Second Life Virtual World Expands 44% in Q2

Linden Lab is pleased to announce results for Second Life the second Quarter.

Land mass grew over 44%.  The total number of regions owned by residents increased 44.2% over Q1 to just over 1.5 billion square meters.  Our growth was due to the popularity of our newly launched “Openspace” land product along with a change in pricing to make the purchase of land more accessible to first time buyers.  Openspace” regions are full 65,000 square meter regions with an upfront fee of $250 and a recurring monthly fee of $75.  We decreased the price for full regions by 40% to $1000 upfront (the recurring monthly fee remains $295).  We also launched a new Land Store that instantly provisions new regions.  Pricing changes plus a dramatically improved purchase experience fueled land sales in the quarter.  On the other hand, premium subscriptions have remained flat since we decreased the stipend to L$ 300 per week in the second quarter of 2007.  Prior to that the premium account essentially provided residents with a way to purchase L$ at a discounted rate.  Because land represents nearly 8x more revenue to us than premium accounts, our focus has been on the launching of new land products rather than on enhancing the premium subscription.


User Hours grew by 8.5% while peak concurrency grew modestly.  Resident user hours grew approximately 6% from an annualized rate of just under 350 million user hours in Q1 to over 380 million user hours in Q2. Peak concurrent users grew modestly from Q1 to Q2 to just under 67,000 users.  Significant outages in April prevented this number from growing as fast as it otherwise might. However, uptime improved dramatically in May and June – see the grid status page – so we’re expecting to see continued growth in Q3.

User-to-User Transactions grew over 14%.  Total user-to-user transactions, a measure of the gross domestic product in Second Life, grew 14.3% during the quarter from an annualized rate of $300 million in Q1 to $338 million in Q2.  Resident spending remained a healthy $0.87 per user hour.

Volume on the Lindex grew 5%.  Volume on the LindeX, our virtual currency exchange where users can buy and sell our inworld currency, grew 5% to an annual rate of $108 million.  The total value of all the Linden Dollars in circulation grew 8.6% over Q1 to $19.7 million in Q2 with the exchange rate remaining steady against USD at approximately L$ 267 to one USD.

The number of “profitable” inworld businesses grew by 9%:  Taking advantage of the growth in the economy, the number of inworld businesses with Positive Monthly Linden Flow, a measure of profitability, grew to 59,000 in June.  

Meta Linden has posted the full data for June in a Google Spreadsheet here.  We have made some modifications to the format to make them easier to review.

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150 Responses to Second Life Virtual World Expands 44% in Q2

  1. Ann Otoole says:

    Interesting numbers. What exactly are the priorities for Secondlife now?

    Many of us wish for the glass ceiling on concurrency to be broken. And we place this far far higher than interoperability which holds little or no business value. And the transactions metric would be vastly improved if there were not so many SL Outages (Resident outages are any outages where any aspect of SL is impeded or impaired such as transactions. No transactions = outage and you should reflect these outages in your metrics)

    Perhaps you could halt work on optional aspects and get all hands on deck for the rework necessary to set SL up for 1 million concurrency. This work would also result in improved transactions. Good all the way around.

    Right now we have not a clue about the direction of Secondlife since there are so many camps and leaders running in all sorts of personal achievement directions at the lab. Or so it appears.

  2. Pingback: Metaverse3d.com » Actualité Business » Linden Lab, les résultats du 2ème trimestre.

  3. OMG, can we please have the numbers of private sim owners like me that can’t sell their land anymore? There must be a lot of them! I always had 100 % of my land sold, since the last months it is only going WAY DOWN!! My English is not good enough to express what I feel, but believe me, with 12 sims, that I have payd 1700 USD each for, and 4 openspace sims that I have paid the old price for, you feel RIPPED OFF by Linden Lab. Noone wants to have the land for free now! What did you do to SL? And then you come now with nice looking numbers? Not for me, I am afraid, I will no longer invest in more land or start more business…..

  4. And YES I once liked SL a lot, putting in a lot of hours more then 15 hours a day since 18 months. Even stopped my RL job for it…..I now have almost 2 empty sims, if this land abandoning keeps going on I think I will have to get a RL job soon.

  5. Nibb Tardis says:

    LL’s policy of increasing land surface regardless of economic demand is reckless. The number of empty parcels on private sims has never been so high. Something is very wrong when there are 20000 sims for 60000 concurrent users. That’s 12 users for one server.

  6. Ric Mollor says:

    2 questions.

    Value of customer owned land? With the recent crash in land prices and the lower purchase price and tier for the Openspace sims it seems inappropriate to use square meters as a metric. Especially as land on openspace servers don’t carry as much potential because of their limitations.

    Have the numbers for user to user transactions been adjusted for meaningless bot to bot and alt to alt transactions? It would seem that failing to adjust for these transfers would artificially inflate the reported values.

  7. Captain Noarlunga says:

    A while ago, this blog would have been almost filled with comments by now. The lack of interest just shows that the majority of paying customers have given up on LL and are just waiting for an alternative to appear. LL and its owners and potential investors are only interested in their personal careers and window-dressing SL for potential investors. Nothing will be done to clear the long list of problems, because this will require major investment in both hardware and software….not something LL will ever do. Theirs is a band-aid strategy. To #3 ……. dont hope it will get better…..look at their blog post…..they make money by flooding the market with cheap land…..its not the initial selling price they want…its the monthly tier…..cashflow is king. Premium accounts are nothing they care about any longer……so they are just trampling on the people who helped make this what is ….. Revenge is Sweet ….. I cant wait.

  8. Q Linden says:

    @1: Ann, the “all hands on deck” mentality might help us to raise the glass ceiling, but it doesn’t break it. Breaking the glass ceiling on concurrency requires the sorts of architectural changes that the Open Grid Protocol (OGP) and the Architecture Working Group (AWG) are contemplating.

    Various people at LL are working on these things because as an organization we believe that they are in fact critical to the future of virtual worlds.

    I, for one, was excited by seeing the cross-grid teleport demo because it’s the first publicly visible evidence that the new architecture really works. It’s the equivalent of seeing the foundation poured on a new house. You can’t live in it yet, but it’s a good indication that the project is real.

    Please participate in the AWG discussions. There’s a lot of thought going into not only the technical aspects, but the social implications of the decisions.

  9. Robin Ivory says:

    I will feel better when concurrency breaks 70,000. People are correct about too much land and not enough concurrent users.

  10. Nikki Brennan says:

    I think two of the previous posts by Ann Otoole and Antonio Asano raise legitimate concerns and represent the opinions of a large portion of Second Life business owners. Ann, in particular, poses some excellent questions and offers suggestions that I feel Linden Labs should address, and I for one would appreciate a public response to them here. Outrages should be charted next to transactions to reflect the effect that we, as business owners, all feel when the grid is down or too unstable to conduct business. Existing landowners, likewise, should have received a month or more advance notice of significant price changes that would impact business–especially landowners with one or more entire regions. I’m confident the decision to restructure prices was made far in advance of the announcement; if not, then the date of the change should have been delayed long enough to give landowners sufficient notice.

  11. Tmos says:

    What made SL great has been destroyed by its own creators. With OPEN SIM opensimulator.org making great headway SL will be just a side note in history. These are the move of a company that knows the the ride is about to come to an end.

    I really love SL… But I see the creators don’t. WAKE UP LL!! Before it is to late!

  12. Captain Noarlunga says:

    @7 …you really think they would do anything that would give a fair repre You aresentation of the real situation? The figures are massaged to give a positive impression. You are correct…land mass is a meaningless figure and whatever happened to the investigation into bots? This has conveniently and quietly disappeared. Bots suit LL and help to boost the metrics that make it look (falsely) good. The best way is for people not to buy any more land and either carry on paying their current tiers or sell land that is empty (maybe it will be at a loss) but at least for every sim you sell, you save the $295 a month in your bank account and LL lose it. Maybe the subsequent loss of revenues will thenhelp focus some minds in SF?

  13. Pingback: [Breaking News] SL Expands 44% in Q2 « Daniel Voyager’s Blog

  14. Vivienne says:

    The truth is: Within the past 12 months (since the international hype cooled down) LL has not won any premium members, but the numbers are in decline. During the same time the declining number of premium account holders obviously doubled the resident land ownership.

    In my opinion the raising online hours numbers only are explainable by the bot and pseudo-traffic favoring system and by the many, many who try it and who finally decide not to join in.

    And the notable declining sum of residents to residents transactions only prove that the internal econmy suffers a lot recently.

    The hype is over, folks, now face the results of your mediocre service and the annoying demand for customer hardware upgrades. And stop spinning, improve.

    It is definately worth it.

  15. Captain Noarlunga says:

    How about LL publishing a figure of the number of “avatars” logged in by IP address or giving a percentage of “Real” residents and “Bots” in the concurrency figures? There are lots of Sims where an army of bots are sitting on a sky platform …… falsifying traffic and concurrency numbers. If these were excluded from the metrics it would be a whole different story…..but then again……the figures wouldnt look so good would they?

  16. Lukas Mensing says:

    Today, around 11PM European time, I sat in an Infohub (anzere to be precise) and waited few hours to see how many people will log in compared to the number of bots…
    Actually, I saw 6 people and more than 30 bots…
    Some of the bots are still stuck there…
    You know how it is, some bots must log in in a infohub, then are redirected to the right hole or cave or skybox to generate high traffic…
    Sounds like we are “living” in a fake world, with fake avatars and fake numbers…

  17. great, LL, and great, all SL users 🙂

  18. Naima Aya says:

    Wow, what a grow, but that means the Land aquire will cost less to residents? Still see very expressive to buy and to support (tier) the SIM, I really think that if the price get low second life will grow even more as the company and employees. Good for the costumers good for LL.
    I think this new architecture is good, the grid seems stable even with the huge population, congrats.

  19. Richie Freund says:

    Now we are looking forward to falling land-tier. So that first-time buyer have a really interest in buying this 44% landmass. So fas, as I can see, the landmass is still kept by the landbarons, because nobody will buy it.

  20. Marianne McCann says:

    It seems shortsighted to me to focus on “new land products” versus enhancing the premium subscription. With decreasing premium memberships (due, one might assume, to a lack of reasons to have one beyond “land ownership”) and flattening concurrency, one can presume a coming crash in the land market as purchasers, expecting an influx of buyers, end up having to abandon land or take a loss on return. Ultimately, both land enhancements *and* premium enhancements should both be looked at: one for now, and one for the next couple quarters.

