Of late, digital game-based learning has attracted game designers, researchers and educators alike. Immersion in the virtual 3D environment of a game may have positive effects on K-12 students' cultivation of self (Dodge et al., 2006). Currently, two opposing views related to game-based identity formation are presented in the literature: the Separate Worlds View (SWV) and the Identical Worlds View (IWV) (Stevens, 2007). The purpose of this paper is to explore these views to determine whether a third position might be required for a more comprehensive treatment. To this end, we offer The Overlapping Worlds View (OWV). The Overlapping World View proposes that an individual's virtual and real world identities are neither entirely separate nor identical. The degree of overlapping of identities depends on the social consistencies between virtual and real worlds. This third view thus opens opportunities in educational research and instructional design in a context, where current and future generations of learners will grow up in a digital, environment many experiencing virtual worlds as an integral part of their private and public lives.