This paper explores a relatively new area in the design and development of assessment procedures for the evaluation of coursework and student performance on computer and video games degrees. Emphasis is placed on an assessment which involves the development of and interaction in a virtual world, where lecturers and students are represented as virtual characters. The establishment of a new assessment framework for games degrees is outlined, followed by the findings from in depth interviews with students and lecturers concerning its implementation. The results provide a self reflective but critical insight on how existing assessment techniques may be adapted for the growing demands and popularity of games courses, as well as issues surrounding the appraisal of undergraduate work within virtual environments. Recommendations are provided on how similar assessments may be conducted in the future. (Contains 2 tables and 7 figures.)