Second Life Economy Grows 15% from Q4 to Q1

The Second Life economy does not appear to be affected by the slowing economy of the United States.

User to User Transactions.  Total user to user transactions, a measure of the gross domestic product in Second Life, grew from an annualized rate of $261 million in Q4 to just over $300 million in Q1.  The economy has grown 33.6% since the low point after the gambling ban.

User Hours and Concurrency.  Resident user hours also grew 15% from an annualized rate of 304 million hours in Q4 to just under 350 million user hours in Q1.  Residents spent an average of $0.88 per user hour in Q4 and $0.87 per user hour in Q1.  Peak concurrent users grew 13.8% from 58,399 in Q4 to 66,468 in Q1.

Lindex Volume and Money Supply.  Taking advantage of the growth in the economy, the number of inworld businesses with Positive Monthly Linden Flow, a measure of profitability, grew 11% from December to 57,888 in March.  Volume on the LindeX, our virtual currency exchange where users can buy and sell the inworld currency between each other, grew even faster.  LindeX volume of $103.2 million was 17.8% higher than the volume in Q4.  Residents bought and sold just under $0.29 and just under $0.30 worth of Linden Dollars on the LindeX per hour of usage in Q4 and Q1 respectively.  The value of all the Linden Dollars in circulation grew 16.3% over Q4 to $18.2 million in Q1.  The exchange rate remained steady against the USD at approximately L$ 270 to one USD.

Land Mass.  The total number of regions owned by residents increased 11.1% over Q4 to just over 15,000 regions.  That’s the equivalent of of just under 1 billion square meters of space.  Residents spent an average of approximately 2,000 hours per region of space per month in both quarters with a slight uptick in Q1.

Meta Linden has posted the full data for March in a Google Spreadsheet here.

While we hope to provide accurate and useful information, please note that we do not guarantee the accuracy of any information; and we expressly disclaim all warranties and limit liabilities as more fully described in the Terms of Service posted at http://secondlife.com/corporate/tos.php.

 

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120 Responses to Second Life Economy Grows 15% from Q4 to Q1

  1. Gavin Hird says:

    I can’t wait to see the dip on the curves after the last few weeks of service degradation.

    My traffic is down to under 30% of what it was before April. Income down ditto.

  2. Shannon Marellan says:

    There won’t be a dip that will last long. With the private island rate cut so much, people will spend their money buying private islands and outfitting them.

  3. Janna Harsley says:

    Ditto on the last few weeks. I own property in 2 different regions and I am selling it all out because of the ongoing frustration and BS problems that LL doesn’t seem to have the expertise or desire to fix. When I can get logged in, most of the time I can’t function in world. I see a belly up situation manifesting itself here. SL has degraded to a 4th rate RPG.

  4. Captain Noarlunga says:

    What all the above graphs show is that the boom is over and that the whole thing had flattened out …. just take a look… not hard to see. Now, with this in mind and considering these statistics do not include all the problems of the past few weeks and the huge mistake made by Jack when he reduced Island pricing, the next set of figures will actually reflect the true state of SL ….which is “Terminal Decline”. In 18 months on SL I have never known so many long standing residents so totally sick of the way things are. And its the same old story….. LL really have their heads stuck in the sand, hiding behind a TOS that is yet to be properly challenged in a court of law.

  5. Darien Caldwell says:

    Love the graphs. Makes digesting the data much easier. Thanks 🙂

  6. Vic says:

    Can’t see this somehow, sorry, but business is down over the last month by 95% and traffic ditto.

    I can’t find my own classified ads, event and parcel listings so how can anyone else find them??

    I’m not about to give up, I’m riding the wave and holding out for a better viewer sometime soon. 1.19 has to be reinstalled everytime I want to use it, 1.20 has a problem with black dialog boxes and dark blue text… so I can’t read anything. About to try dazzle but fear the headache inducing brightness I have heard so much about.

    Come on LL, I’m behind you all the way but this is the worst I have know things in SL.

  7. I think @2 has a good point. I also think that in the next months the grid wealth will improve because of the recent server upgrades and deployments. These weeks are supposed to be a passage, a transition in the Second Life development.

  8. What are the real stats says:

    With that many privately own islands and a little math it looks like LL rolled it’s residents for a bit over $10,000,000 when they slashed prices. And that really doesn’t count all the lost future revenu from any land owners in the rental bussiness when thier renters move out and buy islands.

    Also, I don’t believe the stats on people making a positive income in here when it seems a lot of them just took a huge loss. Are those numbers figured into this?

    I doubt it.

  9. What are the real stats says:

    I am wondering what the true losses are, the $10,000,000 doesn’t include mainland holdings.

    It’s funny the L$ can be considered “real” because there is real laws surrounding it now but land is not considered real? Can LL have it both ways?

  10. Vincent Nacon says:

    That is 100% false.

    I’ve created and kept my own graph chart of the actual economy in SL, OnRez, SL Exchange, and Classified Section. It has not gone back up and copybot/copyrighted-thief is still ongoing.

    Your chart is based on your LindeX because you had banned Banking in SL (not that I’m complaining about it nor it’s a bad thing) which boosted the transaction on LindeX. Look good for them, but transaction is not growing in the business area in SL.

    So the real answer to this… Second Life’s LindeX is growing 15%, not the economy. Economy is falling about 65% since Gambling Ban. 0.8% from Banking Ban.

  11. Alicia Sautereau says:

    with 30,000 bots online all day long, your total hours/concurrent users is a joke

  12. MarkByron Falta says:

    In trumpeting the good economic news, you neglected to mention a 1656 drop in the number of premium members – almost 2% and the 3rd straight month of declining membership. Not sure you how count a decline in membership and the associated drop in membership fee revenue as growth, but I think it accurately reflect the churn and it’s in a decidedly downward spiral. Unless steps are taken to address the cause of high attrition in SL, the massaged economic graphs will soon catch up.

  13. Most Popular Owner says:

    Expect everything to decline by 30% for the next quarter.

    LL are killing the economy by bad service levels, a grid that doesn’t work and no fixes to problems that have been going on for weeks.

    Why else do you think the $US Spend per day has been removed from the Website?

    Face it LL things are not good in the grid – the majority of people are frustrated and upset with all the events over the past 4 weeks.

    Please start listening to us all – after all without us there would be no LL and no SL. You should be offering compensation on tier for all the downtime. After all if you were an ISP provider you would be…. We are paying for a service which we are not recieving.

    Time to really get things back on track – PLEASE!

  14. Nice. So, basically, all of us who have been saying all along that the gambling numbers were sheer inflation *and not* actually the SL economy (which continues to grow) were right? Naysayers WRONG. As usual. Very nice, LL.

  15. Blinders Off says:

    Well, what I’m seeing is mixed info in the above charts. Firstly, for once I don’t suspect the charts of being manipulated or skewed, so that’s saying something. And I do see some positives in here.

    1. I am amazed at what a big chunk of the SL economy gambling was consuming. It is apparent the gambling estabslishments were sucking down L$ for the profit of the owners, L$ that could otherwise have seriously assisted the SL economy and promoted SL building and design (gambling promotes none of such and serves only the owner of the gambling den. It is not productive).

    2. We now see a rise in overall economy, which indicates that perhaps those gambling $ are being used on product instead… which encourages the merchant force (which is a very important part of SL overall). But at the same time we’re seeing more and more “freebie” items that are obvious theft of merchant goods. When is LL going to step in and put a complete stop to such practices?

    3. As far as monthly user hours being on an explosive climb… fix the platform and then ask me if I’m excited about that. Adding more and more users to an already extremely unstable platform is like a population explosion in China. Not a good idea.

    4. Increase of land mass. Same as #3. IF SL WERE STABLE and everything running spiffy, LL’s recent decisions to lower prices and offer Open Space sims would be a really good one. Instead, all they’re doing is adding fuel to the fire and it might wind up biting them in the butt. The asset servers are already over-taxed. Corporate philosophy: let’s push them more!

    We do have claims from LL that they are taking steps to improve their data systems and asset servers, but the truthfulness and extent of those claims has yet to be seen. When users in general stop crashing 5 times a day, when transactions go through without a hitch, when group chat and group notices work flawlessly, when we can teleport from one region to another every time without crashing to oblivion… then I might start believing such claims. Until then, it’s nothing more than yet the same kind of stuff we’ve been hearing for years… and have experienced little or no improvement in system behavior (and possibly even worse performance than a year ago).

    Overall, the above stats are interesting, yet as is always the case, one can read in between the glowing hyperbole and get down to the truth. Yes, SL is undeniably growing and is undeniably profitable. But the question is… does that benefit the customers… or just Linden Lab P&L statements?

