OK, before everybody starts shooting at me for suggesting anything negative about Second Life, let’s review some of the recent news coming out of this virtual world:
- User logins are flat with the level a year ago, about 1.4 million logins.
- Several companies have left Second Life including Coke. IBM, an enthusiastic backer, is “exploring other alternatives” now that Second Life is focusing on consumers.
- Linden Labs, the operator of Second Life laid off 30% of its staff in June.
- In late June, Linden Labs named a new CEO, Philip Rosedale.
Virtual Worlds seemed like a great idea. They enable social interaction without all the nasty side effects of travel costs, security lines, lost baggage, etc. They also have the potential for more more natural interaction and freedom of activity. The idea is that one can go and interact with any community they want at any time over the Internet. So, why hasn’t it caught on yet?
- Difficult initial learning curve. It takes a while for users to learn to navigate, talk, and interact in Second Life. Many users are lost at this stage.
- Even when over the initial learning curve navigating, interacting and communicating can be clunky.
- The current version of Second Life requires a software client download.
So, what is the good news about Second Life as a virtual world?
- The remaining Second Life users are passionately supportive and active. Editors Note: The previous blog I wrote about Second Life was the most viewed blog I have ever posted.
- User-to-User financial transactions grew by 30% year over year. People are really making money in this virtual world.
- There are still 1,400 companies using Second Life.
- “Marketing” can be more natural and helpful rather than annoying and interrupt-driven. People see products and events that interest them and decide to engage or not as their curiosity motivates them. There is still huge potential for providing really useful and welcomed product/brand information in this context that is as yet untapped.
- Travel is getting more expensive, exhaustive, time-wasting and annoying. One alternative is video conferencing and Telepresence. Another very interesting approach is the virtual world approach, explaining why so many large companies were interested. It is a very different experience than a video meeting.
In retrospect, it is not surprising that the first really big attempt at virtual worlds failed to live up the initial hype. Possibly, nothing could have.
Recommendations for Second Life and Other Virtual Worlds:
- Pick a target market and really optimize for it. Are you going to be a virtual world game environment or a virtual business/social environment?
- Get rid of keyboard typing as the means to communicate. Let people speak to each other naturally by using Voice Over IP technology. This probably means a strategic partnership for Linden Labs.
- Simplify navigation and interaction. Lower the initial learning curve. Make it easier for even experienced users to get around. The more natural an unconscious you can make it, the better.
- Make it work in a browser. Don’t make people download and update client software in order to participate.
- Look into Smartphones. Consider tilting the smartphone as the way to navigate virtual worlds.
Second Life is such a brave attempt that it is well worth watching. Now that Second Life is over the “Peak of Hype” and well into the “Trough of Disillusionment.” Now comes the real test to see if they can take what they have learned and deliver a more natural and useful SL 2.0.
7/8/2010 Note: Please note that this blog is about business / enterprise use of SL and virtual worlds.
