Business in Virtual Worlds, Second Life

Second Life Land Price Adjustments: Private Islands Fall 40%

Linden Lab has announced that it’s adjusting land pricing and the volume of Mainland which combined with its previous release of a new structure for low-prim sims suggests that it’s continuing its trend of land become increasingly a commodity, against the competitive backdrop of OpenSim and other Grids that offer sims for as little as $100/month.

The news will be welcome by people who want to purchase private islands. And I imagine that on the heels of the recent IBM announcement is meant to continue the encouragement of mainland. As the “grid” becomes more splintered, with companies and individuals moving to competing grids, (with the intention to at some point link to those grids), and with companies soon being able to shift behind firewall-protected regions, Linden seems to be acknowledging that the market is pushing for both more ubiquitous use of virtual worlds, and pricing that will make it increasingly accessible.

While the news is welcome, as always I’m left with the sense that there’s either a very well thought-out plan, or there is no plan and they’re making it up as they go along. Maybe I’m reading too much into such a radical price change? A reduction from $1600 to $1000 for a sim is a significant drop. Releasing more mainland in order to drop the average price is a significant move as well.

I’m curious what the strategic framework is for their decision making on these things. Time will tell.

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