  16. Yami Katayama says:

    I know that I have seen a drastic reduction in transactions at my store in the last month – two months. Before, I could bank on how much cash flow would steadily be coming in per month, and that amount has drastically reduced. Push come to shove, I have a solid user base and I can close out all the satellite stores at malls and whatnot to save outgoing cost and survive, but then what does that do to those who own those malls? Their income will suffer as well, and as more merchants do the same, they will end up closing their malls and selling their land – apparently at a significant loss, so how is any of the REALITY reflected in the graphs they have thrown at us above. I really feel like this is another case of LL telling us we should “feel good” about SL and is nothing more than propaganda that everything is good in a faltering economy. With the real world housing bubble bursting and fuel cost continuing to climb (summer on the way and they will certainly gouge us for more once that happens) – the real world economy is in dire straights, and we are to believe that in world economy is just the opposite? All I know is at the end of the day, I see my account MUCH lower than it was 3 months ago, I see fewer people going to the stores (traffic down), and I see massive outages (12 hours – sure, there was and hour or two up during it, but it was still problematic, so a 12 + hour outage), and nightly problems with the asset servers. So the end of the day isn’t looking near as positive as these graphs are making things look – which is maybe why they are trying to make them look so good.

  17. Jessica says:

    I think we all need to take a step back for a moment. Linden Lab is doing something with SecondLife that has never been done before. Yes there are bugs and they are very annoying, trust me I spend 80 hours a week in SL and it has become my sole income, so I feel it when there are issues believe me. However when ever a product is the first of its kind, whenever some one is blazing a trail there are bumps that will be encountered. Its easy for us to judge and to get angry but what other company has been able to succeed, and atthis level, with this sort of project. I hear people yellabout goign to these other grids that are popping up, but here is the thing; at present you can’t even attach your hair, you cant buy or sell land, you cant doa fraction of what SL offers and there is no user base. It took SL 7 years of development and hard work and millions of users dedication and time to getus to where we are. If you leave SL you leave all of that to start over with nothing, and let me promise you when they have 60,000 users signed on and they are tryign to develope new ways to improve the gameand code there will be flaws, but atleast with secondlife youare dealign with a well known,established enviroment and company with the financial backing to soldier on and get the job done. The economy in SL will change as does the RL economy, it will have bumps. We can all sit here and argue or complain but that does no good. We need to as a community work together with the Lindens to help stimuilate the grow and economy and be patient with them and acknowledge that they are pioneers and doing the bets they can. Let’s get som perspective, take stock, take responsibility and take the initiative.

  18. Great post, thank you! I actually disagree that the economy is unaffected by financial problems in the US, but I believe that it’s a positive effect. I know people who are going out less because gas is too expensive. More time at home = more money to spend on movie rentals and video games. As our real lives get crappier and more expensive, I think people are going to be putting more time and money into their virtual ones.

  19. neko says:

    @ #6: “1.20 has a problem with black dialog boxes and dark blue text… so I can’t read anything. About to try dazzle but fear the headache inducing brightness I have heard so much about.”

    the 1.20 RC has dazzle in it, meaning it IS the bright UI.

  20. Christos Atlantis says:

    Even though I agree with some of the other posts, SL will continue to grow and thrive, what most of you forget, is that this is a new realm a new journey into technology that we get to travel with SL and as any new product has its problems and bumps while trying to grow, imagine it though 5 years down the line when the real numbers online withought bots will be over 1 million, imagine when they do figure it out and we do get stability. That is what I’m betting on!

  21. What are the real stats says:

    I’ll take a step back and take a look.

    All I ever see is LL caring about itself and not in any way about it’s residents. Every single move they make has one thing in mind and one thing only and that is LL, not SL. They are a business out to make money, don’t anyone stand in thier way.

    We all love SL, that we have in common. But LL only love SL in so far as using it as a tool to progress LL, and if that means stepping all over the residents whom created all of the content then so be it.

    The residents are replaceable after all. LL cares not about them and LL cares not about SL.

    The true SL is in fact the residents, if LL actually cared about SL it wouldn’t keep stabbing it’s residents. LL only cares about LL, period.

  22. Jahar Aabye says:

    I find many of the comments here amusing, as they reflect a complete lack of understanding of basic macroeconomics.

    One thing that I find interesting in this economic data is something not mentioned. The fact that the L$ has remained stable relative to the USD (and in fact is semi-pegged to the USD) means that L$ have become cheaper to purchase for people paying in other currencies. A weak dollar in some ways benefits SL if it makes the experience cheaper for users abroad, while keeping the L$ reasonably pegged to the dollar prevents it from becoming more expensive for users in the US.

    The top chart also shows exactly what you would expect to see in a healthy market. There was a sharp uptick followed by a brief market correction, after which the economy resumed growing at a reasonable pace. In fact, it appears in retrospect that the gambling ban was the right move at the right time to prevent more serious damage to the economy.

    Also, the spending per user hour strongly indicates, contrary to popular belief, that much of the increase in activity is due to “real” avatars, rather than bots.

    The increase in user hours and peak concurrent users also explains much of the problems related to database errors. While Linden Labs did anticipate an increase in users, there was no way that they could have foreseen those kinds of increases. Given the potential for unanticipated increases in user hours and peak concurrency, and given the potentially catastrophic results, it would behoove Linden Labs to invest heavily in future database expansion and increase their anticipated margin for error. Granted, they’re already amassing databases that would have been unthinkable just a few years ago, but it’s clear that they need to not only add more space to alleviate the current problems, but make sure that future expansions add more wiggle room should SL experience another unanticipated expansion.

  23. Someone who knows says:

    Bad propaganda. The economy is hurting bad. Bad PR decisions, Horrible management decisions. Horrible pricing decisions.

    At least LL is that incompetent that they leave up comments after such blog posts so everyone can find about what’s relly happening from resident responses.

  24. richard says:

    gaming and sex

  25. CC says:

    all i have to say is this was the holiday season and BULL CRAP to your 15% growth ! You all have hurt businesses so bad with shutting off transaction daily behind the scene……… instead of correcting the bugs and errors that cause people to lose items they purchases VERY POOR service to business owners

  26. If the Concurrency graph proves anything to me it’s that if the system could handle it the amount of concurrent users would never stop growing.

    The reality is that the max number on that graph above, 70K concurrent users, is actually the max before the system itself begins to break down. And every year LL helps nudge that number up a teensy bit. When I first joined around 30 to 40k logged at once would start causing troubles on the grid. Years later and we can only hold 30K more!?

    Frankly, we will never become the “next internet” if only a tiny handful of people can be logged in at once… Imagine if MySpace, YouTube, Amazon, Google, etc. couldn’t handle more than 70k thousand users?

    We want to grow, but we can’t really within these confines. (Don’t get me started on the agent limit in sims and the lag more than 5 people in a room causes.)

    And “turning off” certain systems during “peak hours” is not a permanent solution I hope. What good is SL if we can’t play while we’re there?

    The population of Second Life is like a hermit crab that has grown up, but has no new shell available that is big enough to move into. So we grow and grow while our too-small current shell gives and cracks under the pressure.

  27. DB says:

    Can you say “massage the data?” Heck, we do it at our company too… we’re *always* growing, and support incidents are always down. :rolls eyes:

    The economy has not even begun to really affect things like SL. Just wait.

    The outages LL has been having will do much worse than the economy will.

  28. Cocoanut Koala says:

    Toot them now, because it’s a sure bet it’s all on the way down, including transactions.

    Would be nice, for example, if a person could actually log IN. Which I had trouble doing last night, and can’t do at all now, yet the blog says nothing about it.

    coco

  29. Captain Noarlunga says:

    @17 & 22 …… 7 years of development……and the system they started with (the software and the infrastucture)nwas indeed revolutionary…the problem is that it is now incapable of supporting the current loads placed on it. The database and the asset servers and the links between sites are all outdated and incapable of being brought up to the levels required to produce a stable system. What is needed is new architecture and systems software….this means getting a paralllel system operating before migrating from the existing system….or taking the whole grid down for a considerable period to fix it. Stop living in cloud cuckoo land ……. they will not invest this sort of money ……. its a case of lining their pockets, doing an IPO, then walking away as millionaires. We are the suckers assisting them. We will be the losers.

  30. Disgruntled Business Owner says:

    There are mass protests organised on the Linden sims tomorrow – come down and support the cause. We have thousands of people already signed up and whilst peaceful protests they are designed to highlight the frustration of all business owners with all the problems. All the press are coming too.

    We do have a voice LL and you will hear us!

  31. Psistorm Ikura says:

    @29: they are already working on a major architecture overhaul to make the grid far more scalable than it is now. and when I mean far, I dont mean another 10k of concurrency, but rather something on the lines of possible concurrency x10 or more.
    its interesting how many people post on this blog but dont seem to read it, there have been one or two most extensive posts about this endeavour late last year I think.
    I look forward to these changes too, since they should finally do away with most of the current peak time issues we are seeing and instead make for a much smoother performance

  32. darla galli says:

    could someone tell me more about the drop in island prices.. it says nothing on site about it yet ive heard twice that the island cost was drasticly reduced

  33. Loniki Loudon says:

    If your graphs even begin to suggest that business has been growing since a week before the havok 4 patch and the month before, I will certainly not believe it. It is only in the last few days that I am finally starting to see a normalization since that time. It has been a terrible last month with bugs and service disruptions. I would hope you would not try to dismiss that.

