2010-07-20 We Are The Network: Virtual World Success and Failure Factors – Past, Present and Future
2010-07-19 Added reference link to blog post by returning Second Life CEO Philip Linden “Update on Strategy”
Virtual World Success and Failure Factors – Past, Present and Future
Please join our global discussion group
every Tuesday at 12pm noon U.S. Pacific / 3pm Eastern time
This Tuesday, July 20th at the Epoch Institute in Second Life™
Click here to teleport to the Epoch Institute in Second Life™
http://maps.secondlife.com/secondlife/Wells/97/56/27
This Week’s Topic
Virtual World Success and Failure Factors – Past, Present and Future
Virtual worlds grabbed the attention of marketers, companies and educational institutions several years ago, in no small part driven by the fast growth of Second Life™ and offerings for younger children such as Disney’s Club Penguin and many others. Some predicted that virtual worlds would “replace the 2D web.” Over the course of several years many competitors appeared on the marketplace. Today it is far less clear whether this evolutionary replacement will occur in the mid-term, if ever.
In this discussion we will analyze three phases of virtual world development, using the Second Life environment as a model for discussion (since it is the one that most participants in this group know the best).
We will look at Second Life’s initial strong growth phase, discussing which factors seem to have driven and limited growth even during that fast adoption period.
A second phase appeared, in which more targeted uses of virtual worlds appeared, although also through this period usage growth appeared to have stalled, and in many ways retrenched (from public data, it would appear that concurrency has fallen to levels roughly comparable to two years ago after a peak in early 2009). Although on a typical day about 10,000 new registrations are logged, only about 2% of these registrations result in active users (from data presented in a public forum around the launch of Viewer 2).
The third phase has yet to unfold, as we go forward to some form of global financial recovery (with or without jobs, a related but separate topic). Will this third phase look like continued decline for virtual world use, or growth, and what drivers will determine its shape?
We will discuss the corporate model, technical, community, marketing and external cultural and business/financial drivers for the growth or lack of growth through these phases. Is there a path that would result in strong future growth for virtual world technologies, has the market splintered in a fashion that reflects strong but less visible growth, and under what conditions would a system such as Second Life return to strong growth, or has it reached its ultimate size based on the number of people who are interested in its philosophy and concept base? Will virtual world concepts become dramatically widespread, but in some other form than a single-vendor connected system? Are there drivers that indicate that the concepts must evolve to be of interest to a dramatically larger audience?
Join us Tuesday at 12PM noon U.S. Pacific / 3pm U.S. Eastern time for an interactive discussion, and thanks for being part of “We Are The Network”!
If you do not have a Second Life account and would like a quick start to attend the session, please contact me for more information.
Best regards,
Joel
Why All This Detail? It’s Just One Slider!
How in the World do you Explain a Virtual World?
1) Make a list of companies and systems in the space of interest (Twitter, Facebook, Linked In, MySpace etc for social media, World Of Warcraft, Lord Of the Rings Online, Second Life, Blue Mars, IMVU etc for massively multiplayer games and virtual worlds)
In our last session, we attempted to arrive at key measures to determine “The ROI” and “Virtual World Engagement” for virtual world and social media projects. I say “attempted” because we ended up with a variety of different positions and views on what constitutes the value center for engagement and ROI. Ultimately we decided that there is no single measure of value or ROI (other than dollars at the end game for business projects which could be measured in multiple ways, and measurable improvement of some sort for educational and social action projects.)
Introduction