Archive for linden lab

Is Amazon Destined to Replace Marketplace and Buy SL?

Posted in Op/Ed, Real Life, RL, SecondLife®, SL® Business, Virtual Worlds with tags , , , , , , , , , , , , , , , , , , on January 10, 2013 by Valiant Westland

For years I’ve been predicting that the next wave of Virtual World development would be driven by the inevitable competition of e-commerce, marketing and gaming heavyweights like Google, Amazon & Microsoft.  All of these players have a huge vested interest in capturing the annuity income produced by the rapidly expanding world of Virtual Products and services.

SL Now On AmazonSo imagine my “surprise” when I saw the Second Life Community announcement, about Linden Lab offering Start-up and Enhancement Kits on Amazon!   I believe this is a first step towards the eventual disbanding of the Standalone SL Marketplace, in favor of an Amazon-powered alternative.  If I’m right, SL itself could be an acquisition target for Amazon in the not too distant future.

The early failure of Google’s Lively Virtual 3D World and the lackluster performance of Sony’s PlayStation Home Virtual World offering, should not be used to throw out this line of speculation.  These earlier efforts have one thing in common that Amazon and even SL doesn’t, a lack of profitability.

In addition to an Alpha-level user interface, no realistic profit potential is the main reason Google pulled the plug on Lively.  Interestingly enough, Sony, in response to Microsoft’s hugely successful xbox.com webstore, has used this years CES show to announce it is bringing its own SEN (Sony Entertainment Network) store to the US and integrate it with the PlayStation Home experience.

Amazon Web ServicesSo why would Linden Lab give up running its own primary revenue source (Marketplace)?  Total Cost of Ownership (TCO) and a potential increase in Net Revenues by outsourcing e-commerce to an organization like Amazon.  Amazon has arguably the most cost-effective and efficient e-commerce platform in the world.  They also have something Linden Lab does not, more than “164 Million paying customers!”  This is a huge potential untapped market for Second Life, that would be almost impossible to reach, without this type of partnership.

Many people, not directly involved with Second Life’s back-end development, might be surprised to learn that since 2006 “Linden Lab has used Amazon Simple Storage Service (Amazon S3) to store elements used in the Second Life world and to distribute the Second Life Viewer to end users.”  In fact, Amazon has featured Linden Lab in a Case Study, from which this quote was taken.

Every company reaches a point where one or more things happen.  They either fail, diversify with new products & markets to sustain growth, go public, acquire additional private capital or are acquired.  Linden Lab has thus far failed to expand its market.  Their attempts to diversify their product via their Enterprise product was, as reported by Hypergrid Business, “a costly mistake.”  Their more recent Time to Sell!Patterns and Creatorverse products seem unlikely to generate the type of revenue or market expansion required to have a measurable impact on their overall business.  Going public is an unlikely option and it is doubtful any more private capital would flow into a stagnant business model.  The only remaining choice for the original investors to cash out, sell Second Life!

Amazon’s Jeff Bezos has proven he is a fierce competitor who is willing to take risks and sacrifice margin to dominate an industry.  In fact, a Jan 8th, 2013 Bloomberg Businessweek story on Amazon was summarized like this: “As long as consumers are consuming and shareholders are buying what Bezos is selling, Amazon looks fairly unbeatable.”

Hang on to your virtual hats ladies and gentlemen, I think 2013 could shape up to be an interesting year.  My advice.  Buy Amazon (AMZN) stock and look forward to a Virtual e-Commerce SL Marketplace experience powered by Amazon in the near future!

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Response To MetaReality’s – No One’s Driving This Ship PodCast

Posted in Op/Ed with tags , , , , , on March 9, 2012 by Valiant Westland

Proactive Communication, Collaboration and Effective Leadership Are Key!

Let me start by saying I agree 100% with Draxtor’s call for an “Adult” approach to the future of Virtual Worlds and specifically Second Life. It’s a huge challenge though, as these spaces are populated with a vocal group of people who tend towards emotionalism, rather than reason and feel strongly that whatever they “believe” has more weight and validity than any facts that may exist.

I also agree that Second Life has been horribly undersold. This ties into the first topic, as anyone who would otherwise consider doing business in Second Life, is put off by all of the whining, griping and constant predictions of doom & gloom.

Esbee’s and Charlar’s departure will remain a puzzle, without a clear road map by the Lap regarding their future product strategy. People leave companies every day, due to changes in the market and the company’s needs.

Proactive, positive communication is the key to this and most of LL’s other challenges. Whether or not SL is “dying,” LL pulling back from reporting SL Stats sends the wrong message to the user community. If things are bad, let’s hear some inspiring communication about how we can ALL make things better. If things are good, let’s hear more about the wonders and successes in-world and what LL is going to do to facilitate future opportunity and success for everyone!

As pro Second Life & Virtual Worlds as I am, I share the opinion that neither the platform nor the community are ready for a huge influx of people. One of these “not ready for prime time” issues is certainly user names.

Rod Humble’s Decision on Last Names is frankly, puzzling. In my opinion, the BEST thing that could happen would be for LL to assign each verified user with a “permanent” account number and allow people to choose BOTH a First AND Last Names. If people want to share a last name with someone else, let them voluntarily choose the same last name! If someone wants to be called “DufusIAm Stupid,” let them.

Relating to user accounts, what I WANT to see is shared user accounts, where machine ID’s / MAC Addresses are used to uniquely identify users and multiple “Alts” can share inventory. I believe this would be something that would be a tremendous improvement for both uses and vendors. I would like to see this discussed in an upcoming segment of Metareality.

Second Life truly is a beautifully chaotic world. However, as someone who is a Master Citizen Planner, Charrette Planner/Facilitator and two term Elected Official, and has 20+ years of IT planning experience, I have seen first hand the benefits of effective strategic planning, zoning and communication. My experience has taught me that almost every challenge, that is not engaged proactively, with community-driven citizen and stakeholder participation, ends up costing far more money/time than it should have!

Linden Lab’s Second Life Adverts

Posted in Parody with tags , , , , on July 10, 2010 by Prad

I love the Second Life adverts which Linden Lab have come up with. When it’s not some random SLer you’ve never heard of being morphed into a pixellated form, it was an obvious rip off of Avatar. Amazing how IMVU had the exact same idea..

Amazing how the LL vigilantes are cleaning up XStreet SL for anything which vaguely looks like it’s infringing on real world copyrights, but they have no issue when it comes to jumping on the Avatar bandwagon and using such blatant advertising to misleadingly draw people in. Oh, this is the new one, by the way:

Is there a vampire movie coming out or something? I can’t say I’d noticed.

Of course you can be a blue-skinned utopian dreamer, or a glittery pale-skinned bootylicious vampire. Alternatively, Linden Lab can put out more direct adverts which are guarenteed to be much more appealing.

Hey Linden Lab’s Marketing Department – you can have these for free, because I’m feeling generous: