Well it appears I have to suck it up after dismissing what I said to be vendetta-driven rumours have turned out to actually be true – Linden Lab have acquired the two major website-based marketplaces: XStreet SL and OnRez.
I didn’t think this would happen for the simple reason that I thought it would be a bad idea for Linden Lab to begin purchasing of businesses created by residents themselves.
However, it does fall very much in line with my predictions for Second Life in 2009. I said that Electric Sheep Company would further pull out of SL, and indeed, their biggest presence through Onrez has been sold. I also foresaw a competitor to XSL/OnRez.. but okay, so maybe I didn’t see it would be Linden Lab themselves. However, I did figure that Linden Lab would advance their searching capabilities to concentrate more on product searches, in a similar manner to these marketplaces.
Marketplaces offer a new wealth of income for the Lab, and it’s certainly going to feature in their future plans to advance how we shop in SL.
By acquiring both XStreetSL and OnRez, Linden Lab have essentially wrapped up the monopoly on marketplaces, and have once again showed us who Daddy is. As a company which can already use our content as they please in world (as per the ToS), and now demonstrating that they can acquire such resources as these popular marketplaces, does this mean that the Lab are looking to clamp down on the innovate market, and enforce their control in the name of profit?
I’m unhappy with this acquisition – deeply unhappy. In my eyes, Linden Lab shouldn’t be purchasing resident-run projects like these – the line “Your World, Your Imagination” seems to be fast losing credence. Any plans for LL to buy up leading clothing stores and acquire nice looking continents of land?
This essentially feels like nationalisation, and I don’t trust Linden Lab to be able to run these new assets of theirs – the competitive rates on cashing out Lindens will be wiped out as it makes no sense for XStreetSL to compete with the LindeX.
Prokofy is reporting that XStreet may have had no choice but to sell up due to poor content sales, and LL report that OnRez will be merged into the XStreet brand. If this is the case, then Linden Lab may well have been the only option to “nationalise” the brand. The whole thing stinks of mismanagement, and there’s definitely more to this story than is being let on.
Prokofy also hits the point which I was thinking – Linden Lab are milking us for all we’re worth. We’re paying to upload our products. We’re paying tier for the land upon which we sell. We’re paying to advertise in classifieds and to list our stores on search. We’re paying to cash out our money on the Lindex, and now we’re paying them on marketplace sales too.
Did I happen to mention that this stinks?
Perhaps I’m being too negative, but I’m not too crazy about the strong monopolistic grip that the Lab is holding over so many areas of Second Life. They’re rapidly alienating residents through many of their business decisions, and they have to work hard to regain our trust. If they score any failures on XStreetSL, it’s not going to help consumer trust in them.
There seems to have been far too many changes in the past few months, and there’s something amiss over in the ‘Lab that we’re not being told. They’ll tell us in their own sweet time, but these aren’t small service details or technical changes. These are changes which are having direct and vast impacts directly on the residents, and we’re unclear exactly what the game being played here is.
Here’s what is going to happen next. Major merchant brands in Second Life are going to look at going the “ShopArmidi” route, and having an off-grid store which allows users to conveniently look through their products and buy from their own websites, with delivery in world. The first person who develops such a product with reliability and security, and which is available to merchants will make themselves a wealthy person indeed.
Eventually there will be a co-operation of groups of these merchants, and you’ll essentially see a competitor to Linden Lab’s marketplace.. but one which only contains quality products from respected brand names.
Residents look after residents first, and we’ll continue to draft up ways to regain independent trading methods away from the Lab, because that is what the commercial market does.
Nimil on January 21, 2009
after LL forced our store off it’s land in tainted hearth (due to it being an open sim) we were forced to rely on xstreetsl as our mainstore until we rebuild our inworld store.. now we’re worried that this will no longer be a viable option for us… given LL’s history, this merger will probably render xstreetsl useless… thankfully we are almost done with the new store so we won’t have to rely on xstreet for much longer, but i feel bad for those who’s primary business was on that site.
i hope that in the end this turns out well but i’ve really grown to mistrust LL.
