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Faculty Seminar on
   Virtual Worlds
   Episode 2 - Second Life - 2/12/08
cory ondrejka - cory.ondrejka@gmail.com
a quick review
online versus virtual
community versus world
millions of reasons
Online Game   Online Communities   Online Worlds




                                            crapload



                                              many


                                               lots


                                              a few
some rules of thumb for
   world-wide numbers:

 Virtual worlds: 20 million
     MMOs: 50 million
Social networks: 100 million

   (with lots of overlap)
gold in dem darn (virtual) hills
amateur versus expert
don’t make me use
the baby seal slide again
(because I will)
Usc Faculty Seminar 2.12.08
participation
        Web                Wikipedia     Sims   Open Source
        Mainstream Media   Second Life

65.00



48.75



32.50



16.25



   0
any questions lurking?
it’s story time!
the second life story
good thing we’re in la
8 years so far
which isn’t that long
as mitch likes to point out
(who’s been through this)
think about the pc
think about the pc
think about the pc


        1976
think about the pc


        1976
think about the pc


        1976




     1990
15 years
so we’re only half way
(maybe 2/3)
but, like all exponentials...
but, like all exponentials...
but, like all exponentials...




vaguely interesting
but, like all exponentials...
                             very
                          interesting




vaguely interesting
plus, sl gives plenty of material
second life’s growth
   Population   Money
second life’s growth
   Population   Money
2000
compression


  2000
compression


   2000

  grid
computing
compression


               2000

              grid
 cellular
            computing
automata
“the rig”
             compression


               2000

              grid
 cellular
            computing
automata
“the forest”
2000 scorecard:

   no users
 no exchange
 5 employees
2000 scorecard:

   no users       people signed up
 no exchange      users trading L$ and US$
                  Linden Lab employees
 5 employees
second life’s growth
   Population   Money
second life’s growth
   Population   Money
2001
building


 2001
building


 2001


 avatars
second life was about people
even the most beautiful place
was not as interesting as people
scripting, too
2001 scorecard:

   no users
 no exchange
 10 employees
second life’s growth
   Population   Money
second life’s growth
   Population   Money
2002
2002 was a very good year
2002 was about people!
2002 was about people!
2002 was about people!


               Alpha!
and people meant...
creation
 community
collaboration
virtually no screen
shots from this era
2002 scorecard:

  145(!) users
 no exchange
 20 employees
second life’s growth
   Population   Money
second life’s growth
   Population   Money
2003
remember 2002?
creation
 community
collaboration
2003 had more people
creation
 community
collaboration
however, since
    communities
are not scale free...
creation
 community
collaboration
often drove...
cheating
  combat
boundaries
do good fences
     make
good neighbors?
the jessie wall
the jessie wall
the jessie wall
this story only survives because
                of
            james au
embedded in a virtual world
how to preserve the ephemeral?
Second Life launched on
    June 23, 2003
June 23rd is now a
      holiday
  in Second Life
Second Life launched with
        less than
           400
          users
and didn’t grow much
evolve or else
we asked for help
we asked for help
we asked for help
we asked for help
“it’s stupid to ask
 people to build a
         world
and to not let them
       own it!”
oops
so we studied
macro economics




  so we studied
macro economics



         creative destruction


  so we studied
macro economics



         creative destruction


  so we studied


             “mystery of capital”
and evolved both the
intellectual property approach
               and
       the business model
intellectual property
intellectual property




Yochai says “$#@%?@!!”
business model
enables two broad lines of study
ip rules
in the information economy
entrepreneurship
in the information economy
2003 scorecard:

  2743 users
 no exchange
 25 employees
second life’s growth
   Population   Money
second life’s growth
   Population   Money
2004
entrepreneurship
entrepreneurship
branding
breaking the magic circle
really breaking
2004 was about the
      individual
  using second life
2004 scorecard:

    18,876 users
$5,000/mo exchange
   40 employees
second life’s growth
   Population   Money
second life’s growth
   Population   Money
2005
three things happened in 2005
Second Life became free
as in beer
educators discovered SL
in a big way
particularly via
   GLS and
Serious Games
and sl started growing
businesses
 followed
the people
but just a little
though virtually no
 real-world brands

       (yet)
government
and music
tringo
broadcasting identity
2005 was a year of building
2005 scorecard:

    123,438 users
$500,000/mo exchange
    60 employees
second life’s growth
   Population   Money
second life’s growth
   Population   Money
2006
the knee in the curve
the year of “firsts”
auto company
hotel chain
clothing company
concert
cc concert
fashion magazines
news organization
harvard class
millionaire
where did this all come from?
despite popular perception
          it was
           NOT
        the Linden
 uber marketing machine
I wish we had that much power
distributed entrepreneurs
plus everyone else
gladwell would be proud
gartner, too




2006
2006 scorecard:

    3,000,000 users
$5,000,000/mo exchange
     100 employees
second life’s growth
   Population   Money
second life’s growth
   Population   Money
and then things got
      exciting
2007
freedom!
(as in speech)
second life client
  open sourced
big business arrived
these guys got acquired/funded
csi:ny
fortune 500 bingo
mix of training,
marketing, collaboration
lots of questions:
 efficacy of training?
   impact of trust?
brands and community
and how does voice mix in?
over the top
made more complicated by
the rest of the world arriving
and by increasing
regulatory interest
gambling
adult activities
   banking
all of cyberlaw’s shortcomings
plus the metaphor
and lack of standards
what does user mean?
2007 scorecard:

    11,000,000 users
$8,000,000/mo exchange
     220 employees
second life’s growth
   Population   Money
second life’s growth
   Population   Money
2008
rebounding
hundred of sl developers
       employing
  thousands of people
from all over the world
sl growth increasing again
5% weekly concurrency growth
emmy-tastic
so, what’s next?
Second Life’s
progression has been
community
  collaboration
     identity
    education
entrepreneurship
   marketing
    business
      media
innovation
so I’d like to propose diving
         deeper into:
innovation
 behavior (with Dmitri’s help)
          education
 legal and regulatory issues
the big unanswered questions
stop talking now
cory.ondrejka@gmail.com
   http://ondrejka.net

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Usc Faculty Seminar 2.12.08