Virtual Goods News

Today the Hi5 social network announced the launch of a new social user interface featuring 3D avatars the company calls Hi5 Stars. Every user profile will now host a customizable Hi5 Star intended to represent the user, comparable to the way gaming consoles now use avatars. Hi5 intends to monetize their new avatar system in the future by selling users virtual goods they can use to customize their avatars. 

"We designed our avatars to be an integral part of the hi5 user's online experience and a natural extension of their real-world persona -- complete with moods, motions, and status updates. Stars serve as the basis for extending game-like mechanics into the online social experience," said Hi5 Executive Producer Andrew Sheppard in a press statement. 

The suite of virtual items intended for customizing avatars is expected to roll out in Q4 of this year. Hi5 does intend to make advertiser-sponsored items available to users, in addition to premium items purchased directly with Hi5 Coins.

The technology powering the Hi5 Stars is a proprietary rendering engine that's used to create graphics users view through Flash. Since most Web users today install the Flash plug-in for purposes of playing social games and watching streaming video, Hi5 hopes users will be more likely to embrace an avatar system tethered to Flash. In the future, Hi5 intends to introduce more Flash entertainment features to the site. 

The launch of Hi5 Stars accompanies a total revamp of the basic Hi5 user page. The new design is intended to simplify navigation while also calling user attention to the Hi5 Games and Hi5 Coins channels. Users can purchase the Hi5 Coins virtually currency and spend it while playing Hi5 Games, which also display ads. Right now Hi5 Coins microtransactions account for 15% of all Hi5 revenue. 

Hi5 Coins and Games are