Japanese company Genkii has revealed that it’s developing a 3D virtual world for iPhone called Sparkle 3D. It’ll have customisable avatars and personal spaces, social networking elements, virtual items, games, streaming audio support and its own virtual economy.

Oh, and it’ll link to other virtual worlds like PlayStation Home and Second Life so people can communicate between the different worlds. The company, which certainly sounds ambitious, plans to make money from virtual item sales but also music downloads.

However, it’s unclear whether Genkii is mainly targeting the Japanese market with Sparkle 3D, or if it hopes it’ll become big in the West too. Japanese mobile users are certainly more used to the idea of mobile virtual worlds, so it may make sense to build a community there first.