Massive OS sim abandonments

Er, no.

If 3 people have OS sims, LL currently gets US$225 per month.

If 66% of them drop out, LL gets US$125 per month at the new rate, for a loss of $100.

It's actually 40%.

If 5 people have OS sims, LL currently gets US$375 per month.

If 40% of them drop out, LL gets $375 per month at the new rate, and breaks even.

Breaking even, though, isn't enough. I suspect LL expects to lose less than 20% of the OS customers, one way or another.

"The only way LL lose is if enough poeple quit, which is anoying because I want LL to loose in this instance "

laughs.. "do as i say not as i do" what next? does one spank
SL and send it to bed?

I think only those for whom SL does not provide a solution and are determined to be self righteous will leave and close the door... everyone else might or might not leave, but will certainly leave the door open.. SL cant keep the doors closed,just like Microsoft cannot, neither can anyone who wants progress.Progress means change, the self righteous become sympathetic or die alone,because everyone else will leave the self righteous behind.

Here is the rub -- people did not give a rats ass when they were buying and leasing these OS sims out to anyone who came along. All they cared about was collecting tier. Now LL makes a strategic decision based on profit, balance, whatever, and people here are suddenly 'demanding.'

Between that and those who are threatening to abandon their sims it is almost becoming laughable. Emotion and business just do not go together and we are seeing a clear demonstration of that today.

Bruno - you seem to be discounting all those who were not in to make money. These are the ones that this is really going to hurt. We rent out at cost, no profit at all, and have stressed these are for light weight residential to stick within the LL guidelines. Who loses here ?? bet your bottom L$ it's not LL.

Your math is too simplistic. Not dogging you because your point is well taken however when that 20% of OS customers abandon their sims (as they are threatening today) then LL will have lots of hardware to reuse in any way, shape or form. So, LL was paid once for the hardware, collected tier and other fees associated with the Linden dollar trades made to pay rent, and will get paid again when the same good condition hardware is used again.

And believe me, it will not collect dust. If their economic model points to a market for even lower prim sims (like the old days) for $150 a piece, they will do it.

Point taken. I think it is a safe bet to offer two points:

1. The majority of people buying and renting out OS regions were not doing it to break even.

2. LL is a business who has a responsibility to their investors to provide a return on their investment. Those Silicon Valley chardonay sippers who sunk money into this company didn't do it to break even and shouldn't be penalized either.

So yes, my post read like I was discounting the non-profiters but I'm looking at the bigger picture. The viability of both the company and all SL residents. The prevailing thinking here is that the needs of estate owners (of which I am one) are more important than the unwashed masses on the mainland.

It's incomplete, not simplistic. It's also precise and accurate, as far as that goes, which is the point.

Look at the 1200+ posts on the other thread..... mosly by angry sim owners who ar leaving their sims. W don't have to name them to see the obvious. This news has spread like wild fire and 100% of all the sim owners I know are closing their OS's and some even closing their full sims.

Do you really want to mince words? It is incomplete which means it is not precise. And, as analysis, it is faulty.

OK, your turn to come up with new words to describe it. How about 'flawed?'

and losing 100% of consumer confidence of the meager > 20% is not good either.

I bet Linden hopes that all those who moves from those sims that will close down now, will move to mainland instead. There are a lot of yellow areas there and Linden wants it of course filled up.

Mainland has more bang for the buck, but it has its own risk. If more people bought large tracts of mainland, it would be a very different outlook now. But they let the ad farmers ruin it, so, we can only imagine.

Lucky for me I dumped mine 2 weeks ago I suspected something like this would happen .

Well, I only performed my calculations to two digits of accuracy, but that was also true of the original, so it's just as precise.

I think you mean it's not accurate, maybe? You think 66% (or 66.67%, if you want to be more precise) is as accurate as 40%? If so, I have to ask you to show your work.

Let's see. A 1U quad core server with 8GB of RAM is going to run you, say, $1500 in quantity. 1/16th of that is less than a month's tier at the new rate. Sticking with two digits of precision:

3 open sims = $225/month at the old rate.

