Quarterly Land Supply and Island Pricing Update

As with my previous quarterly posts, here is an update on land, including supply, average prices, abandoned/defunct land and pricing information relevant to Q2 of 2008.

This is a little later than I’d have liked, mainly due to one of the items, Island Pricing, needing a bit more time to finalize. I’ll come to that part shortly. It’s a long post, so join me after the cut..

Land Supply

The average Mainland price has risen steadily over the first few months of 2008 and now sits at around L$11.5 per meter (with a median price below L$10 per meter). These figures exclude L$0 transactions, group transactions and any that involve Governor Linden such as auctions.

On average around 640,000m are traded between residents each day, with a further 410,000m traded to or from Groups. In total then, that’s around 1,050,000m or 16 regions worth of land traded daily on the Mainland estate.

On private estates, where parcels can also be traded, the average price for the initial sale has stayed steady at around L$3.6 per meter with a daily total traded of approximately 990,000m so slightly less than Mainland.

On the back of these numbers, we therefore intend to increase the supply of Mainland for Q2. During April and into May we will increase supply to at least 10 regions per day. Clearly we will be monitoring the market closely and adjust supply if it is necessary. We have a new continent in the wings, and will be preparing that for auction over the coming weeks.

In addition, we will shortly be dropping the opening auction price for new whole regions to USD$750 from the current start price of USD$1250. That additional supply along with lower auction start price will hopefully encourage more people to take part and keeps some downward pressure on the Mainland price per meter which has been rising recently.

Abandoned/Defunct Land

Land can come back to us in several ways but the two most significant ones are where a resident abandons land they no longer want or when an account is closed or becomes defunct in some way, whilst still owning land. In both cases we investigate, clear the land and recycle it by selling the land at auction.

Coming into 2008 we had a backlog of defunct land so we have been putting a lot of effort into clearing that backlog which improves the Mainland and keeps down the amount of litter. Current numbers show that we have successfully recycled 3,071,056m of land formerly held by closed or defunct accounts in Q1, with a further 700,000m still to work through, most of which are small parcels below 64m in size.

Abandoned land has remained at around the same level, we have recycled it at about the rate it has come back to us so we have more work to do there. Right now we have approximately 950,000m of abandoned land at least some of which was a consequence of the changes to our policy on ad farming (I hope to post some numbers on this soon). Abandoned land tends to be time consuming to process as often it has been abandoned by accident, which has to be investigated.

During Q2 we will continue to aggressively recycle land back onto the market.

Island Pricing

Our new Land Store is moving through testing and will be launched in April, perhaps within a week or two depending on how final testing goes. It will be cross browser compatible and will provide nearly instant delivery of a new island after completing checkout.

For Q2 our Island pricing is changing. New islands will be USD$1000 and this change will go live upon the new Land Store being launched, so before the end of April. Orders placed before the launch will be at the current USD$1675 pricing. Monthly fees will remain the same for Q2.

No doubt there will be lots of questions about how this affects those residents that have ordered islands very recently, and how it affects Openspaces or the Educational pricing. I will follow up with a much more detailed blog post in a day or two, so well before the new Land Store is launched; do please be patient while we get all the information finalised for you.

At the end of Q2 we will review pricing once again and post a similar update including pricing information for Q3.

This entry was posted in Announcements & News, Concierge, Land. Bookmark the permalink.

150 Responses to Quarterly Land Supply and Island Pricing Update

  1. Gordon Wendt says:

    Didn’t expect the price cuts but I’m hoping you’re right about pushing mainland prices somewhere down to a reasonable level. Any naming plans for the new mainland sections that are coming up?

  2. RobinMasters says:

    Does this mean a private estate island will now cost $1000. What is the projected tier fees for this as I am assuming LL will want to make up revenue somehow.

  3. RobinMasters says:

    Clarification… I mean land tier fees with the lower prices and beyond Q2 2008.

  4. Renee Faulds says:

    Wow – is Linden Labs starting to feel the pain they put on all the business owners here????

    Or you just trying to kill the rest of us off?

  5. Pingback: Island Estate Price Change by LL - SLUniverse Forums

  6. Johnny Rambler says:

    Oh, wow…You actually mean you are dropping prices for private islands to something like 3 years ago?

    /me blinks in amazement.

    /me drops back to reality.

    Oh, yeah, well…OpenSim will be ready in about 6 months, I can have a whole grid to myself then…and invite all my friends there too.

    Thanks; but, no thanks.

  7. Fantastic! Thanks for lowering the entry barrier for new island owners 🙂

    Now will possibly anyone complain about the REDUCTION in prices?

  8. Jack Linden says:

    @Gordon Wendt: Good question, not yet. We’ll give out more info on the new continent closer to it being available.

    @RobinMasters: There are no changes to monthly island or mainland maintenance fees for Q2.

  9. Elliott Eldrich says:

    Good to see private island prices being reduced. Now let’s see about reducing monthly tiers for those islands back to $195 a month instead of $295 a month.

  10. Jasmin says:

    yeah that’s awesome 1000 $ for private estates but seriously if you now pay 600 $ a month fee just to make the money back somehow then it might not work. Problem some people own already 5 and more Islands, if they like to sell these Estates they need to work with 1000 or even under that price. That’s crap. I hope this is just a short time available like this and Q3 will raise the prices again.

  11. reacher says:

    “Now will possibly anyone complain about the REDUCTION in prices?”

    of course. because it devalues land parcels on existing private islands greatly.

  12. Jasmin says:

    Johnny no you can’t. Maybe you are interested in the Articles some Papers write about. Or do you think the whole Trademark Story that goes on right now has no meaning ? 😉 Open Sim will never work but belive in it, so long LL owns the rights and force em even under US Law there are no such plans coming up…. good luck with your plan *lol*

  13. Bradley Bracken says:

    I’m glad to hear you’ll be cleaning up some of the abandoned land where ad farms use to be. I’m guessing it’s more than a few and it will be good to see some of those abandoned signs come down. I think placing an emphasis here would be very significant.

  14. Blinders Off says:

    Questions: does the $1000 price apply to islands (seems like the case).

    Also, how will this affect the pricing of Open Space sims. Will they remain at $500 or will those prices be reduced as well?

  15. JR Unknown says:

    With the new $1000 price will the first month’s tier still be included? And also Jack at some point is it possible for you to talk about tier prices after the 2nd Quarter? Thanks.

  16. Renee Faulds says:

    Thanks for more bad news on top of more bad news that was piled on that stack of doggy doo.

    Your going to have existing island owners lock up the support lines now – jeez another thing that will go down.

    Phil Linden – got the poseballs to meet me in world.

  17. Lucifer Baphomet says:

    Agrees with post number 9.
    Lets see the tier drop too.

  18. Ciaran Laval says:

    Hello? You just wiped nearly $700 off the value of my investment?

  19. Gordon Wendt says:

    @9,17 I agree it would be nice but as #2 pointed out LL will be taking a hit on this that they will have to make up elsewhere so I doubt they’ll lower the prices to the old level on the tiers… although I guess we can always dream.

