After Brief Bump, Second Life Private Sim Loss Returns
Last month we noticed an unexpected growth in Second Life private sim ownership (according to Grid Survey), which was nice, since sims constitute Second Life's core revenue. This month, however, all that gain has sadly slipped away:
In March, many over-enthusiastic SLers were proclaiming the temporary gain as an "Ebbe effect", attributing it to the entrance and leadership of new Linden Lab CEO Ebbe Altberg -- but were that the case, the gains should still be happening. Instead, this return to the status quo shows what's really going on:
Private sims are unsustainable as a revenue model, unless and until Second Life sees strong growth of heavily engaged, highly monetized users. (And even spectacular growth would just staunch the bleeding: Private sims costing hundreds of real dollars every month have inherently impossible economics to sustain.) So while they mean well, fans proclaiming an "Ebbe bump" are just setting up unrealistic expectations that cannot be met. Better instead to hope Ebbe bumps other, more sustainable revenue streams than private sims into place -- and bumps them right soon.
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