstabbing="false" type="application/x-shockwave-flash" swLiveConnect="true" pluginspage="http://www.macromedia.com/shockwave/download/index.cgi?P1_Prod_Version=ShockwaveFlash"></embed><br />[ See post to watch video ]</div>
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		<title>You've Found a Golden Runic Hammer! Click Here to Complete Your 1099 &#8230;</title>
		<link>http://digitaldaily.allthingsd.com/20070625/death-virtual-taxes/</link>
		<comments>http://digitaldaily.allthingsd.com/20070625/death-virtual-taxes/#comments</comments>
		<pubDate>Mon, 25 Jun 2007 08:39:54 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Digital Daily]]></category>
		<category><![CDATA[John Paczkowski]]></category>
		<category><![CDATA[Congress]]></category>
		<category><![CDATA[EverQuest]]></category>
		<category><![CDATA[IRS]]></category>
		<category><![CDATA[Joint Economic Committee]]></category>
		<category><![CDATA[Second Life]]></category>
		<category><![CDATA[tax]]></category>
		<category><![CDATA[virtual]]></category>

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		<description><![CDATA[With millions of dollars in virtual currency changing hands each month in simulated worlds like EverQuest and Second Life, there are increasing reports of virtual-world moguls amassing real-world riches and scholars warning that these online worlds could be the &#8220;21st century&#8217;s equivalent of hiding funds offshore.&#8221; So it may be only a matter of time [...]]]></description>
			<content:encoded><![CDATA[<p>With millions of dollars in virtual currency changing hands each month in simulated worlds like EverQuest and Second Life, there are increasing reports of <a href="http://www.anshechung.com/include/press/press_release251106.html">virtual-world moguls amassing real-world riches</a> and scholars warning that these online worlds could be the &#8220;21st century&#8217;s equivalent of hiding funds offshore.&#8221; So it may be only a matter of time before tax authorities open a virtual office or two. And in the not-too-distant future, they may.</p>
<p>Congress&#8217; Joint Economic Committee is <a href="http://news.com.com/8301-10784_3-9733848-7.html">expected to issue a report on the potential taxation of virtual goods</a> by the end of July. No word yet on what it might say, although a JEC director has suggested that &#8220;as long as virtual activity stays within the virtual economy, it shouldn&#8217;t be taxable.&#8221; So is that to say that there are tax consequences for activity that extends beyond it? Sounds like it. &#8220;Any time someone wins a tangible prize or award, the value is reportable as taxable income,&#8221; <a href="http://money.cnn.com/2007/03/02/technology/sl_taxes/index.htm">an Internal Revenue Service rep told CNN</a> earlier this year. &#8220;An accumulation of &#8216;points&#8217; would not result in tax consequences, but redeeming or selling them for money, goods, or services would.&#8221;</p>
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