  20. Dekka Raymaker says:

    @ 18 in 1992 I bought a Mac IIx with 40MB hard drive and a 21″ b/w monitor, 256 grey scale scanner, and a A4 256 grey scale printer with 4 start up programmes, the whole package cost me £15,000.00 do you think I should complain of loss of investment too?

  21. Kat Klata says:

    What about those of us who shelled out $1675 for an island? (I have 2)
    If we want to sell our islands we obviously would have to do it at a huge loss…how about a rebate??

  22. Jameston Gabardini says:

    So lets say someone owns 10 island sims. They paid $1675 each for them. That same island will be worth 1000 shortly. Thats a loss of 6750 in land value any way you look at it.

    One can only hope to make up on it by purchasing more islands at the 1000 price to make up the loss. Either way this is a very hard pill to swallow and Linden is, in a way, forcing island sim owners to purchase more islands IMO.

  23. Ciaran Laval says:

    @20 Dekka does your Mac IIx still work with modern technology? Your analogy is absurd.

  24. Raymond Figtree says:

    I’m all for price drops, but 50% overnight? And ten mainland regions being dumped a day? It’s way to much of a change all at once. Almost feels like a panic move.

  25. annemarie perenti says:

    What about all of us that bought and island at the old price of $1,675? Is there any form of indemnification or help considered? Depending on your answer (BTW I don’t expect any answer) I may consider definetely liquidating my business in SL since there is no consideration whatsoever for the customer in your system.

  26. carmichael says:

    ok,lindenlab,you guys really do your best to make it affordable and pleasant for your customers…..thanks

  27. OMG!! says:

    So now everyone will try and own a sim, there are enough malls, enough clubs, ENOUGH!!!!!!!!! There are too many business people and not enough residents that just want to have a good time… These price droppings are going to put the economy in even worse shape than it already is, people already fighting over traffic and not making money, now with a TON more islands available… and I see your ESTATE owned islands you said are selling for prices around 3.9$L per sq m… Well that is not the case from what I have seen.. I’ve seen 16,000 sq m go for 15k not even joking, everyone who failed their business is trying to get rid of their land!!!

    For those new to SL, just enjoy and have a good time. Unless you are a builder or scripter, give us a break and don’t open the next new mall when there are already 20,000 you could be supporting!!! Stop the flood, where’s Noah!!! I think my teeth are floating!

  28. Kat, it could be worse…I just bought my first island 4 days ago.

    Does anyone know how I can cancel my order? This is not a good omen.

  29. Redemption Summers says:

    All I can say is WOW…this does affect a lot of different angles and even though I was not a BIG land owner I’m glad I’m almost rid of most of it….Then I can reinvest…… (Hint…SELL if you can and buy back Low)

  30. Dirk Massiel says:

    I bought an island just a *little* too soon. Hopefully tier won’t rise now so I get hit with the high side of both fees. I certainly wouldn’t cry about getting $675 back. What with the recent crashes, outages, asset server woes, etc etc etc… it would certainly be a good faith gesture.

  31. Gordon Wendt says:

    @28 if it hasn’t been delivered yet I suggest immediately filing a support ticket to have it cancelled and if that doesn’t work refuse payment on you’re cc’s (or paypal’s) end.

  32. Trout McDowwll says:

    Wonderful, so as an owner of 6 sims in 6 months time I could have bought 10 sims or have had an extra $4,050 in my pocket. While over the past 6 months I tolerated the upgrades and intergration to the new viewers, and servers, time down, loss of buisness and revenue. Any more turns in the knife you want to share before I through my computer monitor out the window. If you are going to compare mainland to estate land, then please use apples to apples and leave out the oranges.

    How about a little justice? Even Apple, gave the buyers of the Iphone 150 dollar credit towards an in store purchase after the huge price reduction. I wonder what the median refund price would and should be….

  33. Pingback: Second Life Land Price Adjustments: Private Islands Fall 40% « Dusan Writer’s Metaverse

  34. Reuben Steuben says:

    For those that sell land the island price reduction is a trap. Less investment by the buyer of private island parcels. easier to walk away. in a rush by ll to grab more profit its as short sighted as employing massive changes to the system on fridays.

  35. Marie Sims says:

    O_o, wow…I will be interested….

  36. Mills Gazov says:

    This news is good news for me as I make terrains for Islands.

    I am amazed at how many adlots have been abandoned, will you people at LL allow people in neighbouring parcels to buy the 16SQM adloads with a discounted tier rate to encourage people to clean up the mainland

  37. Durk says:

    *makes bomb falling noise*

    Boom!!

  38. Joshe Darkstone says:

    Wow, thats fantastic… q2 is uhm… now? so my recent investment of over $10k USD is now worth uhm…. bubkiss + a little? How about some long term planning that doesnt wipe out peoples real life assets along the way?

    Yea, I’ll survive, but there are plenty who wont. And now that we know how unstable the market is I wonder how many of us will bother with the new low pricing. Whats the plan we should follow to protect our current investment? here, ill lay out the 4 step plan for weathering this storm….

    1. raise the sell price to cover the cost of land in month 1.
    2. Lower the tier rate to cover the tier, dont worry, can always evict them later when you abandon the land.
    3. Rent nothing, sell everything, NOW. renting means anticipating astable environment.
    4. Buy nothing. Get the frak out while you still have 2 quarters to rub together.

    Awesome, really. Im impressed.

  39. hope antonelli says:

    yeah, I just got my island 4 days ago..so now I eat a 700 loss when I could have waited a week? NOT happy

  40. Sarah Nerd says:

    I love this game, and I bust my ass the last few years trying to build what I have. Feels a bit like a slap in the face when you go and devalue what I have worked so hard for. I still love this game with all of my heart but days like this you just give me stress in return for the support I have given you.

  41. Ohren Beck says:

    Now i’m sure the new Island prices from Q2 comes with new issues and desgreement for those with lots of sims. Of course, it’s good news that Private Islands will be sold at a reaonable price, but then, what about the tiers fee taking a drop?! (too). I m sure this won’t without hiccups!

  42. Sarah Nerd says:

    a slow decrease would have been much smarter on LL’s part so that people could adjust and not get hit all at once.

  43. Tabitha Oxide says:

    Price drops are a nice gesture on your part but somehow I read between the lines as it saying.. “Please don’t leave us.. Please, its cheaper now! We made it more affordable. Just forget the fact that tens of thousands have had it with our nonfunctioning world and have banded together in the production of several other GRIDS that will soon all patch together with all the same tools and abilities. Forgive the fact that millions of you gave us the chance in the beginning and stood buy us day after day, year after year suffering from an inept ability to produce a quality product.” Unfortunately as a veteran of the SL world I gave all I can give. Reducing the price of a broken toaster is still no bargain. Its still a broken toaster. Ive invested my money elsewhere as have hundreds of other corporate entities. Give me a full week of stability. To me.. thats something worth marketing. FREE property built on a toxic waste dump is still worthless. Sorry.