  21. Sindy Tsure says:

    Getting the bars on the land mass chart shaded for openspace vs full regions would be nice, Zee.

  22. Curtis Dresler says:

    As a side note, that definition of ‘profitability’ does not wash. It means that there is a positive cash flow in-world for a specific period, where no wages are paid in most cases (or if they are, probably not associated directly with the business) and no accounting is made for the time expended by the principle. Sorry, even with the apostrophes, you shouldn’t use the phrase ‘profitability’.

    Cash flow is what it is in the real world and Linden cash flow is a better term in SL. If nothing else, all a person has to do to have positive cash flow is cover tier (and that’s if the tier is associated with the business). So they pay L$ 300,000 in the first month to buy land and have a positive Linden cash flow of, say, L$ 10,000 after that. If all goes well, you should make your money back in 2 1/2 years and still no profit, no pay and no cost of money. That ain’t a profitable business. Won’t get money from the bank on that one. Please don’t make up metrics names that would get a CPA in the RL USA in serious trouble. Speaking as a RL USA CPA.

    Admittedly, positive LCF will probably be enough to keep a lot of people playing business in SL. Fine. Just don’t mischaracterize the situation.

  23. Pingback: SL Growth « Wir sprechen Online.

  24. Firebird Nightfire says:

    I have no idea what these numbers mean, but they look good…

    A comment on the teleportation to the Open Source grid (since the other topic is closed). I find it amusing that even Lindens can be ruthed. Some people may call that poetic justice. I just say it’s proof that Lindens are just like the rest of us, just with more responsibilities.

    🙂

  25. JR Unknown says:

    So the overall land mass grew by 44%? Great job, that helped kill the overall land market for many of your longtime residents!! So by doing this how many new residents did that bring into the game? How about new residents that actually spend money? You drive exisiting residents out of the game all the time with your clueless attempts at economic controls, policy changes, and a general lack of caring about your customers. It would seem your only real goal is to increase your monthly revenues to make SL look good to investors for an upcoming IPO. If you banned bots this place would be a graveyard so the overall user hours and concurrency numbers are a joke.

    You have been pushing low prim sims like the best thing since sliced bread and still have them defined as “light use”. If they are really only intended for “light use” why are you trying so hard to sell them when you know that the majority of people are not using them for “light use”?? How about getting on the ball and addressing this?

    Thank god for the concierge staff and how great they are at making customers feel appreciated cause lord knows the rest of LL doesn’t!!

  26. Zee Linden says:

    Thanks for the comments. I’ll address as many of the key subjects as I can:

    Bots. Based on a set of behavioral characteristics that we observe bots having, we believe that about 10% to 15% of our user hours are attributable to bots. This has been consistent for some time. The corresponding metric that we think indicates consistent non-bot activity in Second Life are the user to user inworld transactions per hour and the LindeX volume per user hour. Both of these have been consistent certainly since the bad of gambling at about $0.87 and $0.27 to $0.29 per user hour respectively. Our revenue has also been consistent at $0.20 per user hour. If bots were an increasing percentage of our traffic, I think there would be deterioration of these economic metrics.

    Mainland: Recently, we posted that we stopped expanding the mainland to allow the market to absorb excess mainland inventory. It appears that the price has stabilized & has started to increase again.

    Island pricing: Many existing land owners expressed frustration when we dropped the price from $1650 to $1000 earlier in the quarter. Similarly we frustrated a number of users when we raised the prices to $1650 in the fall of 2006. I would expect the upfront price to continue to decline as the costs of the associated hardware decline. Perhaps not as steeply as we lowered prices this time.

  27. Desmond Shang says:

    Extremely glad to see this posted, Zee – solid data, and in the right direction for the most part. I think there are a lot of people doing pretty well financially on the grid, and keeping fairly quiet about it – but the LindeX volume tells the story.

    It’s not the whole story though – clearly some sectors are hurting bad while others do well.

    In specific, I’d love to know is how big the openspace ‘market shift’ was, or even if it can be measured, with regard to people leaving say, 1/4 region on mainland or private estates for openspaces.

    I suspect this shift was one of the major factors dropping mainland (and private estate) land value, to the point that mainland rollout was halted recently and we’ve all seen one of the toughest land markets in a long time.

    Perhaps it wasn’t so much the lower cost of new full standard region, but the oversupply of land in different markets that caused the problem. Who still wants a 1/4 region parcel when openspaces are available? Yet with new signups kind of flat on the short term, there’s not much benefit to cutting devalued 1/4 region parcels into smaller bits and flooding the new resident market either. Mainland, private estate – same effects.

    * * * * *

    Controversially, in the ‘big picture’ I actually think the lowering of the new region cost was the right move. While I wasn’t keen on seeing a 40% decrease in resale value, eventually the grid will have to compete with lower cost solutions. We need to be lean and competitive when that time comes.

    But one of my biggest concerns would be another comparable market shift someday. For instance, if one day openspace regions would be a possibility for anyone, not just the land barons with a standard region to their name already.

    One small policy change, and the burgeoning openspace market enjoyed by land barons today would change overnight, sending shockwaves through the economy. To be honest I’ve been a bit shy to get more openspaces, just so I don’t have a lot of risk exposure in that very situation. I have no idea how important such land policies might be to you, or how casually or carefully they might be changed.

    Zee, what might be handy going forward, is as good an ‘economic roadmap’ as it would be possible for you to give; uncertainty is a huge factor in the wavering consumer confidence I’ve seen. If we know the long term goals – even if they aren’t quite met it will be a lot easier for residents to plan intelligently. I’d love to hear what M thinks is important about the economy going forward, too.

    All graphs and information you are willing to share are much appreciated.

    Desmond Shang
    Independent State of Caledon

  28. Ryu Darragh says:

    More appropo, Marianne, would be worries about the world economy and how that will affect inworld matters.

    Linden Labs started with a rose colored glasses view of users and thought that giving them rewards and providing perqs for content creators and tier payers would make the Second Life experience more attractive to newcomers.

    They allowed gambling, pornography and a host of any and all kinds of experinces the users could come up with expecting the users to be mature adults.

    So, we had “traffic”, which paid a reward to those who owned land and had users come and spend some time partaking the experience of that land owners creations.

    That quickly got abused by those who, in real life, try and “game” the system for a quick buck. So that got scotched by Linden Labs after much hand wringing.

    They had allowed gambling in Second Life for ages and expected the users to be adult about this as well.

    Then users started abusing and being abused by gambling establishments. Gambling was banned after much discussion and legal study in the end.

    What I am trying to make a point about is that Second Life and Linden Labs are more than “just a (fill in the blank) platform”. Besides the technology, there is also the social, geopolitical, legal and corporate aspects to deal with.

    All of these aspects require individuals with skillsets for each aspect, and not others. You don;t hire a secretary and ask her to debug PHP or C++ code. You don;t ask the programmer working on the Asset Server database to try and defuse a situation on region X versus people of a different and antagonistic nationality on region Y.

    As Q pointed out, SL and LL have gotten where they are in how they reponded to us and also in how they did *not* respond to us over the years. The choices thay have made have not always worked, users have not always been mature and adult in how they dealt with each other and LL. But, LL is looking to the future.

    In the final analysis, the mere fact SL and LL are still here, and we, the users, are still able to make *something* of our time here, is a F*CENSORED*G miracle!

    I would ask, if any of you out there are programmers who work on any kind of PC based games, graphics or are just red hot tamales as C++ programmers, go apply for a job at LL. In fact, look over their list of job openings. There are plenty and many, as you might note, Anne, are for just the fields you’d need to do what you have asked LL to do (and Q says he’d like to do).

    Hell, I have skills I think LL could use, but I’m stuck here in PA or I’d be at their doors, resume in hand 😛

  29. IYan Writer says:

    Thanks for your clarification, Zee!

  30. IntLibber Brautigan says:

    Its really misleading to use advertising to convince people they can make money here, then dump land on the market to destroy the value of their investments. In the securities world, that is described as a “pump and dump” which is illegal.

  31. IYan Writer says:

    The posted metrics are abridged – will we get the full metrics, too?

  32. Deltango Vale says:

    Are the age band stats correct? If so, there has been a big shift toward adult residents.

    April
    18-24 23%
    25-34 35%
    35-45 40%

    July
    18-24 15%
    25-34 35%
    35-45 49%

  33. Maelstrom Janus says:

    Well I assume this is good news for someone presumably Lindens as theres such a fanfare…so how about some return for your customers… a cut in tier charges or an increase in land allowances…. even a few more ‘rungs’ on the tier ladder.

    And if you can keep increasing the surface area of linden world how about an increase in the number of prims per plot – more fun to play on the land building and more opportunity to build better looking constructs and possibly even giving a more ‘finished’ look to sl.

    Lets see some return for loyalty to the Linden world brand if its doing so well 😀

  34. Upward Flow says:

    Interesting comments from LL on the bots – it seems that as always they for some reason favor the bots over real people – everything from helping inflate the user hours, to screwing over people trying to run legit businesses.

    No mention of how now that they have just bot friendlied land sales at the expense of all the human users (nice job on the cache of land searches in world so real users get 10 minute old results while bots can hammer the databases every five seconds 24/7), hopefully this means that LL will start providing all users with bots so everyone can join in the bot madness . As for land prices and the metrics that LL uses, or says they use, looking at the previous metrics, they have changed how they figure things from month to month, or massaged the figures somehow – one month we are told the average L$/m is very high, the next it is actually below cost or very close to it. There is no moderation in the supply or demand. As someone else stated here, it is obvious that the increase in new users has soured, so the smart thing to do would be to make sure the ones that are here now are happy, and then maybe, just maybe they will once again bring in their friends etc.

  35. Meta Linden says:

    @Deltango Vale : I believe you are referencing the User Counts by Age from the April stats at http://spreadsheets.google.com/pub?key=pxbDc4B2FH95zGGq34Qn9EA&gid=9 instead of the User Hours (on the right-hand side of that same page), which is what we have consolidated to use as a single measure for simplicity and accuracy. Carrying two separate sets of percentags for the counts vs. hours has been confusing for many people.
    So the change from April to June (we have not published July data yet, heh) is:
    April
    18-24 15.36%
    25-34 34.80%
    35-45 28.42%

    June
    18-24 15.42%
    25-34 34.76%
    35-45 28.31%

    which is not very statistically significant.

    I hope this clarifies, thanks for noticing. If anyone has any questions about this or any of our other public metrics, please IM me directly inworld and/or come to my Office Hours this Friday at 10 AM in Beaumont. See you then!

