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Second Life’s private sim watch

6 comments

about every 6 weeks i post something about SL’s private sim growth. it’s an easy post to write thanks to Tyche Shepherd’s Grid Survey and it’s something that’s important to the virtual world community – its health does affect OpenSim to some extent

this time i’m looking at the last three years and the effect on Linden Lab’s recurring revenue stream. the vast majority of LL’s income is from private tiers

private sims have three tier levels but the proportion of them has stayed nearly identical over the last few years – about 55% from full sims and 45% from homesteads. openspaces count for less than half of one percent

  • nov 29, ’10 – monthly private sim revenue of $5.052 million (average of $202/mo/sim)
  • nov 26, ’13 – monthly private sim revenue of $3.975 million (average of $204/mo/sim)

the slight increase of average monthly tier is from the loss of educational discounts and grandfathered sims

  • nov 29, ’10 – yearly private sim revenue projection of $60,624,000
  • nov 26, ’13 – yearly private sim revenue projection of $47,700,000

the daily average loss is about 5 private sims (5491 sims/1094 days) and at an average of about $200 per month that means the recurring revenue stream is dropping $1,000 per day! *checks pockets & comes up with a washed receipt*

psl1113

llr1113

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written by Ener Hax

November 27th, 2013 at 10:19 am

posted in second life,virtual worlds

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6 comments to 'Second Life’s private sim watch'

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  1. […] about every 6 weeks i post something about SL’s private sim growth. it’s an easy post to write thanks to Tyche Shepherd’s Grid Survey and it’s something that’s important to the virtual world community – its health does affect OpenSim to some extent  […]

  2. […] See on iliveisl.com […]

  3. as you know i’ve been watching this closely as well. you may recall last year that @rodvik pronounced that Linden Lab had annual revenues of about $75 million. how does that fit in with your numbers? looks to me like they have another $25 million or so in other sources of revenue, that is to say 2/3 of annual revenue is from land tier and 1/3 from other sources (Marketplace commission and Linden Exchange, etc.) recently i came across information that seems to indicate that Linden Lab has had a *very* high profit margin. that is particularly vexing to me since i believe their tier prices to be extraordinarily exaggerated. that high profit margin will probably carry them for awhile yet. in 2009 Secondlife had revenue of 80-100 million, and profit of 50 million.

  4. […] about every 6 weeks i post something about SL’s private sim growth. it’s an easy post to write thanks to Tyche Shepherd’s Grid Survey and it’s something that’s important to the virtual world community – its health does affect OpenSim to some extentthis time i’m looking at the last three years and the effect on Linden Lab’s recurring revenue stream. the vast majority of LL’s income is from private tiers  […]

  5. […] forth. The time seemed right, following the rather predictable shockwave that has emanated from a recent post by Ener Hax on her blog in which she identifies a decline in annual private sim revenue (tier) of […]

  6. […] Today, Second Life primarily makes its money from sales of land, premium memberships, and virtual currency. Land revenues are estimated to be about two-thirds of the total, and are dropping by around $1,000 per day. […]

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