Kategorie: Business

Business

Island deliveries today – some math

Well, seems the Lindens are clearing their backlog and delivering today (!) about 300 islands.

Let’s calculate a little. For normal users (non educational) reserving a region costs 1.675 US$ and the monthly maintenance fee for an island is 295 US$.

So alone on reserving costs 300 new arriving islands mean: 300 islands * 1.675 US$ = 502.500 US$ income for Lindenlabs. Of course not all of it profit, since they’re using these fees to pay the server hardware, plain and simple, but surely are still making some profit with it.

Then 300 islands * 295 US$ maintenance fee per month and per island = 88.500 US$ income on maintenance fees per month with these islands. Most are surely used to pay the staff and the location, but that’s where the real profit comes from for Lindenlab.

So – not bad, hu?

Business

PC&E opened in world presence

Packaging&Converting Essentials, a content provider for the graphics and packaging industry, has opened up its in world presence last week in the sim Sede de Marte.

The building is outstanding in regards of architecture; one of the few pentagons you’re ever going to see in world. They’re handing out RSS reader huds and of course you can get in touch with their staff, my good old friend Ludwig "Lu" Stapleton as communication officer. And yes, she’s a female avatar, just being very much in love with Ludwig van Beethoven, hence the name.

Ah and since everybody loves pictures, here’s a picture of the building taken by myself. The building itself was done by Alex Bader. Building PCE

If you want to listen to nice music or inform yourself about matters of the graphical and packaging industry, just go there and get yourself informed.

Business

Taxes on virtual economy

CNNmoney.com ran an interesting article about „Second Life’s looming tax threat.“ What stays in world is in world and not interesting for the IRS. But when you’re trying to convert it into real money that’s quite a different matter.

It is about the possibility that you’ve got to pay income tax in the future to the IRS if you’re earning money in SL and other games like WoW and whether it’s possibile or science fiction. An interesting read.

Business / General

New things in the making

There’s been a somewhat quiter time now in Second Life, especially in terms of media coverage and company news, but now again the hype is heating on.

Here are some of those events:

  • The Germans Samwer brothers achieved a 10% share of Anshe Chung Enterprises. For those who don’t know them: these are businessmen, who first founded a German competitor to eBay, called Alando and sold it then to eBay for around 50 million US$. Later they’ve founded Jamba, the German or European (?) market leader in ring tone sales, which became vastly popular for their annoying commercials. Many still remember the oh so annoying Sweety or perhaps the Crazy Frog. This is all of their doing. Well, their company got many critics back then because of their business behaviour, especially to underages. The most famous article about their behaviour is called „Jamba Kurs“ (English via Google) from the end of 2004 in the German blog Spreeblick and got them many bad media coverage, especially because the owner of Spreeblick found out that employees of Jamba posted disguised under some pseudonyms pro Jamba comments in his blog. This article made Spreeblick very popular, and it is still today one of the most read blogs in Germany. They’ve changed later there business practics under pressure of the government. Later they sold their company for about 270 million US$ to Rupert Murdoch and founded a risk capital company. Seems they’ve invested now with this company money into ACS like they also before did into the German Facebook copycat StudiVZ. This is, of course, a good deal, since they’ve got the advantage of very cheap and good workers from China. They intend to double the employee staff to 100 persons and to open several, international bureaus. This must be also a good deal for Ailin Gräf herself in terms of money, too. Both are very successful companies and business men.
  • Second Life is in the process of getting voice capabilities. This is going to be a very big leap in the further development of the platform. The reactions about that are diverse; while some say that’s great, others say Lindenlabs should first fix the most outstanding bugs of Second Life before adding new features, that can possibly add even more to the lag situation we’ve got at the moment, others dislike it because it is somewhat disclosing about their real life persona and it can drive a somewhat rift in the playership between people still typing and people who only use voice only.
  • Ah, and the lag, our friend, we all love and cherish: the Lindens claim it’s fixed. Consider that! Wow! What was the reason for it? A saturated network link. Now I wonder how often – if at all – they’re looking at their network router graphs. This is something so obvious to find out if you only take a closer look at your network equipment – sheesh. No fame for the Lindens there.
  • CBS is financing the Electric Sheep Company. Another company getting an infusion of fresh money, this time the company that supports Open Second Life.
  • Mercedes Benz has opened up an own point of business, that seems to be still somewhat lacking. Expect there more things to come, I guess it’s intentional they’ve opened up so early to get first some experiences in handling Second Life before the real shebang of the company starts.

Business

About the economics of Second Life

The Register ran a story one week ago about the economics of Second Life. They are taking a very close look at the hard facts of the economics in Second Life beside the hype. Some measures are really interesting and were even new to me.

First, there is the churn rate. Only about 15% of the people who create an avatar in October 2006 logged in again after their first 30 days in SL. Very interesting measure, indeed. This drastically reduces the number of real residents, of course. Even more when you take all alts out.

There are about 4 million residents at the moment, when you do the math, this means that there are really about 600.000 residents who login regularly (alts included in this measure).

They are also pointing out that the maximum number of avatars in one sim is around 100 at the moment; also a very important restriction on doing business in SL. But then again, the business in SL has found ways around it.

70% of the revenue of Lindenlabs is generated at the moment by land sales and tier fees. No surprise in there. It’s a bubble at the moment, bound to burst sooner or later. Of course, LL would like it to burst later to generate more profit out of it.

Last number is that there are around 50.000 premium users at the moment; that’s not really much for such a big game/platform/whatever.

It’s a nice article with some new insides beside the mainstream and definitely worth a read.