November 21, 2017
Archives  News  Living A Second Life  


Thursday, October 5, 2006
 

Click to enlarge
Living A Second Life
7:20 AM | Cord Kruse | Comment on this story

The Economist recently examined Linden Labs' Second Life, exploring the virtual world's unique online niche. The article offers an example of Second Life's use as a teaching tool before delving into its user created content and land speculation driven economy.

Linden Lab does not sell advertising; instead it is a virtual property company. It makes money when residents lease property—an island, say—by charging an average of $20 per virtual “acre” per month. Only about 25,000 residents, or about 3% or the population, lease property, but that already amounts to 53,800 acres, which, in real life, would be bigger than Boston. This works out to monthly revenues of $1m, not counting the commissions that it takes on currency exchanges between Linden dollars and hard cash. As a private company, Linden Lab does not disclose its exact revenues, although Mr Rosedale says the firm is “close to profitability”.

A common reaction to such numbers is astonishment that anybody should pay anything at all for something that exists only in a metaphysical sense. But “there's actually no economic puzzle in this; all kinds of things derive their economic value only from the realm of the virtual,” says Indiana University's Mr Castronova. The American dollar, for instance, is virtual (aside from the value of the paper used for the bills) in that it requires consumers to have faith in its worth. In the context of online games, virtual economies much bigger than Second Life's have existed for years. Many people in poor countries, called “gold farmers”, play games such as “World of Warcraft” professionally to score weapons, points or lives to sell to lazier players in rich countries. But Second Life is unique in that residents conceive what they sell. As such, says Mr Lanier, it is “probably the only example of a self-sustained economy” on the internet.

To read the rest of the article follow the link below.

The Economist: Virtual Worlds, Living A Second Life
Linden Lab
Second Life


Other Mac Games News for Thursday, October 5, 2006

Macgamestore: Pre-Order Civilization IV: Warlords12:15 PM
IMG Reviews Ambrosia's Redline12:05 PM
Dominions 3 Demo Released8:50 AM
Arcadrome Released For Mac OS X7:20 AM
Bejeweled For iPod Reviewed7:20 AM
Click Wheel Putting In Mini-Golf For iPod7:20 AM
• Living A Second Life7:20 AM
WoW Expansion Collector's Edition Announced7:20 AM
 
View all of the Mac games news for Thursday, October 5, 2006 on one page

Mac Games News for Wednesday, October 4, 2006

Macgamestore : Hearts of Iron 2: Doomsday Digital Download2:39 PM
Apple Posts New Hot Deals2:36 PM
10.4.8 Speeds Up Games?9:10 AM
Bejeweled For iPod Reviewed9:10 AM
Run HL2 on a MacBook with CrossOver9:10 AM
Vortex For iPod Examined9:10 AM
 
View all of the Mac games news for Wednesday, October 4, 2006 on one page


Recent Mac Games News

Tuesday, October 3, 2006
Monday, October 2, 2006
Friday, September 29, 2006
Thursday, September 28, 2006
Wednesday, September 27, 2006


Search for other Mac games news stories or browse our Mac Games News Archive.



Archives  News  Living A Second Life