Google plans to release an Interactive Google Gadget that gives developers the ability to create their own Google Gadget — often called a widget — on virtual world Lively, which launched over the summer.

Google Lively is a portable 3D space where users can build rooms and interact with others through, a model ArsTechnica dubbed "Second Life in a web browser." Each space is subject- or theme-oriented, like a chat room.

Until yesterday, Google had been relatively mum about its intentions for the program. Kevin Hanna, Lively's Creative Director, cracked the silence yesterday at the Worlds in Motion Summit in Austin — part of the larger Game Developer's Conference.

He noted that the purpose of the open API, among other things, is to increase Lively's entertainment value by bringing more interactivity to its rooms, such as games and other engagement-building units. What's more, all Google products will ultimately be integrated into what Hanna called "the puzzle," including Google Docs and Gmail.

Among the 3D modeling tools that Google will be opening up to developers are 3ds Max, Maya, and SketchUp.

In an interview with Virtual World News, Hanna stated Google is not interested in using virtual currencies to pay for virtual goods, declared a billion dollar industry in 2007.  "You're never going to buy Google Bucks," he said.

The platform will allow developers to sell to users through peer-to-peer transactions, however.

Lively is in beta and can only be run on Windows XP and Vista. Google later plans to launch a version compatible to its new browser, Chrome.

And while actual figures haven't been released, enthusiasm about Lively appears lukewarm at best. In August, The Economist said it was "surprisingly lifeless…a flop."

But the search giant hopes its own brand equity will keep Lively breathing until it generates a critical mass. In the long run, Google believes it will become "another Google application that you simply can’t live without," writes Gaming Today.