Cementing the place of kids' virtual worlds in the mainstream, The New York Times has an effective roundup of the phenom, discovering that "the real virtual world gold rush centers on the grammar-school set," with the road paved by Webkinz and Club Penguin.

The article rounds up Webkinz, Club Penguin, Pirates of the Caribbean, and the products we've seen from MindCandy, Lego and Mattel. It also highlights the relevance of this boom to the entertainment biz, who may be confronting the need to deliver content to their young fans in new, non-traditional ways:

Behind the virtual world gravy train are fraying traditional business models. As growth engines like television syndication and movie DVD sales sputter or plateau — and the Internet disrupts entertainment distribution in general — Disney, Warner Brothers and Viacom see online games and social networking as a way to keep profits growing.

But more is at stake than cultivating new revenue streams. For nearly 50 years, since the start of Saturday morning cartoons, the television set has served as the front door to the children’s entertainment business. A child encounters Mickey Mouse on the Disney Channel or Buzz Lightyear on a DVD and before long seeks out related merchandise and yearns to visit Walt Disney World.

Now the proliferation of broadband Internet access is forcing players to rethink the ways they reach young people. “Kids are starting to go to the Internet first,” Mr. Wadsworth said.