  36. richard says:

    thats a lot of bots !

  37. It’s easy to make numbers lie…

    When I look at those graphs, I simply see that the growth of SL is reaching a plateau: if you exclude the sqm virtual space graph (for which the growth in last quarter is simply the result of the huge drop in islands price), you can notice that they are all looking like the left half of a gaussian curve and that we are now at the plateau level.

    One, WAY more relevant number that you took great care not to make a graph for, is the number of active users (reflected by the “Logged in last 60 days” number on the login screen of the viewer): this number has been stable and always around 1.200.000 “residents” (actually avatars, i.e. alts are included in those logins as well) for months, while it used to grow fast in the past.

    This simply means that SL’s growth came to a stop, and that the number of new “residents” (or are their just new alts ?… The fact that you can now create alts for free certainly encouraged residents to create more of them) is barely compensating the loss of users who are leaving SL.

    I see this stop of SL’s growth as the direct result of three facts (classed by importance):

    1.- the totally autistic behaviour of LL regarding its users’ feedback (for example I fear that despite all the negative feedback already received by LL from its merchants, the search engine will keep degrading as it moves more and more to the web-based engine: something which already halved my revenues as a SL merchant when the “All” tab was converted to the new web-like one).

    2.- the poor level of stability and reliability of the grid (and I am not only speaking about the outages, but also about all the transaction problems when we reach 60-65k concurrent users online, as well as the horrible lack of reliability in the groups communications, groups which have been broken for almost one year and a half now, while they used to work just fine before).

    3.- the emergence of some competition (even if for now, the alternative grids are still in a very basic and even pre-alpha stage when compared to SL’s).

    I could risk a prediction: if nothing changes in LL’s way to deal with its users (and I could also add the very poor response to tickets) and grid stability/reliability, the pretty graphs will soon look like a full gaussian curve, meaning LL will experience the down slope.

    Yet, there is _some_ hope… It looks like LL is starting to learn its lesson, and the example of the “Dazzle” viewer which will finally be delayed till it allows to revert to the classical skin so many users were afraid to loose and begged for, shows that, at last, the residents were listened to.
    I really, truly hope LL will continue on this path and will stop imposing changes to the residents without regard for what they actually want.

    Come on, LL, let SL become _again_ “Our World, Our Imagination”, instead of what you clumsily tried to make it in the last months (i.e. The Virtual World As LL Wants It).

    Regards,

    Henri.

  38. Deltango Vale says:

    @35

    The different ways of measuring age bands was not at all confusing. This change is.

  39. Ciaran Laval says:

    You’re playing an extremely dangerous game here, devaluing assets, increasing land mass with regions that are by official Linden blurb not designed to be used for the purposes they are being used for and mainland is not recovering at the rate at which it decreased.

    Lots of semi filled islands and mainland parcels is likely to lead to the mother of all crashes.

    However thanks for the heads up that islands are likely to devalue again, there’s a lead balloon around somewhere.

  40. Deltango Vale says:

    @25

    I agree with JR Unknown. By failing to implement a rational land management strategy, LL is sacrificing existing residents/customers for new ones. At best, it gives the appearance of incompetence; at worst, it smacks of a pyramid scheme.

    The island pricing model could have been handled professionally by compensating existing owners with a ‘tier holiday’ of, say, three months (or, at the very least, one month) as a gesture of goodwill to secure resident (investor) loyalty. Dismissing resident complaints with the suggestion that they complain regardless of increases or decreases in land pricing shows that LL has not grasped the strategic business concepts necessary to survive in a rapidly evolving industry within a global market.

  41. KELLEY says:

    In the interest of ‘starting out small’, I purchased one of two small islands on a private estate a few months ago before taking the plunge into sim ownership – how ironic that Linden Labs Q2 announcement arrives the very same day that I was informed that the sim I’m living on (along with the other 2 sims the estate owner holds) is closing… simply with the explanation that Linden Labs refuses to address land issues. Basically, my estate owner is cutting his loses and is ‘leaving town’.

    Unfortunately, I also have a friend who recently purchased a private island and an openspace 2 months ago who is comtemplating the closing of those sims also.

    Here’s your new trend, Linden Labs. =/

  42. lucy lukas says:

    well congratulations on a strategy that means after a year of successful land sales i can no longer sell any land at a sensible price anymore, enjoy the growth whilst you can linden, its all going to go pop!

  43. hope antonelli says:

    Lowering up front costs wont save LL in the long run. Unless tier is made more affordable the economy is going to force many current landowners to bail. Its hard to justify making a car payment to a game when energy, food and everything else is rising at exponential rates

  44. Pingback: Dusan Writer’s Metaverse » You TOO Can ENJOY Improved PERFORMANCE! Second Life Economic Stats

  45. Ener Hax says:

    my land is doing well, thank you Linden for the opportunity 🙂

  46. Stone Semyorka says:

    I, for one, am happy for all of us as, well as LL. This expansion report is strong positive news to me.

    Of course, I’m not surprised to see most of the comments posted here on the negative side. I read comments on many SL Blog posts and I have the impression that the more or less the same tiny minority of vehement naysayers and negativists can be found blasting their boat whistles at LL on any topic.

    I’ve been in-world for 20 months and own some land on which I have placed multiple large-scale operations. During that time, I have seen ups and downs, good happenings and bad occurrences. I remember the overload of exhibitionists and griefers in 2006 and 2007, the worst lag of all time at that LL Valentines Day bash in 2007, the maddening outages in April 2008. There was a time more than a year ago when it seemed SL was crashing out from under me all the time.

    But then I also remember when LL recognized the problem, admitted it, and set about fixing it. Truthfully, omitting this past April, I can’t remember the last time SL malfunctioned around me.

    I’ve never been more excited in my life. I’m having a lot of fun and hopefully helping others experience the future. I’m pretty sure I contributed mightily this year to that new peak in resident user hours.

    However, I am continually amazed to hear the string of gripes over SL server and client performance. I haven’t lost anything from my inventory in an age. Almost never. It’s holding nicely at about 27,000 objects. I’m involved in lots of transactions and have found few failures beyond operator failure on the part of ill-advised or inexperienced avatars. Weak personal computers account for many miscarriages that come to be blamed on LL servers.

    Somebody wondered about Linden goals and objectives. I see clues all over this expansion report about the direction in which LL is headed. The Lab is a business, same as the perpetual gripers claim to be. Here’s a quote that I think explains it, “Because land represents nearly 8x more revenue to us than premium accounts, our focus has been on the launching of new land products rather than on enhancing the premium subscription.”

    As for the griping business people, some others must be happy. “The number of ‘profitable’ in-world businesses grew by 9%. Taking advantage of the growth in the economy, the number of in-world businesses with Positive Monthly Linden Flow, a measure of profitability, grew to 59,000 in June. ”

    I wonder just how much impact the premium subscriber stipend actually has on those landowners who are concierge members? Surely those residents who own and operate businesses of any size at all on their own land must be concierge members. If you are paying US$125, US$500 or even more every month in tier, how much impact does receiving a stipend of L$300-L$500 have on you? While it once may have been a big consideration in the era of First Land, I don’t think the premium subscriber stipend is a factor in this discussion.

    Some business adages I have collected over the years in RL: Small business owners always complain about the state of their businesses. They never make as much money as they would like. Things never are going to get better. The sky is falling.

    Some newspaper adages: People with a gripe write letters to the editor. They tend to be a small noisy minority of everyone involved with whatever the subject is. The vast majority of satisfied people never write.

    Have you noticed that the exhibitionists and griefers are less evident now? Doesn’t it seem that lag is greatly reduced except where people overstuff a sim or try to get by with insufficient computer power? Did you see that after April’s downtime, uptime improved dramatically in May and June? Almost 12 percent of our active residents are those people running the 59,000 profitable businesses? I think there’s a lot to be happy about nowadays.

    –Stone Semyorka

  47. Rebbecca Riggles says:

    “Because land represents nearly 8x more revenue to us than premium accounts, our focus has been on the launching of new land products rather than on enhancing the premium subscription.”

    In which case get rid of premium accounts and let everyone own land.

  48. cosa nostra says:

    I just see like others see ….. as long if ya see the facts and dont look at the figures (just being objective realistic);

    *empty/abandonned private sims everywhere
    *people giving away free land (cause landpricing to go down)
    *some of the best sl creators leaving or closing there operations
    *clear to see that a big amount of avatars are youngers <18
    *frustration is taking control on the grid and not the creativity

    anyhow, this trend will shut/kill LL slowly …. never forget that the success of a company is determinated by its customers, not the opposite !

    therefore the figures are subjective in my eyes and only manipulated to tell the RL world that everything is ‘sunshine’ … but it isnt.

    At the other side the performance of SL is much better than it was before, this to give a positive note, but again LL if you really want to be professional then you will have to start supportingrespecting your fix customer base and restrategy your future operations with those segment in your plan… OR U WILL SINK WITH THE LL SHIP !

    cosa

  49. Storm Nordwind says:

    This is exactly the same size as Greater London!

  50. Vivienne says:

    Stone. for Linden Lab everyone who earns 10 lindens and spends 9 on freebies runs a “profitable business” here. That´s what i call spin.

    In fact the real in-world transactions, which indicate the real state of the in-world economy, dropped by almost 50 % within the span June 07 – December 07 and slowly recovered to 75 % by now.

    It is not really “growth” when a declining number of premium account holders buy more land while land prices drop significantly.

    SL is not really growing anymore, and if it ever will grow again in the future it will grow very slow. Hardware demands are way too high by now to guarantee fluent access and a fluent, enjoyable experience to more than 20 percent high end equipped among the 80-90,000 hardcore users who are willing to support the Lab by paying significant amounts of money and are creating the content (which is what attracts new customers and keeps old ones, not the buggy LL software and LL lag).

    There is nothing really positive to read there, only that SL still exists and does not seem to decline as dramatically as some have prophecised. Which is great. But growth??? Spin.

  51. dusanwriter says:

    Thanks Zee for these stats and for being so forthright and useful in your responses to some of the questions. The bot issue of course is on a lot of minds. I’d try to make office hours as I’m curious about a few things, but can’t this week. In any case, I’ll check the transcripts and hope you have some insight into the following:

    – Would a bot be a successful in world business? If it only receives Lindens but doesn’t outlay, then I assume it’s a “profitable” business?

