Posts Tagged ‘Mark Kingdon’

Linden Labs acquires social networking platform Avatars United

Monday, February 1st, 2010

This past Friday, Linden Labs, creators of the virtual world Second Life, announced that they’d successfully completed the acquisition of Swedish Firm Enemy Unknown. The Swede’s jewel-in-the-crown Avatars United is also now a part of Linden Labs, and is a social network for users of multiple virtual worlds.

avatars unitedCurrently, the site supports a number of virtual worlds, including popular online titles such as World of Warcraft and EVE Online, and according to Linden Labs CEO Mark Kingdon, they will continue to do so. “We’re committed to keeping this ideal of a place where avatars from multiple worlds and games can come together.”

So what does this have to do with Second Life you might ask? Well, first and foremost, Second Life is supported within Avatars United, as well as a number of other virtual worlds. However, over the past year, we’ve seen a number of advancements that point directly to Linden Labs’ entry to the social networking scene. They rolled out the web-based dashboard, which included some social networking (type) features, but didn’t really go the distance. A little bit down the line in 2009, recently hired “conversation manager” Wallace Linden posted an article relating to managing multiple Internet identities, yet another signal that Linden Labs have been keenly watching what’s going on around them. In other words, they’re keen on the power of content sharing that social networking platforms provide, but don’t really want to commit to a “real name” based platform; one that might compromise a virtual world resident’s “real world” privacy.

However, with this in mind, Linden Labs have found themselves in a bit of a bind. With so many online destinations integrating cross-login possibilities, Facebook Connect, Twitter, OpenID, etc., Linden would be foolish not to offer users the same functionality. This, in turn, then opens up the “real world – real name” privacy concerns. Addressing this issue, Linden Labs states, “We are not going to force anyone to reveal any private or personal information. But for those who want to connect their various online identities, we do want to offer that option.”

Real names or not, Avatars Unlimited is an interesting, although perhaps a bit late to the party, platform. With the rise of other social networking sites that Second Life users general flock to, Facebook, Twitter, Flickr, etc., can Linden Labs really provide a platform enticing enough to draw these users away from already established giants? Avatars Unlimited is also nothing new in concept or premise, as I’ve been testing Raptr.com since Christmas. Noting the strong similarities between the two, I put Avatars Unlimited through minor functions (account creation, login, application installation, etc.). and my personal experience in a word was: meh. Not only did the site move along at a snail’s pace, but I was unable to find any areas where I might enter my character and realm info, a necessary component for a number of applications (WoW Armory, for example), a definite sign of “Needs Improvement”.

Screen shot 2010-02-01 at 11.16.55 AM

What IS quite interesting about Avatars Unlimited in it’s current state is that it features a built in virtual currency system. Their own virtual currency system. Not Linden Dollars. This virtual currency may be used to present other users with virtual items via gifting (again, another tip o’ the hat to Facebook). If Linden Labs wants to maintain the support of other virtual worlds, it should be interesting to see what they do with the virtual currency platform. Do they keep it as it is, and use it only across the platform? Will the convert it all to Linden Dollars? Or…and my money is riding on this option – will they maintain the current currency and build it out, while still incentivizing users from other platforms to join the Second Life party, i.e. offer matching Linden Dollars credited to their Second Life account, or discount purchases, or special items exclusively available to Second Life players?

All in all, the acquisition makes sense for Second Life, but as the platform stands right now, Linden Labs is going to have to put a whole lot of time and effort into the project if they hope to provide a platform that can not only stand head and shoulders with current market competitors, but draw current users of alternate platforms over to the other side.

 

$1 Billion of user-to-user transactions taking place in Second Life

Friday, September 25th, 2009

Building on their information released at last week’s GDC Austin, Linden Lab has recently revealed some truly staggering numbers with regards to their secondary market transactions platform. The company stated that Second Life residents have transacted the real world equivalency of over $1 billion in player-to-player transactions, while spending over 1 billion hours inhabiting the virtual space.

Second_Life_LogoAgain, adding to their statements at the GDC focused on retaining current users, the company revealed that Second Life’s economy has grown 94 percent year-over-year from Q2 2008 to Q2 2009. “Now at nearly USD50 million each month in user-to-user transactions, the Second Life economy is on an annual run rate of more than a half billion US dollars, making Second Life the largest virtual economy in the industry,” the company stated. With an economy like that, it’s no wonder Linden Labs is focusing on keeping current players happy, and staying right where they are. Perhaps a larger challenge than originally thought, as Linden Lab received an F from the better business bureau back in February of this year.