  34. Renee Faulds says:

    Hey Phil – I still waiting for your half of my 54,000 LD$ land tier for two weeks of BORKED BORKED BORKED BORKED asset servers !!!!!

    Where your poseballs Phil? Ignore us content creators more – soon you will have an empty grid because nobody is creating !!!!!!!!

  35. Athena Seiling says:

    SL economy not affected by downturn in US economy? Why should it be? As far as I’m aware even though SL is based in the US it is multi-regional with its economy input from pretty much every country on the globe. There are more residents from outside the US, not inside it. Maybe when the international recession kicks in then there’ll be a downturn, and believe me…it looks like it’s coming.

  36. darla galli says:

    create i have spent lots of downtime in photoshop creating things then tried them on lny to find the colors aree all grey

  37. Captain Noarlunga says:

    @31….yes, all they do is talk about it……no-one from LL will come on and update us on what is being done to resolve matters….a post 5 months ago is hardly encouraging to those who invest thousands of dollars…only to discover that big bad Jack comes along and arbitrarily reduces thier investments by 40% , which together with the
    knock-on effect of that decision, hurts a hell of a lot of people on here. ……. and serves to line his own pockets. Hey, did you hear they took the word “gullible” out of the dictionaries????

  38. Captain Noarlunga says:

    @30 …… please contact me with details……

  39. Harwood says:

    ok … someone explain something to me… cuz im completely friggin lost

    as of this weekend-ish … LL has finally put their foot into the average market pricing of the sim. um, yes.. YOUR world, YOUR imagination… but SOMEONE has to make up SOME KIND of governing body and make SOME KIND of regulations… if not.. you get what weve had since the gambling ban.

    ~disclaimer… one thing i WILL say on all of this is with all the people with so much money out there invested in land… this could have been a bit of a slower change-over instead of all of a sudden.

    BUT!!!
    ITS YOUR OWN FAULTS!!! (and im speaking directly to land barons here) this is where greed leads to … and let me explain….

    ive been on SL a year.. and, no… dont hit me with all the “well this is what it USED to be like” junk.. im looking at investing a good amount of money here… and i did my homework.. i know what first land was.. ive been thru a good amount of fansites that do EXTENSIVE pricings, history, etc.. and KNOW what the average land value has been since 2002…. but back to it all.. ive been here a year… when i started.. land was around 7-8/sqm … not too bad.. but EVEN THAT was almost $2000 US!!! slightly staggering number considering one could buy an ISLAND for LESS!!!
    now, i dont think i need to bother going over the mainland/estate, which is better thing… one thing i will say is tier on mainland is cheaper.. and with the more you own.. can get even cheaper.. ok.. understood.

    with the gambling ban.. a lot of people who owned sold off their land.. understandable. prices dropped around 6/sqm. this .. imo, is a good, fair price for land. it sits around $1500US for a sim. EVEN THEN … the AVERAGE (and im talking in the area of 75% of residents) resident isnt going to spend $1500US ON SOMETHING VIRTUAL!!! Lets at least be real about it!!

    so now… at what we would consider a LOW price… MOST of your members STILL wouldnt buy into your game at a decent rate. (amount of land) doesnt seem to business-like. so what we have now is the people who ARE tossing around a good handful of money .. buying up all they can .. inflating the prices to massive amounts once they do .. and trying to take control of your major stock (land and/or L$) hmm.. sounds a bit like real life if you ask me.. and if you continue along that track.. only sounds like its leading to a bunch of slum-lords. with the land value so high.. all youll ever have is the general public buying small areas of land… only increasing to sim lag.. and generally making things worse all over. (imagine all the sims broken into 4096.. thats 16 areas per region.. now put in all the spinning-flashy crap, and toss in the average 5 people per area.. thats 80 AO’s running per sim.. and eeeeew!!!!!

    pretty much.. what im saying here… (ROCK ON LL!!! THANK YOU FOR TAKING A STAND ONCE AGAIN!!!!!) … ok .. sorry.. had to get that out somewhere… is the way things were going.. more or less .. you had a small handful of land barons controlling prices (not all are bad.. BTW.. some WERE working to LOWER price… in their defense) and all they were doing is RAISING them … at one point.. i have seen the average price for a sim going at 750,000L. thats $2700US!!! come on people.. lets get at least A LITTLE realistic here!!!!

    with prices that high .. how on earth do you expect things to EVER grow?? new people that ive seen coming in since january have been SCOFFING at prices… and why shouldnt they??? i personally would want NOTHING to do with second life if the best i could hope for was an area (averaging a 4096 here.. what MOST people in SL own.. at 11/sqm) that cost $150.. up front, AND i was paying $25 a month PLUS a $9 membership fee!!! and once you learn the game .. a 4096 is nowhere NEAR enough space… now youre talking DOUBLING something you wouldnt do to begin with!! no.. i honestly dont see too many new players signing up for that!! the tier fee is bad enough.. the land fees cant join them in cost!! and if they do.. dont expect hundreds of peole jumping on board…. there goes your land and business sales for the month there too, hunh??

    somewhere along the lines.. it all needs to have a BASE of regulation… with land barons driving prices of MAINLAND sims up TWICE the amount of buying an estate… and LL steps in and says.. no.. thats not good for OUR business (it may be OUR world.. but in the long run.. it IS THEIR business… they dont exist without us.. but were left with crappy MMO’s without them… its a give and take) forgive me if i dont offer a shoulder when you start crying!!

    props.. LL .. for once again stepping in and saying enough is enough… i honestly DO think you understand full well what the metrics of such a high tier fee encompasses when it comes to the little guy and the average user… (although im STILL completely lost on why Estate went up to 295.. one would think youd want MORE people buying them… )
    In all honesty… if they were to figure.. and balance.. and possibly LOWER tier fee (theres NO possible way its not inflated… i know what server cost runs.. and this is QUITE high) i think SL has QUITE the bright future… dont listen to all the whiners… its understandable that a new platform will have its bugs.. cant say that i LIKE it.. but once its all hammered out.. i for one.. see a VERY promising world in SL for the future… but take note from your own leads.. and re-examine tier fees too… a great number of people at a reasonable cost will make you A LOT more money than a smaller number at a high one :))

    just my opinion…

    HH

  40. Mikevanman Dagger says:

    Do away with land traffic, camping serves no purpose, bots will go away over night for good, lots of freed up resources for real users of SL.

  41. brother nadezda says:

    well done guys….i just logged back in after exactly 30 mins….hope ppl who seem hell bent on putting sl down WHATEVER you guys do will follow up with apologies….how about supporting sl for a change and making some POSITIVE comments….

  42. Captain Noarlunga says:

    …with all the disgruntled people in SL I am surprised there hasnt been an investigation into the feasibility of a class action yet. Demonstrations and talking do nothing….look at the complete failure of the Open Letter Project a year ago!

  43. IAm Zabelin says:

    Thx @ 30 … i’ll be picketing for IP protection.

    As for the post … good to see LL is still making money to pay talented developers. The graphs show a MASSIVE slowdown in growth since last year … you can see the slowing trend.

    Yes low island prices will bump it up, but recent service interruptions will negate a lot of that initially. BTW: How much is LL refunding tiers for service downtime?

    Also LL needs to listen carefully : Content creators are in a slow-down state. They are pissed at doing hard work only to see an Anonymous user steal it and destroy the income potential. I know a lot of seriously good content creators and they ALL agree on this. This is having a big effect on the economy already, no unique content means the economy suffers.

    At the current trend, very soon most SL content will be free, and all sims will look similar.

    However, its not all bad, and SL can still survive that – this will still attract many types of players / grievers to use the grid as an all out mayhem. Just not me.

    Deliver on your promise LL, and build in tools to protect our IP !!!

  44. Binkse Wolfhaven says:

    When stability returns to the sim I’ll return…until then I’ll keep my money to myself, and the most I’ll do with SL is chat with my friends over the messenger recently created…

  45. Petey says:

    42, When they earn praise they’ll get it. Right now they have done nothing but screw there customers.

  46. What are the real stats says:

    When will all the fragmented groups, content creators, land owners, and who ever has been wronged by frivilous management see the light and ban together instead of taking thier plights alone as fragmented groups?

    Each of these groups alone don’t stand a chance of changing “our world” when up against the 900 pound gorrilla named Linden Labs.

    Each group has thier own grievances focused specifically on thier own interests and activities around what they “do” in SL, but the true grievance I believe is something more incompasing.

    The problem is one group is happy to slam the other group down when LL makes bone headed decisions that do not affect the group one is in and then a month later the group slamming the previous group gets GOMMED and everyone else (including the previous group that got GOMMED) jumps on LL’s band wagon as if blind.