    – Does Second Life have access to any data, anecdotal or otherwise, indicating whether there has been a shift in the economy outside SL? I imagine things like purchases on onRez etc. are in a sense covered by the number of Lindens purchased, but any sense or plan to canvas or poll other businesses who accept things like PayPal for land rental costs?

    – Regarding premium accounts, I’m under the impression that many people rent land. Is there any way of gauging whether land ownership has ceased to be an incentive to upgrading to a premium account when there are other ways to have a home? Do you poll non-premium accounts at all (I assume those surveys that pop up KNOW I’m a premium account, do different surveys pop up for non-premium members?)

    – I agree on the need to parse the data between open and regular sims, although I understand your need for a modicum of confidentiality, (although if you could publish M’s salary that would be great! 😛 ) I’d be EXTREMELY curious to see over time whether buyers abandon open sims because of performance. I’m under the impression that there are a lot of open sim owners out there (anecdotal) who don’t understand why their sims lag.

    – And finally, this is a pet request really more than anything, and the stats would be meaningless, but I’ve always been curious what the size of the “gift” economy might be – you know, give your best friend a shirt you made or whatever. I know there’s almost no way to meaningfully track it, but I’d love to know, even on a year to year basis, whether the number of objects exchanged where there was a 0L transaction have increased or decreased on an average basis per user.

    Thanks Meta and Zee, and keep up the bold bright colors, they make me giddy.

  52. Lukas Mensing says:

    About bots again and answering Mr Zee Linden:

    dixit Mr Zee Linden: “[…]The corresponding metric that we think indicates consistent non-bot activity in Second Life are the user to user inworld transactions per hour and the LindeX volume per user hour.”

    Actually Mr Zee, bots do a lot of “user to user” transactions:
    – Bots buy lot of land
    – Bots camp!! (many camping have few “real” campers, and many of their own bots (so they get back their money).

    These two user to user activities show that this way of “counting bots” is not effective.
    There are maybe other ways (in bots behavior) to consider for counting them…

  53. Darien Caldwell says:

    Nice graphs. Makes digesting the data easier. Encouraging numbers. Thanks.

  54. Tom says:

    I have been a sl addict since 2005/2006 and i have seen the platform grow it has been a real eyeopener on this type of technolgy and the backbone of the virtual economy and making stuff is the main draw for me it was very easy to get a positive cashflow going usually a few hours work would pay the teir fees trading on the mainland market. But as the company is now expanding the platform ie land mass it is more like 2 weeks work to cover teir. Just a shame that the new users find it so hard now to get on the cashflow ladder.. Anyone remember even camping for 8ls per 2 mins lol before bots came along. Them where the days. Maybe bring back first land or even do first sims 🙂

  55. Maelstrom Janus says:

    @53 encouraging for who exactly ?

    LETS SEE SOME POSITIVE RETURN FOR CUSTOMERS IF SL IS DOING THEAT WELL !!!!

  56. Firebird Nightfire says:

    Stone – Halleluia! Finally someone is singing my tune!

    Stone wrote, “People with a gripe write letters to the editor. They tend to be a small noisy minority of everyone involved with whatever the subject is. The vast majority of satisfied people never write.”

    That’s why I stick up for LL and SL when I can.

    Cosa wrote, “clear to see that a big amount of avatars are youngers <18”

    Cosa, I think you may be confusing _avatars_ with _residents_. An avatar represents the resident, it is not the residen him- or herself. You may see lots of child avatars running around, but that doesn’t mean the residents are children. Am I a dragon when my avatar is a dragon? No – I remain a human being. The residentss inside the child avatar are adults unless you encounter them on the Teen grid. And then I have to ask what you are doing there?

  57. Maelstrom Janus says:

    Fawning to lindens gets no one anywhere. Im a consumer I want more for my cash. Im english but I thought that sort of materialistic way of thinking was the accepted american way. Lindens want more…they wouldnt keep selling more and more and more land. So why shouldnt customers expect more for their money too ?

    Im amazed there aren’t more crying out for more.

    Everywhere I go the so called ‘silent majority’ are complaining about missing inventory items and lag.

  58. Cudaboy Lockjaw says:

    This is all to interesting. As a land owner I cant give my land away, The openspace sims are selling lots for a buck. their monthly teir charge is the same as LL. So what is the point of being a full member aside from being stuck with a bunch of land you hope to sell. Its A sad day when you spend 200k for land and cant even sell it for 50k. But the reports show land sales improving thats a fibb.
    I hope LL sees the wrighting on the wall because Open source sims are taking off. I know of one grid that is like SL was +/- a year ago and they already have 20k plus members, you dont need to be a full member to buy a sim and there sim prices are so low its crazy. Yes they still have groth to do but then again SL is constantly doing server upgrades etc so whats the diference. I know for me once my land is sold, if i just dont abandon it and cut my losses. My full membership is cancelled why should a person keep paying LL for a membership when its not really needed to own land in sl when island land is almost free to purchase and the monthly teir is the same. Personally id rather give away my $ to someone else and hope they dont screw me then throw it to LL and get meanial support when its needed.

  59. Vint Falken says:

    Land mass might have grown, but that accounts to nothing. Counthing ‘converts’ in here is close to cheating the numbers.

    4 voids = 1 server
    and a void is a whole less of prims and possibilities then a normal island

    so it’s artificially boosting the numbers, and the 44% growth is a – nicely illustrated by the way, luv the graphs – scam

  60. Joe66 Vita says:

    I ‘own’ a small amount of land, and would be more than willing to pay upfront fees if the tier amounts were not so large. I would much rather have a decrease in recurring costs than upfront costs. By dropping the price of land $600 Linden recovers it in only two months of fees.
    Cut the monthly land fees and make owning and keeping land easier.

  61. Pingback: Zee: Bots = 10-15% of active users - SLUniverse Forums

  62. Ryu Darragh says:

    The real problem is many think this is the only venue for complaining since the SL Forums were deprecated. Hasn’t worked for ages in that regard, but people keep complaining here. The Lindens whose shell like ears complaints need to get shouted into rarely peruse this blog. They *do*, however, read publications like SLInsider and a few others. Perhaps, if people really want to have the Lindens pay attention to a consistant and unified voice with a large number of users behind it, some kind soul will post places here we can go to and voice our opinions that we know the Lindens read.

    It *is* refreshing seeing the many here on this particular blog entry rationally discussing what the metrics mean. Won’t solve or influence any efforts to get rid of bots, however.

  63. Joshua Sao says:

    Earm, 59,000 positive businesses? I understand smudging the truth and numbers a little but this is a total BS figure. over 30,000 of those are for transactions that are $10 or less, and for all you know it’s just people cashing out their stappend. It’s misleading at best. From your stats I would say on the conservative side you have a maximum of 4000 businesses in second life that could come close to being called successful under the PLMF stats.

    Also, iterating that LL lowers the price of sims when the hardware cost lowers is also a flat out lie. Any time you raise or lower the price of sims there is always a scheme to boost your profits without regard for your users. If you were truly transparent you would show what your costs are and when and how they changed. I think we would both agree that one has nothing to do with the other in light of the actual numbers. I’m also confidant that those numbers and dates will never be disclosed publicly.

    I do like SL and LL, but it is a bit out of sorts to see you being deceptive and expect anyone with half a brain to buy it. Kind of insulting actually.

  64. Nice one fiddling the Key Metrics. You’ve cut out all the decreasing numbers and just left in the ones that have gone up: land due to disastrous decision making, and hours, because of bots.

    Well, you do show Premiums dropping again, but where are all the active users counts by country? They have been dropping for months. It’s people that push growth, not the artificially massaged numbers you give. And I see you just print the consolidated exchange, not the LL and external exchanges, which showed Lindex losing market share.

    June Key Metrics are a joke, Bring back the old numbers so we can properly compare the falling of SL. This is worse smoke and mirrors than a politician.

    You can also see by the comments. Just one fan boy this time. And yes, people can’t be bothered to post because LL never listens to us anyway. Carry on destroying the world and fixating on worthless shinies.

    Whilst you have almost doubled the land over the last year, active users have been static since May 2007, despite a doubling in registrations. That should tell you something: people want stability and less lag not more useless shinies.

    The SL is becoming more and more unplayable by the day. Still, that’s what you get when you decided to totally ignore the Open Letter of more than a year ago. I see M. Linden has made absolutely zero difference.

    Ah well, it was fun for a while at least. Now I’m looking forward to the growth of Twinity.

  65. Rhys Goode says:

    /me is not so pleased to announce that the cranky, shaky, just barely usable – but rapidly expanding – system just ate 20 no-copy dance animations.

    Glad to hear things are going so well for LL. Best wishes for continued growth!

  66. I have all the old Key Metrics, so I’ll work up some graphs on user numbers and stuff. They show a very different picture to your “growth” lol. How about average avatars per sim? That’s dropped to almost below 3 now, at peak hours. Not of course that you can get 80 avs on a sim now, more like 15 before it lags to death.

  67. Felix Oxide says:

    One thing that has bothered me for a very long time is a certain stat on the Economic Statistics page. The Total Customers Spending Money In-World metirc never really has changed much or grown much. What exactly is this stat based on. Is this number closer to the real number of unique, active resident accounts?

  68. Chaos Mohr says:

    @ 26 Zee Linden: “Mainland: Recently, we posted that we stopped expanding the mainland to allow the market to absorb excess mainland inventory. It appears that the price has stabilized & has started to increase again. ”

    So just where is LL getting the figures that say the price has stabilized and started to increase again? This statement doesn’t jibe with the published metrics which say as of yesterday that the Avg L$ Paid Per Square Meter was 2.5704 for July MTD compared to 2.8191 for the month of June (which incidently is well below the minimum auction price for a new sim of 3.14 (figures taken from the published metrics: http://secondlife.com/whatis/economy_stats.php)???

  69. Coon Surya says:

    Well, I guess you guys got me at the gate: I was predicting the gambling ban would nearly cripple the Second Life economy for a while.

    It made a clear dent in your figures, but it turned out that the effects weren’t as far reaching as I thought they would be. That and people seem to have quickly come up with alternatives to perpetuate cash flow.

    Good Job guys.

  70. Pingback: Dusan Writer’s Metaverse » Google Launches Virtual World in Competition with Second Life

  71. Argent Stonecutter says:

    I wonder what the average sale price of 16 square meter parcels is. 🙂

  72. Brandon Catteneo says:

    1.5 Billion meters? 1 AU is about 150 M km – or 1.5 B m.

    That means if you stretched out SL 1m wide it would reach from here to the Sun.

