New Linden CEO could be named within weeks
FRANKFURT (Reuters) - Virtual world Second Life has the potential to become mainstream once computers and connections catch up with the aspirations of its creators, its founder told Reuters in an interview on Monday.
Philip Rosedale also said he was close to finding a new chief executive for Linden Lab: “We may have some news in the next few weeks.”
He declined to say whether the person was likely to be an insider or an outsider but said the new CEO need not necessarily have a software development background.
Despite the fact that user growth is slowing as a wave of publicity subsides, Rosedale believes activity will increase 100-fold as improvements in computers and Second Life’s own systems make it easier and more fun to become a citizen.
“I estimate we’re at 1 percent of total use in 5-10 years,” said Rosedale, the chief executive of Linden Lab, which runs Second Life, comparing its trajectory to that of the World Wide Web, which entered the mainstream in the mid-1990s.
Second Life has established a niche following among fans patient enough to grapple with the technology, but many who dabbled when the hype surrounding the virtual world was at its peak were deterred by the time, effort and technology required.
Second Life has about 13 million registered citizens but only a hard core estimated to number several hundred thousand are thought to be regular visitors.
User hours grew by 15 percent in the first quarter of this year compared with the fourth quarter of last year, to almost 350 million.
Second Life is an online community with its own currency and a growing economy, where users teleport and fly around the virtual world as “avatars” who interact with other computer-driven alter egos.
Global brands including Reuters Group Plc and IBM set up shop within the virtual world, but many including Time Warner Inc’s AOL have since left or radically scaled back their participation.
Rosedale said a new generation of computers with more powerful graphics capacities would help stimulate wider interest in Second Life, where avatar models representing users fly or teleport around and can buy and sell land in Linden dollars.
“You have to wait out the PC retirement cycle,” said Rosedale, who plans to step down as CEO to concentrate on product development and strategy.
He said he wanted to spend more time on improving Second Life, for example by making it easier to learn how to fly, walk and exchange money and to find things and people in the three-dimensional virtual world.
Rosedale, visiting Germany on a tour of Europe — Second Life’s most important market outside the United States — said the appointment of a new CEO should not be taken as a sign that a public listing was imminent.
“There’s no change in the strategy there,” he said. “We can go public any time we want. Revenue is growing with users. We’re profitable. We have the luxury of waiting.”
Linden Lab, whose backers include Benchmark Capital and Omidyar Network, does not disclose its revenues.
Rosedale said Second Life’s failure as yet to reach a mass market had partly to do with the unexpected rise in popularity of laptop computers, which are typically less well equipped to process three-dimensional graphics than desktop computers.
“When we started the company in 1999, it was obvious that broadband would become widespread and at the same time Nvidia released its GeForce2 (graphics chip),” he said.
“What we didn’t anticipate was Wi-Fi and the rise of laptops, which couldn’t do 3D.”
Asked to explain the appeal of Second Life — which has no game-like aspects such as points-scoring, winners or losers — Rosedale said: “The only thing that SL users have in common is that they have a lot of time.”
Users in big cities such as New York or Los Angeles were least likely to spend time in Second Life, not only because they were busy but because they had less need to escape to an alternative, anonymous world, he said.
“Bad weather, oppressive regimes, poor economic conditions — that’s what makes an SL user.”
(Reporting by Georgina Prodhan; Editing by David Cowell)
A VERY derogatory view of the userbase, in my opinion. I do have time on my hands due to 5 back surgeries and disability that forced me to retire from nursing but I am by no means, uneducated, oppressed or here because I have nothing better to do. If thats how the CEO regards the us, then hrmmm…how can people who are in such financial and political straits afford to pay such high prices for sims and such? Maybe if we are a ‘Wal-Mart’ population you should look into discounting tier Mr. Rosedale.
Mon Apr 21, 2008 1:04pm PDT“Bad weather, oppressive regimes, poor economic conditions — that’s what makes an SL user.”
I’m not sure why, but I feel vaguely insulted by that.
I’m also feeling the hubris here. LL ought to be scrambling much harder to make their tech work optimally with the hardware that exists rather than waiting for the hardware to “catch up”; as noted by the laptop example, sometimes the cutting edge doesn’t cut as cleanly and predictably as a developer might like.
And if they’re aiming for the impoverished, rain-drenched oppressive regime market, maybe it’s time to make sure the platform works smoothly on impoverished-oppressive-regime-type boxes. Eye candy is dandy, but rock-solid performance for ALL users is better.
Mon Apr 21, 2008 2:04pm PDT>“Bad weather, oppressive regimes, poor economic conditions ― that’s what makes an SL user.”
Interesting. I want to see location map where SL users connecting from. Like Twittearth show us these on twitter.
Mon Apr 21, 2008 7:04pm PDTHmmm. Who needs Valleywag to say SL is the Big Empty, and for losers and shut-ins and such, when we have our own founder to say it’s for people with bad weather, oppressive regimes, and poor economic conditions.
They hate us…
Mon Apr 21, 2008 9:04pm PDTIt should be noted that though usage of synthetic worlds may currently be at 1% or less of what is predicted Second Life is just one product in a field that is becoming increasingly crowded.
