If you’ve read an earlier post of mine, you already know I think SecondLife (SL) is, for most purposes, a huge waste of time and money. Blogger Randolph Harrison has written several negative articles regarding the financial and economic troubles inherent in the business model of SL. I could not say it any better than he has, so go ahead and read his comments on why he believes Linden Labs will probably end up offering SL for sale (then be bought for far more money than it’s worth by Fox, and then get transformed into something completely different).
Why do I dislike SecondLife?
For the participant, I believe it is a waste of time to establish a virtual life unless there is some valuable takeaway. People may become very much attached to their virtual persona and I simply don’t believe that’s a healthy dependency. First and foremost because I believe there are better ways to have a good time, and secondly because Linden Labs is effectively a God of their virtual universe and can do whatever they please with your virtual life. This wouldn’t be an issue if I didn’t honestly believe they were going to sell out in the next few years. If you want to have a good time, play a video game, read a book, see a movie, chill with friends, etc.
For the investor, I think it’s a waste of money and time to expect any benefits (either in terms of money or reputation) from your dealings in SL. Like Randolph said, the easy money has already been had. You’re too late to make it big. On the other hand, if you are looking to extend your brand into the virtual world, you’re too early (i.e. it’s too risky for big-name brands). It’s natural psychology to associate things which appear together, and you might have some very unwelcome visitors at your virtual store. Would you like to make the decision of whether to hire people to actively supervise your store and ban the people you don’t want (risking backlash from those you banned)… or to allow everyone inside and risk the possibility of naked furries having sex in your unsupervised virtual store and then having an article about it sent all over the Internet? Currently SL is mostly populated by people who would rather create their own merchandise than buy yours and my sense is that they passionately hate marketers and salespeople anyhow.
When I posted a YouTube deathwatch I was absolutely dead wrong… they got bought for a ton of money and are stronger than ever. I never said I disliked YouTube, I only said it couldn’t exist without breaking the law and that it can’t make money. I still can’t believe Google will ever profit off of YouTube until bandwidth costs plummet. I am going to agree with Randolph on this one and predict that SL gets bought by a major media company. I doubt SL can remain in a “pure” form and sustain its costs of operation. It will have to sell out eventually (unless it gets bought by Google
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