  73. Ann, the thing is, that the new interop protocols are the core of truly breaking the concurrency ceiling. As part of making the SL grid one of many, the server architecture is being redesigned at the most fundamental level. Even the first pass at deploying a meta-grid should result in some increase in concurrency, perhaps a drastic increase, even without trying to change things specifically towards that end.

  74. Darien Caldwell says:

    I’m not sure why people keep harping on the number of Premium users. LL clearly stated above they aren’t their key focus or profit center. LL doesn’t care about premiums, why does everyone else? There’s nothing in SL that requires being premium, so there is no incentive. (unless you count owning mainland, but thats a decentive.) 😛

  75. Ann Otoole says:

    Non Secondlife Grids are not part of Secondlife. They do not have intellectual Property Rights nor do they have any economy. They are and will remain irrelevant to the success of Secondlife and are utterly irrelevant to the revenue stream of Linden Lab. I personally have never seen any company hand their revenue stream away like Linden Lab has placed it’s first priority on doing. I would really love to know what the plans for Secondlife are. Is there an exit strategy in place for Linden Lab to lay off it’s staff and shutter the existing Secondlife Grid? Or will Linden Lab hire the expertise required and invest in the architecture required to make Secondlife the preeminent place to be in the metaverse? By this I mean a totally revamped user interface with hot bars and ergonomic controls and the database run on Oracle with a 24*7 serious DBA staff. Isn’t going to get anywhere on the same trajectory it is on today. “Oh we can’t so let’s give it away.” Is that the strategic vision motto of Linden Lab? If so then I feel a small bit of empathy for the staff that bet on LL. I feel a lot of pity for all of us that bet on Secondlife just to watch it wallow in the quagmire of lack of appropriate architecture, and technology.

    Twinity? Montana you can’t be serious. Twinity is an utter joke. Twinity is so bad it is funny.

  76. Bronsen Mornington says:

    Land speculation has its risks, virtual and real. The opening of the Oklahoma territories, the statehood of Texas, and the annexation of the West made land cheap and removed potential buyers from East Coast markets. Sl speculators may be glad there is no SL equivalent of the transcontinental railroad to further destabilize their investments. As in other more glamorous forms of gambling, the old adage that one should never risk more than they are prepared to lose applies to SL as well. HooRah to SL for making land cheaper, it may well be the strategy that leads to population increase, just as it did in the USA of old.

  77. Knowl Paine says:

    Virtual World expands 44%
    Land Values Drop 50%

    The virtual world expands, yeah that’s great if you are in the market of Selling Tier.

    Land values are plummeting with no end in sight.

    I understand the risks involved with free market investments and I am willing to except these risk.

    I do however expect LL to be an active and responsive moderator in providing a degree of regulation in order to sustain the system.

    Recovery and sale of abandoned lands by LL should be temporarily suspended.

    Increase the cost to advertise land sales to help slow the land dump.

    Increase the percentage given to group owned Land. What is it? Like 10%?

  78. JS says:

    @77 The biggest risk in the land market is LL deciding to crash it to make profits for themselves. You make it sound as if it has anything to do with anything else. It doesn’t.

  79. 44% land mass expansion thanks to Open Space sims, but no corresponding increase in population, and a crash of the mainland market, which is potentially more lucrative over time.

    I think there is no real vision for the land market, unless you finally open the spigot and let anyone own land, and let anyone buy their own OpenSpace sim. Of course, that would eventually wreck the large estates and the rental market in general, but hey, you’d get a ton more people paying tier directly to you! :p

  80. Coventina Dalgleish says:

    The unorganized chaos of the shell game in a smoke filled room with broken mirrors

  81. Cybertek Warrior says:

    Gret job, the reduction of price for a region was welcomed, I doubled my estates size. I can’t wait till it is reduced again

  82. Yavapai Villota says:

    There should exist an obligation by TOS for bots, that they have to be well dressed, good looking, rich, land – and homeowners, creative with building skills, multilingual educated, able to express some senseful sentences about phenomenology and local or global politics, even about modern literature and architecture and about what they have had for dinner today, -also able to move somewhere dancing and hanging around and listening concerts, being romantic and emotional and being a not boring company while exploring different locations. But then they were: residents. I thought – me stupid thing – that I would play with people here, but what a mistake: bots. At every corner: bots, a world full of stupid robots, wich are even not able to click the “yes” button when I ask them to give away some blood for me poor vampire, hehehe ;-). Ok, landbots are moving around on speed. But they are not very communicative too, even not polite enough to say “thank you” when they catched a small lot for nearly nothing. Once I tried to throw a bot (or some, because they are often appearing as collective, kind of bot socialism or communism, wich you can see on the fact that they are often wearing the same noobs-dresses and names like 1538GBOT1 Teatime, 1538GBOT2 Teatime, 1538GBOT3 Teatime and so on …and all are born around the same day and month in a year) down from a platform in the sky, but what can I say?!: they are screwed on the prims there. It would be easier to move the St. Stephanus Dome in Vienna from its actual place to another. Omg, I lost the thread, anyways, what I actualy wanted to say: ahm, would it be asked too much to the LAB, if we user, sorry, customers, paying residents, – the few wich we are -, that we can expect – in a near future (means: now!) – to meet and play with only 100% real residents instead of running into bots at every point? Hmmm? Because: a world full of bots is somehow…DEAD! Also it would be nice by the LAB, to create a graveyard for avatars wich didn’t logged in for months or years… – they are sure dead, or on everlasting vacancy in the caribian sea, or meanwhile presidential candidate of the United States or whatever. These 8 Million poeple wich left the game forever after they’re installed a more or less boring name and a full grey profile and were never seen again since that. This could help to clean up the asset servers and the statistics, I am sure.

  83. Chaz Longstaff says:

    >> Total user-to-user transactions, a measure of the gross domestic product in Second Life, grew 14.3% during the quarter from an annualized rate of $300 million in Q1 to $338 million in Q2. Resident spending remained a healthy $0.87 per user hour. <<

    Um, is that Lindens? Or is that US dollars????? If US dollars, how much longer before the various taxmen start hammering at the gates?

  84. Peswold Desoto says:

    I’d like to see the introduction of a new intermediate subscription level to allow a lower (like $19.95 a year) nominally stipended account status of $50L/week that allows the ownership of mainland land to a total limit of say 4096M. I’m all for the enabling of the people who are on “free” accounts so that they can be more a part of the SL community, rather than uncommitted castaways. Premium accounts aren’t premium, they’re just the ONLY account level.

    As for statements of concurrency vs sims, you have to look at the 24hour cycle. A more true estimate of daily participation would see sim/av ratio at more like 50 ppl per sim over a 24 hour period.

    I really would like more tiering levels, if not my suggested “per 1024m”, then something doubling the levels to encourage people to step up a little in ownership rather than scaring them with a double price hit (ie going from $40 to $75 for owning just 1M more over the tier level).

  85. Altering Zipper says:

    Great news but premium membership is a metric that matters. Please work on it. With small changes, not violent big ones, which would upset the rental market ty:)

  86. Q Linden, first of all LL was NOT the first at 3D chat, virtual worlds, voice in virtual worlds, music in virtual worlds and also NOT the first for interoperability (cross grid teleport).

    http://www.worlds.com developed this technolgy years ago before SL ever existed. At worlds.com users stream their individual worlds on private servers. They are able to teleport from world to world using this technology that LL is now claiming to have debloped…. total hype and untruths. This will be interesting to see how Kidrin will react to this.

    For the record, how does LL justify never paying Thom Kidrin royalties for using his technology, especially for 3D chat? Other similar programs paid. Is this the reason LL went opensource, thinking that they could avoid these royalties?

    SL is a good program and personally I love it. However, I am so tired of hearing LL trying to take credit for what is not rightfully theirs with no mention of Thom Kidrin or worlds.com, etc.

    PS You might also want to consider some teaching a few of the concierge team some basic CS skills and manners such as not screaming on the phone and attacking and insulting the very people who pay overinflated prices for little service.

    These numbers? They mean nothing at the end of the day. Take a good hard look at SL whilst you still have a chance.. look at what has happened at mainland.. adfarms and extortion.. looks like a nightmare in a run down trailor park.

    You killed the land market and destroyed investments for many.. people are losing allot of real life money thanks to your poor management skills. Expansion is not good at the cost of destroying the economy and community.

    I know what I am talking about since I have experience in the gaming industry. I can tell you that the last thing to do is to destroy the ecomony.

    Advice.. Without the commuinty, you have nothing… listen to the voice of the communities within SL. Get some people who know what they are doing in management or better train the ones you have so that you don’t look like a newbie company.. try hiring people from the gaming industry.. producers, etc. Community managers too.. these people have real experience at what it takes to make a 3D community thrive commercially and otherwise.

    At the end of the day there is such a thing called balance. Keep that in mind the next time you release yet more virtual land or expand pricing to an otherwise disgruntled virtual community.

    Live up to the real potential that is capable within the virtual walls of SL and beyond. Thanks.

  87. Coventina Dalgleish says:

    Again looking at the numbers and traveling back in time to my first days when we had a users on line board in the noob centers. Those were the days of 2500 on line concurrence with a subscriber base of less than 20,000. A good ration in anyone’s book. The next step was the 300,000 to 500,000 subscriber base and concurrence numbers from a low of 10,000 to 25,000 during the peak times. Now we have todays numbers, which we all see on log in of 35,000 to 64,000 on a supposed subscriber base of 12 million. To this we add massively increased land mass to the point that many sims have a traffic of 0 to 50 continuously. One might think that there is a considerable over load in land today. The influx of buyers for open space sims inflates the total but they should really be considered marginal land operating at a level less than 25% of a full sim. Vacant they look great running conover numbers in the 5000 to 6000 range but drop 2 or 3 avatars on them and they perform like an old class 3 server with conovers of 1200 to 1800, although the top script times and frame times are outstanding. If the open space islands were a bit more robust one might suspect that they would be used more. I suspect people are going to realize that they do not add much to the experience except scenery.

  88. Chaz Longstaff says:

    Wow, the usual people who are bitterly unhappy with their own sad lives are out in hordes here, I see.

  89. Kahni says:

    The only thing LL cares about is tier payments.

    They’d sell it for $1L/m and destroy all private landlords if it meant they’d be getting thier on all of it.

    When I moved my stuff to a new sim, It took me a month to sell my old land, and at 1/10th of what I had invested in it.

    Land values have been destroyed. LL doesn’t care.

    Maybe it’s time to get rid of the idea of “buying” land at all anymore, and just pay straight tier costs (which while the value of my land bottoms out, the tier never does.)