Raul Crimson on January 21, 2009
I’m worried too, Prad, about this issue. It seems Lindens have been playing Monopoly lately instead of working on grid performance. But, as you say, we don’t know what’s happening here exactly.
As you i think another marketplace platform will appear, and possibly i’ll join it, Armidi opened the door and there are enough creative residents to create a new one.
AlterEgoTrip Svenska on January 21, 2009
I really don’t like the fact that Onrez would be merging into SLX because, I hate the layout and the way everything looks on SLX, where as Onrez didn’t take money for sales and looked good, and I can alter the vendors and edit them to fit and work in any place I wish.
I don’t like this, maybe if LL buys them both, maybe keep the managment as is and let things be.. just have it “aquired” as most places do that to begin with instead of entirely destroying the dynamic of the appearance of competition.
Worst off, I hate style being sacrificed for SLX’s plentiful and confused looking format.. please god say it isn’t true.. I will have to build my own vendors.. I won’t be part of it if its SLX just because it doesn’t look “good”.. I know it seems shallow, but its how I find ease with things and how they function, I have yet to see anything look good on SLX’s pages and formats! ONREZ is simple, beautiful and takes on a quality I find easier to understand due to its presentation style. Because of its presentation style, I am more likely to BUY things from Onrez, thus I picked that format as my “sales” format.
Khamudy on January 21, 2009
Of course, it would be nice to assume there will be third party ways of trading that will arise, perhaps following the Armidi model. However, as has been mentioned in several forums, there is very little, now, to stop Linden Lab deciding that there will be only *one* way of purchasing and making adjustments to server codes that would sever any direct competitors.
At a time when the grid itself is barely functional, with some twenty odd periods of outage this month, this seems a poorly timed move that is only going to spread further distrust, if not now outright contempt, for Linden Lab. The thorn of contention really will be the multiple clipping of charges by the Lab for miriad services with no other choice.
I can understand, perhaps now more than ever, why so many content creating friends are almost obsessively reorganising their work on their own systems in order to make an escape to other providers much simpler.
Allegory Malaprop on January 21, 2009
I’m also _deeply_ displeased with this whole state of affairs. I’ve always hated xstreetsl’s interface as a buyer and a seller- whereas onrez is actually put together well. Not that I’m too pleased with LL taking the cut off the top for the service either.
I’m wondering what sort of impact this will have on other grids, as LL continues to be very erratic in what they really want. The “interesting” policy changes have already started a bit of an exodus, as they gives people reasons to distrust them more, are they trying to drive themselves out of business?
Miko Omegamu on January 21, 2009
Amen, AlterEgoTrip. SLX I found to be clunky both as a buyer and a seller, and ugly as sin to boot. I had been sending customers to onrez as an option to gift my non-transfer clothing, since for some reason only half of my active items on SLX actually show up. I guess it’s now or never to migrate over to the hippovend/hippogift platform. I only hope *they* don’t get aquired down the line.
Eren Padar on January 21, 2009
I have to agree with all the above posts. I have used Onrez vendors for quite some time– a reasonably acceptable free networked vending system that tied right in to a website for added item details. I also do business with XstreetSL and I don’t mind their layout… but this is a bad deal all the way around.
The corporate hype engine claims this is being done for the good of the buyers and sellers– the residents. If Linden Lab puts an end to the XstreetSL 5% cut on all sales, I might even believe that to an extent. But since no word was mentioned of that– we have to realize that 5% of all sales on Xstreet adds up to a major fortune. It would appear that LL’s primary focus is still profit-oriented. It’s not about the customer– it’s about the $$$.
Considering the last several years of LL operation, I too have serious misgivings about this entire thing. It not only indicates potential disaster for XstreetSL (I mean, look at SL itself… not exactly stable and bug-free, is it?)… but the whole deal smacks of MONOPOLY (as someone has already mentioned).
