Reactions to the Rosedale announcement

Fri Mar 14, 2008 9:27am PDT

By Eric Reuters

SECOND LIFE, March 14 (Reuters) — Linden Lab Chief Executive Philip Rosedale announced on Friday that the company he founded has begun a search for his replacement as chief executive.

Here is reaction to the announcement from the Second Life community and others in the technology sector. If you have your own comments, email them to adamreuters@gmail.com or ericreuters@gmail.com

Taran Rampersad, blogger, your2ndplace.com:
“Philip Rosedale is doing the responsible thing. As a visionary, he has taken this as far as he can and he will continue to guide it - but switching to an operations based CEO is necessary for Second Life to continue to mature.”

Benjamin Duranske, co-chair American Bar Association virtual law committee, virtuallyblind.com:

“It is standard procedure when a company is eyeing public funding to move from “visionary” management to someone with a strong day-to-day background. I would not be surprised to see an IPO in a few months.”

Jeff Strohman (Stetson Rail), Second Life land baron:

“A more business minded CEO can only increase the monetary value of second life. In the past I feel sometimes the company was run by its heart not its head.”

Nick Wilson (57 Miles), developer and blogger, metaversed.com:

“What Second Life really needs is some ‘grown up’ management. It looks like they’re headed that way. I think Philip’s done the best thing for his company, and for residents alike.”

Tateru Nino, blogger, Massively.com:

“In my experience, CEO’s have very little actual control in a company. In a privately held company like this one, the board and the VPs are where the decisionmaking gets done.”

Catherine Fitzpatrick (Prokofy Neva), blogger, secondthoughts.typepad.com:

“I can’t say anything very pithy, I feel very sad. [Rosedale] is very charismatic and associated with precisely that notion that making new revolutionary products like Second Life is achieved by having new revolutionary management techniques like ‘love machine,’ and ‘distributed decision making’ and the ‘Tao of Linden.’ And it turns out, well, no, they don’t work any better than they worked in Haight-Ashbury back in the day.”

Mark Wallace, CEO, Wello Horld, Inc.
“Philip created a world that was an important inspiration for us in starting our company. For many people, Second Life will always be the moment they discovered the Internet could be more than just text and pictures.”

Rowan Barnett, Editor in Chief, The AvaStar
“All credit to Philip, it was a hard decision that he had to make sooner rather than later. It was his vision, his baby. He has achieved an incredible amount with Second Life and set the standard for the future of the Metaverse. But Linden Lab now desperately needs a far more experienced manager to help them overcome their numerous operational and structural problems, and drive future growth.”

Robert Bloomfield (Beyers Sellers), Cornell University, host, metanomics.net
“Linden Lab’s unique business vision allows them to break plenty of rules, but they can’t ignore the basic economic forces governing corporate growth and ultimately access to capital markets.  The search for a successor is going to lead to some real soul-searching about two key trade-offs in Linden Lab’s strategy.  First is the tradeoff between stability of the software platform and feature-heavy construction that allows creators with tremendous freedom.  Second is the tradeoff between catering to individual residents who want a new world full of fantastic possibilities for their personal lives, and enterprises who see virtual worlds (but perhaps not Second Life) as the future of electronic commerce and the virtual office.  Without a tremendous influx of capital that would allow them to become all things to all people, Linden Lab’s new management will need to make some big decisions on which way to turn.”


Got a Second Life scoop? You can meet the reporter in Second Life! Eric Reuters holds office hours in the Reuters Auditorium on Tuesdays at 8:00 am SLT.

 

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12 comments

Please note that comments should not be regarded as the views of Reuters.
  1. Mattia Crespi, CEO, ISN Virtual Worlds wrote:

    Hard to tell what is involved behind decisions and strategies from outside. What is definetly interesting is to see a clear shift of Second Life from a closed platform to an open standard platform to create virtual worlds that can all be connected. The two main things here involved are a common/connectable grid (the virtual wordls html) and a common digital ID, the universal avatar that can go from one world to another.
    I hope these oeprational changes will drive the company to this direction and I hope the competitors around and other big players will come soon to the definition of a stardard that can make investments on virtual worlds more secure and the growth more stable.

    Fri Mar 14, 2008 10:03am PDT
  2. Ann Otoole wrote:

    gonna take more than a few months to clean up the LL house of all the problems that SEC laws would bring. IPO in a year maybe. not a few months. Some people are not close enough to SL to see all the conflicts of interest going on so naturally they would think a fast IPO would be in order.

