The Business of Second Life
I have been trying to post on Second Life for the last week but every time I have something written, new information comes out. As you may have seen, Linden Labs reduced its head count by about 30% last week. This is never a good sign as they either are not making money or are realizing their business plan needs a lot of work.
That is a blog post in itself but this week saw some people I respect for their insight also react negatively. First, Mitch Wagner says “I’m afraid I don’t see much of a future for Second Life” and much more in his post at ComputerWorld. Then, today, I got an email from Erica Driver from Think Balm saying she is moving on. If you don’t know Erica, she is one very smart analyst who took a chance providing competent business analysis of the happenings of the virtual world. I still love her “immersive Internet” terminology and generally prefer it to “virtual world”.
I guess this in’t too big of a surprise. I voiced some of my own concerns back in December about the slow pace of change. Lately, if you follow any SL blogs , you see a fractured community with vocal leaders trying to pull it in many directions. Some ideas are good (make it easier to use) but then fail in their implementation (have you tried the new viewer?) The idea to support more advance geometry is nice but the actual result is 10% of what is needed and took 10 times too long to do. In the mean time companies like 3DVIA are doing things like this.
So, to me, Linden Labs has hit bottom. I’m sure management is hoping to refocus and I strongly agree that is what is needed. However, those of us who have been around massive staff cuts know that it’s hard to get enthusiasm and energy out of the people left behind. For the remaining folks, I hope you are able to do it and I’m really routing for you despite this negative post.
In the mean time, have you seen what the OpenSim folks are doing? I hate to lose the idea of a virtual economy but it seems clear where the enthusiasm is today.












