San Francisco-based studio Doppelganger announced that it is shuttering its free party-themed virtual world vSide after failing to generate additional funding to continue the world's development and maintenance. The company last reported raising $11 million in August 2007

As of yesterday, vSide is no longer accepting new user registrations and is not allowing current users to purchase vBux, the virtual world's in-game currency. Doppelganger says that vSide's last day of operation will likely be around July 16th.

First launched in 2006 with a Beta release as "The Lounge", the virtual world targeted younger users with a focus on "music, pop culture, fashion, celebrities, self-expression, communication, community and social networking." vSide members could explore neighborhoods, shop at stores, meet at clubs, personalize their apartments, throw parties, listen to music, and more.

"This is an emotional time for everyone here at Doppelganger as we're sure it is for all of you," says Doppelganger's VP of Community John Greene. "But one thing we can say, with humility and honesty, is: thank you. Your dedication for and passion regarding vSide were beyond inspirational. Many of you did incredibly creative things that we didn't even think were possible."

He continues, "Also, if there's one word that can some up the way we feel about vSide and the vSide Community, it's love. We've all put a lot of love into vSide over the past few years. Hopefully, you guys can keep the love you've created going, even if you can't do it within the vSide application."

[Via Raph Koster]