This chapter discusses the significant role that virtual worlds, particularly massively multiplayer online games (MMOGs), such as Club Penguin and World of Warcraft, play in the social and moral development of children and adolescents. A central argument of the chapter is that MMOGs and other virtual worlds provide a new backyard within which children and adolescents engage in active social interaction and play out moral dilemmas. It discusses three important areas of development in the context of interactions in MMOGs. First, it explores the process of perspective-taking, which is an important factor in empathy and pro-social behavior. Second, it explores the impact that MMOGs might have on stereotyping behavior and the phenomenon of stereotype threat, a harmful outcome of stereotyping behavior. Finally, it considers the role of moral dilemmas in development and how MMOGs provide unique environments for social and moral problem solving.