Here’s something I’ve heard through the grapevine: OpenLife Grid was planning on using Xstreet as a center of their finances and to work as a center of OLG online sales. That same grapevine stated that the first thing LL did was remove all OpenLife functions. I have not been able to confirm that rumor– but it sure sounds like par for the course.
$$$$$$$$$$$$$$$ Linden Lab $$$$$$$$$$$$$$$$
If I trusted Linden Lab, I would see this as a good move. Since they have consistently proven themselves untrustworthy… there’s nothing about this plate of food that looks appetizing.
Alessandra Pinklady on January 21, 2009
How do I know?
Well, I had to file DMCA with XstreetSL on a stolen skin of mine and they provided my RL info to the thief. What happened? The person provided with my personal info signed my up to all sorts of internet business opportunities and government grant money things using my real name, my real address and my phone number. things you have to provide if you file DMCA.
So my phone was ringing 24/7.
And when asked if I could please have the personal information of that person so i can pursue some legal action on this sort of identity theft they told me that they cant do that due to their TOS where they say that they don’t give out personal info about their users.
/me scratches head.
I sure hope THIS sort of policy of theirs will change with this take over. No matter what, XstreetSL sure left an awful bitter taste in my mouth after dealing with them.How do I know?
Well, I had to file DMCA with XstreetSL on a stolen skin of mine and they provided my RL info to the thief. What happened? The person provided with my personal info signed my up to all sorts of internet business opportunities and government grant money things using my real name, my real address and my phone number. things you have to provide if you file DMCA.
So my phone was ringing 24/7.
And when asked if I could please have the personal information of that person so i can pursue some legal action on this sort of identity theft they told me that they cant do that due to their TOS where they say that they don’t give out personal info about their users.
/me scratches head.
I sure hope THIS sort of policy of theirs will change with this take over. No matter what, XstreetSL sure left an awful bitter taste in my mouth after dealing with them.
Keeping up with Second Life news « Land’s Intersection on January 21, 2009
[...] level of awareness. If you want to see what you’ve been missing out on I suggest you check out today’s post as just an example of the major rumblings that pass so many of us by, but effect our Second lives [...]
Moggs Oceanlane on January 21, 2009
Didn’t they get rid of the ‘Your world, your imagination’ slogan with the new site? Now it’s just a large virtual 3D community with user created content.
Sunshine Kukulcan on January 21, 2009
This begins the LL ability to sell items cross-grids. You better believe they are gonna have a piece of the action where ever you buy RESIDENT-created materials.
It’s ALL about the money now, for residents and for LL. Community went RIGHT out the window.
kesseret on January 21, 2009
Well, I’ll keep my opinion quiet but this pretty much confirms a lot of my suspicions the last few months. Prad- you are always welcome in my plurk.
Thanks for a well written post- again!!!
<3, Kesseret
Linden Lab is playing Monopoly: XStreetSL and OnRez now owned by Linden Lab | A Crimson world on January 21, 2009
[...] will find some more posts about this in the SLblogosphere, but i think Prad Prathivi’s one is really [...]
Silver on January 21, 2009
There’s no point in buying stuff in SL, when we can’t even login! and if by chance, you do get in, good luck trying to rez or attach products.
It’s time for the top merchants and builders in SL to create their own metaverse.
Nerolus Mosienko on January 21, 2009
I’m glad to see it happening – that means a more concentrated userbase. When residents aren’t spread so thin across multiple sites (or none at all) that means you will have the potential to make more money off of site-based sales, and that is the entire point of SLX (or whatever you want to call it). I’m going to seemingly be a rebel in the case and say it’s a good thing. I think LL, with the power of the original SLX team now on their side, will even have a better chance at getting rid of stolen content as well.