    I wish LL would stop screwing the landowners in order to maximize the total number of square meters “in use”.

    I feel sorry for the people that thought land was a good investment.

  90. Alexey says:

    good second life…

  91. Alvi Halderman says:

    This number could increase if SecondLife is more stable……i really feel nowadays that SL is Beta…because it has a lot of problems……..i personally have land and love second life but i really think it should be a lot more stable….:D
    i would own a private region if the monthly fees for a full 15.000prim sim to 200dolars and the openspace one can be owned by anybody…even if he don’t own an estate and the monthly fee is at 50dolars.

  92. I agree Avi, it feels like Beta and it is certainly far from stable. I get bad memory leaks and so does most people I know, constantly crashing with this latest viewer.

  93. Arifi Saeed says:

    Well, if anyone wants to buy a full sim and three openspace sims, cheap, just contact me at arifi.saeed@canopusresearch.com or in-world. Arifi Saeed

  94. Arifi Saeed says:

    Full sim is Soheil. Openspace sims are Canopus Research, Strawberry Islands, and Karina. Available as a package.

    Arifi Saeed

  95. Peswold Desoto says:

    If I was allowed by LL to own an openspace sim, I would. I don’t know why they say they’re not for building on, with 3750 prims. Non-commercial, yes I’d understand that, with no crazy-ass scripts. Why can’t they be clustered via zone? Openspace residentials, openspace commercials and openspace OPEN SPACE.

    I’d be into one tomorrow if I could.

  96. Wyald Woolley says:

    I would like to nominate Zee Linden for inclusion onto the select group of “Truth Telling Lindens”. Thank you Zee for adding answers to this thread. It was useful, enlightening and a breath of fresh air. 🙂

  97. cosa nostra says:

    Peswold, the openspace sims are just good as a sightseeing space full with some trees and landscaped, the best is to look to an openspace from a regular sim !

    reason is that these openspace sims are voids, 4 openspace sims are running on 1 CPU ! 1 regular sim runs on 1 CPU !

    it is laggy and borked ! I own one so I know what I am talking about, I own also a regular sim and there u have performance 😉

    greetz,
    Cosa

  98. atom hykova says:

    I can just quote many of you guys, this information is not positive and I think it’s absurd that linden lab is telling us: “hey guys great news, the residents are still the same of the last years but we have sold a lot of new sim with the new price of 1000US$ each!!!”
    Excellent lindens lab, in the meanwhile the only sims full of people are the top classified search engine ones (about 1500US$ per weeks to be there) and this is another excellent result!

  99. Vivienne says:

    “I’m not sure why people keep harping on the number of Premium users. LL clearly stated above they aren’t their key focus or profit center.”

    Very right. Especiallay when you realise that the only significant, profitable “growth” LL can point out is generated by premium account holders exclusively: Land sales.

    They are smart, aren´t they?

  100. Pingback: videogaming247 » Blog Archive » Second Life expands to 1.5 billion square metres

  101. Juliestrain Khandr says:

    Hello,
    good to hear. Basicly SL ist the best Online world with great freedom to build and make things, but to PLAY within is not easy like a single player game because ppl want to relax in not to fight in. So the gamers are not there. Second life has no levels. I think we need levels O.o. Second life has no secrets. We need secrets. We need spirit. To built a great outfit with all great stuff from anne or wraith or sector 52 stuff or free stuff give a amount of satisfaction BUT only for a few days. But using SL like AIM is not enough. Last thing: there is no information about inside LL.
    kf

  102. the only Sartek says:

    As a premium member, I’m happy with the lower landprices. Finally I’m able to own my own parcel for a decent price.

    I would never buy land on a private sim. The reason: I’ve heard too many horror stories about users getting ripped off by sim-owners (sim-owners taking land back from their buyers without a valid reason, etc…)

    Maybe sim-owners should show a little more creativity too, instead of building yet another shopping district, clubbing-district, or beach area.

    There are still lots of excellent sims that attract lots of visitors. Those sims offer that little bit of extra that the other sims miss: good design, lots of fun, and an extraordinary environment

    For those who complain that they might look for a real-life job for a living, well, join the rest of us…

  103. Chatto Tomsen says:

    It’s amazing how much I don’t care about the sound of landlords whining about their right to be parasitic.

  104. Vivienne says:

    @ 101

    “So the gamers are not there. Second life has no levels. I think we need levels.

    Basically everyone with decent scripting knowledge is able to create a “ame” in SL (theoretically). The first problem is that LSL does not allow zhe creation of complex game scenarios, only basical stuff, which will never attract the real gamers, anyway. The second problem is that LL hardware and software architecture does not allow any fluent gameplay (lag and the like), not even on a low level. The third problem is that almost everyone who really is into SL knows about the first two problems very well. This results in a customer base which obviously does not want any advanced gaming at all. I can live with that.

    “For those who complain that they might look for a real-life job for a living, well, join the rest of us…”

    It is of no use to attack the very few ppl who earn a RL by using SL. LL offers the opportunity by advertisement, so they are the ones who must live up to their promises and guarantee the commercial side of the platform. Not the ones who use SL as a commercial tool. These who do so have all the right to complain on LL actions which hamper their profits. The rest of us, who is obviously only in it for consuming, should be happy that the few who are in it for the money (or at least some money) do a priofessional job in content creating or whatever. If there were no professional creators, there would be no consuming and no SL.

  105. Tegg B says:

    Interesting stats, it’s a pity the desert getting bigger is such a good thing. With less than one real person online per sim it’s a barren world. The only land expanding is retail since you now need vendors in more multiple locations if you want a chance potential customers will know you even exist. Residential is dead, I can’t rent mainland plots at less than cost, so I pity people who thought they could make a living from it.
    Bots hammering the grid TPing from sim to sim so fast they don’t even land long enough to be visible. Kids are loose of course a product of our system that provides infinate anonymous accounts to any user who can creat a hotmail address. No wonder bots are runing rampant, day and night weekday concurrency are getting closer in number indicating the number of 24/7 bots online may be well above 10-15%. We’re hitting 64k on weekdays now but is the economy showing that it is on a high too? Seems no where near what a tripling of weekday online users should result in.
    Bots transact to other bots all the time, just set up 50 of them transfering $50 to each other every 5 seconds and you got a booming economy. They got time to do it as they bounce around or park in skyboxes.
    Adfarms are spreading throught the oldest continent like cancer. They buy good land carve the fat edges off it and dice the rest up, driving long term residents out. A sim goes from 10 neighbours to 30 groups in under a week.
    Bring on the competirion and linking of grids, so we can just visit the deserted remains occasionally.

  106. the only Sartek says:

    Vivienne,

    I think my message got out wrong… sorry.

    I have respect for content creators, believe me. I buy lots of stuff in SL, and I wish I had the talent some of these folks have. I have no problem with people who put lots of effort in their creations and make a living out of it.

    However, when you buy a few sims, put a few shopping malls in it, and expect money will run it and you will get rich in no time… well, be prepared that things might not work out as expected.

    My point is: When someone quits their daily job to start a business in a new platform like Life Second, he/she should be aware of the risks. If the place doesn’t attract buyers or visitors, it is time to evaluate your business-model instead of blaming Linden Labs.

  107. MarmelaGramela Doesburg says:

    I see everything getting adressed again by Lindenlabs answers but the main concern uttered: Who’s supposed to use all the land?

  108. Beer&Pizza says:

    Looks like a pretty good loss of premium accounts.

    Interesting Stats

    December had 93,219 and from then on Has been a pretty steady decrease of premium accounts..
    Interesting stats.
    January 92,096
    Feb 91,531
    March 89,875
    April 88,550
    May 88,585 < slight increase
    June 87,867

    Will be intersting to see July stats ..

  109. an interesting fact in the community in which I belong, is that an important increase of land mass occured after our lands moved in a new empty area of the grid. For nearby one year, only little growth occured, because we were locked nearby all around by other sims. In the beginning, it was not realy a problem, but it ended to seriously hamper some new projects. So we asked to LL to move all our sims in a block, toward a new empty area west in the grid. This allowed our pending projects to take shape, but also in an unexpected frenzy of people buying new sims to join hours, in only some days. And now, guess what…we are again locked by neighbours!

  110. Beyond the lower price of virtual land, this increase in land mass is a consequence of the tremendous interest in virtual worlds (and especially SL, when all competitors are still beta or small).

    We can also guess that LL lowering the land prices is an indication that LL has a sound financial situation. At least I hope so. I hope that this sound financial situation will be used to better the running of the database and other bugs which are still spoiling our virtual experience.

  111. I would also say that, when we buy land in SL, it is very different of buying land in RL. In RL, land is a scarse and limited resource, which is however a vital need for us all. In SL, when we buy land, we buy, in fact, computer resources: the capacity to handle prims for our virtual activity. So there is no point at speculating on land prices (in RL neither, I would say) and imitate land barons. It is especially useless when any group of small users can unite to buy or use a sim together.

    (sorry for 3 comments, but they are on different topics)

  112. Beer&Pizza says:

    Heh Lowering the price of a region is a pretty good slap in the face to those who payed 1600 not long before that . And then flood the market with cheaper land.. Is another slap in the face.
    I hope everyone recoveres from that who spent 600 more than the last guy
    Ouch lol’

  113. Cappy Frantisek says:

    numbers, numbers everywhere but are they for real? Numbers can be manipulated especially by the only ones that have access to these numbers. Get real ppl!

  114. cosa nostra says:

    See LL a bit as a terminal patient …….

    before companies go busted or bankrupt, the last things they do to survive are ;
    1/ breaking/stopping there loyalty to there fix customer basis !
    2/ then they present there product cheaper to the full market bypassing the core base!
    3/ they loose image and there brandname and go busted …. RIP

    this type of operations are just meant to get out as much as possible money in a very short term (that explains ofcourse the landprices drop !) and in which they succeeded ofcourse ! But this overload of land just further makes things worser and makes THE GRID looking like an empty desert.

    I already proposed them to shut down 50 % of the grid and restructure from there (guess everyone was laughing on there chairs in CA), force age verification, only give new members a 7-day access pass after that full registration and payment info on file required…..

    We only need to see the results moving forward, but I am not at all optimistic ….. wish someone would step up at LL and invite a bunch of core users to discuss strategies moving forward, because this is there only hope !

    Cosa for CEO 😉

  115. Xen Akula says:

    This reminds me of that DirecTV commercial…

    90% of all statistics can be made to say anything.

