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I think virtual worlds are extensions of the real world. But I'd still suggest it is entertainment.

Whether it is an online chatroom or attending a lecture, there is some type of enjoyment for the masses. And it is the behavior of the masses that matter.

But back to the word game, I think football is an extension of the real world. When a game is played, it has its own rules in a manufactured environment. People attend the game because it is entertainment. People play the game because it is both fun, and you can get paid doing it. I think of Second Life in a similar way. You have lots of user created content that rewards the creators with compensation. And as long as you have the masses enjoying the "game" it benefits everyone concerned.