  44. Just as I buy an Island, cheers, thank you for that very much appreciated. We’d like to announce by the end of April 98% will cancel their premium account, how would you like that?

    Any chance of a refund for pretty much a week of me not being able to do anything? Can’t work on the island for a load of reasons with updates, services, isp being down. Can’t sell land because no one can get on to buy it and if they could they’d be put off by the terrible week we’ve had.

    Get a grip.

  45. #28 Soledad. Put in a support ticket to cancel it before it is delivered

    This change is similar to the increase in price.. I think in Oct-Nov 2006.
    Regions went up from $1280 to $1675 and tier for new regions from $195 to $295.

    It will be interesting to see is OpenSpace regions are a quarter of the price of a normal sim or stay at the stated $415

  46. Darek Deluca says:

    This is not real estate people. There is no investment! You are buying servers for Linden Labs and then paying to use them. Linden Labs is in the server rental business and wants to increase cash flow by lowering intial pricing,just like the cell companies sell you a cheap phone so you will ensure their cash flow. Only difference is they want you to believe it is an investment so you will not abandon it quickly. And the great thing is, they provide the environment, the users are creating all the content so others will be attracted to come and create more content and rent more server space. Kudo’s LL, great business model!

  47. hawksong says:

    This is the first time i have felt the need to post. I just purchased 2 islands, whose tickets are yet to be worked. I bought them just barely under current market price in order to try to at least minimize loss on sales. I am disabled, I use SL as ameans to occupy my time, I in no way am getting rich, I have yet to ever import 1L out of SL. ANd I am totally flabbergasted. What Little I really hoped to save you have just told me I have lost, and NOT ONLY that I am a fool and a sucker. I for one am truly going to rethink, as I read this i looked back over a few reprots and looked at what I have spent here. Maybe the savings is in leaving SL. A tier break of 50k or something makes more sense it would benefit ALL at once current and future.. BUT no you have found a way to screw those who hace supported you, to attempt to lure others into the mesh….. old adage seems to fit .. BUYER BEWARE!!!

  48. A little over a year ago you told us you had to raise prices from US$1000 to US$1675 now you tell us you are dropping them back down just as steeply. Do you have any idea what you are doing or just throwing darts to pick prices? These sorts of wild swings indicate excessive incompetence.

  49. Vryl Valkyrie says:

    People, whether you realize it or not, most of you lose your investment anyway if you want to look at it that way.. how you ask? Because of all the tier fees. If you play the game right, you can get your ENTIRE investment back depending on the marketability of your product aka island. Think on it. 🙂 Bravo for dropping of prices even though we all know this will not last.

  50. Nimrod Yaffle says:

    Why would you pay for something like this with SL being in the current state it’s in. Asset suckage is daily… even hourly. It’s ridiculous.

  51. U M says:

    How about cleaning up the mainland and picking up the litter around that griefters have left? DO YOU EVERY REALY ABUSE REPORTS ON THIS SUBJECT ANYMORE! Look if you mean anything you post on this blog! BACK IT UP AND DO SOMETHING!!!!!!!

  52. Raymond Figtree says:

    Those looking for refunds on their already purchased Islands should not hold their breath.

    As Jack stated above: “Orders placed before the launch will be at the current USD$1675 pricing.”

    I have a feeling they need every penny of your money right now.

  53. Gordon Wendt says:

    @48 actually I think they’re flipping quarters into glasses of beer marked with various prices on them.

  54. Dytska Vieria says:

    On behalf of my dear neighbor, I would like to address the ruthless method LL handles “Abandoned” land when the problem was really something else. First, she lives in Europe, and for some reason, her account became disabled, I don’t know why. But later, the land, owned by her private group consisting of herself and her alt, soon only had one group member, so the group was automatically disbanded and the land was automatically abandoned. I tried, She tried to reassemble things – myself through concierge support and herself through the Support System, both to no avail. I don’t know why, but LL would not get involved with the problem on behalf of a 3rd party (me) and apparently, she could not do anything from the limited and poor support she was able to receive.

    So, after a time the land was put up at auction, for which I paid a dear price on to win, and I held on to it. Later she buys it back from me.

    I guess this would be a complaint that LL needs to do a better job at investigation of the “Abandoned” land, especially when it really is not at all, but other account problems make it impossible to save the parcel!

    Abandoned land = land the owner does not want, and any contact fails to resolve the issue. != problems with accounts for which “ANOTHER DEPARTMENT” must resolve!

    And please, why not have the Other Department that is always blamed for all the Other Problems that are not related to the blogs post a blog with comments on so they may address them?

  55. Zagro Ferraris says:

    aw man
    my island is still rather new and it hirt hirt hard to come up with that cash
    how about a free month or two tier to make up for it !!!

  56. Tabitha Oxide says:

    # 46 Wrote “just like the cell companies sell you a cheap phone so you will ensure their cash flow”

    The difference is that you get “service” when you buy the cheap phone, you can actually USE IT for something wether its fun or business. Here, all we seem to get is “Out of service”. 🙂

    Owning land in SL is like having a car with out an engine. I can show you pictures of it, tell you about it, but it doesnt start and we cant go anywhere.

  57. Renee Faulds says:

    well let’s see if you have been following my relayed posted in other articles ;i.e. – Linden Labs just ran me out of business and Phil don’t have the poseballs to meet me in world ones – I think YOU LINDEN LABS just pissed off the rest of the major business owner in SL –

    PHIL DUDE…..you just digging and digging aren’t you

  58. For #9 – I hope they don’t lower tier. THAT will be the deathblow to many because it will become easier for average Joe Avatar to own his own private land and not buy/rent from me. Face it, land rental/tier rates will fluctuate with what LL charges and there will always be someone willing to go just a little over cost – profit would be driven from rental/sales.

  59. Pingback: Ants/Mills Lair » Blog Archive » Second Life Island Price Drop

  60. Vryl Valkyrie says:

    I think the price drop is great. Hopefully they drop the price of openspace sims, too. I don’t know why people are complaining. Most everyone who owns an island could never get their investment back due to monthly tier fees unless that is they own a successful business. Please drop tier fees too while you’re at it and like the above poster said, clean up the maingrid and make it a nice place to hang out again.

  61. Vivienne says:

    Well, as it seems they do have to cut prices in this extreme manner cause less and less people are willing to pay ANY amount of cash for this splendid example for instability, unpredictability, ignorance of customer wishes and lack of corporate management.

    After all we got this winded light and a voice. Hooray on 5 frames per second!

  62. Vryl Valkyrie says:

    I agree that corporate management sucks as does support. I have been trying in vain to get a support issue taken care of for one year now.

  63. Jackson Rickenbacker says:

    Shocking, way to devalue my assets, thank you very much

  64. “For Q2 our Island pricing is changing. New islands will be USD$1000 and this change will go live upon the new Land Store being launched, so before the end of April. Orders placed before the launch will be at the current USD$1675 pricing. Monthly fees will remain the same for Q2.”

