On Tuesday, January 12th, the Lab announced the provision of new payment options for Second Life users, through a partnership with Skrill, the UK-based e-commerce business that allows payments and money transfers to be made through the Internet.
Under the new arrangement, Second Life users have further options for their payment activities, including like buying L$ and paying account fees, as well as additional local currency options for Residents outside the United States.
The service actually soft-launched a few weeks ago, and according to the Lab, has seen some very positive results to date, hence the announcement. However, some users outside of those trying the service may have additionally noticed that Skrill themselves announced their partnership with the Lab earlier in January 8th, when they issued a press release on the matter, which reads in part:
New York, NY – 8 January 2015: Leading digital payments company, Skrill, today announces a collaboration with Linden Lab to integrate the Skrill Digital Wallet as a payment option for users of Second Life, the Internet’s largest user-created virtual world.
Skrill’s Digital Wallet provides users with a secure and easy method to send and receive Linden Dollars. Skrill 1-Tap, Skrill’s recurring payment solution, allows users to enter their information only once to enable continuous payments thereafter with just one tap or click.
As noted in the Lab’s blog post, any Second Life users with a Skrill account can now add it to their payment options under the Billing option on their secondlife.com dashboard.
SL users with Skrill accounts can add them to their SL billing options
While the service can currently only be used for any payment transactions (operating just as a credit card would), the Lab note that they hope to extend the service to encompass the processing credits (redemptions) to Skrill accounts in the future.
Given that many SL users have problems in using Credit Cards with the platform, or are unable to use PayPal, the arrangement with Skrill potentially offers a method by which they can better carry out payments and L$ purchases.
If you wish to find out more about Skrill, please visit their website.
The year-end brought with it a round-up of Second Life in terms of region numbers, courtesy of Tyche Shepherd and her excellent Grid Survey. 2014 continued to see the downward count in the number of private regions in SL, with some 673 regions vanishing through the course of the year (from 19,273 at the start of the year to 18,600 at the end of the year).
Expressed as a percentage, this means that the main grid has shrunk by 3.5%. That compares to an 8.2% shrinkage in 2013 (from 20,992 to 19,273 regions, a loss of 1719) and a 12% reduction in 2012 (23,857 to 20,992, a loss of 2865 regions).
There are likely to be a number of reasons for the slow down in losses, all interacting with one another. While one ideologue opted to pooh-pooh it, in September 2011 I pointed to one contributing factor to the then increasing rate of decline in region numbers as likely being due to physical world economic issues. With their disposable income diminishing, people were finding an outlay of $125 a month for virtual land increasingly hard to justify, and so were divesting themselves of it; something which likely continued through 2012 and early 2013.
Private region numbers decline through 2014 (source: Tyche Shepherd, SLU forums)
While I’m not about to say we’ve turned the corner where the physical world economic situation is concerned, it is probable that by late 2013 we’d reached a point where those still with a residential homestead of their own were more willing to grit their teeth and pay for the land they hold, thus contributing to the slowing of shrinkage.
So what does that mean for the year ahead? While nothing is guaranteed, I tend to sway towards the view that the decline in region numbers will continue to slow, but at less than the rate we’ve seen in from late 2013 through 2014. I’m also inclined to think we won’t see any significant rise in region numbers through 2015 (unless some kind of external factor comes into play or the Lab does opt to do something quite unexpected to cause people to suddenly want lots of land).
One thing the slow-down will hopefully do is decrease future calls for tier cuts. As I explained back in January 2013, unless the Lab have a substantive means of compensating for the revenue loss resulting from any “reasonable” tier, any such cut will likely hurt the company (and SL) more than help. Nor is the Lab’s profit margin anywhere near the levels sometimes mentioned (e.g. the 200% recently claimed in this blog), such that they could simply “absorb” any tier cut without feeling the impact.
The decline in private regions, January 2012 through December 2013 (source: Tyche Shepherd, SLU forums)
In 2008, estimates put the Lab’s earnings at around $90-95 million, and their possible profit margin at between $40-$50 million (48-50%) – see the articles here and here. I assume these estimates are for gross profits, as neither makes allowances for tax.
