LL acquisition of XStreetSL - good thing?

Valid point. However, this was a takeover, since they bought out the competition, and they could do so for other industries as well, all "voluntarily". Furthermore, they can make it so that competition is at a serious disadvantage.

I suspect you're right that they just made good offers to businesspeople, who took them. Yes, it's possible as mentioned above that they could have used strong-arm tactics, but I doubt it was necessary. Integrating XStreet with SL makes it significantly more profitable, so they could easily offer XStreet owners more than it's currently worth and still get a bargain.

So, I disagree that the question is whether it was a voluntary buyout. To me, the more significant question is whether competition from a newcomer would be encouraged, tolerated, or stifled. Already the barrier for entry is high: the newcomer would have to offer substantially reduced commissions, and would have difficulty getting enough participation to be big enough for merchants to bother with it.

LL is within their rights to do this; I'm not making a moral judgement on them. But as a resident, I think it stinks, because it reduces competition on something that does NOT have to be part of the infrastructure to function effectively. As a merchant, I'm more likely to benefit from increased sales, assuming they don't botch the whole thing.

It's like the US state governments being involved in liquor sales. There's no reason the states need to do this. They simply do it because it's lucrative, and they got the chance to get their grubby mitts on this income stream in exchange for helping to repeal the constitutional amendment making liquor sales illegal.

I prefer sales commissions to listing fees, because commissions are free unless revenue results, while I do pay listing fees for a couple flagship products (as a small-time operator myself). A mix of both is what XStreet has: you can pay to promote your listing.

I doubt LL will abadon either of these income sources.

But I do understand a certain reluctance to pay the "government" for these kinds of things. As I've said before, the "government" shouldn't be in the business in the first place. It should only do those things that free enterprise isn't suitable for. (Yup, I'm a capitalist.)

Not too many of us left it seems

The decision of OnRez and XStreetSL was voluntary. To say that it was anything less implies breaking the law. Maybe LL put these two services between the proverbial "rock" and "hard place" and, well, they each chose to do what they did.

I do not fault LL for wanting to absorb what they apparently saw as a [potentially] lucrative revenue stream.

However, I pay over US$2,500 a year to LL simply to be "a member." If LL plans to roll the services of XStreetSL and OnRez into their own, wholly-owned and operated venture, I feel it's extremely unconscionable to [continue to] charge sales commissions after draining the free-market of all its capitalistic competition.

Everyone has a right to consumer choice. Microsoft just got into trouble with the EU for denying consumer choice by packaging their web browser and mail client with Windows Vista. I wonder if the EU might have a stern chat with LL about buying up all the competition and, thus, negating consumer choice.

Interesting point, and I agree with your sentiment. However, I suspect that in this case, the powers that be are more likely to say "If they don't like that SL game, they can go play a different one. Isn't WoW pretty much the same thing?"

If you are afraid of the future or
rising costs ans so on, then visit

http://www.slcheap.de

Here you can find an excellent service (announcement will be translated German-English, market / flea market ... etc.)
It is merely a sales commission of 5%. ALL OTHER IS FREE!

Electric Sheep were losing money on OnRez. I suspect they almost gave it away. The didn't charge commission despite operating costs (databases and websites, and tier for their inworld presence).

XStreet SL OTOH were undoubtedly paid a lot of money as I'm sure Apotheus wouldn't have sold out easily.

However it has created a monopoly. Not something I like or want. Were this RL in the UK then this purchase would have gone up before the Competition Commission and been thrown out as unlawful.

They might. Or they might recognise that although its still a virtual world, real money is involved and so, therefore, is real consumerism. Real consumerism on any dominant company (even a little company like LL that's only dominant to itself and its users) must adhere to the EU guidelines for what is, effectively, trade in the EU.

Prior to changing their name to OnRez, it was known as SLBoutique. Does anyone know if Electric Sheep owned SLBoutique and just changed the name...or did someone else own SLBoutique and sold it to Electric Sheep?

FlipperPa Peregrine owned SL Boutique before the sheep bought it.

One thing I am really wary of is the idea that SL is some kind of "Wal-mart" and that content creators are "part" of LL. If someone has a bad transaction they blame all of SL without realizing that each merchant is their own boss and handles disputes differently.

Where is the choice? The choice isn't truly between Xstreet or OnRez, the choice is between what each content creator decides to publish on each. I don't buy FROM Xstreet, I buy from Lear, Winter, etc. via Xstreet. Consumers still have plenty of choice.

LL bought established technology and a user base, but that doesn't prevent someone from opening another online shopping venue. I wouldn't be surprised if several new ones opened up, and a new currency exchange too, thanks to LL's renowned customer service.

eta: ShopArmidi.com anyone? Couldn't you see that expanding, with other elite brands?