    Hole crappola!

    ~anxiously sits on the edge of his seat awaiting quarter 2 to arrive!~

  65. Chaos Mohr says:

    Moderation – is that an unknown word?

    A couple points – of the thousands of islands sold in the past year and a half, every one of those estate owners just saw their investment value decrease 40%, smooth move, piss off the people that are actually paying for Second Life to grow.

    Mainland Land prices? those figures are so skewed and incorrect as they do/don’t take into account too many variables, before we were getting figures of 6/m or so for land because they included the 0 L$ and group transactions, now the figures say prices are increasing because they aren’t including those figures, but hmmm wait, a lot of large mainland parcels, and many small are sold by groups, so are those included? And anyone who watches land prices can tell you that if you have watched the 1000 cheapest parcels of mainland for sale, that in the past month prices have been dropping, not rising.

    So we go from no sims for months, to 120 new ones a month, now to 300 new ones a month, this is not moderation, nor is it smart business sense. Sure it’s great for new members coming into second life, but new members account for only a small portion of money spent. Then it has to be said that to devalue the investments of the people who spend the majority of money, and pay the tier which is what really keeps LL growing is the worst thing for the economy and morale of current members. I have to wonder what is the real plan here?

    Moderation, daily or weekly (not quarterly) monitoring and adjustments of the land flow are what is needed. Keep a stable economy. Make adjustments to spur a slow trend, not a drastic change that negatively impacts a large percentage of the people who have spent not only time and money here, but have built incredible things, created content and poured their hearts and souls into making SL a better place.

    This is going to be one of the biggest mistakes LL has made recently, and is going to have severe economic implications. Trying to bring businesses to SL? – a stable economic base and happy members are the way to do it. A economy that bounces all over the place at the whims of LL, and a population that is demoralized due to these ill planned decisions is not the way to grow!

  66. Renee Faulds says:

    oh and Phil;

    I just now trying to sell the 3/4 sim my business was on, you know the one you ran me out off, you just stuck it too me again by killing my land value. My poor hole can take only so much Phil before you get a bomb.

    Flee people flee……..

    LL will stick it to you also !!!!!!

    Renee Faulds (the one who LL ran out of business)

  67. Hiro says:

    “How soon” will we get a server side settings for these windlight environmental settings?

    I want to create a beautiful tropical island! XD

  68. Great so you lower price and devalue the land that the people who helped LL get where they are today get screwed again. Just more proof that all LL cares about is the numbers of the people in game, so they can get corporations and big businees will come in to SL. You just lost me $10,800 usd in land value. How about some refund on time down. Like in the month of March over 180 hours of down time or issues in world that you could not function in world properly. This just shows that for the last 18 months since you raise prices of the island, that you have been raping us the whole time. You should of keep the prices where they were and invested the money into keeping Second Life running properly. Maybe hire a CTO. Ever since you got rid of Cory the world has fallin apart. Feb has 21 issues in 14 days. March had 180+ hours of downtime or no TPing or transactions. April well its started off great so far. Thanks again LL. Keep up the good work.

  69. magnus says:

    Thank you LL for screwing the little guy one more time. You have no consideration. WE bought our Island 2 weeks ago and after scrimping and saving to pay the 1675 for this thing, you have crashed us, off lined us, lagged us, and rolled us back so many times my head hurts and now the capper, you are going to take half my investment and flush it down the cyber toilet. unless you are planning on refunding us our 750 plus all the time we couldn’t actually come to our island because it wasn’t here which of course is a joke. You have no forethought or concern for the people who pay your bills. Oh, and how much notice are you going to give us when you up the tier to pay for the cut price. You Suck.

  70. Hiro says:

    @68
    sorry, wrong place to post about the windlight!

  71. nike says:

    its good news? or not
    its warrning i think but wanna buy land anyway

  72. Ciaran Laval says:

    Jack do you want to remind us again of how much of the land mass is owned by estate owners as opposed to mainland? How about getting Zee to tell us how much you’ve devalued land by in this reckless move?

    You know if islands couldn’t be resold then this would be a fine move, but you’ve just shafted something like 80% of your customers.

  73. Joshe Darkstone says:

    @47 (and anyone else with pending tickets) CANCEL YOUR PENDING TICKETS NOW. Let them explain to us how they will deal with recent purchase before replacing any orders, in fact, wait till they have rolled out their new product and then, i hope, explain what next quarters plan is before its upon us. Heres an opportunity to let LL know that there is a cost to not thinking through and taking a careful approach when it affects other peoples money.

    @48 this is an investment, or a gamble (bad bet?) at this point. Since Im buying the services (up front fee) and then reselling them over a time for a profit, call it what you will, theyve charged us for future services and then lowered the price so that we cant resell them.

    Im interested to see what happens to the 1000’s of new 16k islands that were rolled out over the last month with the full knowledge that they were about to pull the rug out from under every exisitng private island owner within the month.

    @LL Seems like your plan is is much better then the 4 step plan I have outlined above… kudos. No wonder there are so many scams in SL, they learn by following your example. Shame on you. This is the worst case of a nefarious business practice I have ever been the victim of.

  74. brinda allen says:

    @2 yep…that $1695 I spent in January sure seems like it hurts my ego/judgement……well, if LL raises tier on new 1000$ islands {as we mite expect} sure hope they dont forget how many of us feel as tho we took it in the shorts by buying at the ‘old price’ and allow us tier reduction till we ‘catch up’

  75. Henry Grumiaux says:

    Oh, Awesome ! Do, I believe that the prices of voids will be 250 US$ or something like this, correct ??

    Good ! I ordered a void to me and was delivered 3 days ago 😦

  76. Tristin Mikazuki says:

    GAWD I’l glad I tired down to zero LOL
    Well Ms Chung is no longer a millionair LOL but heck now anyone can get way cheap land 😉
    Thanks 😉

  77. magnus says:

    AND I FREAKING STILL CANT LOG IN

  78. Keera Woyseck says:

    So.. the island i purchased only 3 months ago, i will not even be able to BREAK EVEN on resale ?? Are you trying to make us all just give up and quite? Cause u know what i have just about had enough.. constant game problems that is KILLING my business.. now when i sell.. i will loose AT LEAST $650. I am getting a bit tired of bending over.

  79. Gordon Wendt says:

    @76 I don’t think anyone is weeping for her losses although she can easily buy enough sims at $1000 each to make up the difference so in the end she’ll probably end up losing little to nothing from this.

  80. Joshua Sao says:

    @ Chaos Mohr

    I agree, these are not smooth transitions, Jack Linden can’t quote you the current L$/USD transaction rate accurately yet someone put him in charge millions of other peoples investments. LL knows that large scale changes that aren’t transitioned properly and smoothly always have a negative effect, yet when it comes to land there is very little middle ground. Jack, you cold have done this better.