More to the point, there seems to be a slight flaw in both estimates: they only appear to reference the costs involved in running simulator servers. No mention is made of the various back-end services such as group chat, group management, asset management, login, transaction management and payment, (and today, the avatar baking service), the various web services (Marketplace), and so on. While the costs associated with all of these are obviously going to be a lot lower than those for the simulator hosts, they shouldn’t be entirely discounted. There’s also third-party support costs (in 2008-2010, for example, the Lab was paying Rivers Run Red and 80/20 Studio; today there’s the costs involved in using the Highwinds CDN service).
The Oculus Crescent Bay prototype showing the Samsung Gear-type head harness with motion tracking sensors on the back and the integrated headphones
As is to be expected, Oculus VR are attending the International Consumer Electronics Show 2015, which is once again being held in Las Vegas, Nevada, through until January 9th, 2015, where the latest headset prototype – Crescent Bay – is undergoing its “public debut”, and the company’s CEO, Brendan Iribe took time out to discuss the prototype and more with Techcrunch’s Darrell Etherington.
“Crescent Bay is a huge leap from Oculus Rift DK2,” Iribe informs Etherington at the start of their 6-minute discussion. “And it increases all the different parts, whether it’s resolution, precision, the positional tracking, the latency, the optics themselves, everything really takes a big jump, and it really finally delivers what we’ve been talking about for a long time, this pursuit of presence. It finally delivers on that presence that we feel is good enough for consumers.”
So, does that mean he’s revising his comment at November’s Web summit conference about the consumer version of the headset being “many months” away?
Oculus is again a major presence at the International CES in Las Vegas
Well, probably not. While no outright statement on time frames is given, it’s fair to say the the company is still putting a consumer release as some way down the road.
For one thing, the next immediate target is getting an audio SDK to developers to allow them to get to grips with the capabilities of Crescent Bay’s 3D immersive audio system. However, it’s liable to be another “few months” before that happens. For another, while the company feel they are now “close” to having a headset that is, technology-wise, to being consumer-ready, Iribe also notes the audio is at a “minimum” the company requires of a consumer product, and also that no decision on what they’ll actually be shipping as a consumer product as yet been made: it might be “just” the headset, or it might be the headset and an input system / device.
When speaking to Peter Rubin at the Web Summit in Dublin in November (linked to above), Iribe made it clear that input had become a “big focus” for the company, which they were “R&Ding”. He restates part of this to Etherington, which suggests they may still be leaning towards headset + input system / device, although he also noted that the company is not yet ready to discuss matters of input in public.
In terms of a suitable software library being available in time for any launch so – another consideration in determining when to launch the consumer product – Iribe indicates the company is “very happy” with the progress that is being made, suggesting this is less of a concern as they gradually move towards a consumer release.
Capital Exchange has seen activity in its stock market simulation game frozen since the November 1st enforcement of the Lab’s Skill Gaming Policy
Saturday November 1st brought with it a full enforcement of the the Lab’s updated Skill Gaming Policy, as the last had previously notified would be the case.
As I reported at the time, an immediate casualty of the enforcement was Skip Oceanlane’s Capital Exchange (CapEx). Although described as a fictional stock market simulation game which does not offer any opportunity for direct real-world investment or profit, CapEx does operate on what amounts to a “pay to play basis” through the trading of L$-valued “securities” in the SL-based companies listed with the exchange, and thus appeared to fall under the remit of the Skill Gaming Policy.
This being the case, Skip had placed an application for CapEx to become a Skill Gaming activity with the Lab in July 2014, just after the announcement of the new policy. However, by November 1st, the application had yet to be approved, prompting CapEx to suspend market activities (although ATMs remain open for L$ withdrawals) pending further feedback from the Lab on the matter.
Following this, on November 11th, 2014, Skip indicated that the Lab’s attorney was in contact with his attorney on the matter, and further questions had been asked. By December 4th, both parties were still working on the matter, and on December 12th, Skip provided a further update, indicating that there are three issues of concern that require resolution in order for progress to be made. In the post, Skip comments in part:
I’m not going to get into detail of what those 3 issues are, but I’ll restate what my attorney told me.
One issue is easy, another issue is not so easy, and one issue is difficult that will require a detailed response. After talking with my attorney, it was decided that we would meet again after he sends me information requested by the Linden Lab attorney. I am going to come up with a detailed response to each area of concern, and my attorney’s law firm will put it into “Legalese” as a response to Linden Lab.
