CREATe is happy to present the sixth entry in our series of working papers released in 2025: ‘Conceptualising Virtual Worlds: A Narrative-Driven Architecture’ by Ayşe Gizem Yaşar (LSE Law School and CREATe Fellow) and Fabian Ziermann (WU Vienna).
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Ayse and Fabian write:
Virtual worlds are nascent technological environments which are nonetheless evolving from existing ecosystems such as video games, app stores, and hardware platforms. This creates a double challenge for regulators: while intervention at the early stages of an industry may appear undesirable, strong links to established incumbents warrant regulatory scrutiny.
In this paper, we make the case that the definition of “virtual world”, “metaverse” or whatever we should call it – and what it will come to be – will likely depend on whose narrative or narratives are being pushed most forcefully, with some narratives already having failed the test of time. Nonetheless, one thing is certain: virtual worlds, supported by increasingly powerful AI systems, bear the potential to pervade human lives at a level hitherto unknown. It is therefore crucial that regulators not simply approach virtual worlds as another market or industry to be regulated. They should take an active part in the shaping of virtual worlds and not leave this process predominantly in the hands of private entities, especially given the difficulty of implementing structural regulation once the industry has matured.
The paper is part of the CREATe project on Cloud Gaming and the Changing Landscape of the Video Game Industry. For more information on the project and some of our previous work which has informed this paper, you can check out the project page.
Full paper can be downloaded here.