MTV Networks’ (NYSE: VIA) Nickelodeon Kids and Family Group is continuing its emphasis on online gaming and virtual worlds by carving out two separate divisions around those efforts, the company told me earlier today. MTVN has upped two execs from each area to run the new units, each as SVP and general manager: Dave Williams will run the Games Group, moving up from SVP/GM of MTVN’s existing casual gaming sites Shockwave and AddictingGames, while Kyra Reppen, who oversees the Neopets community site, will head the Virtual Worlds Group. Williams and Reppen will report to Steve Youngwood, Nick’s EVP-digital media.

—Games: Nick’s gaming strategy calls for it to add 1,600 new games in 2008 to its library of 5,000 games and invest $100 million in the casual games space. Williams, who will be based in San Francisco, is charged with adding subscription game services, licensing and self-publishing businesses. He’ll also partner with Nick’s consumer products division to form games around properties like SpongeBob SquarePants and iCarly, as well as newer, original properties like Shockwave’s Carrie the Caregiver while reaching out to game developers and publishers.

—Virtual worlds: Reppen previously ran NickJr.com as VP and GM, and was the architect behind the ParentsConnect brand. She’ll pick up the ongoing efforts to form a virtual world around Neopets (working title of World of Neopia), a SpongeBob environment, and another tentatively called Monkey World. To further drive home the increased significance of creating virtual environments, its NeoStudios is now the Nickelodeon Kids and Family Group Virtual World Studios.

• Nickelodeon Expands Virtual Worlds; ‘Hybrid’ Choice of Ad-Support, Paid Subs Coming In ‘09
• Interview: Steve Youngwood, EVP, Digital Media, MTVN Kids And Family: 1,600 Games For ‘08
• MTVN’s Nickelodeon Commits $100 Million To Casual Gaming