Linden Lab was also quick to point out that the total in-world hours, approximately 1 billion, has the real world equivalent of 115,000 years. But what exactly are these users doing? “Everything from meeting and socializing with friends; to attending live concerts; to creating, selling, and shopping for virtual goods; to learning a foreign language; to attending business meetings; and much more. User hours grew 33% year-over-year to an all-time high of 126 million in Q2 2009,” stated Linden representatives. On average, Second Life residents spend approximately 100 minutes in-world per visit, which the company is proud to point out is, “significantly greater than those seen with popular social networking Web sites and reveals the uniquely high level of engagement Residents have with Second Life.”

Specifically speaking to the in-world virtual items trading and sales, Linden Lab reports that residents are creating over a quarter of a million new good each day. These items may range from clothing to vehicles to buildings to automatic language translators, and just about everything else imaginable under the sun. At the time of the statement, Linden Lab reported that more than 270 terabytes of content is available within Second Life, with a growth rate of around 100 percent each and every year. Speaking from a primary marketplace point of view, since Linden Lab is the creator and vendor of virtual land, the company is not only the worlds largest platform for user-generated virtual goods, but also an industry leader in the sales of virtual goods. Perhaps the virtual world equivalent to Donald Trump?

Other statistics from Linden Lab include:

  • More than 18 billion minutes of voice chat have been used in Second Life since voice was introduced in 2007. Voice minutes grew 44% year-over-year from Q2 2008 to Q2 2009, and more than 6 billion minutes of voice have been delivered in 2009 alone, making Linden Lab a major VoIP provider.
  • Approximately 1,250 text-based messages are sent every second in Second Life, and more than 600 million words are typed on an average day. Roughly 60% of active Second Life Residents are based outside of the US, representing more than 200 countries, and the Second Life Viewer is available in 10 languages.
  • The total land area of Second Life is now equivalent to approximately 2 billion square meters — roughly the size of the state of Rhode Island. Land in Second Life has grown roughly 18% since Q1 2009 and approximately 75% since Q1 2008.

“These metrics give a sense of some key aspects of Second Life — the deeply engaging nature of the 3D world, the immense use of Second Life as a communications platform and the scale and strength of the economy based on the huge number of unique virtual goods users are creating,” commented Mark Kingdon, CEO, Linden Lab. “These numbers are a snapshot of the success of Second Life and its Residents today, and a validation of Linden Lab’s leadership in the virtual worlds space, but there’s much more to come. This is a year of renovation for Second Life, and we are well positioned for reinvigorating our growth in 2010 with a range of strategic initiatives that will enhance the experience for existing Residents and propel our expansion with new users.”

 

Martin Herdina to speak at Virtual Worlds London Expo

Monday, October 20th, 2008

Along with being an official sponsor of the 2008 Virtual Worlds London Expo, fatfoogoo’s CEO Martin Herdina will be join by Rohan Freeman, CEO of Sine Wave Company, Andrew Schneider, Founder and President of LiveGamer, and Karl Mehta, Co-Founder and CEO of PlaySpan in a panel discussion regarding Virtual Goods.

Taking place today and tomorrow, the Virtual Worlds London Expo is the leading European event for businesses seeking to maximize and comprehend business strategies within virtual worlds.  The Expo seeks to bring all major players in the virtual world space together in one location to look at best practices, insights, and networking.  Fortune 1000 companies, investors, media, startups, consumer entertainment and youth brands, ad agencies, and of course virtual world platforms and their associated developers regularly attend the annual event.

Martin Herdina will be taking part in the Virtual Goods: The Next Big Business Model talk from 2:45 PM to 3:30 PM.  An outline of the discussion:

Virtual goods and currencies have become the driving economic force for a number of virtual world companies. What does it takes to build a successful company with a strong virtual goods business? What types of items do consumer want to buy and in what context are they motivated to continually buy or upgrade their virtual items? How do you grow a virtual goods business and what are the pitfalls? In what cases does a virtual goods business model triumph over advertising or subscription models?

fatfoogoo’s CEO is expected to analyze and elaborate on the different monetization use cases (subscriptions, primary market, secondary market), their differences, their shortcomings and outline the key factors to run a
successful virtual goods business.

Mr. Herdina is in good company at this year’s Virtual Worlds London Expo, as keynote speakers include Mark Kingdon, CEO of Linden Labs (Second Life), and Niniane Wang, Lively Engineering Lead, Google Inc.

The Virtual Worlds London Expo is made possible by Virtual Worlds Management, and includes The Virtual Worlds 2008 (New York, April 3-4, 2008), Virtual Worlds Expo (Los Angeles, September 3-4, 2008), Virtual Worlds London (October 20-21, 2008).