Unless you're highly specialized or your sim has a special purpose, if you own your own sim for the purpose of rental there have been some major changes the past several months which have likely had significant negative impact on your business.
The amount of USD being spent in the SL economy is declining, meaning less demand for private sector estates as most folks really have a strong preference for main land unless a strong theme or high quality is maintained with a private estate. General sales of land which directly competes with Linden Lab has no hope at all. With Linden Lab persistently providing new land for newcomers to SL, the private estate market cannot be maintained without constant diligence by sim owners to induce real traffic and attract spending.
The Gambling ban destroyed a large source of revenue for many private estates. The banking ban made an already rough financing market for new private estates practically non-existent so that the few good institutions went out with the bad. With the real world economy in the main user areas, notably North America, in a spiral.. the extra spending coming from most folk's wallet for entertainment will be in severe decline if they can even afford the internet access to get on Second Life at all.
This has generated a nightmare for what was once a reasonably fair market. I expect very few non-specialized private estates to survive if any. After all, who can compete with the megalith of the content provider Linden to whom Tier for private sims is also directly paid.
Such is the power of a monopoly; that inefficiency in the markets results and the intentions of many productive individuals destroyed.
I even have a lingering worry about the survival of Second LIfe in its present format.
Thursday, January 17, 2008
Crisis in the Private Estate sector.
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3 comments:
Many people rejoiced with the announcement of the banking ban, but they fail to realise the benefits of what the financial sector of the SL economy. A number of private estates have been founded only because of financing from the legitimate banks and investors.
I'm wondering if this is LL's intent, to diminish the power of private estates. With the way the tier system works, they could get more out of a mainland sim properly divided up than out of a constant tier from private estates. Greed is indeed a major motivator for numerous actions. (Just speculating, but it cannot be readily discounted.)
Mael, sorry but I do not share your pessimism at this point in time.
I see new things happening like RIOT MECH and the increase in Music SIMS that seem to be cropping up more and more. There is a hell of a lot musical talent out there as well as other talent. I think the guys who have come up with the RIOT MECH idea and also the Wasteland idea will be the future moguls of SL as well as those who can put together a good Musical concert. Or those who can effectively record it (MNM?).
Check the Popular places list! Eliminate the Sex stuff and what is left? Music for the most part!
Also I see the possibility of theatre or opera, etc. I believe that a talented scripter or team of scripters could script original live theatre for SL.
The gambling ban pointed out, to me anyway, the need for people to be entertained in innovative ways. I think that that will be the future of SL. The financial community will take a part by funding such ideas. Many will lose, but as in RL, some will hit the big one. It's a crap shoot! No matter whether you are in SL or RL.
It is all a risk. And in SL that is what it is all about, in my opinion!
Yo 11!
Sadly, I Agree..
LL has shown a heavy hand..
with very little tact..
The major undefineable risk
of doing business in SL..
Linden Labs...
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