Forget Second Life. The real virtual world gold rush centers on the grammar-school set.

Trying to duplicate the success of blockbuster Web sites like Club Penguin and Webkinz, children's entertainment companies are greatly accelerating efforts to build virtual worlds for children. Media conglomerates in particular think these sites -- part online role-playing game and part social scene -- can deliver quick growth, help keep movie franchises alive and instill brand loyalty in a generation of new customers.

Second Life and other virtual worlds for grown-ups have enjoyed intense media attention in the last year but fallen far short of breathless expectations. The...

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