    90%?

    50% of the time.

  116. Pingback: Google’s Lively, VW Interoperabilität und 44% Landgewinn — mrtopf.de

  117. Chatto Tomsen says:

    LMAO I just got ejected from Tombstone citizenship. I wonder if it was for my comment Number 103… Hm do you think I might have touched a nerve??!!!!

    I haven’t been there for months anyhow – what a laggy snore.

  118. @116:

    Tremble Linden Labs, Google is coming into the virtual space!

    Seriously, I gave “Google Lively” a try, it is really deceiving from Google, I hoped they could provide something at least as good as Second Life. At least they have the power and skill to do so. Well, after 10mn seeing random shapes passing around, and hearing random unpleasant sounds, I was still unable to move or interact in any way. Avies are ugly, grimacing faces, and I wonder in which extend they are customisable. And in my first entrance, I was not ruthed, I was… pigged! argh!

    Oh, yes, if I understood well, seems that in Lively we can have land for free. But if I look like a caricature…

    Seems that still nobody understands what makes the success of SL. Oh please Lindens make my chat window error again, after all, I love SL, even with the problems.

  119. Foxxe Wilder says:

    #114 Cosa Nostra

    Cosa for CEO??? I’LL SECOND that!!

    I agree 200 percent! SL is a dying whale under the current corporate stategy and it has been BEACHED since the doors opened WIDE for every child old enough to bypass a silly “Are you 18” banner!

    I’ve watched this virtual paradise die a slow horrible death, NOT due to GRIEFERS but due to the JERKS that are running this show congruent to mere California laws.

    Ruling an entire world using such closed minded laws is similar to living in a cave in downtown New York!

  120. Sling Trebuchet says:

    How can the world expand if concurrency is at a glass ceiling of 60,000?
    Make it 70,000 at most by cutting services and making bad lag ‘normal’?

    Who will pay tier on new land?
    Existing users? – Will they even continue to pay for their existing land?
    New users? – who can’t get in because we’ll get to off-peak concurrency nearing 60,000?

    A re-engineering of the grid is being “contemplated”.
    A year?
    Two years?

  121. Because land represents nearly 8x more revenue to us than premium accounts, our focus has been on the launching of new land products rather than on enhancing the premium subscription.

    Welp, at least you’re honest about it.

    May I suggest that ‘enhancing the premium subscription’ might be a good priority to have, though? If people start leaving in frustration, there aren’t going to be nearly as many people to sell virtual land TO. Especially since you just trumpeted the ability for people to visit other grids entirely. If the user experience isn’t significantly improved, the value of land is going to plummet very quickly as people flock elsewhere for their virtual experiences.

  122. RightAsRain says:

    lot of pretty graphs!

    Land mass is really an odd thing to track in a virtual world. There is no land! Servers or capacity would be more useful. In terms of available capacity, I think that it is likley that total prims on the grid have actually DECREASED as a result of so many sim/void conversions. A full sim = 16.5k and 4 voids = 12,000. So while the grid is bigger it is also smaller!

    More importantly the grid is probably more empty–lower ratio of active users to grid capacity. We typically load a full sim to 50 max avatars, but actually also load the voids to same level and it sorta works. Why? Because somehow the voids are load balanced and busier ones must be getting more of the CPU. (which also means a void void is subsidizing a busy void).

    So, I guess take-away is more land mass = more avatar capacity, but with voids, less potential content. Makes my head spin a little.

    But, seems like a little new data in this latest data set. or maybe i missed it before %). User to user transactions. Which shows the picture that we are feeling. Massive drop from last year! And really this is where the action is for business operators. I guess a lot has to do with gambling ban. If you take the user/user transactions and divide by the total hours you can see a pretty consistent range of about L220 to L240 of user/user transactions per hour. So not a lot of change there–which I guess is sorta stability/good news.

    Now next question is how much of this user/user transactions are below L10–which is effectively a freebie and how much is above L10,000 which is gonna mostly be land payments. This would help us understand what the non-land economy is doing.

    Nonethelss, LL should come clean and share data on void conversions vs new sim sales–as it is important to see new participant growth versus more service fees from existing residents (void conversion has a $100USD charge associated with it).

    “There are three types of lies – lies, damn lies, and statistics.” – Variously attributed to Benjamin Disraeli, Alfred Marshall, Mark Twain and many other dead people.

  123. Tabliopa Underwood says:

    @71 I know where you can still get a couple of prime 16m for only 50,000L apiece if you’re interested :p

    /me shakes head

    Still a few people yet to catch upto the market, but overall things are the improve I think.

    Disclaimer: I’m an expert at picking market trends. Whenever I buy the market promptly collapses and whenever I sell it takes off. So, if anyone wants to make a fortune then just do the opposite to me.

  124. Tom says:

    Land market, needs a sale like a Buy1 get 1 free approach very like stores do when they are overstocked on a few products. Food for thought summer sales haha. 🙂

  125. Linda Brynner says:

    The graphics are not telling the whole story.

    Important stats are not published.
    I record the stats based on the stats published by LL.
    Population change: the monthly growth shows a continuous down trend since June 2007.
    Residents login last 60 days shows a continuous light down trend since June 2007.
    Online at the same time was 40000 in 2007, peaking 60000 in Dec, dropped to 50000 and now at 65000.
    The number of alt accounts are not published.
    The growth of user hours follows the trend of 2007 users spending more time in SL ( What I see inworld is 65% 2007 avies).
    Average price per sq.m… the trend: sleelpless nights !

    And btw… PMLF is not Profitability !

    Realistic:
    SL is in the game to collect tier as much as LL can; it simply is their 1s business. Teir is their 1st priority rather than surveille the inworld economy and protect the value of assets of it’s residents. LL will pull any trick to boost their revenues on tier.

    Having said that, it means that the economy of SL is a pyramide one, it really is. So, all we do inworld is speculation… and pray.

  126. grumbit grut says:

    Well nice to se a linden respond but…

    I had a full mainland sim once bought for full price !
    and now its worth less then 3x the sqm !!!

    I FEEL SEVERELY F^%@*’d

    .

  127. grumbit grut says:

    and as I heard you are going to make even more NEW land soon after 11th this monet…
    Like finishing the whole new continent up north…

    Another crush on SL economics…

    And I still do not understand why LandBOT’s are allowed ?
    ripping new land from under the feet of the real newcomers… and ripping those off in diverse fraudulent ways…

    hmmz…

  128. Kara Spengler says:

    Much as they pooh-pooh it, the number of premium accounts is important. As has been noted, the only way you can buy land is if you hold a premium account.

    I would also like to see the numbers of ‘older’ accounts. It would more or less be a flat line as we are not going anywhere: established business and/or precence in-world, higher stipends, and if you go back far enough even free land. It would pretty much be the baseline (rather than 0). To put it simply, old premium account holders are typically too comfortable being where we are to leave.

    That number is critical for another reason: I would expect the newness of accounts to be inversely proportional to land that is bought. However old accounts are less likely to suddenly sell their land. Roughly, since old accounts (especially store owners) do add to their land holdings over time, just at not as fast a pace, and everyone can get fed up with ad farms and decide to move. Both old and new accounts are important when it comes to tier payments: the first gives LL a pretty much guaranteed income, the second is speculative but currently increasing. Think of it as a diverse investment portfolio.

  129. yay, good news like this are good news for everyone!

  130. Ryu Darragh says:

    Curious, in RL in the US all the crazy and damn fool notions, posited by RL economics type and financial advisors, was thet “You can’t go wrong with property as an investment. It never goes down in value!”… oooops. Wrong!

    Go through all the posts and replace “land” with “computer resource” and the picture will make more sense.

    And to those touting all the other extant 3D worlds out “There”, like “World” and “Lively”.. tried them all. Would rather have SL on a bad day than any of them any day.

    And I am a premium user who owns land.

  131. LithiumIon Aeon says:

    It seems to me that a number of people have expressed concern about…
    1) The quality of the figures being published.
    2) LLs motivation to make corrections or adjustments to the measuring process which would result in lower figures as this may negatively impact the value of the company.

    The problem is we can’t disprove a negative. The concerns may or may not be correct but the resulting doubt reduces the trust and value we can place in those figures. This in turn increases the risk of investment in SL which harms both the company and the community.

    That is the problem but what is the best solution for both the company and the community?

    I have three questions…
    1) Would the community value having the figures independantly reviewed and commented on each quarter?
    2) Who would be best qualified to do this? I think we should consider their knowledge of SecondLife, impartiality and the communities trust in that individual or group.
    3) Would LL be prepared to give an individual or group the access they would need to data, people and anything else to do this job effectively?

    One idea would be to set up a group who could advise on what KPIs matter most to the comunity, what data collection (and ammendments) are required to support those KPIs and report on the resulting trust that everyone can place on the figures.

    This may also relate to the issue of the internal economy being to a large extent controlled and managed by LL. Previously in the UK the governments management of interest rates meant that everyone had to assume a degree of political motivation in how this was decided. Generally this harmed the economy so the Government handed over this power to a committee of experts. I’m wondering if a similar approach could be taken with the SecondLife economy. I realise this would involve LL giving up a level of direct control over certain inputs into the economy but every economist bone in my body screems that the result would be more trust and therefore a larger thriving economy and therefore more revenues for LL.

    It seems to me that the management and reporting functions are related. Who-ever manages should report. BUT if that person isn’t independant then they should probably be independantly audited.

    Any economists in the house want to comment?

    Only 25 comments left to discuss!

  132. titatovernaar Balder says:

    yes nice looking numbers but inworld everybody loose land becauce of this.
    i have cut out 3 sims and planning for 1 more.
    and avatars are to spread out now like nobody online anymore.

    (:

  133. salahzar says:

    I’m not an expert in any economics figures, but I would have been suspicious if land is growing while (paying) members are decaying.
    It’s not clear if LL is looking just for immediate (their) revenue while not looking for a generalized model for searching consensum.
    Why not propose some important changes to the community, especially paying people or people with a business and then adhere to general consensum? Working just as monopolistical (even if enlightened) kingdom doesn’t assure good results in a long run.
    And yes, opensim is rapidly growing and is making much more progresses than LL itself, and companies are looking to open alternatives as ways for escaping unilateral approach.
    I’m still optimistic that LL is playing and can play a significative and benign role in the 3D world, but should look for more consensum, which is ready to be given 🙂

  134. ChatNoir Moonsoo says:

    “Because land represents nearly 8x more revenue to us than premium accounts, our focus has been on the launching of new land products rather than on enhancing the premium subscription.”