Though Linden Lab has produced an interesting product with Second Life it appears that they don’t have any sort of IP in regards to virtual worlds.
If the popularity of synthetic worlds explodes in a manner similar to the World Wide Web there will be many providers of services and much competition for Second Life.
Mon Apr 21, 2008 10:04pm PDT“Bad weather, oppressive regimes, poor economic conditions — that’s what makes an SL user.”
Please tell me this is a misquote.
Tue Apr 22, 2008 6:04am PDTI won’t quote the same phrase over again, but I guess all of us disabled veterans, people who are confined to wheelchairs and have other conditions must be part of the poor economic conditions. It is nice to know that those who supported this platform are so well thought of by Philip.
It is amazing that someone who has claimed to have an open mind would make that statement.
What next Phil? Gay bashing? Religion requirements? Do I need to show my payroll statements and mensa card as an entry permit?
Tue Apr 22, 2008 8:04am PDTThere are threads on both SL’s forums and SLU expressing similar dismay about the characterization of SL users. Perhaps a clarification from Reuters or Rosedale as to the full context of this quote would be in order?
I am truly saddened if Rosedale is so disappointed in SL that he has stopped cheerleading. It would be tragic if LL’s internal machinations, or the wails from unhappy residents, have worn away his dreams.
Tue Apr 22, 2008 9:04am PDTIs that really Phillip Rosedale’s view on the users of Second Life? Where on earth (virtual or real) does he gets his info from?
Tue Apr 22, 2008 10:04am PDTThe problem is not that laptops are incapable, but rather that the client is a bloated mess that is horribly unoptimized. A Cube can take over 48 polygons to render…yuk
It is rather obvious Rosedale doesn’t give a crap about the users. As long as land is occupied, and thus paying tier they could care less. They keep trying to lower the price of entrance so new users will flock in and be ensnared with land/sim ownership and unable to sell it.
Tue Apr 22, 2008 10:04am PDTI’m feeling not only “vaguely” insulted here. As i’m writing this i’m also forwarding the article to my representative in german gouvenrment, since phil “linden” is not only insulting people here, but whole countries as well.
Tue Apr 22, 2008 10:04am PDT“Bad weather, oppressive regimes, poor economic conditions — that’s what makes an SL user.”
Well Mr. Rosedale, thats really how Linden Lab see us??
That explains a lot to me, now I understand why you do have such a poor costumer service, and why the grid is always having problems.
Tue Apr 22, 2008 10:04am PDTWe all can see the giant, white elephant in the room, but is it just me or does anybody else just see his point of views as complaining? I mean really. I think the basic business sense of adaptation as the market develops really applies here. Instead adapting to the current market and technology in order to develop along with it, complaining that it’s not up to your standards demonstrates, to me at least, the lack of business intelligence. Sadly I think Ric is right. Hubris will meet karma.
Tue Apr 22, 2008 11:04am PDTmy best friend in sl is handicapped and his entire group of those with similar handicaps in rl adore sl. My cousin who suffers from autism has found sl to be the most wonderful place for him and his friends and to do fun things with his family that he cant in rl. My gf who lives in another country communicates with her family in America and spends time once a week in sl with her family and they can visit via chat saves money in long distance and gets to do things with them in sl. My college friends and I meet up during our spring and summer breaks in sl to catch up chat and do fun things. My uncle who is deaf in rl gets to come to sl to catch up with other deaf people and do fun things and communicate. My mom who works out of her home gets to come to sl a few hours a week to socialize and relax in second life. My old online sims friends have found sl tons more fun so before bashing sl know many of us enjoy sl have many reasons we are here.
If you enjoy video gaming like sims online and others you will enjoy sl. If you enjoy myspace socializing with real time you will love sl
poor economic conditions ? hum it takes a lot of money to get a computer that runs sl so those who are able to play actually have to afford a good computer that doensnt make any sense. hum
Tue Apr 22, 2008 2:04pm PDTI’m sitting here at my desk where I do my J.O.B. with my jaw dropped. Really Philip? You think that the majority of your customers are not busy enough?
“Users in big cities such as New York or Los Angeles were least likely to spend time in Second Life, not only because they were busy but because they had less need to escape to an alternative, anonymous world, he said.
“Bad weather, oppressive regimes, poor economic conditions — that’s what makes an SL user.”
Surely you jest. That couldn’t possibly be QFT. If it is, I’m sorely disappointed in the entire organization based solely on your obvious misunderstanding on who your customers really are.
Tue Apr 22, 2008 2:04pm PDTI guess Linden Lab is beta-testing a new feature where shoes go in Phil’s mouth instead up… up… well, you know where.
Tue Apr 22, 2008 2:04pm PDTWhether true or not (and it’s demonstrably false from SL’s own published stats), the real concern is that the exiting CEO of SL would be stupid enough make such an unguarded comment. One that is patently guaranteed to alienate a large proportion of his own customer base - and in particular customers that would represent SL’s highest value customers. Let us hope that “M” has a little more sense and sensibility.
Wed Apr 23, 2008 4:04am PDT