It almost seems that most bloggers only have bad things to say about it. After reading many articles about LL’s new aquisition, it’s almost like the whole bloggosphere just want’s to disagree to try and sound more informed.
Also, while SLX is more “clunky” than OnRez, it has way more users. They do plan on upgrading the site to make it easier to use, I’m sure.
Elizabeth Hallstrom on January 21, 2009
Linden Lab is a business and it made good business sense to go in this direction. A monopoly? I don’t think so. Anyone else who has the time, money and talent could attempt a better solution than Xstreet and I am sure LL won’t make an attempt to stop them.
For 99% of the residents of second life spending time in SL is merely an attempt to socialize and escape from reality. We don’t care where we buy the goods as long as the creator gets paid and the content gets delivered. Now, a creator doesnt have to sell on Xstreet either – its there choice. If the stuff is good people will buy regardless of the mode of delivery.
I guess what is that I am trying to say is most of us here dont take all this too seriously and really it is a video game – lets keep this in perspective.
Arwyn Quandry on January 21, 2009
I wonder if they’ll now make OnRez and such available to the Teen Grid, or if this is part of the merge, and they’ll be better able to let kids buy from it while restricting them from buying mature content. I would really love to be able to buy and sell on these great tools, and it would really help share content across the grids. I do worry about copybotting potential if they share it across the grids, but this seems to be a pleasant development, and I’m quite pleased with it.
Sahoni Tigerpaw on January 21, 2009
Interesting situation… it seems SL is becoming more like RL every day. Thanks for the info Prad!
Aloha
Eolande Elvehjem on January 21, 2009
totally in agreement Prad – monopolies are bad news for the consumer especially when it’s linden labs. the thing that i hate the most is we can all agree that this is wrong and a bad deal for us, but it won’t change anything. we managed to throw a big enough of a stink over the openspace sim rate increases that we got the increases delayed a bit but it was still a major loss for many many of us. this merger thing is a done deal, no matter how big a fit we may throw.
i’m really scared of what is going to happen with the lindex now – what’s going to keep the value of the linden dollar from sinking if there’s no market?
Emerald Wynn on January 22, 2009
I have to agree with Elizabeth H. here. When you boil it down, we’re talking about a complex video game, created by Linden Labs, so hell yeah, they’re going to make decisions that best benefit their business. It’s not a place where we all REALLY LIVE, for Pete’s sake.
And for those who have SL businesses, I don’t know. I’m not a business owner, but it seems to me that LL has provided you with a creative forum in which to showcase your talents and make some money. In an RL business, you’d be paying rent (or land payments), advertising and PR costs, franchise-related fees, salaries, taxes and more to run it — why wouldn’t you be paying the same costs to ultimately make money off of Linden’s creation?
Am I the only one who thinks we should be thanking Linden Labs regardless for making it all possible? Back to my original point, it’s just a game — the people who are unhappy with the way things are going can always STOP PLAYING.
Some of you will say Second Life is your primary source of income and these decisions have a major effect on your cash flow. Well hell, our jobs and the companies we work for suck royally all the time. Regardless of the “world” we’re taking about, almost all of us have to face unpleasant corporate changes at some point in our lives. When it happens, we either have to suck it up and deal with it or find a new job. Why should it be any different in Second Life? If you don’t like it, create your own virtual world and rule it as you see fit.
**throws a bottle of Midol and runs off**
Newdoll on January 22, 2009
I know a lot of people see the doom & gloom in this, I agree that this is further monopolisation by LL – but how much of this is bad & how much of this is good?
I think we often lose sight of the fact, that while this is a virtual world, behind it is an organisation which, like most organisations, is driven by profit.
Without profit, this (our) world would not exist.
Lets not lose sight of that.
Personally, I feel that anything which improves the search facilities of SL is a good thing, the way LL have gone about doing this is a clever and smart business decision.