Going with 66%

1 open sim = $125/month at the new rate. Assuming the immediately sell the servers they freed up, they saved $186 the first month on not buying 1/8th of a new server. So the first month they have a net profit of $86 (two digits of precision, again). The second month, they lose $100 on the transaction since they're having to buy new servers. So after two months they're down $14. For the third and subsequent months they're down $100/month.

This doesn't even make enough to produce a net profit for a single quarter out of the deal.

If they sell the new sims at a slower rate the profit is spread over more time, but the loss over that time is greater. If it takes them N months the net loss (again with the original assumed 66% loss of OpenSim users) after N months will remain $(N*100-186).

That complete enough for you?

The point is, the value of the actual servers is really not relevant over even a modest timeframe.

Ill make this more clear since 14 OS do not add up to $2500. I will sell off my 5 full sims, and abandon my 9 OS. This is insane and really does not make sense to me to charge us more for nothing. Yes i rent homes on my sims and yes i also rent out my sims, from what i see, me closing my business down will do three things. SAVE ME MONEY, SAVE ME TIME, and of course the worse of them all, LEAVE OVER 100 tenents homeless.
I would like to say that it is possible to use every prim on the OS and still run a healthy happy sim. Maybe more land barrons should give a rats ass about the places they rent and monitor the sims for renters that run scripts to high hell. My renters pay hard earned money to have a nice place to live, and i provide that cause everyday i look at whats going on, and i send back anything thats causing issues. Send some stuff back a few times to people and they really do get the picture that you will not tolerate useless scripts on the sim. So basicly all we need here is more responsible estate managers, and if you are a owner of openspace sims that you rent the whole thing out to someone, instead of just taking their money, how about spending time with them so they actually know how to keep the sim running well, EVEN IF ITS FULL!!!

They clearly DO NOT care about your money. They need the data center space. It's the only thing which makes sense. Kill the OS servers, make some room for some other stupid product.

Ahh, got ya. In any case, you can bet that some day they'll get hit too, even though it's on their own puter...LL will think somethin up I'm sure. rofl...

If you abandon your OS sims LL can sell them to other people for full price as an island or convert to mainland and auction for even more USD so this means they still win if you abandon lands.

I follow you, unacceptable and unreasonable increment of price, my sims will be alone

"jack" no pun intended lol

its better to kissed before.......you get **** Oh thats right....we are talking about SL, I totally forgot

Does this remind anyone of the progression of events in the US Government/petroleum/auto industy?

1) The neocon vampires that hijacked our govenment totally abandon EPA mileage and emission standards, allowing the automakers to build and market monstrous gas-hogs to a totally uninformed and indifferent American public.

2) Automakers successfully market their gas-hogs until they become the majority of vehicles on the road, and then;

3) The oil companies use various phony restrictions and reductions in oil supplies to jack up the price of gasoline on a totally trapped and vulnerable public that can't afford to abandon their $50,000 gas guzzlers and buy fuel efficient vehicles.

How is this any different? Market low-priced OS sims, and when enough people buy them, use a phoney prim abuse policy to justify a massive price increase!

How can people be abusing prims when they are merely using the prim allowances that the LINDENS configured and allowed in the first place. I call bullshit on this one, people!

Does not "prim allowance" = Prims allowed to use?? I am not dumb at all,,,but I dont understand!

Oh my, do you really expect the sim owners to do the job they pay LL for? See, it is basically the job of LL to restrict exploitation of OS capacity by default and not the sim owners job to control their tenants - while no one ever told them EXACTLY what this so called "light" use really is.

And in case Jack Linden tells us the truth and nothing but the truth: These ominous technical problems MUST have been predictable BEFORE they started all these sales. What a misconception.

And all this in the middle of a worldwide recession with less and less consumer faith and SL europeans already suffering from the weakening Euro and VAT expenses. Crazy.

I listened furious comments for few hours last night in group chat. Most OS owners seem to think that new prices are too expensive for them.

Interesting part was that there seems to be word going around that if you cancel your OpenSpace sim due to price increase, Linden Labs will ban your account. Could we get official comment about that?