TechCrunch talks about the first MMO to be developed exclusively for the iPhone (Sparkle, by Tokyo-based Genkii). Right now, the app can only connect you to a Second Life account, but the next generation (Sparkle 3D) will include a virtual world built from scratch.

The number of apps for the iPhone/iPod Touch is nearing the 30,000 mark but hardly any application takes advantage of the network effects that lie within the Apple ecosystem. Most developers simply ignore the fact that all iPhones and iPod Touches are interconnected globally and roll out stand-alone applications. This is one of the major reasons why the vast majority of fun apps lack stickiness and are easily forgotten after a few quick bursts.

But a Tokyo-based start-up called Genkii is building a unique app that has the potential to not only let a few iPhone users connect with each other, but thousands of them - at the same time or asynchronously. Sparkle is poised to become the first virtual world for the iPhone. What's more, it's being developed completely from scratch, exclusively as an MMO for the iPhone/iPod Touch.

The first iteration of Sparkle, a text communication app called Sparkle IM, actually went on sale yesterday (App Store link) and costs 4.99 USD. Sparkle IM basically brings Second Life communication to your iPhone, connecting you to Second Life (and OpenSim) grids. Users can send and receive IMs, chat, send teleport requests etc. on the go through their Second Life and OpenSim accounts.

But for the average iPhone user, Sparkle 3D will be much more interesting. Once finalized, Genkii says users will get a full-fledged virtual world in 3D (the company has a track record in virtual worlds development). Sparkle 3D will have its own economy, customizable personal spaces and avatars, social networking functions, virtual goods, games, streaming audio support, etc.

Have a look at some early Sparkle 3D screens and avatar designs below.