  81. Tabitha Oxide says:

    I Cant Login Either.. WOOT NICE PRODUCT! How much was it to get onboard!!???!!! Gotta get me some of this!

  82. zoha boa says:

    are you kidding ???

    Do you refund us 750 us$ for every sim we have bought in the last year or even longer ???

    How can an existing land owner resell his land at the price he has bought it ???

    Do you have any idea what this will do to the SL economy ????

    Philip, I tough you where looking for a new ceo !!
    It seem you need him because you have NO idea at all what you are doing !!

  83. Bobo Decosta says:

    Who in their right mind will now couch up $1000 if they now the land will be worth much less a year later? At this pace you will be able to buy an island in about 3 years for about $5

    Good thing of Second Life™ showing virtual land totally has no value.

    Well I won’t shelf up anymore a monthly fee of $295 + 21% VAT for this nonsense.

  84. zoha boa says:

    what will happen we the 2 sims i have ordered last week and are not delivered yet ???

  85. Eric says:

    Regarding Island pricing, I think a better longterm solution would be to reduce the tier to the same level as mainland.

  86. Chaos Mohr says:

    Here’s an idea – Poll the concierge level users, and mainland land owners – these are the people that Pay LL and their employees – and ask them what they think about this BEFORE doing it – treat customers like customers, and let the people’s voice be heard. This makes a lot better business sense then dropping something like this with no warning, and obviously from a lot of the comments here already – seriously ticking people off.

  87. Vryl Valkyrie says:

    Chaos Mohr, what are you complaining about? You have done great with land sales. recently you made nearly 200% profit on a land sale. The dropping of prices will not ruin the econmy. Furthermore, more new people do spend. Most of SL is new people. Well, it depends on what you consider new people to be. 1.5 years ago SL went from 3-5 K people online to now at 35-65 K people online. These are all new people.

  88. Pingback: Descida de preços dos sims at Geta

  89. Vivienne says:

    @65

    ” I have to wonder what is the real plan here?”

    Could it be that they recognise some kind of movement out of SL? Well, by devaluing the islands they surely will keep a lot of those who bought for 1,600 from selling their islands right now and keep them paying tiers.

    At the same time they try to get some new island owners in, of course, and the latest software desasters they delivered made a more senseful and more reasonable expanding impossible.

    Additionally, there is some serious competition ahead,

    But honestly. I don´t think there is a “plan”. I think they lost the last remains of such a “plan” when Phil left. Hmmm…did they EVER EVEN have a general plan?

  90. Gordon Wendt says:

    @82 $650 not $750 if you’re just talking about the difference

    @83 My next bet on it spiking up either back the full 650 or part way at the next announcement (ostensibly next quarter) not getting cheaper but I could be wrong.

    @84 cancel them if they haven’t been delivered yet and if that works then wait until the price drops, I’m sure you can find something to do with you’re existing islands in the meantime, maybe another voting contest 🙂

  91. Darling Brody says:

    @ Jack Linden

    If the full regions are going for $1000. Does that mean the water sims (low prim sims) are going to be $250 each to buy?

    Darling

  92. Vryl Valkyrie says:

    I think it’s great and am looking forward to the lower prices. Some of us cannot afford 1675 as you know. Most conceirge people are probably relatively new anyway. That’s almost like the USA saying they no longer want immigrants when they are an immigrant nation. No one is losing their investment here. An investment is what you make it.. how you develop it.. etc.. it’s like clay in your hands.. just mold it into what you will within the virtual limitations. Don’t forget tier fee.. that’s part of the investment that most never see again unless they are lucky like Chaos Mohr.

  93. U M says:

    I see it to believe it as they say about dealing with Abandoned/Defunct Land….heard these lies before………

  94. Vivienne says:

    “1.5 years ago SL went from 3-5 K people online to now at 35-65 K people online. These are all new people.”

    Yes, true, but where is the quality? Premium account numbers drop steadily, And the “online” metrics do not dffer at all between “active” premiums, free accounts, alts and a HELL full of bots and clones simulating traffic.

  95. Tom says:

    I enjoyed buying and selling land for a long time but I have had to stop because the Automated land buying VIA Landbots have killed the once lively land market now its the landbot runners that control the mainland market prices they get all the cheap deals so they can afford to buy every single parcel at bottom market price because they are on a win win situation because their landbots get the deals to pay teir the rest of us have to hold out for a sale and thats the killer as land sales are slowing now

  96. Barb says:

    OK. I haven’t read any of this but here’s the big question. When will LL do away with the grandfathered old tier? That’s next isn’t it? That is the only thread of value I have now. I refused to buy new tier sims and this is why. Anyone that bought a new tier sim just had a swift kick in the value butt by LL. The rental market is saturated as it is. It’s hard enough to make tier at 295 as it is. Throw in VAT and forget it. Could you announce who your economist is please? And how in the world can you justify open space prices as you just announced them? Are you going to open that up to the general public in another month. I like SL…I really do. But you honestly are making frequent and huge alterations of pricing here that firmly kick anyone trying to do something with their land to recoup the cost squarely in the teeth. How can any of us form a coherent business plan when LL obviously can’t?

  97. Krissy Aurbierre says:

    Has anyone at LL ever heard of the concept that steady growth can be healthy? Pffffft, I can’t even get my panties to rez on a brand new island that was placed on the grid the other day.

    What makes you think that we won’t team up and start telling you the rules? We are, btw, your investors.

  98. Pingback: Lindens lower price of private sims | Lost in Bananaverse

  99. U M says:

    well atleast not until 2009 tiers wil stay the same.

  100. Blake Dwi says:

    $@%&@#&#^%!!!!!
    I just bought my 9th sim today for full price!!!!

    Thanks Alot LL!!!!!!!!!!!!!!!!!!!!!!!

  101. Renee Faulds says:

    as you have all noticed not a single, not a one Linden is responding to this post. Typical

    Hey Phil, I have some boxing clothes – meet you at my old business property on Odessa Enthralling ( you know the land you ran me out of business on) I meet you there if you have the poseballs to even face somebody you run out of business?

    Phil I will be waiting

    Renee

    P.S. Don’t be afraid to hit me, I a pretty tough Wyoming cowgirl and I know you on your butt dude!

  102. PonygirlSarah Clapper says:

    The following is from the comments section I have put into a ticket for my two islands. If LL wants to make things fair for all the existing owners, why not try the following:

    As I have discussed with Kyle Linden in a chat concerning this issue, here are some suggestions for fair compensation for those of us who have been on the $295 tier and $1675 setup as well as the $195 tier and $1250 setup.

    First off, Give those island owners credit equal to the amount each has invested in the setup fee, to bring them back in line with the new island pricing. For example, the $1675 setup would receive a credit of $675 per island.