    Wake up and unify your resources, see past your narrow group mentality and become one group and then figure out what can be done.

    Banding together is the first step, deciding on and then taking action can come later.

    Or continue to tear each other apart and only stand against LL when it directly affects you.

    Your choice.

  47. Fenrir Reitveld says:

    Hmm. Interesting to see what Q2 will look like. In my own little corner of SL, I’ve seen a significant hit to sales about a month ago — Around the time that these daily transaction/asset cluster issues started popping up.

    Customers are scared to buy things. A lot of my friends who do business in SL (whether it be content creation or virt estate) are reporting the same sort of hesitancy and stunted growth.

    Being greeted with a mass-grid dialog box that screams “Don’t buy anything or rez anything you bought!” is really kinda hurting us bread-and-butter people in SL. You know, the sort of people who make unique content that isn’t based on stolen IP, or rent out sims with unique themes and designs. And some of us are getting fed up and slipping away.

    Graphs and charts that skyrocket to the clouds demonstrating Linden Lab’s growth isn’t doing those of us down here is the old chair-shuffle routine on a sinking liner. You really need to work on grid stability.

    That’s my bitter, ranty blog comment for the year. 🙂

  48. Hoodie Lykin says:

    OK, It’s off topic and may get ticked off? (Tip’s hat to LL)
    Please please please LL. Set up a company NOT in the USA where the Internet Gambling law does not apply. Maybe Gambling operations should be made to throttle the amount of spondoolies (L$) that are squandered by the serious Gamblofiles BUT I’ve thrown more dosh in tipjars in my noobish time in SL and the Cassino’s were so much FUN!

  49. Captain Noarlunga says:

    @47…….agreed…..so why not contact me in-world…….i have ppl with a similar idea????

  50. Vx Shaw says:

    I find it interesting that LL doesn’t post the number of accounts any longer. I’d like to see these statistics listed “per user,” rather than as a composite. I believe that this would show that the SL economy is in more dire shape than they would lead us to believe.

    Also, “Monthly User Hours” doesn’t reflect the down-time, nor the times when SL is suffering from asset or transaction problems.

    The graphs are pretty and they show things at a glance, but they don’t always tell the real story. Take a look at my blog, and you’ll see another way of looking at the LL data.

    Granted, my graph is considerably more pessimistic, but it demonstrates that one can manipulate data to convince gullible people almost anything.

    I urge you to download the spreadsheets and analyze the data for yourself.

  51. What are the real stats says:

    Land barons laugh at content creators screaming at copy bots, content creators are getting giggles when land prices slash.

    See each others plight and you will see yourself for once, quit being each other’s worst enemies. We are all affected by the morals of Linden Labs.

  52. Captain Noarlunga says:

    @52 …… I am sure lots of us agree….but making anonymous posts here wont get everyone into one group…….so you need to make it possible for ppl to get together…..

  53. IAm Zabelin says:

    @42 : Its really not the difficult to understand…

    There are many users (yourself incl) that give positive feedback and good for them. They are obviously getting what they need from SL and I’m very happy for them. Really.

    But everyone has different needs, so you get users who are not getting what they need too. In some users cases it extreme, and its extremely frustrating for them. They can’t give positive feedback till whats important to them works.

    So sorry, but live with it. And I wouldn’t hold my breath for apologies.

  54. Vic says:

    @ Neko: TY for the comment re 1.20 having dazzle, I wont hold off on the download now!

  55. Totally unrelated example:
    Quite some time ago the Googlers started a project called “Stop BadWare” which meant in a very simplified way, that Google refused to serve websites that contained malicious content.
    All kinds of forums and platforms were filled with noise of people who claimed, that Google ruins their business. Most of these people simply failed to secure their website and/or servers. And they tried to blame the Googlers for their damange, because their hijacked site got blacklisted.
    This example seems to be useful to describe my observations here within Second Life in combination with most blog comments.
    If you have a little bit of a clue how complex the technology is that we all use to be online and present in Second Life, then you will hopefully be able to show a bit more humbleness for getting the chance to use Second Life.
    To some extend the Lindens deserve some blame for their marketing, because they make a lot of people believe that you can come and dig money here.
    Fatal for the ethics of people when I review the blog comments. And fatal for the social climate within Second Life.
    The whole point why many people use Second Life is other people. People are looking for different kinds of interaction, feedback and attention.
    Spending money and doing business is a side effect until somebody makes the majority of people believe, they only exist to serve the economy. We have this weird philosophy spread in many democratic countries. But many of us have good reasons to dislike people who are only interested in our money. Even worse if they behave like a cry baby as soon as making money is not as easy as expected.
    And for those business people who want to bring their lawsuits to Second Life a hint: a statement like “many freebies are stolen intellectual property” can cost you a lot of money in the real world if you dont pay attention.

  56. What are the real stats says:

    I’m already in your group Captain. For the long haul, not the short 😉

    Just looking for more and using one of the only communications path LL has left us with.

  57. Captain Noarlunga says:

    @57…damn…i thought there were more than 2 of us 🙂

  58. Blinders Off says:

    I think the comments made #21 are pretty valid. It is somewhat apparent that the majority of decisions made by LL are aimed not at improving customer service, nor for the good of their customers… but clearly at increasing their coporate bottom line.

    Everyone expects a company to make profit, and no one has a problem with that. When that profit becomes the mission statement ahead of customer interests– that’s when people complain. They do so justly, since it is the customer who is funding that corporate profit level.

    Someone made the comment about how much LL will shine 5 years from now and that it “took them 7 years to get this far”. Taking 7 years to get this far is not a bragging point. After 7 years of coding, they should have a rock-solid platform. They don’t.

    5 years from now won’t be so shiney for LL. Based on past performance, 5 years from now SL– if it is still alive at all– will just be one small drop in a vast ocean of VR worlds that will likely be doing the job far better than we see LL doing it now. That’s not just my opinion; the last 40 years of corporate computer history have shown this pattern over and over again. AT&T does not still rule the telephone kingdom. IBM no longer rules the PC area. Tandy is just barely holding on in the computer field; at one time they were #1. CompuServe sold out to the far more capable hands of AOL, which hands themselves are becoming feeble in light of competition.

    LL did not start this field. Credit that to Doom and Active Worlds and Unreal and Quake and WoW and Guild Wars and a dozen other interactive VR environments. Second Life is undeniably unique (even THERE doesn’t quite stack up) but as aptly stated above– it is also self-serving.

    Self-serving companies tend to vanish with time, because their customers get tired of it and move to the competition. The only such companies I have ever seen succeed with such an attitude are MicroSoft and Ebay, and they have something over Second Life: they are essential commodities, not an Entertainment industry. When the competition finally hits– and it will– Linden Lab is going to have the fight of its life. And if the competition is saavy… Linden Lab will lose.

    So bright future 5 years from now? Not unless LL gets very smart very fast, and starts giving their customers what they need instead of what the corporate money-grabbers want.

  59. IAm Zabelin says:

    @47 & 52 : Sounds great. Let us know how / when / what / where. If u have/create a group about it, pls add me.

    There’s plenty of content creators seriously tired of IP issues that’ll join too, no doubt land barons and other groups too.

  60. Legal Action Pending says:

    Its simple – I will give Linden Lab 30 days to respond to my request for a refund for the thousands of dollars I have given this month for a service I haven’t recieved.

    If I don’t get a favourable response, I will be filing damages!

  61. IAm Zabelin says:

    @58 … three now … soon to be hoards.

  62. What are the real stats says:

    There is a group in SL being born as we speak. Look into joining that group, it will be the group of groups. Might be months before it’s organized and strong but there is no better time to start and help now.

    It needs to grow strong, in many ways, before acting. The group can use anyone’s help.

    The group wants to see change.

  63. Bobo Decosta says:

    Just sold my regions as well. As long as ive been a customer now ive seen more strange and bad decisions made than good ones.

    Bad ones where: letting US law enter SL, the gambling ban, the EU vat introduction, island price cut, dazzle and the most annoying part : the continuos technical problems of all kinds.

    Good decisions where windlight and havok 4 but as you can see these two things don’t outweigh my bad experiences.

    As the graph shows eliminating gambling was the worst decisions ever made! How high would that peak have been if it still was legal in SL? I’m glad LL finally decided to show us what we told them already along time ago.

  64. Luciftias says:

    @22
    “I find many of the comments here amusing, as they reflect a complete lack of understanding of basic macroeconomics.”

    It’s the internet, and we’re on an MMO. Everyone is an expert. About everything.

  65. Luciftias says:

    @61: “Its simple – I will give Linden Lab 30 days to respond to my request for a refund for the thousands of dollars I have given this month for a service I haven’t recieved.

    If I don’t get a favourable response, I will be filing damages!”

    I CAN HAZ DAMAGES OR TEH CUTE PUPPY GETZ IT!!!

