SL is here for the long run.
It's a new form of entertainment. It caters to a very different population from other online worlds, most notably women and senior citizens (for whom 'SECOND life' takes on a very literal meaning).
Chatting, building, hanging out listening to music, existing virtually in a Second Life in the guise that we invent, with no constraint whatsoever, is unique to Second Life.
The first critical point happened when L$ became easily convertible to USD and Euro. People could suddenly justify 'playing' on a grand scale. And Linden Labs made sure they could measure out the money supply against value created, contrary to what happens in the other worlds that are chronically plagued by inflation.
Yet, today, SL's scale is still limited by the absence of 'global media' and of 'big events' due to the ~20 AVIs per Sim limit. It's a shame because the REAL scale of SL is made clearer by the renderings posted last week on the web site: We're not a bunch of quaint locations with a club here and there: We're already a sprawling city.
But this limit is going away now: The ability to link a web page to any object is essential:
It makes that Global Media possible. So, next in coming are marketing, advertising and media (first media to come: web links and online magazines, including streamed non-QT, video in the browser - video the SL way is harder and still restrained by the location dependency).
That, combined with SL's growth, will provide the reach and critical mass for content providers to go Pro - Both for objects created for resale and for media content (the support for advertising),
and we'll reach the second critical point:We're soon going to see teams of
pro graphists and scripters (i.e. with salaries paid in $, and IP going to/coming from the employing company) churning out branded content, and publicizing it 'worldwide'. Their revenue will dwarve and drive out all but the very very few best builders we have today. A lot of this content willl repackage RL Intellectual Property and Content. Dark Dharma does great AVIs. Can you see her heading a team of artists from Disney or Warner Bros and producing 10 AVIs A WEEK?
And then we'll reach the third critical point: SL will be populous enough to rival the web for some segments - given the better user experience it provides. And our world will become the avenue for standard web commerce of RL stuff.
By then (2008, 2009?) Linden Labs will have to fight for survival, because it will converge head first towards what Yahoo Messenger, MSN, Google and Sony will likely offer: 3D persistent, virtual worlds distributing digital content and entertainment.
Supporting that statement, think of where we
already are going when SL is down: if you're like me and many on my SL friends, on Yahoo and MSN. Those community are already budding virtual worlds. Only differences are in the way they're getting at it:
- They started with the commerce and advertising rather than with the technology
- They already each have 10s of MILLIONS subscribers worldwide
- They're geared towards a youngish/teen population
To add to your thoughts what are the two features in the next major releases of Windows? IM like seamless messenging and full incorporation of 3D in the UI. I'm not sure what it brings to Excel and Word honestly

. Or is it that MS has in its sight a full category of software and entertainment they want to dominate?
Longhorn ETA: end 2006, beginning 2007: NOT coincidentally, when 60% of PCs in households can comfortably run SL, as well as hand-held consoles and maybe some mobile phone, and when the potential market is of a size that interests MS.
And to be honest I'm not sure SL will win that last one. Says someone who lived (died?) through AOL absorbing Compuserve

.
Another way to put it: SL is already the next WWW - Will Linden Labs stay on top? Remain a dominant player? Become a niche player a la Salon or Apple ?