    Secondly, Set the island tiers down to $195 a month, and issue the people on the $295 a month tier $100 in credit per month tier was collected. For example, an island running for 12 months on the $295 tier would receive back in credit $1200. (12 * $100 = $1200)

    Third, For those of us who have been here over a year, or whom credit is going to be over $1000, offer a free island setup or upgrade from open space to full island at the tier of $195. I know personally, I have 4 open source islands on order. It would be nice if I could upgrade 1 or 2 to full sims with the credit that should be issued.

    I have other suggestions as well, but for me, and I bet a majority of the othe risland owners, these would seem like a fair compramise.

  103. GoodBye LandFlippers says:

    This is good news although I’d like to see openspaces sims offered independently of current estate ownership and at a price relative to the new price of Islands.

  104. Homer says:

    This really is not a good news for the people who have invested thousands of dollars to purchase YOUR private islands.

    I guess this really is a ticket to find alternate virtual worlds because you people really don’t know how to run a business and how to keep you clients happy.

  105. annemarie perenti says:

    GUYSS….. GET OUT OF ANY DEAL WITH LINDENLAB NOW! That is what i am going to do sell everything and go on a free account. Let THEM feel the pinch once!

  106. .......Amazing says:

    Wow. Just wow. Not only are all of the people who purchased islands previously getting screwed, add to that the ones who had to pay VAT on top of that… LL, we can appreciate that you are looking for ways to make things better, but the BEST way to do that in my opinion would be to rework the grid, find out where the problems are, fix them, and let us have one entire day (or more!!) where SL is functioning completely. THEN and only then worry about pricing of islands and bringing more people into SL. We are all here because we keep hoping for a brighter day. Here’s to hoping the sun appears over the horizon again soon….

  107. Felony Fabre says:

    How about giving current island owners a $750 credit toward purchasing another island? 🙂

  108. Griffin Halderman says:

    Not only have businesses suffered to due to the most recent grid problems (or should I say “continuing”), now estate owners get another hit with an instant devaluation of assets and and an even longer ROI.

    Obviously, LL is going for the volume approach by reducing island entry fees and keeping tier unchanged. This could have been managed much better with less of an economic impact. LL needs to hire effective management with real world business experience instead of gaming.

  109. Ciaran Laval says:

    You know Jack if you really want to invigorate the economy, lower tier fees! Then you wouldn’t be screwing over your estate owners.

  110. Wow – I can buy a new Iphone with more features than mine for less than I bought mine for last year –

    My real life home is worth less than it was a few years ago when I bought it because there was a housing boom and extremely low interest – Whoa is me

    Geez people – this stuff happens – get over it

    Can I have some cheese to go with all this whine? Hey maybe you could sell out as many have suggested and some of us can buy you used sim for 650?

    Let’s not have a knee jerk reaction – these things happen – compensation is not due to anyone caveat emptor

  111. Ceera Murakami says:

    Buying land “as an investment” has always been a gamble, whether in RL or SL. If you actually bought your land intending to USE IT, and not just to flip it for a fast profit, you have lost nothing. You still have the same business model and same monthly costs to deal with as before. All that has changed is the start-up cost for adding to your ’empire’. If you bought it to carve up and resell for a fast buck, then yeah, you’re screwed.

    If you look at the long-term picture, the up-front cost of obtaining a whole sim is nothing compared to the long-term cost of maintaining it. 12 months of tier at $295 USD is #3,540, or more than twice the old purchase price for the sim. Lowering the buy-in cost will allow more people to get sims. But they still need to pony up over three and a half grand a year to keep them, just like you do. So their rent on parcels won’t be that much different than yours. They can just pay back their initial investment faster.

    I really hope this means OpenSpaces sims will also decrease in price soon. That might bring one within my range.

    But if what they are worried about is “the competition”, and having OpenSims or other alernatices cutting into their future sales, then they would also need to reduce monthly tier fees. Because again, what eats you alive isn’t the start up cost. It’s the tier fees. And that is one of the biggest come-ons from the ‘competation’ – that both buy-in and monthly fees are drasticly less. (Of course, OpenSim and the others still are not fully functional, with no shared asset servers, no atachments, etc… so no one in their right mind would pay LL level tier fees for that, but still…)

  112. Windy Noyes says:

    Great idea Lindens. Most having estates rent out the lank anyway, and the average person will continue to rent. And any good business will have added into the rent and recovered the cost of their initial investment if they have been live for more than 3 or 4 months.

    There doesn’t seem to be any shortage in demand for low-priced rentals, so this move is not going to kill the economy (SL instability does that). Of course anyone who has bought at the higher price will complain, but that is normal in all forms of trading – some will love Sales, some will cry because they paid higher before.

  113. Tabitha Oxide says:

    @#105
    I got my lindens out just before GINKO went belly up…
    I got my lindens out just before WSE went belly up…
    I got rid of my land back in 2007…
    I got rid of my Premium Account Status LONG AGO…

    Now I just log-in to watch the cruise ship sink in the distance of the windlight moonlight! Oh wait.. I can’t log-in.. bummer. 😦

    “na-na-na-na…. na-na-na-na.. hey hey hey… good bye”

  114. Darek Deluca says:

    lol, there is no fair, LL wants money.

    Read your Fortune.
    http://money.cnn.com/magazines/fortune/fortune_archive/2007/02/05/8399120/
    “And Linden changed its business model. It began generating revenues primarily from the sale of virtual land.

    Think about it. Over 13000 islands, 295 /month (over 4mil a month)
    Premium memberships is now small potatoes (30K premiums 10/month (300,000 /month)

    If they can get more people to pay 295 /month , and pay the intial price for the server, what is the downside? A few disgruntled customers?
    How many times have you lost service in the last week, and still pay your tier, classified charges, etc.

    Don’t like it, leave, LL is betting you won’t.

  115. Fatz Scheflo says:

    For people who’ve owned islands, land and run businesses in SL for a loooong time, have you thought about any kind of a longevity discount? Maybe lowering prices by 10% after a year or so because we’re dependable sources of income?

    Bravo on driving down land prices however you can. Do the right thing and refund/rebate/credit in some manner at least a percent of the price decrease back to everyone who paid considerably more.

  116. Renee Faulds says:

    @110 your are some idiot aren’t you to not see the implication of this.

    obvisiously you did just not have YOUR investment screwed by 40%

    Renee

  117. Carrah Rossini says:

    Good night and good luck

  118. LOL. Desperation City. I’m sure all those Premium landholders will be dancing with joy! lmao.

    However, how do you get your numbers?

    Because they do not tally at all with the numbers you give on your Economic Stats page either on price or volume.

    You state 1.6m odd m per day, which is around 48 million metres per month, and yet you claim to have had 86 million m sold by residents in March at an average of 6.2591/m, with 17m m2 at an average of 5.3426/m, plus 5,724,048m auctioned, and 832 islands added in March, which I calculate at about another 54 million m. That’s 145 million m at about half the value that you are claiming here you sold 48 million m for. Which one is BS and which one is truth?

  119. Joshe Darkstone says:

    @100 you can cancel the sale if it hasnt been delivered yet.

