Statement From Linden Lab Staff

Yeh working under cover with the hope of getting revenge for all our tea that was dumped into the deep blue.

Shit, blown my cover!

Damnit! Second time this week! Paging 008, paging 008... Come in 008 please...

Speaking for myself, I am very much a capitalist. However, having said that, The amount of L/US$ I make from SL is only minor, just enough to cover tier. The reason I'm pro-capitalist in SL is because that little cha-ching sound I hear scattered throughout the day is like a little indicator that the hard work I put into creating something was noticed and appreciated enough by someone that they'd be willing to pay for it. And it's that knowledge that someone actually liked it is what keeps me going in the creation of my next item.




I'd ask if you have statistics or hard numerical figures to back up your proverbial tar/brush combination, but that wouldl be a side-distraction to an already overheated issue.

The issue here for many people (note I said 'many', not overt generalizations like 'only' or 'all') is that the day to day working of the SL economy does encourage the continued creation and growth of new content. And since SL is theoretically an open capitalistic model economy, competition and open market forces actually help improve the overall economy. Any one group that gains or has monopoly power over any part of the market is antithetical to that concept, and in the long run will overall cause harm to the economy.

LL's actions not only slammed the door shut on one critical element of the SL economy, but has also set a precedent that has made many creators spooked that they will eventually end up on the chopping block. That has a chilling effect on the economy, and GOM's closure is only reinforcing the validity of that outgome in many people's eyes. SL's biggest strength has always been user-created content. Their recent actions though are chipping away directly at that foundation.


- Newfie

There's a cha-ching sound? Hmmm . . . maybe I should play with my sound on.

coco

P.S. I agree with Newfie in her last paragraph.

I would further add that if I were GOM, I would have closed, too. The minute I heard the news about LL going into the same business, in fact.

There was no need for them to give LL any amount of advance notice. For all we know, GOM reached the end of their patience and temper rather suddenly, and were hard-pressed to wait even until October 2nd.

After what happened to them, are they then supposed to check with LL first to make sure the closing date is ok with them? I don't think so.

coco

I think the problem though is that whenever SL gets mentioned in the media it is just because of the fact that it is attracting capitalist attention like Banks and Companies. Or highlighting how much some of the top earners are making. I got into SL precisely because of these media reports and newsflashes.

Even the Second Life website is quite proud of the fact that you are able to earn a living from SL and even Philip is saying that having the in game Exchange will increase currency exchange so there is a market for the capitalist's:

Currency exchange matters because LL has been trying to base their marketing on it. Come to SL and make real money! So-And-So earns $100,000 a year playing SL! In SL you can start your own business and cash out your $L for real money!

Whether you exchange your currency or see it as the root of all evil doesn't make any difference. It does matter. It matters to SL because without it, LL is making promises to it's prospective customers that it can't keep. LL seems to have given up trying to promote the creative aspect of SL and has been focusing on the capitalistic aspect, so without currency exchange, they've got nothing.

That is certainly one perspective.

I personally operate a couple businesses to bring value to products and/or services I think people either need or want. By making their lives better with the best products/services I can offer, profit is just a side effect.

Sometimes (though not all the time), profit eventually becomes the chief motivator when a company reaches a certain critical mass. This becomes more and more true when they company takes on venture capital. Sheer profit motivation however, is often detrimental to valuable innovation.

As to this thread -- I think GOM set itself up by specializing in SL, but at the same time is just throwing in the towel early. I remain ideal that healthy competition can spur innovations, but it seems GOM has ran out of them. Hopefully someone else can find the inspiration to keep the market open and free from monopolization.

The quantity of armchair speculation about GOM continues to amaze me. For those who would prefer fact to imagination, here are some of the former:

1. GOM was exchanging other MMO currencies prior to being asked by LL to add the L$ to their exchange
   
2. GOM ceased trading in all but L$ because of fraud or demands from other MMOs or both
   
3. As others have noted, innovation as a tool to compete against the game owners themselves is at best a pipe-dream in much the same way that you cannot beat Microsoft on their own "turf".
   
4. GOM never had only a brief peudo-monopoly on L$ exhanges as shortly after their being invited to SL, IGE, AnsheCorp, RamosCorp, and others entered the market. GOM had no preferential treatment nor exclusive "hooks" into SL.
   
5. To date, IGE & AnsheCorp have expressed no intention of leaving the exchange market
   

but that is all rather academic at this point. I'm just tired of so much misinformation being posted on the matter despite my having no connection with any of the firms at all (including LL as I happen to have subscribed when lifetime accounts were being sold).

Interesting to note - when GOM first set up there was a lot of 'who the hell are these guys and why the hell should I trust them with my money?'

Irrespective of whats gone down over the past month or so - GOM built itself up - they earned the trust of players through good service and hard work, and reaped the benefits of that work.

Anyone else could have done what they did at any point - gaining the trust of people isn't an easy job, and I guess not too many people cared to do it.

Siggy.