Second Life

Group:
Ubyrajara Antonio Chamma De Moura
Izabella Melendez Conigliaro
John Bica
William DeWitt

Introduction

Virtual World Games? Second

Life?
Todays Market
$93 billion in 2013

Company Background

Linden Research Inc. founded in 1999

o Purpose to create new form of shared
experience
o Virtual 3D landscape without physical
limitations
Run by Chief Tech. Officer, Philip Rosedale
o Led senior development team of physics,
3D-graphics, and networking experts

Inspiration:

I always wanted the world to be a LEGO

somehow. I just wanted to make things as

a kid. As I got older and computers came
around, I just wanted to use computers to
build stuff. I thought of a computer more
as a hammer. I just wanted to do
something cool with it. - Philip Rosedale

Second Lifes Timeline

Early Prototype

Linden World shown at Demo 2002 conference

June 23rd 2003: first public version of Second
Life goes live
Burned through $8 million VC investment
through 2005
o Remained low key and invisible at first (few
weblog mentions)
2006: Used additional $11 million VC
investment to hire professional agency -

Memberships and Users

Offers paid memberships ranging from

o US$9.95 monthly, US$22.50 quarterly, or
US$72 annually
Free basic membership
allows users to create/evolve avatar and visit
all places/events
Premium
Access to build home/create objects

 Monthly land use charges (size>512 sqm) in

addition to membership
Revenue: 80% land/maintenance fees 20%
memberships

Premium Residents

Game Fundamentals and

Capabilities
World revolves around user-generated content
o forces residents creativity & social interaction
Virtual world models the Earth-like world
o sun rises & sets
o objects fall under effect of gravity
o grass blows in the wind
o users decide what and when they want to do
Islands, whole cities, world-known sites can be built
No fixed storyline
Travel walk, fly, teleport
Residents have intellectual property rights for their
creations
o ability to generate real-world income
o for a thriving market economy

Second Life Gameplay

Video
https://www.youtube.com/watch?v=wPu4SVDfw6g
(Stop at 4:36 mark)
https://www.youtube.com/watch?v=GgNcTxgCMLQ

Economic Opportunities

Virtual Currency System

Linden Dollar (L$) can be used to
buy, sell, rent or trade
land/goods +services with other
users
o 250 L$ = $1 USD
Introduction of LindeX exchange
in 2005
o Allows residents to buy/sell
virtual currency in exchange
for US$
o Matches buyer and sellers
for best exchange price
available

Corporate User of
Games/Social Networks
Methods of advertising shift towards males
aged 18-34
o Spent 12.5 hr/week playing video games
vs 9.8 hr/week watching TV
Marketing online required sustained
engagement with brands rather than clicking
through a purchase
o Virtual world allow marketers to segment,
reach, and influence the alter egos of realworld customers
o Can see how they interact or use a

Mercedes Benz
Began using virtual worlds with its online game MercedesBenz Wunschwald
o linked the companies and users created content and
fostered a dialogue within whole community
December 2006: began design & implementation of
transferring real-world brand values into virtual world of
Second Life
February 2007: Launch an Mercedes Benz Island
o containing a virtual showroom, framed by a test track,
small-brand history musuem, area for vehicle
presentation, a stage for events and big screens for
current products films and TV advertisements
o Essentially able to reach a whole segment of internet
users
New C-Class Car model
o Gave Second Life residents exclusive preview of virtual

Different companies,
different concepts
Second Life is a sandbox of sorts.
In June 2007, nearly no day went by without another
company announcing the launch of its presence in a
virtual world.

August 2006 to Jan 2007

IBM:
Invested US$10 million in 2007
Uses islands for conducting research, onboarding new
employees, providing developer support, and conducting
meetings with IBM staff and clients.
Reebok:
October 2006
Residents create virtual customized shoes for their avatars
(L$55)
People can wear the same design shoes in the real world
and in Second Life
Calvin Klein fragrances:
March 21st 2007 (simultaneously with real-world launch)
Virtual version of the new ck IN2U fragrances
Since avatars cannot smell, the virtual perfume bottles
enable residents to spray each other with bubbles that

The Coca-Cola Company:

April 2007
Invited avatars to submit ideas for a portable virtual
vending machine.
Sony-Ericsson:
March 15th to 21st 2007 (during CeBIT - world's largest
computer expo)
Offered products ranging from mobiles phones to
accessories
Starwood Hotels:
September 2006 - June 2007 (avatars do not need to
sleep; unable to sustain the residents' interest)
First real-world hospitality company to enter Second Life
Installed a virtual hotel prototype (test-market the hotel's
design)
Second Life's residents could wander through the lobby

Randstad:
March 7th 2007
First human resources service provider to establish a
presence in Second Life
Research project about the influence of virtual world on
social network
Company offers virtual and real jobs
Pays Second Life's residents in L$
INSEAD:
March 2007
Virtual campus
Offer an innovative learning environment in which
participants from around the world can collaborate in realtime and learn from diverse experiences of faculty and
peers.

France's 2007 presidential election:

All four major candidates opened virtual headquarters
Engage residents in debates, attend political rallies, and
take part in protests.
Axel Springer AG:
December 21st 2006 (English and German versions)
Weekly professional tabloid newspaper for the residents of
Second Life - 'The AvaStar'
Keeps its readers informed about the vast, diverse, and
ever-changing virtual world.
Single issue (L$150) or subscribe for a regular update.

Virtual World with Real

Challenges
Companies transitioning to virtualality
o Marketing goal

American Apparel

Gartners Five Laws

Linden Lab- Controlling issues
within
Moral & Legal Issues

o CopyBot
o Trademark Violations
o SSLA-Virtual Terrorists (ABCs
Island)
o Gambling

Serious Issues cont- Virtual RedLight District

o Sexual Ageplay, Child Pornography

German Child Sex Pornography Ring

Second Life
Today
Second Life Grid Stats
2014
Total Registered SL
Residents: 38.1+ million
Total SL Regions: 26, 102
SL Concurrency: 30, 000
(min) 56, 000 (max)
SL Daily Median
Concurrency: 42, 000
SL Daily New Signups: 10,
000 to 12, 000 per day
(average)

Company Uses Today

Major brands Disney & Amazon opened up virtual shops
By 2009: Around 1,400 companies were using the space to
hold meetings and conduct training
However, companies started pulling out of the virtual
world
o Fewer and less frequent updates
o Virtual social network replaced by new networks like
Facebook
cheaper, easier, more reliable, and better for most
companies
o Has become stagnant
Large user base exists but less expectations &
media attention
Shift from in game lectures and re-created life toward

Stories from Second Life

https://www.youtube.com/watch?v=3-LB-FeJlc4

Questions?

How do you feel about Second Life

now?
o Do you see yourself ever using it or
believe it could be it has potential
and use today?
If not, whats the main reasons you
wouldnt?