  120. Vivienne says:

    “Geez people – this stuff happens – get over it”

    Yeah, sure. General Motors cuts the prices for all models by almost 50 % tomorrow. Without any announcement. Out of the blue.

    Btw., 1,600 plus almost 3,000 tier a year makes a nice (used) car.

    This stuff happens yeah…

    ROFL

  121. Dusty Runo says:

    (From Teen Grid resident)!
    OMFG, WHY does LL alwasy get to treat MG to more sims??????????
    We only have on mainland and like 10 PIs
    (Yes I know were getting 10 new sims)
    BUT WE SHOULD GET MORE!

  122. Deltango Vale says:

    A moment’s thought would have revealed that dumping more mainland on the market in tandem with a large price cut for islands WITHOUT A REDUCTION IN TIER COSTS will badly hurt existing landowners – the very people who have been investing in SL the past two years – the entire customer base.

    I hate to be critical, but does no one ever sit down and think about these things?

  123. Who is making these decisions at LL, “The Love Machine”. You call tier a maintance fee and what does it maintain? The grid is only maintaining a decrease in quality. I can TP half the time, residents can’t even pay us estate owners tier cause transactions fail. My avatar has its head up its ass, and now I see that my avatar isnt the only thing like that. The only part of your system that has not failed is billing, that is always on time. 13,000 private islands over 3 million dollars a month in maintance fees and you can’t even provide a grid that works. You have soldabout 10000+ islands in the since you raided the price in Nov 06 and now you have lowered the price. another 7 million dollars that you took from resident and the grid gets worse.

  124. Fatz Scheflo says:

    One last suggestion. Obviously you’re going to increase the monthly island tier fee. If you don’t rebate/credit/refund it would be nice if you could leave everyone pre-$1000 purchase price at their current tier rate.

  125. Renee Faulds says:

    @115 you have to be out of your mind thinking LL will EVER open their wallet to us trivial customers.

  126. Barb says:

    Anyone else in for class action lawsuit? There has to be an angle. Tons of lawyers at the Virtual World Law Conference with saliva foaming……

    I’m dejected, deflated, discouraged, disappointed…I feel honestly and truly had……….. LL …. it’s a nice world to put on nice hair and act like a wacko and have too sex and make some weapons….. but your advertising doesn’t support your cause guys….. class action lawsuit

  127. jane says:

    Lindens, you are going the right way! Whats i told several months before becomes now real. Thats a good way to shrink prices on mainland, because the difference between “ad-farm wasted” land and more or less well organized estates is that not all want to pay excessive differences between them. So i’ll hope your next thing is to remove this littering, spoken as low over the ground flying builds. And to remove this senseless splitting of land in plots smaller then 512qm. Good luck and think well about! 😀

  128. stetson rail says:

    Hey Jack not like you read this… but tell phil to stop thinking till you get a new CEO what the hell not like i needed the 40,000 us he just screwed e out of… oh ya that was sarcasim

  129. Anna Gulaev says:

    I don’t remember LL receiving lots of thank you’s last year for increasing the value of people’s investments.

    2007, island price increase, the sky is falling
    2008, island price decrease, the sky is falling

  130. domineaux prospero says:

    thanks, Just when i started to think you all were fixing things you go and do this! Spectacular! Im just thrilled that you are reducing prices so drastically totally devaluing all the sims that cost 1695$ before. I am literally feeling sick from this! Thank you for that!

  131. Umphrey Sachs says:

    Whines for the sake of whining… …if only to fit in.

    Eh…last I knew, this is a market driven economy… And even at the higher up-front cost of setting up a new sim, LL had no issues adding regions to the service.

    Look at the Motorola RAZR. I had friends pay $400 for one when they first came out. I simply waited a few months and got mine for $100. My phone did exactly the same thing their phones did.

    Without knowing too much or caring too much about the SL economy, I can only assume that LL has reached a critical mass where they’re both efficient enough to host the mass of new simulators this kind of move will generate. And, LL has stream-lined the hardware procurement/simulator software set-up/simulator deployment process in a way that it makes sense to lower the cost.

    Why don’t the ones who are upset at the LOWER(?!?) cost look at things this way.. You’ll now be able to buy three sims for less than you would have to pay for two.

    Lastly, why does 90% of the resident comments posted in this blog slag at LL & SL in general? Not only this posting but any posting where open comments are allowed. It truly is frustrating reading these types of remarks at times only because of the ‘tone’ of a majority of the posts. Yeah yeah….I can choose not to read…blah blah blah… But while I may not care about the economic aspects of SL, I do care about the conscript of this version of a ‘virtual world’. I’m not looking for daisies and dancing bears, just some perspective outside of the normal complaints… that have all been heard ad nauseum.

    Good job LL!

  132. Tom says:

    Jack plz spend a few hour watching mainland market like we do you will see that the reason for the 11.5 is because like i siad seller need to be able to make a profit landbots are killing landdealears thats why we need to hold out for more just try watching the market for a few hour like we do ty 🙂

  133. Ciaran Laval says:

    @130 Umphrey Sachs “Look at the Motorola RAZR. I had friends pay $400 for one when they first came out. I simply waited a few months and got mine for $100. My phone did exactly the same thing their phones did.”

    By which time newer phones were available with better features. Do you want to point me in the direction of the better islands with the better features and why these new cheaper islands are costing less despite having the same features with no better features available?

  134. ChatNoir Moonsoo says:

    Let’s see…US$1,000 in the near future vs. US$1,675 so far..that’s US$675 (over 30%) PER SIM *instant devaluation* within seconds…if I tell that to the IRS they’ll laugh me off the continental US.

    There better be some compensation plan in place….

  135. stetson rail says:

    ok let me retry this, I am so pissed I can’t even type…. I just redid the terms of service I think I missed the part where you get to screw me for 40k us……. can you at least send me that part in an email cause next time i have to bend over can I at least get a kiss 1st? Ok now lets go to mainland .. lets see Ya missed a few days in the auctions so good thinkin lets throw 7 up get stupid ppl like me to bid them out of the gate and then lets post 10 aday at 750 each what the hell ya just gona soke me for another 5k loss on that too on top of the 40 hey whats another 5000us? How much you make I want your job if you can take 45,000us and still sleep good at nights…….. oh hell yu would have to read these or care

  136. @111 Buying land “as an investment” has always been a gamble, whether in RL or SL. Ummm gambling is not allowed in SL. It got banned, just like Banking in SL. You know where LL screwed the residents cause the banks closed and didnt allow with draws, or gave you worthless stock on the exchanges. But Im sure exchanges will be band in, just a guess may or June.
    I now understand why people go postal

  137. Impressive.

    I think that in my whole career as a business developer and consultant I never saw so much whining about infrastructure prices going down!

    Something is seriously wrong with this picture.

    And sure, I know how it feels to be an early adopter, buy something new that costs a lot, and see infrastructure costs drop next to zero in a month or two. It happens all the time with any technology, and it certainly happened to me — quite often in fact.

