iShed has just returned from the fifth Edinburgh Interactive Festival which featured key games industry speakers such as Sony, Linden Lab and BBC Vision. The emphasis (as in so many media conferences) was on social networking and user generated content - prompting me to wonder when we will stop worrying about the 'changing media landscape' and start looking over the horizon to what is coming next.

That said, the conference was a hugely informative jaunt into the world of console games and virtual worlds. By the end of 2011, according to Gartner Inc, 80 percent of active Internet users will have an avatar. Combining this with higher powered consoles, better AI and audiences who demand customised experiences, gaming companies need to look for more creative, innovative and accessible products.

The internet offers significant opportunities for games companies. New worlds are not without their problems though - keeping a brand space animated and interesting in a virtual world takes dedication, evaluating its success is not straightforward and virtual politics are already complicating the lives of producers: from questions about freedom of speech to player coups.

The highlight for me was the Second Life panel - listening to La Interactiva and watching Robbie Dingo's beautiful machinima on the reproduction of Van Gogh's Starry Night in Second Life, left me with no doubts of the creative possibilities.

Finally watch out for Signs of Life, an ambitious interactive online show from BBC that aims to tap the youth audience that is increasingly turning away from TV.