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  67. Sin Kovacs says:

    Looks like thins might be picking up for a while… we can only hope!

  68. Nice, glad to be able to see the graphs 🙂 I am excited to continue watch the growth of SL 🙂 , I wonder what the graph will do when the “new land store” opens up :))

  69. Razor says:

    my income has been 25% less last week because of the mess. its good i never invested much in this game to get money out of it because it is hell unstable

  70. Razor says:

    calulate in a 20-40% loss of income regularly because of bugs, problems and unexpected decisions (VAT, void sim price drop, gabling ban), and calculate that loss in in your business desicions and investments.
    realise it can all be over tomorrow and build up money to start up again if such a desicion will ever affect your business or demolish it completely
    that way you can actually do business in secondlife. just dont never ever trust on linden labs to make the right desicions, be carefull, don’t invest much, calculate in all losses you are likely to get and you’ll be fine

  71. Pleasurehead Inshan says:

    Brilliant. Second Life is in resession and you’re moaning about it! I think it’s a natural progression. And as far as crashing goes? … just click on your SL icon on your desk top and you’re back in … simple.

  72. Ciaran Laval says:

    @40 Harwood, 2 things, LL have reduced the value of estate land, the fixed price land.

    Secondly, LL make money off those land barons who fight it out at auction to buy a sim and then sell it off. LL don’t generally sell small parcels to residents, so to lay the blame at the feet of the land barons only and to ignore the reduction of value of land of those who weren’t part of the inflation game is somewhat missing the point.

    Zee thanks for posting the stats, it’s nice to see the growth areas, especially the climb with user transactions but can you bang some heads together there and point out that people value their assets, because island prices need to drop a lot lower if you’re going to treat their value with such contempt.

  73. Vivienne says:

    Success is the ability to go from one failure to another with no loss of enthusiasm.

    Sir Winston Churchill

  74. Pingback: Linden Labs has released several “executive graphs” | Second Life Update

  75. Tanya Spinotti says:

    @61 – Before you start paying lawyers to slap lawsuits on LL, you may just want to re-read section 5.4 of the Terms of Service which says “Linden Lab provides the Service on an “as is” basis, without express or implied warranties.” It goes on to say “…Linden Lab does not ensure continuous, error-free, secure or virus-free operation of the Service…you shall not be entitled to refunds for fees based on Linden Lab’s failure to provide any of the foregoing…” (I’ve just listed the most relevant parts here, so read the full TOS again…you did that when you signed up, didn’t you?)

    Of course, that doesn’t mean that LL do well to provide a degraded, or zero service at any time (and they know that…they’ve been in business for long enough).

    However, this is what you pay for. People pay a lot of money for a service with no guarantees and that will have to change at some point in the future; particularly when it comes to business-to-business relationships. Individuals don’t tend to question these things until there’s a problem, but businesses have Procurement & Legal teams who ask all those fun questions in very long documents before anything is signed.

    SL gives people, like me, the opportunity try different business models without massive start-up costs, but before you start investing in SL, know what you get for your money (but that’s the same for any business start-up and good advice generally!)

    To be clear, I want SL to grow and be stable and to meet its customer’s needs. I get frustrated when it doesn’t work, has downtime or service issues; but I have to accept it’s what I pay for. It’s my choice. My other choice is to sell up and leave. I’m staying right now but there’s always that choice.

  76. in addition to my posting #56:

    I would like to see from the Lindens that:
    – blog postings require a resident login
    – payment info must be set to validate residents

    Purpose:

    The comments to Zee Linden’s blog entry alone have extraordinary comedy potential. I have a business idea regarding that: a dedicated blog about the blog comments.
    But my idea can only be profitable when I am able to investigate the ingame activities of those people who “invest thousands of US dollars every month in Second Life” while they behave in this commment section here like somebody placed cat poo in their sandbox.
    I want to write in details about the business of such people.
    As the good person who I am, all collected funds will be donated to projects that are affiliated with Lawrence Lessig or Creative Commons.

  77. Harwood says:

    ummm…. 73… im not exactlly sure what youre trying to say…. are you agreeing or disagreeing with me!?!?!

    first off the __ OF the __ OF the __ OF the ___’s OF” is probably whats doing it. waaaay too many “of”‘s there…. if anyone can translate HALF of that… let me know!! (sorry, not meant to be a personal attack… just cant make heads or tails out OF it!!

    and YES the HUGE inflations in land pricings can be almost completely attributed to the land barons.. hence why im saying now that its being moderated.. the only person to blame is themselves (again.. not ALL land barons were guilty of this)

    “LL doesnt generally sell small parcels to residents”!?!?!?!?
    paid attention to the auctions in the last year??
    im sure A LOT of LL’s profits are re-selling land!! the first sale of a sim is already MORE THAN covering the cost of the server its on… let alone the 20th and 30th time it resells!!

    and YES .. they ARE reducing the price of estate land!! very much so!! how many people out there do you think are going to invest (and im talking the general public, not the wealthy, silver-spoon born, or hard-working-and-somehow-have-some-time-to-kill minority.) the general resident isnt GOING TO SPEND $1700 US on an estate… isnt going to spend $300 a month (thats a car payment to most of us.. or at least part of) on a GAME….. yes.. i fully realize this is a platform… but simply put… its a GAME… no two ways around it… sure, it has monetary value.. sure, you can lose and make money on here.. a lot of it for that matter…. but once you boil it down.. its still a VIRTUAL GAME!!!

    ya.. if i were linden labs.. id want as many people as possible buying and investing in my business.. and lowering the price of the land is probably one of the most intelligent moves theyve made since outlawing gambling.. and probably smarter one at that …. but when the day is over.. you have to realize … its still going to be a business decision to them … period.

    sure.. the value of the land lowering for the people who already bought into islands at $1700 sucks, and im sure its no different for people who didnt do their homework and bought a sim at 700,000.. but ya know what…. when youre talking that much money … weather or not you HAVE it to spend… it still boils down to your fault for not doing the research and homework to figure out the path of things that were bound to happen.. what .. did you think LL.. which is .. im sure.. a multi million dollar business were going to let theor residents control how much the land sold for… youre a fool if you do ..

    and again.. this could have been a transitionary thing… but its not.. honestly.. if i were in LL’s shoes.. i would have done this a LONG time ago .. (when mainland prices doubled estate would have been too late for me) and it does stink for a LOT of people… but again… with that much money involved… a LOT of people should have done better research… and if you didnt… consider this an expensive lesson 🙂

    HH

  78. Henry Grumiaux says:

    LOL…My sales decreaded in just 60% ! Obviouslly these metris is from a age when SL sometimes got stable for 24 hours.Goooooood Times !!! LOL

    I Can’t wait to see the next report ! ahahahah ! Let me guess…

    /\
    ..\../\
    …\/..\
    ………\
    ……….\
    ………..\____________/\______________

  79. Captain Noarlunga says:

    @76 ……. dont believe everything written or claimed can stand up in court.

  80. Joshe Darkstone says:

    Ive noticed a number of intersting changes over the last couple months starting with the announcement that Phil was stepping aside and culminating (so far) wiht the release of this data touting the econimc growth. I think there is an as-yet-unannounced reason for all of this positioning.

    1. Phil steps aside.
    2. New policy regarding trademark usage
    3. massive push on new product release for client/server software
    4. Create a land rush by reconfgiruing openarea sims.
    5. Create another land rush by depressing mainland pricing
    6. Add massive amounts of mainland area
    7. Create yet another land rush by slashing island pricing.

    Im sure there is alot im missing, that I cant see, but the crux of this is that LL is pushing its income from tier rates (unchanged) by promoting a land glut (not unlike the builders in the rl economy) and all of this points to some impending change. The graphs above will probably be used to increase LL’s valuation in preparation for an IPO/sale/major investment.

    The only problem I have with that is the nefarious business practice of selling land as fast as possible at inflated prices with the full knowledge that the next steps are to rip the bottom out of those prices and do it all over again with no regard for the effect on its customers.

    Be careful buying at the new low prices, they might not be done. For my part I will be looking to purchase any new land from other landowners.

    Ive noticed a massive glut of island rental postings and a near stoppage of potential renters visiting them, although thats likely just because there are so many for sale and not enough tenants to rent them.

    In the long run Im sure it will even out, they will match their land glut with a push to overpopulate the grid.

    In the short run people are losing real money here based not on natural economic pressures but instead on LL’s need to massage their bottom line.

    There are a ton of people still buying islands at the inflated rate that are not reading this blog and will be hurt when, in less then a week, they find themselves undercut by the changes in the land pricing.

    My offer still stands… $500 USD for a list of the recently purchased islands so that I can notify them of the option to return these inflated islands before its too late. Ill pay it privately, Ill happily pay it to some conscientious linden that cares about the people getting hurt by this.

    Shame on you LL, let them make an informed decision.