This also opens the doors for a multitude of opportunity. SLX & Onrez while convenient & a hell of a lot more effective then the inworld search, both have their pitfalls. Its simply that no one has taken the initiative to create competitve marketplaces to these – possibly now with the impending changes, more individuals with the skills to do this will be looking at how to set this up.
Prad you make a valid comment about ‘larger’ stores being driven to offworld sites that encourage people to purchase their items for inworld delivery – how different is this to a RL situation of (retail) businesses creating web presence? This is definitely one avenue that I’m sure many businesses will be pursuing, along with businesses collaborating together to create their own offworld marketplaces.
Retail sim owners! What a great opportunity for you to consider setting up a website that offers an offworld marketplace for the stores on your sim, along with a blog, where your store owners are contributors and can not only promote & advertise when new products are released but give residents the convenience to purchase these items inworld & out of it?????
The Linden Lab takeover of XstreetSL & Onrez « Just a Girl’s Blog on January 22, 2009
[...] post info By Newdoll Nikolaidis Categories: Business and MV-SL-General Tags: change, inworld business, Linden Labs, onrez, opportunity, Secondlife, slx, xstreetsl I love how Prad’s blog offers a blend of funny and serious topics & today’s was an interesting, well written (as always) & though provoking statement about Linden Lab’s recent notice about their take over of Xstreet SL & Onrez. [...]
AlterEgoTrip Svenska on January 22, 2009
When I wrote the above comment I didn’t know that they were going to KILL OnRez…. this is extemely sinister because just giving the illusion of choice is sometimes all one has to do in managing things.. to provide GOOD managment.
I’ve found another option outside of the OnRez (soon to no longer exist) and SLX which I would not open shop there for various moral and design reasons, espeically now.
I will try my luck with Apez, as was talked about on SLU..
http://www.apez.biz/modules.php?name=Shop
Last night I went indepth to explore Apez sand island, and found someone kind enough to explain the virtues of the product, there are some interesting features and I did mention that their shopping page wasn’t attractive, but they have the heads up now to improve it.
They mentioned also group features I found interesting, however they do take a commision of 5% of the sales intakes.. but the idea of another option, (for those of us who would like a flexible vending system and not have to build it or buy it) IS what I really want.. this is clearly another option for now.
dont ban me on January 22, 2009
I thought that in business it was not aloud to totally monopolies it. they are destroying any and all competition. it is totally unfair. they dont let other big companies do this. even microsoft does not get away with this kind of Total monopolisation of business.
Ashleigh Dickins on January 22, 2009
I was thinking about the Shop Armidi thing too, because a lot of us vindictive residents would much rather spend the time shopping site to site to site than give LL the business through their… conglomerate. Hopefully your prediction still holds true though and another SLX type site is on it’s way, one NOT Linden run. Because I’d run to it.
Virtual Monopoly « Second Life Shrink on January 23, 2009
[...] opinion seems fairly unanimous in regarding this development as A Bad Thing, though reaction varies from mildly disapproving to [...]
Robbie Kiama on January 23, 2009
To Ashleigh and others who want to see what’s out there – yes there are some sites that are creating a marketplace both in-world with vendors and on the web that are not LL owned : metaLIFE is one( http://meta-LIFE.net) Hippo is another(http://www.hippo-tech-sl.com/).
Lindens are trying to secure this are as their own – creating a single platform to manage it all. But there are many others that are doing that or similar things – I believe there will not be any platform that will be the ONE place to come and manage your virtual life, rather there will be various ones, connected into the network of useful platforms and providing value each in their field of expertise.
It’s a good move from business perspective – purchasing SLX and Onrez I respect lindens for going this way, but we will see how well the management will be handled..
xonox on January 23, 2009
does that mean xstreetsl will finally remove all stolen content sold there? nowadays a huge part of the xstreetsl “premade builders packs” and “buisness in a box” sold there is stolen items, its ridiculous that xstreetsl is so uncaring about it.
Elizabeth Hallstrom on January 23, 2009
Jeez, why do you people even log in? LOL