Unfortunately, merchants now have one fewer choice on where to list items for sale, and shoppers have one fewer choice on where to search for items.

I hope that happens too, but the barrier for entry just got significantly higher (for merchandising, not $L exchange). Noted, it was already high, since it was hard to compete with XStreet, even for OnRez.

Merchants have always been free to create their own marketing sites, and still are. What we're discussing here is a clearinghouse, a place where someone who doesn't know what brands or even precisely what products they might find. XStreetSL is a great place for a fishing expedition.

I think that the barrier for entry was always high based on the need to put together competent technology, which most people are not willing or equipped to do. The cost in time, research, and then execution and marketing. The problem is that few people put the energy necessary into making a system that was easy and comprehensive. Xstreet has a large head start.


What I see is an opportunity for them to license the software or to create a clearinghouse for a niche - elite brands, or to create the general clearinghouse necessary to compete with Xstreet. They have name recognition, a large following, and the technology in place. If they wanted to expand to make it even broader, they are one of very few in the right position to exploit their advantages.

the choice is buying from an LL company or buying from subsidiaries. I'm pretty sure that LL made the owner of XSSL an offer he couldn't - even if he wanted to - refuse. Ie: The policy that LL have been going round making sure nobody can use names that even relate to Second Life. Probably just maneuvered him into a corner and said 'buy you we send a cease and desist letter'.

That was always a barrier. Now we have a new barrier, which is that SL has incorporated XStreet, and no doubt will retain an enormous competitive advantage over any 3rd party attempt.

Speculation, and IMHO, beside the point. I doubt LL needed to twist any arms here. As I said above, integrating XStreetSL into SL makes it worth substantially more than it was as a 3rd party offering:
* people will be able to participate without signing up for a new site, something that many people hesitate to do
* people will be directed there as a result of ingame Search, rather than needing to learn of it by word of mouth or by inworld marketing by merchants.
The fact that it's significantly more profitable when integrated into SL makes it easy for LL to offer them more that it is demonstrably worth as it was, and still get a bargain.

It's unnecessary to assume anything sinister on the part of any of the parties involved. Sure, it might be true, but it might not, and without proof it's at best idle speculation, and at worst, libel.

And it's beside the point of whether we, as residents and merchants, think it's a good thing or a bad thing from our points of view.

Well, really, the whole point of this thread is academic, since it's all done with anyway.

Who has the time or energy to manually re-list all their items ? I have over hundred myself and it's an impossible task. You clearly think we're just here twiddling our thumbs, Lindenlab.

And did I mention that the site looks like dog's dinner? I'm waiting for someone clever to come up with a quality site. But till then, I'm staying out of it.

Me personally, I don't like it much.. I am concerned about the possible impact it is going to make on business In world. (Like many have expressed their concerns)
With the Publicity Xstreet will get, will designers/vendors eventually pull their items out of malls and clubs? If it is true that they plan to integrate all accounts to be able to use it without signing up then it will be pretty easy to shop without traveling.
It will be interesting to see how it goes. I also wonder if this is big move anticipating sales to other grids that are emerging. Many grids are popping up and eventually there will be grids in full swing and they could easily set it up to where items can be sold to other grids (open sim).(Option: YES Sell my items to other Licensed grids)
eh who knows. All I know is I am bugged by this monopolized move

We just may see a mass reduction of malls . Hmmmm big move to reduce in-world prims and data usage? wink wink lol

I couldn't agree more.

If they do that, then the default option better be "NO, DO NOT sell my items on other grids", and to offer sales on specific other grids only as a per-grid, possibly per-item check-off choice (such as, "you can sell my items on the LL and Legend City grids, and no others", and "exclude these specific furniture items from sales on non-LL grids, as my license for the poses in them does not allow me to export to other grids". As a content creator, it is MY choice which grids I trust enough to sell my content on. And so far, virtually none of them offer sufficent assurances that they will protect content creator's IP rights at all, and at the same time offer a currency system that can be cashed out from. Having both is vital, before most content creators allow their products to be sold on other grids.

Note that while prior to the takeover, Xstreet SL had big plans to extend their reach to other grids, those plans never bore fruit. I would expect that was largely because content creators refused to offer blanket export permissions to uncontrolled and in many cases unknown grids.

I am already noticing differences in the way that SLX/whatever works.

OR more accurately DOESN'T work, because things which always worked before seem to be broken now - anyone surprised?

Also, it will not keep my money on deposit any more. If I make a deposit at a terminal and don't spend it within a certain amount of time it bounces back to my inworld balance. Is there anyone here who prefers it that way?

Well what i see is the Xstreet becoming a new search tab in World. this will eliminate inworld stores and malls.. Clubs and and malls better start looking for a new avenu of income lol