  81. bobbyb30 zohari says:

    What in the world does “While we hope to provide accurate and useful information, please note that we do not guarantee the accuracy of any information; and we expressly disclaim all warranties and limit liabilities as more fully described in the Terms of Service…” mean?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????

    So basically as far as we are legally concerned, that is possibly false information?

  82. bobbyb30 zohari says:

    And the lindenx exchange growth is due to the ban on banking. So your “information” basically shows that two years after the gambling ban, the sl economy has to yet to grow.

  83. Ferdinand Darkstone says:

    More residents have a positive linden flow? I wonder how that is possible. Maybe because loads of people are selling some leaked out stolen skins? lol. If you count the amount of stores that sell those’or other items that have either leaked out because of the copy bug (stuff turning full permission while not set as full perm. good to have a permission system. or these stolen items, i think you will find those are a pretty large part of the economy and transactions

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  85. Sinuna Falta says:

    Someone correct me if I see this incorrectly.. but..

    1.) If LL needs to reduce load in order to function correctly. AND…

    2.) If LL chooses to reduce load by shutting down key services durring prime time rather than takeing the simple step of removing trafic from the search stats (and there-by remove all the camping bots)

    Doesn’t 1 + 2 = “We need the bots more than we need the real users?”

    Is a robot actually worth more to LL than I am? I think the answer is “Yes”. Robots have no inventory to speak of. They don’t use group chat, or voice. They have their bandwidth throttled back so that the owner can run dozens from a single computer. How very sad that is.

  86. @81 “The graphs above will probably be used to increase LL’s valuation in preparation for an IPO/sale/major investment.”

    Actually if the largest sim owners got together and brought a class action then any IPO goes out of the window. That is possibly the one lever SL’s customers do have over what Linden get up to.

  87. Sierra Chaparral says:

    Let’s see peak user usage is up…I am sure it is with all the alternate avies camping and the bots galore! Nice to see the swing in economy is largely due to paying campers to get your spots to be hot property!

    And land….why is it not ever considered how much of it is for sale before they start dumping it again!

    I know it is time for me to take a break again. I can’t stand the poor performance of the game anymore. It gets worse, not better. So tell me all knowing Lindens, when you can’t operate a grid with the land you have how exactly are you going to operate it better with all the land you are now going to flood it with?

  88. coventina dalgleish says:

    The charts create an interesting haze of data.

    I judge the economy of SL by the sales generated and the revenue received.

    Sales have been spiky for the last few months, down when there are system problems and back up during the quiescent times.

    10 to 20 thousand noobs with no funds do not represent economy they are just numbers for the charts.

    In 5 years if the technical staff does not develop a successful program to deal with the details and the bugs this will still be in the childhood phase rather than a mature program. People will, by then, have found other ways to expend funds on the net.

    As far as the TOS is concerned most online games employee the boiler plate that we see in this one. It is still not clear that it can protect as designed.

    In closing the Lindens have to put a good face on but the reality of this is that we who use the game from a business standpoint understand the actual impact of the recent problems.

    The changes have been arriving fast and furious some good some questionable all though are targeted at improving the experience.

    H4 has been the greatest stabilizing influences in the game as it has increased the ability of a sim to endure more punishment from crappy scripts and user load.

    One can only hope, yes it is eternal, that the teams develop as well as the H4 team has, then we will have a nice stable place to waste our time )).

  89. UALLFORGETONETHING says:

    Sl has always ran like crap. Every update that sl has ever had screwed it up worse. Eventually they get it back running semi-stable, but I don’t ever remember a time when someone wasn’t complaining.

    If you depend on your income from Sl THATS YOUR FAULT. It isn’t the physical world. Someone could pull the plug on it tomorrow. THen what?

    I’ve been playing on and off here for around 3.5-4 years. This is how things go. It runs about the same as it did then, BUT!!! THere are an asston of new features. Some I use, some I dont. Doesn’t matter.

    It doesn’t say anywhere that the game will remain the same. It doesn’t guarantee customers to your store.

    They used to give away lindens like it was your grandmas dirty underwear. I would get a couple of thousand a week just from being a rate whore. I was pissed when they took that away.

    It is what it is

  90. nikita jefferson says:

    Since the SL problems and uploading the 1.19 viewer,i have noticed a marked difference in SL,I have spent a lot of money in SL and visited so many stores i can’t guess how many,i have my own openspace island,since the SL problems and viewer update it seems to be the only place i can move without so much lag and freezing,it is so bad when i visit stores i leave a after a short while due to the bad lag,many times i wind up through walls when it takes again,i love SL and i have spent a lot of money here,reminds of the old saying “you don’t know what you had till it’s gone’,that how i feel since uploading the 1.19 viewer,i never had these problems before,SL was a lovely place to travel around
    I wonder if this might also be why shop profits are down,i cannot roam around stores like i used to,just too much freezing and lag so i don’t bother shopping any more,just too frustrating
    I like to visit orientation island and help island,maybe offer some help to the newbees,those two places have so much lag and freezing it is unbelievable
    I would upload the 1.20 but i’m afraid it might be worse

  91. Julius says:

    Dont listen to Jessica 😛

  92. Pingback: And in related news, the economy in 3D! « Dusan Writer’s Metaverse

  93. Sierra Chaparral says:

    @81 I totally agree with you on the IPO and have thought that since the “Branding” push and the need to raise profit in Q2 definitely indicate there will be an IPO by Q4.

    To whomever said this,”@61 – Before you start paying lawyers to slap lawsuits on LL, you may just want to re-read section 5.4 of the Terms of Service which says “Linden Lab provides the Service on an “as is” basis, without express or implied warranties.” It goes on to say “…Linden Lab does not ensure continuous, error-free, secure or virus-free operation of the Service…you shall not be entitled to refunds for fees based on Linden Lab’s failure to provide any of the foregoing…” (I’ve just listed the most relevant parts here, so read the full TOS again…you did that when you signed up, didn’t you?)”

    You need a better grasp of tort law. I don’t care if the supreme court rights your TOS, rule number 1 you cannot right off or get people to agree to your negligibility or totally discount your negligibility. Most signed waivers and releases will not hold up in a court of law, this is a a fact. They are indeed written to ward off frivolity, but go in front of a jury and right is usually right and wrong is worthless.

    One thing I have always found interesting and never understood why it hasn’t been removed from the TOS for a serious class action suit is the Group Owned Land billing that can continue even after no land is owned! You continue to pay a tier for the RIGHT to have those land holdings even if you do not have land. If you are not savvy (and what new person is in SL) then you get burned the first time by this ridiculous outright GREEDY ploy. To me it is the equivlant of continuing to charge a real life tenant rent after they vacate for the privilege of possibly moving in again!

  94. Pointside Sunbelter says:

    Looks like transactions took a slug in the gut after banning gambling. That leaves what camping and Prostitu…. I mean “Escort Services” 🙂 to pull the numbers back up. No offense to all you “Prostitoons”

    @10 Vincent Nacon
    You kept your own charts for an entire year, haha. You don’t seriously expect anyone to believe that do you. I pray your joking.

  95. Ener Hax says:

    woe! nice on the graphs and explanation!!! and i feel for that post above that said sl runs like crap. i never, ever crash and have my graphics maxed out and a full 512 draw distance. i have a good pc, but only a $500 i put together.

    only lag i ever get is at a place packed with peeps and stuff like fireworks going off. even then, my frame rate might get to 12 (yes, that is low, but this is the absolute worst it gets). typically I am at 40 fps or more.

    this is one happy avatar (in reality, if my biggest gripe in life is anything to do with sl, then i have an amazing life) 🙂

    thanks LL 🙂

  96. Desmond Shang says:

    Zee, thanks for the analysis – nice and clear!

    Will be interesting to see how this goes forward trhough 2008.

  97. Ishtara Rothschild says:

    The economic growth is impressive. But please don’t make the error to assume that this is a sign of a good product. It’s a sign of a product in high demand. Currently there is only one bug-ridden product to meet this demand though.
    Imagine what the economy would look like if SL worked flawlessly! This would also make it a lot harder for future competitors.

  98. Coventina Dalgleish says:

    Well I would say that a suit brought against Linden Lab would be just throwing good money afer bad.

    Get a grip it is a game after all no one forces us to belly up to the bar and pay for play. Yes, some of us have made a business from it but that is something we created. It is not spelled out anywhere that they guarantee anyone anything but possibly a nice expeience.

    The other consideration LL does have a significant war chest to draw from how much do you have. ))

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  102. Sahara Westerburg says:

    Sometimes things must fall, in order to get back up again, stronger and better. Our real economy is experiencing this in the real world now, as well.

    SL is not Utopia. People can’t expect to run businesses, buy/sell land or even be on the other end of the spectrum as a patron, in SL, just like one would do in real life and not expect to face the same challenges just as one would in the real world.

