A Japanese startup called Genkii.com developed the new app, which is called Sparkle. Genkii has a background in developing Second Life-style virtual worlds, and they've used that experience to build Sparkle.
Genkii cut its iPhone teeth with a text-only version of Sparkle, but the full version will let users build avatars that they can move through a full virtual world with its own service industry, economy, games and other features.
Users will be able to log into the Sparkle virtual world with their Second Life or OpenSim accounts. OpenSim is another 3D virtual world simulator.
But will Sparkle have a red-light district? Although representatives for Genkii did not offer a comment as of post time, the company has yet to post any terms of service prohibiting adult content.
Unfortunately, Apple doesn't have an adult-friendly track record when it comes to the iPhone. To date, the company has maintained a ban on any adult-themed apps, although the release of the new iPhone operating system might change the playing field.
The new iPhone OS offers app developers the option to add upsells or subscriptions to services inside apps, which might open the door for adult apps to use this payment option as a way to confirm a user's age.
In addition, Genkii CEO Ken Brady said that along with Second Life and OpenSim, he wants to integrate Sparkle with the PlayStation's virtual world, called home. The terms of service for Home don't prohibit adult content, instead warning users that they might encounter objectionable content.
Such a development might be welcome for the adult industry, given Second Life's recent crackdown on adult content.
Second Life's Cyn Linden recently wrote on the Second Life blog, "It has become clear that some residents are interested in pursuing certain 'adult' activities in Second Life that others would rather not casually encounter."
Second Life hasn't banned adult content, but moved it all to a single red-light district and taken steps to strengthen age verification.
For more information, visit Sparkle.Genkii.com. The full app has no set release date.