Pixelated online worlds are becoming very popular and profitable. Habbo is making millions of real dollars selling virtual goods. Citypixel is trying to sell billboard advertising space within its virtual city. Faketown is virtual pixel world that I believe holds a lot of potential.

The virtual world is highly entertaining, even as a guest user. From a world map, you choose a region, metro, town, street, and even building to enter. Once in a location as a guest user, you're depicted as a baby that can interact with actual players. If you try and communicate, your baby instead says something in nonsensical baby-talk. You can even visit houses built by other players and go through the various rooms. It's a great way to see how massive this virtual world has the potential of being.

An amazing feature they have is the ability to link YouTube videos and watch it from within the game in a theater. The mayors of the locations in the game are voted on by players, and have the ability of controlling aspects of their city such as town policy, taxes, and the jail. The in game currency, Fake Coins, can be purchased with real money or earned through spending time in the game, at a rate of one coin per minute. It's a great way for the service to built both traffic and revenue through its Fake Coin system.

Faketown has built a very attractive virtual world simulation that should prove very popular and entertaining. Keep your eye on this one.