    SL makes NO guarantees in their policy, nor TOS, that anything is secure or guaranteed here, and we knew this coming in the door. So if you are staking your real life survival and revenue on/from Second Life, that was your risk, and your choice. We have to live with our choices.

    I do feel bad for those who use SL as an income for their real or/and only source of income because they will suffer the most if the economy fails more. I guess there will be a split of those who are affected: those here because of financial gain vs. those here for a temporary R&R break from the real world a few hours a week.

    I sincerely doubt SL is going down hill or going anywhere because of this. I’ve been in virtual worlds where economy’s were 20 times WORSE than this situation, and that was years ago, and still they are around 🙂 Just don’t hit the panic button yet, and make decisions based on fear 🙂

  103. Ric Mollor says:

    @86 Sinuna

    ——–quoting—————-
    Someone correct me if I see this incorrectly.. but..

    1.) If LL needs to reduce load in order to function correctly. AND…

    2.) If LL chooses to reduce load by shutting down key services durring prime time rather than takeing the simple step of removing trafic from the search stats (and there-by remove all the camping bots)

    Doesn’t 1 + 2 = “We need the bots more than we need the real users?”

    Is a robot actually worth more to LL than I am? I think the answer is “Yes”. Robots have no inventory to speak of. They don’t use group chat, or voice. They have their bandwidth throttled back so that the owner can run dozens from a single computer. How very sad that is.
    ————————————

    Of course a bot if worth more than a real user.

    Bots earn money by camping. This inflates the economic statistics. Does it matter that the land owner is only paying themselves? Not a bit, the $ transfer is still counted and the economy is *growing*!

    Bots don’t change clothes, don’t TP, don’t walk around, don’t chat, don’t do group IMs, and don’t use voice. What better tool to inflate the number of users that the grid can support?

    The bot client software is much more stable then the normal client. Just the thing that is needed to help push those pesky crash percentage numbers down when reporting stability.

    Additionally, bots don’t write comments on blogs about how bad their SL experience is. Can you now see why they are *much* more important then the normal user?

  104. Amy Julie says:

    @103

    Linden Lab make a contract with you, when you sign up for an island or land that they will provide a service. That service is defined and a contract is formed between both parties. Whatever the TOS say – if they are deemed to be unreasonable, they become void in law.

    It would be deemed unreasonable for a company to charge for a service that it does not provide.

    There are some comments on this blog about not paying much for what we get and we would have to pay more for a back up service when there is downtime. Personally I think $350 a month per island (with VAT) is more than enough to have a professional service solution.

    Lets see Linden Lab publish their costs and then you make the judgement they do not make enough money to cover a higher quality service.

  105. Captain Noarlunga says:

    @105……

    Well said …. you are absolutely correct. LL cannot hide behind the TOS if a court of law deems it to be unreasonable. This needs to be tested if they are unwilling to correct the existing problems. Better for everyone to chip in $100 towards a good lawyer than spend it in world. Stop rolling over and dying……stand up and be counted.

  106. Razrcut Brooks says:

    I log in just fine. No complaints here .

  107. Pingback: SL posts strong economic growth on dwindling enrollments « Social Media.Online Games.Virtual Worlds

  108. Long Term Business Owner says:

    As someone who owns a business in SL for a few years and can say the turnover has ALWAYS been stable and reliable with growths hitting at Xmas time which remain through to the next Xmas the last 4 weeks we have seen the 1st “hit” in sales between 20 – 50% and this is consistant.
    We create to support other content creators.
    Traffic has took a small loss but interestingly traffic may be the same but sales are less.
    Delivery issues are a plenty as always.
    LAG is better.
    But people arent spending. Period.
    Sure the noobs who are here just to look pretty and party are still spending on appearance I believe but content creators are NOT creating. I can vouch for that as the business I am in supports content creators in SL.
    This is devastating to me. This has never happened before in the few yrs I have been here.
    The business has always seen a steady growth and never had a continual loss in takings.
    This is a first and as such things ARE bad in SL.
    Concerned.

  109. Long Term Business Owner says:

    90

    LL ADVERTISES for people to ” make real money” THATS their “hook”
    And if people we’re here depending on SL for their RL income or at least p/t you wouldnt have the clothes on your back the AO strapped to your ass or the prim penis attached to your groin!
    get a grip

  110. Pingback: MixedRealities :: Zee Linden: “the situation is far from dire”

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  112. Troubled American says:

