TechCrunch reports that a Tokyo company named Genkii is launching an iPhone app called Sparkles that lets iPhone users connect to a virtual world. Thousands of iPhone users can exist in the virtual world at the same time. TechCrunch says Sparkle will have its own economy, avatars, customizable personal spaces, virtual goods, games and more. The first version of Sparkle called Sparkle IM went on sale yesterday on iTunes. It costs $4.99.
Here's a video that shows Sparkle in action. Note: There is no sound with this video clip.
