A computerized server managing a Virtual Environment (VE) has a network port for communicating with remote computerized appliances, a plurality of virtually-defined rigid objects in the VE, including one or more avatars representing persons in the VE, a physics simulation engine executing from a machine-readable medium, for calculating object states and properties, including motion of virtually-defined rigid objects, and a mechanism for assigning and tracking identification of remote computerized appliances connected via the network port, each remote appliance capable of physics simulation. The server responds to signals from the remote computerized appliances to assign individual ones of the virtually-defined rigid objects to individual ones of the remote computerized appliances for physics simulation, and the server simulates all virtually-defined objects in the VE that are not assigned to at least one of the remote computerized appliances.