    Don’t believe one optimistic word from any public figure about the economy or humanity in general. They are all part of the problem. Its like a game of Monopoly. In America, the richest 1% now hold 1/2 OF ALL UNITED STATES WEALTH. Unlike ‘lesser’ estimates, this includes all stocks, bonds, cash, and material assets held by America’s richest 1%. Even that filthy pig Oprah acknowledged that it was at about 50% in 2006. Naturally, she put her own ‘humanitarian’ spin on it. Calling attention to her own ‘good will’. WHAT A DISGUSTING HYPOCRITE SLOB. THE RICHEST 1% HAVE LITERALLY MADE WORLD PROSPERITY ABSOLUTELY IMPOSSIBLE. Don’t fall for any of their ‘humanitarian’ CRAP. ITS A SHAM. THESE PEOPLE ARE CAUSING THE SAME PROBLEMS THEY PRETEND TO CARE ABOUT. Ask any professor of economics. Money does not grow on trees. The government can’t just print up more on a whim. At any given time, there is a relative limit to the wealth within ANY economy of ANY size. So when too much wealth accumulates at the top, the middle class slip further into debt and the lower class further into poverty. A similar rule applies worldwide. The world’s richest 1% now own over 40% of ALL WORLD WEALTH. This is EVEN AFTER you account for all of this ‘good will’ ‘humanitarian’ BS from celebrities and executives. ITS A SHAM. As they get richer and richer, less wealth is left circulating beneath them. This is the single greatest underlying cause for the current US recession. The middle class can no longer afford to sustain their share of the economy. Their wealth has been gradually transfered to the richest 1%. One way or another, we suffer because of their incredible greed. We are talking about TRILLIONS of dollars which have been transfered FROM US TO THEM. All over a period of about 27 years. Thats Reaganomics for you. The wealth does not ‘trickle down’ as we were told it would. It just accumulates at the top. Shrinking the middle class and expanding the lower class. Causing a domino effect of socio-economic problems. But the rich will never stop. They just keep getting richer. Leaving even less of the pie for the other 99% of us to share. At the same time, they throw back a few tax deductible crumbs and call themselves ‘humanitarians’. Cashing in on the PR and getting even richer the following year. IT CAN’T WORK THIS WAY. Their bogus efforts to make the world a better place can not possibly succeed. Any ‘humanitarian’ progress made in one area will be lost in another. EVERY SINGLE TIME. IT ABSOLUTELY CAN NOT WORK THIS WAY. This is going to end just like a game of Monopoly. The current US recession will drag on for years and lead into the worst US depression of all time. The richest 1% will live like royalty while the rest of us fight over jobs, food, and gasoline. So don’t fall for any of this PR CRAP from Hollywood, Pro Sports, and Wall Street PIGS. ITS A SHAM. Remember: They are filthy rich EVEN AFTER their tax deductible contributions. Greedy pigs. Now, we are headed for the worst economic and cultural crisis of all time. Crime, poverty, and suicide will skyrocket. SEND A “THANK YOU” NOTE TO YOUR FAVORITE MILLIONAIRE. ITS THEIR FAULT. I’m not discounting other factors like China, sub-prime, or gas prices. But all of those factors combined still pale in comparison to that HUGE transfer of wealth to the rich. Anyway, those other factors are all related and further aggrivated because of GREED. If it weren’t for the OBSCENE distribution of wealth within our country, there never would have been such a market for sub-prime to begin with. Which by the way, was another trick whipped up by greedy bankers and executives. IT MAKES THEM RICHER. The credit industry has been ENDORSED by people like Oprah Winfrey, Ellen DeGenerous, Dr Phil, and many other celebrities. IT MAKES THEM RICHER. Now, there are commercial ties between nearly every industry and every public figure. IT MAKES THEM RICHER. So don’t fall for their ‘good will’ BS. ITS A LIE. If you fall for it, then you’re a fool. If you see any real difference between the moral character of a celebrity, politician, attorney, or executive, then you’re a fool. No offense fellow citizens. But we have been mislead by nearly every public figure. WAKE UP PEOPLE. THEIR GOAL IS TO WIN THE GAME. The 1% club will always say or do whatever it takes to get as rich as possible. Without the slightest regard for anything or anyone but themselves. Reaganomics. Their idea. Loans from China. Their idea. NAFTA. Their idea. Outsourcing. Their idea. Sub-prime. Their idea. High energy prices. Their idea. Obscene health care charges. Their idea. The commercial lobbyist. Their idea. The multi-million dollar lawsuit. Their idea. The multi-million dollar endorsement deal. Their idea. $200 cell phone bills. Their idea. $200 basketball shoes. Their idea. $30 late fees. Their idea. $30 NSF fees. Their idea. $20 DVDs. Their idea. Subliminal advertising. Their idea. Brainwash plots on TV. Their idea. Vioxx, and Celebrex. Their idea. The MASSIVE campaign to turn every American into a brainwashed, credit card, pharmaceutical, love-sick, celebrity junkie. Their idea. All of the above shrink the middle class, concentrate the world’s wealth and resources, create a dominoe effect of socio-economic problems, and wreak havok on society. All of which have been CREATED AND ENDORSED by celebrities, athletes, executives, entrepreneurs, attorneys, and politicians. IT MAKES THEM RICHER. So don’t fall for any of their ‘good will’ ‘humanitarian’ BS. ITS A SHAM. NOTHING BUT TAX DEDUCTIBLE PR CRAP. In many cases, the ‘charitable’ contribution is almost entirely offset. Not to mention the opportunity to plug their name, image, product, and ‘good will’ all at once. IT MAKES THEM RICHER. These filthy pigs even have the nerve to throw a fit and spin up a misleading defense with regard to ‘federal tax revenue’. ITS A SHAM. THEY SCREWED UP THE EQUATION TO BEGIN WITH. If the middle and lower classes had a greater share of the pie, they could easily cover a greater share of the federal tax revenue. They are held down in many ways because of greed. Wages remain stagnant for millions because the executives, celebrities, athletes, attorneys, and entrepreneurs, are paid millions. They over-sell, over-charge, under-pay, outsource, cut jobs, and benefits to increase their bottom line. As their profits rise, so do the stock values. Which are owned primarily by the richest 5%. As more United States wealth rises to the top, the middle and lower classes inevitably suffer. This reduces the potential tax reveue drawn from those brackets. At the same time, it wreaks havok on middle and lower class communities and increases the need for financial aid. Not to mention the spike in crime because of it. There is a dominoe effect to consider. IT CAN’T WORK THIS WAY. But our leaders refuse to acknowledge this. Instead they come up with one trick after another to milk the system and screw the majority. These decisions are heavily influensed by the 1% club. Every year, billions of federal tax dollars are diverted behind the scenes back to the rich and their respective industries. Loans from China have been necessary to compensate in part, for the red ink and multi-trillion dollar transfer of wealth to the rich. At the same time, the feds have been pushing more financial burden onto the states who push them lower onto the cities. Again, the hardship is felt more by the majority and less by the 1% club. The rich prefer to live in exclusive areas or upper class communities. They get the best of everything. Reliable city services, new schools, freshly paved roads, upscale parks, ect. The middle and lower class communities get little or nothing without a local tax increase. Which, they usually can’t afford. So the red ink flows followed by service cuts and lay-offs. All because of the OBSCENE distribution of bottom line wealth in this country. So when people forgive the rich for their incredible greed and then praise them for paying a greater share of the FEDERAL income taxes, its like nails on a chalk board. I can not accept any theory that our economy would suffer in any way with a more reasonable distribution of wealth. Afterall, it was more reasonable 30 years ago. Before Reaganomics came along. Before GREED became such an epidemic. Before we had an army of over-paid executives, bankers, celebrities, athletes, attorneys, doctors, investors, entrepreneurs, developers, and sold-out politicians to kiss their asses. As a nation, we were in much better shape. Strong middle class, free and clear assets, lower crime rate, more widespread prosperity, stable job market, lower deficit, ect. Our economy as a whole was much more stable and prosperous for the majority. WITHOUT LOANS FROM CHINA. Now, we have a more obscene distribution of bottom line wealth than ever before. We have a sold-out government, crumbling infrastructure, energy crisis, home forclosure epidemic, 13 figure national deficit, and 12 figure annual shortfall. The cost of living is higher than ever before. Most people can’t even afford basic health care. ALL BECAUSE OF GREED. I really don’t blame the 2nd -5th percentiles in general. No economy could ever function without some reasonable scale of personal wealth and income. But it can’t be allowed to run wild like a mad dog. ALBERT EINSTEIN TRIED TO MAKE PEOPLE UNDERSTAND. UNBRIDLED CAPITALISM ABSOLUTELY CAN NOT WORK. TOP HEAVY ECONOMIES ALWAYS COLLAPSE. Bottom line: The richest 1% will soon tank the largest economy in the world. It will be like nothing we’ve ever seen before. The American dream will be shattered. and thats just the beginning. Greed will eventually tank every major economy in the world. Causing millions to suffer and die. Oprah, Angelina, Brad, Bono, and Bill are not part of the solution. They are part of the problem. THERE IS NO SUCH THING AS A MULTI-MILLIONAIRE HUMANITARIAN. EXTREME WEALTH MAKES WORLD PROSPERITY ABSOLUTELY IMPOSSIBLE. WITHOUT WORLD PROSPERITY, THERE WILL NEVER BE WORLD PEACE OR ANYTHING EVEN CLOSE. GREED KILLS. IT WILL BE OUR DOWNFALL. Of course, the rich will throw a fit and call me a madman.. Of course, they will jump to small minded conclusions about ‘jealousy’, ‘envy’, or ‘socialism’. Of course, their ignorant fans will do the same. You have to expect that. But I speak the truth. If you don’t believe me, then copy this entry and run it by any professor of economics or socio-economics. Then tell a friend. Call the local radio station. Re-post this entry or put it in your own words. Be one of the first to predict the worst economic and cultural crisis of all time and explain its cause. WE ARE IN BIG TROUBLE.

  113. Long Term Business Owner says:

    @ Troubled American

    ” beware the appocolips ”

    Please?!! I wouldnt mind if ANY of your ramblings contained “something” bout SL.

    This is a typical response from a nationlist American.
    The world doesnt evolve around the U.S!

  114. Was this Katt Linden’;s first job as slimy corporate Communications Manager to hide the bad news? How disingenuous. So basically, the economy is not growing, it has dropped by a third compared to a year ago, which you blame all on the gambling ban.

    Nice to pick and choose the few numbers that re going up. And even a lot of those are tailing off.

    However, the real hard numbers, Active Users are dropping, and have only increased 4.3% in the 10 months from May 2007 to February 2008, from 504K to 526K, despite registered users almost doubling from 6.8 million to 13.1 million. While Premiums dropped for the fourth consecutive month.

    That’s from your own Key Metrics. That’s right, the ones you delayed by 5 weeks last month and silently slid out without fanfare or blog notice because the numbers were all bad. Like active users dropping in the US for two months straight for the first time ever, let alone the fact that in most European countries outside of the UK, have fallen by a third over that time, and Brazil by almost half.

    In fact those Premium numbers are even worse. If you check sinks and sources on the Economic Stats [age (where you can also download the monthly Key Metrics):

    http://secondlife.com/whatis/economy_stats.php

    you’ll see 8,976,000 in L$ given in referral bonuses for new premium memberships. Those are paid in three installments of L$500, L$500 and L$1,000 so that means for March, not only was there a drop in atual premiums, but there were at least 8,976 new premiums and maybe as many as twice that, almost 18,000, ie between 10 and 20% of old premiums leaving or downgraded replaced by new ones, each month. A 15% odd churn rate is pretty dire isn’t it?

    And you know something? It’s not because the economy is “growing”, cos it’s not, more recession lol, nor is it lack of shinies, it’s because LL does nor FIX the stuff we’ve been asking for.

    The OPEN LETTER is exactly a year old today. See if you can spot ONE SINGLE FIX that LL have managed in one year:

    http://www.projectopenletter.com/Letter.aspx

  115. Well, even the “growth” you show is increasing less than before the gambling ban. Hardly surprising since then the US made up just 25% of users, and is now 33% (globally people are rejecting SL because of bad support, inability to buy Lindens, zero language support, things you are only beginning to address now, probably too late since the bad word of mouth will spread better and faster than Katt Linden can gloss over) and to cap it. even dropping in the US for two consecutive months.

    So it’s still $10m/month less than a year ago, growing slower than a year ago, while record numbers are quitting, and yet hours are still going up? You don’t see any correlation with both appalling service from LL and a broken US economy? More time on SL is a cheaper alternative than going out. And all the numbers mean is that an average people now spend $16.5/month instead of $14/month in SL. So, hands up who can get even one evening’s entertainment in real life, the physical world, for $2.50, but you can get a whole month for that in SL… Doh.

    **** Happy Birthday PROJECT OPEN LETTER ****
    **** Happy Birthday PROJECT OPEN LETTER ****

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  117. dexter says:

    Nice. So, basically, all of us who have been saying all along that the gambling numbers were sheer inflation *and not* actually the SL economy (which continues to grow) were right? Naysayers WRONG. As usual. Very nice, LL.

  118. No wonder the rent business is getting harder. There’s nearly 10 times more land then there was two years ago on the grid yet 30% less things to do with that land. Can anyone say…saturation?

  119. Avid Supporter says:

    When will the 3rd Qtr statistics be posted? Or where have they been posted?

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