Genkii to launch Sparkle 3D virtual world for iPhone

Japanese firm Genkii is planning to launch a 3D virtual world for iPhone and iPod touch, including avatars, virtual items, streaming media and gaming elements.

It's called Sparkle 3D, and TechCrunch has the scoop on its details, plus a few early working screenshots.

The world has a cutesy Animal-Crossing-goes-manga look, but will be backed up by some powerful features. These include the ability to link the world - communication-wise - with existing virtual worlds, including PlayStation Home.

CEO Ken Brady tells TechCrunch that expanding to Android and other platforms is likely in the future, too, although iPhone will remain the focus at first.

The company is looking for angel investment to take its plans forward. Meanwhile, it has also just launched a separate app, Sparkle IM, which lets iPhone users communicate with friends in Second Life using IMs, chat and teleport requests.

Virtual worlds on iPhone and iPod touch will be an interesting sector. On the one hand, the devices are technically capable, while the upcoming iPhone 3.0 software will enable the virtual item / micro-payment ecosystems that such worlds often build their business models around.

On the other hand, the most successful virtual worlds online - think Club Penguin and Habbo - are aimed at teens and tweens. Do enough of those have iPhones or iPod touches to make virtual worlds big business on these devices too?

And if they do, wouldn't iPhone clients for those existing virtual worlds be more successful?

None of this is to suggest Genkii is onto a loser from the start with Sparkle 3D, though, especially in Japan where mobile social networking and virtual worlds are highly popular already.