    Of course, if you’re speculating on market prices — market prices that are manipulated and controlled by external agents, over which you have no influence — you’re taking a risk. A huge risk, But then again, “business is risk”. If you’re not prepared to take risks, stay out of business. If you wish to make sure your money is safe, put it into a savings account — not on technology, where prices always fall in the long term.

    And sure, there might be a lot of possible “conspiracy theories” on why LL “suddenly” have dropped all their prices on new islands, but perhaps they are just doing three things:

    – they’re managing the company far more efficiently, and being able to successfully run far more simulators per server than before (thus the cost per simulator drops dramatically)
    – they’re looking at what the OpenSim-based grids are offering and lowering the prices accordingly (OpenSim works well enough, but it has no economy and no permissions system) — and focus on services instead
    – they’re finally listening to the complaints, not many months ago, that the prices were too high — and once they “weathered the storm”, they finally managed to return to the earlier prices.

    People complained back then, and are complaining again. So, neither raising prices nor lowering them will make everybody happy? Well, given both choices, only one is reasonable for the long term: technology gets cheaper. Infrastructure costs are lower now than before. This means that long-term prices will fall. It is specially true when there is competition from the open source grids — now LL has to deal with something that didn’t exist half a year ago.

    Being adaptive to ever-changing situations and managing risk is the secret to success in any business. If your business model is based on stagnation and never-changing conditions, change your business model before it’s too late for you — you’ll learn, one way or the other, but learning it the hard way is not a nice thing to watch.

  138. hope antonelli says:

    Anyone who has bought a sim in the past 30 dayd can cancel it. You lose 100 restocking fee but you come out 600 ahead. I called conceirge and asked. They said the blog wont tell you this, but its policy

  139. Alister Houston says:

    They should allow non-premium users to own a very small parcel. Like 64-128. That way they can get rid of some of those small pieces and the basic account users have a place to build and unpack boxes. They can even be restricted from donating the parcel allowance to a group. I was premium and dropped it, but would still love a little square where I can do a little building and scripting.

  140. Arin Enfield says:

    Most of you who are complaining were obviously not around and investing in land when “Telehubs” wre in use. Point-to-point teleporting took telehub area land from around $50/m2 to about $4L/m2 overnight. You talk about some upset customers… and that was when there were 25,000 unique AVs… all loyal and dedicated users and investors. $675US per 64,000m2 loss is a mere drop in the bucket in comparison.
    Remember, CP? ;]
    This is an opportunity for those who are willing to invest to roll in and pick up more before things go back up. As with any investment, though, there is ALWAYS large risk of loss associated with ANY possibility for gain.
    oh, and bashing LL for their decision?! hehe Have those of you who are mad forgotten that LL is a business that exists to make a profit? They’re neither a charity nor in business to provide charity for those of you handing your money to them.
    Thanks, LL for dropping your prices… (though i won’t hold my breath for it to continue ;]~ )

  141. I’M IN SHOCK,
    With everything going up, sl land going down in value, a lot of owners sell land cheaper to make the money on the tier in the long run, so the sale value of land does not always reflect the money people are making.by dropping the price of a sim you are making the bottom fall out of sl private real estate. a 40% reduction of price will not give good credit to everything. i am expecting a 40% in private island sale price per meter

  142. Unbelievable. When will you let us in on the longrange plans? What are you going to do in Q3 that you aren’t telling us about now?

  143. Renee Faulds says:

    all I can say is Phil you have been lying to us all along….

    and you have NO poseballs !!!!!! Dude

  144. Gabe Palmer says:

    Lindens, I sure hope you are going to come up with a way to make residents who just plunked down the full $1675 for islands whole. I just paid US $3350 for 2 islands, which are now worth…. $2,000.???? How am I supposed to compete with new islands that come online at the new price? I already charge cost for the land and just barely above for tier, and you are wiping me and everyone else out in one fell swoop. Great way to reward those of us who have kept the cash flowing to LL. I seriously am thinking of walking. $3350 may stink to walk away from but it is better than continuing to lose $ over the long term.

  145. Vivienne says:

    “Why don’t the ones who are upset at the LOWER(?!?) cost look at things this way.. You’ll now be able to buy three sims for less than you would have to pay for two.”

    What for? For 5 fps on windlight and ongoing failure of service and a voice?

    And honestly, to cut prices is okay, and maybe the right decision in many cases. But THAT extremely? See, they sell this as a “metaverse”, not as a playground for hardcore gamers, And if they do so, one can expect some reasonable handling of pricing the virtual land they sell, maybe some kind of steady economical growth, stability and continuity. But bouncing up and down like THIS will not work in any kind of “verse” with an economical background. One of the major columns in business is trust ad confidence. As it seems some people at LL do not eally care about this anymore. Neither in land affairs nor in software development. Alot of trust has been shattered within the past year, and this here will shatter it even further. This does not not look like business, but hard core gaming at its worst.

  146. Tabitha Oxide says:

    its funny to think 2 years ago our biggest complaint was the hundreds of “IMPEACH BUSH” signs littered all over SL.. Ahh the good old days when the grid worked. No sweat off my tushy here.. Im around simply to say I was there when the lab ran off with everyones $$ and the servers went silent….. indefinately. Now THIS is entertainment!

  147. I can’t wait till I can buy into LL’s IPO so I can have a voice and the shareholder meetings.

  148. Ciaran Laval says:

    They won’t respond but it says a lot about how they view people who buy virtual land.

  149. Jazzine Jewell says:

    Everyone is missing the biggest problem. And its not a new lower price for land. LL is planningto dump yet another new continent on the already glutted economy?? ARE YOU FREAKING SERIOUS LL??? Some have commented about too many malls and clubs, and that is exactly right. Lowering the price of land is not great for our land value, but we can survive that. What we cant survive is another continent!! Forget laying out more land for ppl to chop and ad and mall and club. Concentrate on cleaning and managing whats already there!! GGGGGGRRRRRRRRRRRRRR

  150. Jack Linden says:

    Thanks to all of those that have commented. As I said in the post, of course this will raise questions and we will answer those in a further post, probably today. We just felt it important that with the new Land Store on the way soon, we should give as much advanced notice as we could.

    In addition we will add an FAQ to the Knowledge Base shortly.

    A few points in response to the comments on this post..

    As Gwyneth in post 136 rightly points out, technology and service costs vary over time and we as a business have to respond to that in sensible ways. In addition, we have to continually assess our business model and make changes where we need to. By and large we have worked hard to keep prices static for long periods, and when we have had cause to increase prices in the past, we allowed grandfathered monthly fees to continue because we value the time and energy those people had put in. Nearly 18 months on and that grandfathered pricing is still in place for many island owners.

    This was the right time to reduce the setup price of an island. As any business would, we will review the effects of these changes over the next period and make adjustments or leave them unchanged according to how it goes. If we are able to make savings, then we feel that passing those on to our customers is a good thing.

    For those that have purchased an island recently, we will of course be providing some options and I will explain how that will work in my next blog post.

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