    Bad decision, and very short-sighted.

    Yes, your main-income derives from land (mainland and private estates). So you need to give users a compelling reason *why* they should buy land, and that reason must be *very* compelling to generate tier-income from that. Since a new user starts out without land it then would make sense for LL to enhance the basic experience (account) to the point that a new user feels a need for land, be it on mainland or on a private estate or by owning a private estate.

    IOW: you need to create/identify the demand first before providing the supply. Basic business sense.

    The next step would be to recognize the fact that “us land barons” (at least a significant portion of us) service specific needs and do not take away from the mainland-experience, as has been stated once. A slight change in attitude would go a long way in helping you generate the land-income from estate-owners.

    Not only that, it would allow LL to focus on providing the technical service that makes up the virtual land and providing the special something an enhanced basic- and premium-account experience would make people wish for, thus creating actual demand for land; it would in effect create a collaboration between LL and estate-owners in which we not just pay you fees, but satisfy specific demands (like specific settings, themed sims, etc) that support/create demand for land.

    Baby-steps are needed in a new environment, yes, but this baby still has to learn to make the second step after the first step.

  135. Ward Mills says:

    Why do I get this uncomfortable feeling when thinking about the causes and consequences of the U.S. home mortgage crisis in RL and the flood-of-land policy of LL in SL?

  136. ChatNoir Moonsoo says:

    @135: because it is the same bad/lack of thinking behind it?

  137. Alida Tomsen says:

    Count me amongst the many others who can no longer fill an island. I don’t decry the drop in upfront pricing, though now I wish I had waited to buy a sim. What would be nice is to see a drop in the monthly fees for full sims.

  138. Maelstrom Janus says:

    Where is the comment about not improving premium subscriptions …I must be the only customer who’s really insulted by that sort of thinking..What other source of income does Lindens have WITHOUT LOYAL customers ??

    To me it seems Lindens needs to brush up on its customer care a lot and I dont mean the front liners who do their best to help but those spiders sitting at the centre of the web.

  139. I think that land should be as cheap as it can be. The possibilities in SL are rather limited for those without land compared to those who own land.
    Land provides tons of “missions” for the users. Building the first house, getting some furniture, inviting friends, rebuilding, improving, making a shop aso.

    I think cheap land keeps more ppl in SL. More ppl in SL is more costumers for those who create content.

    So cheap land is good for everyone exept real estate ppl. Poor realtors? I don’t think so. In my opinion the usefullness of real estate agents and landlords who merely resell land is very limited in a world where new land can simply be added by pluggin in a new server.

    Best Ice Stawberry

  140. Pantaiputih Korobase says:

    19 hours for 136 posts, interesting figure….

  141. as I notice, many posters above seem to think that we are in SL for earning money with land speculation or renting.

    Well, this may be true for some, but basically it is false for the vast majority of the users, who are here for making art, science, game, social, enjoyment, etc. Even the real life companies which are in don’t really expect to earn money from SL, just they use it to make gatherings and team work.

    It would be a profound mistake to design SL (including SL economy) in order to satisfy the needs of an infime minority of users such as land speculators.

    So land prices dropped? This is GOOD for us real users, who get more possibilities to realize our things or dreams. This is basically what SL is for and should remain for. That some lose money they used to speculate is after all well deserved, for intending to make money from our dreams.

    Spoiled speculators should have though before that they were not buying real land, but computer resources, which, contrarily to our limited real land, are a virtually unexhaustible. Just add some racks…

    The only people allowed to earn money from SL should be Linden lab (because we need them) and all those who provide a real business or service in SL.

    My analysis on the drop of land prices is that the computer resources behind are getting cheaper (including the cost of grid maintainance, bug chasing, griefer care…). This may be due to a scale effect (more land makes less work per land) but also probably of a better working of SL and Linden labs. At least I hope so.

  142. Maelstrom Janus says:

    @13 Its not so much the land price as the tier fees…if not the tier fees the land allowance associated with them…

    it seems to me extremely greedy for lindens to keep making more and more land avaialble while keeping the tiers at the same high levels….

    there are never any ‘offers’, or ‘concessions’ not on membership or anything….likewise it seems similarly difficult to get any compensation from lindens for any major botch up they make.

    I love the world I love building I love exploring but lets face it Lidens customer care FROM THE TOP is poop

  143. MaxMillion Carling says:

    I have a few questions for the Linden’s now that prices on private islands and void simulators have dropped a lot, will the rent price on mainland properties drop in near future? I own a small parcel on mainland and when i go into map and zoom out i see thousands of yellow spots, people try to sell at fantasy prices and some have just given up and sell cheap to get away. Why not drop monthly rent price on mainland giving premium members something back, because i don’t see any reason to continue being a premium with high rental and patetic 300 lindens i get to be a premium. And a few other things gambling this is a mature grid so i really don’t see any reason why it should be banned, when in RL USA gambling is allowed…, grown up people that spend all their money on casinos and then go to LL complaining about it and in end every casino and bank business is closed in world.I just feel LL is making a few mistakes by lowering land prices, throwing void sims at existing estate owners when marked is not stable at all.. Btw i love SL i try to make a business like everyone else, but when the marked is overflowed i find making freebie’s to give away on slx much more fun.

    Max

  144. Bronsen Mornington says:

    Next thing you know, we will be having the free silver vs. gold debates of the 1890’s over again. Speculators have a place in making land more attractive to persons of lesser capital, but real wealth is created through technology, and I would pay dearly to get rid of glitch pants. But then that takes a much higher level of intellect, education and artistic ability than most get rich quick types have. Keep plugging them in, LL, and make land cheap. I and many others will not be cyber serfs for landowners with tremendously feudal powers, as evidenced by the drop in users over the past several years. RL avatars have voted with their feet, so whatever was in place obviously wasn’t working. The rise of group owned sims can only mean one thing, a form of communism or grange cooperative is coming to SL. Open sim seems to be where the best creators and artists are going, a brain drain to a foreign world. They are the future of virtual worlds, and should be encouraged to stay. Cheap land is the best thing to keep them on SL grid.

  145. Caliburn Susanto says:

    So, you are eagerly selling OpenSpace sims with the stipulation that they are for LIMITED use ONLY then just allowing any use whatsoever with no enforcement. How encouraging.

    Be cause they can, people build clubs, galleries, housing tracts and stores on them or put in a camping farm (I see one daily that has a store, a residence, and a platform of campers on it) thereby dragging the other three poor suckers sharing the CPU to a standstill and there is no recourse. Nothing drags the performance of a SIM down faster than avatars (especially avatars who are sitting down which use many more processing cycles than ones who are standing), and you allow just that. En masse.

    Consider this … “and an exhibit at the … opening of … Gallery. This opening will be exceptionally big as … will be on a new open spaced sim just for us!”

    People abuse the system so much they are now believing that abuse is normal and can even be advertised without fear. (or they are just clueless, which is a distict possibility)

    No wonder people are just abandoning servers and giving up. You take the money and turn away. My one-time optimism and desire to help fund your growth with my hard-earned cash is rapidly waning and I would now feel foolish even considering expansion.

    Tsk tsk. Who will guard the guards?

  146. Arifi Saeed says:

    Face the facts, folks! The real world economics of Second Life is that Linden Research is a 3D web hosting service charging much more than any 2D web site hosting service could. Initial land ‘purchase’ prices paid to LL are just very expensive server setup fees and a diminishing part of LL’s cash flow. They way the really make their money is on monthly hosting fees (a.k.a. tier). The main function of the ‘purchase’ price is to give us the illusion that we are abandoning something of inherent value if we just walk way from paying the monthly fees.

    What LL has done recently is to make it easier and a bit cheaper to ‘buy’ land and so nicely increasing their monthly hosting fee revenue/cash flow. They probably needed to do that to keep things going, but the effect has been to flood the SL ‘real estate’ market with land and thoroughly to erode the economic basis for landowners.

    Expect to see more and more ‘landowners’ dumping their property and/or walking away from it until and unless LL comes up with a more balanced strategy to support the value of land. That means bringing in and effectively supporting more members well. If they do not (or cannot) do that, their recent short term improvement in LL’s cash flow will only accelerate the deterioration of the situation.

    The immediate problem is the flood of new land supply, well in excess of sustainable demand. The more fundamental and longer term problem is the inability to attract and effectively to support a large number of residents.

    Arifi Saeed
    Arifi.Saeed@canopusresearch.com

  147. Bandito says:

    What I find interesting in how these figures have been presented is the reporting of grid performance is now strictly in the hands of the Lindens. When the Second Life Grid Status was set up, all of a sudden the daily problems reported stopped. Reports of inworld issues continue, but now seem more ignored than ever. Residents report slowdowns and transaction failures, and yet these things never show up on the Grid Status page. How is this performance increase possible? How long will the issues of basic performance be glossed over, or now, seemingly swept under the rug and hidden away?

  148. Renee Faulds says:

    Google launches virtual reality site
    Internet search leader debuts ‘Lively,’ an online world in which Web users can interact with each other using avatars.

  149. Looks like conservative Republican style policies and econmic modeling would help fix SL’s problems. Trickle down economics works, as well as enouraging the wealthy to create wealth and not try to falsely manipulate an economy. Do not try be smarter than the basic economic model of supply and demand, because failure is sure to happen.

    Communism, socialism, and the struggle to make everyone econmically equal kills an economy. Rather than allow for captialism to flurish to create a stable economic model for SL, LL has chosen to manipulate the economy to give false hope and misinformation through pretty charts to try to gin up enthusiasm…yup, they have reverted to propaganda.

    SL needs to address its political model, then establish an economic policy that will help the wealthy to create investement and jobs to attract non-premium account holders and help them to find a path to premium membership, land holdings, and finally, SL wealth….cycle repeat.

  150. Darien Caldwell says:

    @99 Vivienne,

    “Very right. Especiallay when you realise that the only significant, profitable “growth” LL can point out is generated by premium account holders exclusively: Land sales.

    They are smart, aren´t they?”

    That is a rather false statement. Most account holders with land either buy their own islands, or rent from someone who owns one, or rent from someone who owns mainland. To be clear:

    – You don’t have to be premium to rent Mainaland *nor* Island parcels.
    – You don’t have to be premium to *own* an Island.
    – You do have to be premium to own Mainland.
    – Only 20% of the grid is Mainland.

    So I would say, Premium memberships are probably the most worthless metric, Most people are operating in SL without premium membership, because they don’t require it for anything they do.

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