    Fri Mar 14, 2008 10:03am PDT
  3. Marc Montague wrote:

    I have to congratulate Phillip Rosendale to this step. As a visionary and founder of Second Life, he did best what was in his capabilities, but Second Life has grown out of a “technical” environment and has grown a vital economy, that has currently still an edge before others. But loads of emerging worlds begin to catch up with Second Life and it is a natrual step that Second Life needs to grown commercially. I only hope as a small business owner in Second Life, that the new CEO has an understanding of the “culture of SL”. I forsee an IPO as a step that the new CEO will be doing in future as a growth that will be expected from this person will cost money.

    Every change is also an opportunity.

    Fri Mar 14, 2008 10:03am PDT
  4. Jennifer Armstrong (JenzZa Misfit ) co-developer, marketer, SIM owner wrote:

    I agree with Rowan Barnett of The AvaStar. Phillip Rosedale set the standard for the future of the Metaverse. I thank him for the beginning of the ‘world’ as we know it and wish him the best.

    Fri Mar 14, 2008 11:03am PDT
  5. Benjamin Duranske wrote:

    Ann may be right. It’s a total guessing game as to how long it take to put a corporate house in order for an IPO. I’d say we’re closing in on 1:1 odds that there’s an IPO this year based on this news. Maybe 1:2 in five months, and 1:4 in three months. I grant that 3-4 months is aggressive, but given that they brought in Marty Roberts at General Counsel (who is known for taking shopping.com and others through an IPO in as GC) and have made other publicity-and-law-friendly moves (e.g. banning gambling, ageplay, banks) in the last year, I’d hedge toward the shorter cycle here.

    Fri Mar 14, 2008 4:03pm PDT
  6. Dedric Mauriac wrote:

    A few of us were invited to talk about this on the podmafia podcast ( http://podmafia.com/ ). We were looking at both Philip moving, and Corey resigning. There are a few things in motion here along with all of the big features being pushed out after years of waiting (havok, url on a prim, mono, etc). The Lindens seem to also be getting more reports together regarding call volume statics and could be an indication of the company going public within the year.

    Fri Mar 14, 2008 10:03pm PDT
  7. ThaBiGGDoGG Richez wrote:

    A bigger company needs to take over & get Second Life running on much better servers. All this terrible lag needs to disappear very soon or SL will keep on the downfall. Microsoft is out shopping for Yahoo… I know a company I’d like to see take over SL. Think of running SL over xbox live. How much better it would be for graphics voice & anything else.

    Fri Mar 14, 2008 11:03pm PDT
  8. Ann Otoole wrote:

    since Microsoft already toyed with this concept in 1996 it is reasonable to think they might be interested. but there are issues on the big dog player side. however, if Microsoft took it over i would be happy to come back and take up the role of group development manager again. get rid of unproductive primadonnas, etc. get things on track and keep a delivery schedule.

    most importantly, a complete rewrite to make it true object oriented. shared code libs, etc.

    and real testing.

    will never happen. sl is kapor’s personal sandbox for his ideas now.

    sl will fade away. someone else will do it right and it won’t be open source.

    Sat Mar 15, 2008 3:03pm PDT
  9. Lowell Cremorne wrote:

    My thoughts are here: http://www.metaversejournal.com/2008/03/16/linden-labs-ceo-steps-aside/ but essentially I said that a new CEO might bring Linden Lab’s business discipline to the next level..

    Sat Mar 15, 2008 9:03pm PDT
  10. Cristos Benelli wrote:

    Rosedale has laid the ground for Linden Lab to lead the way towards a truly open and interactive 3D Web. Turning SL into an open platform, capable of inter-connecting with other virtual world grids where “roaming avatars” can move from one platform to the other requires the type of scale and execution of more traditional SW companies. Great to see Rosedale’s role will continue in the strategic development direction with a strong operational CEO driving the company forward.

    Mon Mar 17, 2008 5:03am PDT
  11. Yuping Liu wrote:

    The success of such leadership transition all depends on the ability of the new CEO to work with the vision of the founder. Focusing on the details, sometimes a CEO can be too smothering. As Second Life founder, Rosedale is the soul of Linden, and I hope he will continue to be.

    Tue Mar 18, 2008 8:03am PDT
  12. Awaken Yoshikawa wrote:

    Things change and so do needs. I think Rosedale did a fantastic job and created something that others can complain about and B word about, but you have to ask these people, Where is what you have created?

    I love second life, and I do nto see it ending anytime soon. Nope, it’s an institution already and will only expand, expand and expand.

    Wed Mar 19, 2008 7:03am PDT

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