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Linden Lab CFO departs
Linden Lab's CFO (Chief Financial Officer) has parted ways with the successful virtual-environment developer, though the circumstances under which this parting has taken place are not abundantly clear. All the signs have been there for some weeks, and we've been trying to get final confirmation (which has arrived at last). John Zdanowski's stint as CFO has seen the largest period of growth in Linden Lab and Second Life so far, with Linden Lab execs reporting record profits during the last quarter of 2008. By all accounts of the Lab's financial performance Zdanowski's departure would seem to be due to no failure on his part. Indeed he seems to have served the Lab admirably during his time there.
Linden Lab purges nearly a million inactive Second Life users
Linden Lab has, for a very long time, published quite an array of statistical data about Second Life through a regularly updated (when it worked, which it didn't always) set of statistical data feeds (mostly collected by aficionados and researchers). During mid-January, two sets of those feeds suddenly stopped working. A bug, we thought, as data-quality for the statistical has traditionally been exceptionally poor, and it was far from unprecedented. The two casualties were total signups and the number of users logged into Second Life in the last 60 days. Interestingly, though, just after the data ceased updating, Linden Lab purged approximately 800,000 user accounts. Now, we've got no official statement from the Lab that the sudden cessation of the published data is due to a bug or due to policy -- However the sudden stop in publishing signup data, coupled with the sudden cull of nearly five percent of those signups makes for a heck of a coincidence, don't you think?
Second Life 2008 results
John Zdanowski (AKA Zee Linden) has published Linden Lab's Q4 Second Life metrics from 2008 mixed with an annual summation. It reflects a considerable number of positives, but reads a bit like one of the paradoxes of motion from Zeno of Elea. There is so much spin on these figures that you'd be well-advised to keep your fingers clear. Yes, Second Life experienced significant growth during 2008, and there was indeed growth in Q4 as well. None of the figures are wrong (except for the figures reported for reduction in land, which are credibly refuted elsewhere), but like Zeno the time frames used for the comparisons jump between using comparisons between years and quarters. As such, closer reading gives a different impression than a quick skim.
Second Life October metrics: More falls
October metrics for Linden Lab's virtual environment, Second Life are not yet formally available, but Lab CFO John Zdanowski wound up giving out a link to the information in advance, so we have the figures to work with. September was not a good month by these metrics, and we were interested to see how October panned out. Your key takeaways for October are a continuing plunge in premium accounts, and a reduction in overall economic activity. User hours, however were up. A more detailed summary follows after the jump.
Premium accounts and the Second Life business model
Much has been made of a statement recently by Linden Lab's new CEO, Mark Kingdon, that 'Premium subscriptions are immaterial in our overall business.' You see, in a sense that's pretty much spot-on. Unless a premium account owns more than 512 square metres of the Linden Estate (colloquially known as the Second Life Mainland), that account is either only very small revenue for the Lab, or actually represents an ongoing cost to them. Linden Lab's CFO, John Zdanowski said, 'The revenue we generate from premium subscriptions is largely offset by the stipends we pay out to these account holders, so this decline doesn't have a material impact on our business.' Either you're on an older premium account with a 500 Linden Dollar per week stipend grandfathered in, or you're on a newer premium account with 300/week. There's also a choice of plans, ranging from monthly to annual. Let's take a look at the relative values.
Second Life's "unusually strong" September
Linden Lab's CFO, John Zdanowski is better known to Second Life users as Zee Linden, though we think of him more as a Zeno, after Zeno of Elea, who baffled, annoyed and amused pre-Socratic thinkers with a set of seeming paradoxes, many of which revolved around the adjustment of frames of reference and measurement -- and, whatever their original intention -- amply display the follies that arise from doing so. You can pick up all of that from yesterday's Q3 2008 world metrics from Zdanowski, entitled 'Q3 closed on a high note with an unusually strong September'. You might want to check September's published figures against that report, and see if you agree with 'unusually strong'.
Peering Inside: A media campaign
While the announcement of the Google Lively public beta may have taken many by surprise, apparently it did not take Linden Lab unawares -- their Second Life messages were already lined up and ready to go. Indeed considering that information about Lively's launch was available to a number of people who were close to Linden Lab, either as partners or ex-staffers, it seems silly to suggest that Linden Lab might not have known Lively's public beta launch date, unless those contacts were aflame with considerable, searing resentment. Wheezing, clanking and dripping oil from dark and unnameable apertures, one of Linden Lab's most neglected subsystems -- the marketing machine -- arose from it's years-long slumber and went about it's ponderous, mechanical business.
Second Life grows to the size of Cedar County, Iowa
Weighing in at 1.5 billion square metres (579 square miles, plus change), Linden Lab's virtual world Second Life stacks up at the same size as Cedar County, Iowa, which we've chosen to give you a convenient physical world comparison for size. The figure comes from Linden Lab CFO John Zdanowski's (Zee Linden) quarterly metrics report for Q2 2008. A sudden surge in land area was attributed to a drop in simulator prices earlier in the year, along with changes to purchasing conditions and capacity of Void simulators (also known as Openspace simulators).
Cinemassively: Current TV talks about A Virtual Recession
Current TV viewer and contributor, Vasilis Siskos, created this look into the virtual economy of Second Life. Curious as to whether the real life recession trickled down into the virtual world, he asked some experts, including Robert Bloomfield, of Metanomics, John Zdanowski, or Zee Linden, the CFO of Linden Lab, and Alliez Mysterio, of d'Alliez Estates. They had some interesting insight on the situation, but ultimately felt that it wouldn't be a problem, as crafty residents would find what worked better next and adapt.[Thanks, Kai!]If you have machinima or movie suggestions from any MMO, please send them to machinima AT massively DOT com, along with any information you might have about them.
Peering Inside: Linden Lab's new billing provider
Some of you may have noticed that your billing for Second Life is no longer being done out of the United Kingdom but is now being done from the USA. Since there was no announcement of a change, we asked Linden Lab about that, back in the first week of January -- especially as it seemed that some users were still being billed from the UK, and others from the USA (and a few users with multiple accounts, from both countries). There seemed to be little consistency. Within a week, we had a basic answer. Linden Lab's John Zdanowksi (Zee Linden) responded, "There was shift in billing, though the change only happened for new customers or existing customers who re-entered their billing information, so that there would be no chance of disruption."
Cinemassively: Zee Linden discusses Linden Lab's finances on Metanomics
On April 21st, Robert Bloomfield, better known as Beyers Sellers in Second Life, held his weekly show, Metanomics. His guests, Mitch Wagner, of Information Week, and Steve Prentice, of Gartner, called the future of SL dire. John Zdanowski, also known as Zee Linden, then came on to address the points that Mitch and Steve made.In his two part response, he talks about premium accounts, the Lindex, and the recent lowering of land prices. Only time will tell if the situation is truly severe, but at least you can buy cheap* islands now!* Excluding VAT and $295/mo USD tier fee.If you have machinima or movie suggestions from any MMO, please send them to machinima AT massively DOT com, along with any information you might have about them.
Linden Lab CFO question and answer, this Sunday
Linden Lab's Chief Financial Officer (CFO), John Zdanowski (better known as Zee Linden) will be taking questions for one hour on Petunia Island in Second Life on Sunday, 4 November at 11AM SLT (US Pacific). If you've got questions about Linden Lab or Second Life that only the CFO can answer, prepare your questions and come along. Be prepared, Zdanowski is apparently going to be present with video and voice, rather than in his avatar as usual - so there's not much point in showing if you don't have the network or equipment to support it.
