The character on the computer screen has an orange head and zebra-print pants. He isn’t blasting aliens, he’s just kicking a virtual soccer ball. Not very exciting to video game players. Or so you’d think.

But to Chief Executive David Lord, he represents the future of Knowledge Adventure Inc., a Torrance based computer game publisher that may be the first to build a virtual world that’s geared to kids as young as 3.

To Lord, who talked in his office while steering his JumpStart avatar on the computer screen in a game of virtual soccer, then to a music box that offered tunes for toddlers, the move to grow Knowledge Adventure on the Internet was obvious.

“The PC gaming market has shrunk, the educational market has shrunk, but online has exploded,” he said. “We had to change who we were.”

Just over a year ago, Knowledge Adventure was focused on making educational PC software, primarily of its franchises “Math Blaster” and “JumpStart,” designed for players ranging from toddlers to teens.

It was a market that had propelled the company’s products into the leading ranks of the genre. But with U.S. sales of educational games on a steady decline, executives at the company were concerned.

Lord took the company’s helm in April 2008 and launched a move into new territory. Now, Knowledge Adventure is trading on its well-known brands to reinvent itself. Instead of software, it is concentrating on the Internet, where it hopes to become the leader in online virtual worlds for kids.

In December Knowledge Adventure launched the beta version of “JumpStart 3D Virtual World,” an online gathering place where children can build avatars online characters and steer them through a brightly colored world of games. For safety concerns, the company won’t allow kids to chat in real time.

Knowledge Adventure plans to charge families about $8 a month or $75 a year to maintain accounts.

With more kids spending their time online, Knowledge Adventure could reap huge growth from its new strategy, said Debra Aho Williamson, a senior analyst with Emarketer Inc., a New York research firm.

A 2007 study by Emarketer projected that 20 million kids ages three to 17 would visit a virtual world at least once a month in 2011, more than double the number that did so in 2007.

And a 2008 study by K Zero, a United Kingdom research firm specializing in virtual worlds, projected that 70 million kids aged seven to 12 would have virtual world accounts in 2009, up from 35 million in 2008. By 2010, K Zero projects the number to grow to 150 million.

The predicted increase in traffic has made kid-oriented virtual worlds desirable properties. Club Penguin, a virtual world targeted at 6- to 14-year-olds, sold to the Walt Disney Co. in 2005 for $350 million. Meanwhile, established toy manufacturers such as Mattel Inc. and Lego Holding A/S have built their own virtual worlds to lure kids to play online at sites that promote their products.

Knowledge Adventure’s challenge, Williamson said, will be competing on the Internet against such established brands as Barbie and Lego. She said the company can succeed if it carves itself the same niche it occupies with software: Educational games that parents trust.

“The brand is more known among adults and parents. That’s their market,” she said. “Whether the kids themselves say, ‘Wow, I can’t wait to get on JumpStart online,’ the same way they do with, say, Barbie, I don’t know. I doubt it.”

Big step

Knowledge Adventure was founded in an era when computer games were nascent and online virtual worlds yet to be developed. Bill Gross, the founder of Pasadena technology incubator Idealab, started Knowledge Adventure in 1991 and grew it into a powerhouse on the strength of its “Math Blaster” and “JumpStart” games.

Gross sold the company in 1997, and it eventually came into ownership of Vivendi. That’s when Knowledge Adventure produced a swath of branded games, including “Barbie,” “Jurassic Park” and “Curious George.” Then in 2004, a group of investors bought the company with the intention of returning it to its educational roots.

The group hired Lord from Razorgator.com because he had grown the online ticket site into a multimillion dollar business. Lord said he took the job partly because he saw a large growth opportunity, but also because of the chance to build a product that taught kids useful skills such as math and reading.

“You almost feel like you’re endeavoring for something better, not just with the business but with the product,” he said. “And that’s pretty cool.”

Lord brought with him an Internet startup mentality, installing a ping-pong table in Knowledge Adventure’s offices, a game room furnished with plush chairs and a Wii. He also instituted a new office policy: Nerf gun wars every Friday. “We have some kids who come in just for this,” he said as he pointed to the Nerf gun he keeps loaded next to his desk.

But the loose culture and brightly colored inflatable animals that greet visitors to Knowledge Adventure’s offices are in contrast to the rigorous rollout schedule. In March, the company plans to unveil another virtual world, this one aimed at 6- to 8-year-olds, and in April it will introduce one for 8- to 10-year-olds.

Recently it also introduced plush toys based on its “JumpStart” characters for sale in retailers, including Toys R Us. And later this year, the company plans to debut versions of its games for Nintendo Co.’s Wii and handheld DS system. Versions for Apple Inc.’s iPhone and iPod Touch are also in the works.

The ambitious lineup is part of Lord’s strategy to make Knowledge Adventure the choice destination for kids of the computer age.

“We basically want to say to parents, ‘If you’re going to trust your child online or with a computer or console game, we’re going to be it,'” he said.

Knowledge Adventure Inc.


Headquarters: Torrance

Founded: 1991

Core Business: Manufacturing educational software for children

Employees in 2009: 100 (up from 70 in 2008)

Goal: Become the market leader in online virtual worlds for kids

Driving Force: Younger children spending more time in virtual worlds on the Internet and parents looking for safe ways for them to play