It had been hoped these responses would be put to the Lab prior to the Christmas break, but whether this was achieved or not is unclear, as there have been no further updates. However, at the time the last blog post appears, Skip was hopeful a resolution could be reached in early 2015, which the Lab also appears to be keen to achieve.
This doesn’t automatically mean that CapEx will be able to resume trading; it is still unclear as to which way the Lab’s final decision will lean. But as Skip does note, at least progress is being made, and both sides are working to resolve matters such that informed decisions can be reached.
Once again the Lab is running a New Year’s photo competition. Running now through until the deadline for submissions at 10:00 SLT on Saturday, January 10th, 2015. The blog post announcing the competition reads in part:
We want to know how you celebrate the coming of the New Year in our New Year Snapshot Contest. If it’s a whole new look for your avatar, or an in-world party to celebrate — share your snapshots.
On offer are four Linden dollar prizes:
Grand Prize – 10,000 Linden Dollars (estimated value at US$40.00).
First Prize – 5,000 Linden Dollars (estimated value at US$20.00).
Second Prize – 3,000 Linden Dollars (estimated value at $12.00).
Third Prize– 1,000 Linden Dollars (estimated value at $4.00).
Winners will be decided on the basis of popular vote.
In a move that should keep people happy, the competition doesn’t require posting anything to Facebook. Rather it sees the return of of uploading entries via the forum post itself, under the Entries tab, and then clicking on the New Entry button (you must be signed-in to the forums for the button to work.
The competition blog post also includes word on the seasonal gift all residents can claim by visiting the Portal Parks and finding the red gift box – a charming gingerbread cake by Vitae Mole
Competition entries are limited to one per account, and there are, inevitably, some contest rules to go with the competition, which should be read and followed. For some, one of the most intriguing rule might be the fact that, “Canadian residents will be required to answer an additional mathematical question in order to claim their prizes.”
This, I’ve been given to understand by a Canadian friend, appears to be in connection with the Promotional Contest Provision of the Canadian Competition Act, which states that the “selection of participants or distribution of prizes is not made on a random basis” (and selection by popular vote in this competition is a random basis for distributing the prizes). To avoid this, it’s common for Canadian competitions to include a math-based “skill test” to demonstrate a measure of skill has been involved – hence the requirement with the Lab’s contest!
So, Canadian or otherwise, should you opt to enter – good luck!
Update: December 26th: Seems I may have been a little hasty in critiquing the Welcome to Second Life video. Both of the new videos are intended as part of an e-mail campaign, and so additional context will be given.
Tuesday, December 23rd saw the Lab issue two new promotional videos on You Tube (although interestingly, at the time of writing, one one appears on the WhatIs page of the official SL website). I missed both when released – so thank you to Whirly Fizzle for sending a G+ notification of both, which showed-up on my Nexus tablet.
There has often been strong criticism of past SL promotional videos produced by the Lab, some if which have seemed a tad confusing, while others have perhaps given a bit of a false impression about the platform. In the past I’ve droned on about the Lab doing more to work with established machinima makers to put together promotional material; in fact I did so as recently as January, thanks to Strawberry Singh raising awareness of a very slick promo video for an in-world brand.
So what are the latest videos like?
Well, pretty good, actually. The first one I caught is called Create in Second Life, and it’s a very good demonstration of just that – content creation in Second Life. It comes with the descriptive tag of Second Life is a powerful platform for creativity. Everything in Second Life – interactive 3D objects, unique experiences, global communities, and more – is created by people just like you.
It runs for bang-on one minute (with 52 seconds of actual footage). The editing is fast-paced without being confusing, and the various sequences provide a pretty good glimpse at various elements of content creation within the platform. There is a lot showcased in the film, including Cica Ghost’s Little Town and the famous Dwarfins, together with Chouchou, to name the three I instantly recognised. What’s more, footage from The Drax Files: world Makers series is used (notably clips from segment #23, featuring Loz Hyde).
All told, it is a snappy, tightly-produced video that showcases SL very well.
The second (for me in terms of viewing order) is entitled Welcome to Second Life. It runs to slightly longer – 1:07 minutes, with 1:04 comprising footage. It also includes a more detailed description:
Second Life is an online 3D virtual world imagined and designed by you. From the moment you enter Second Life, you’ll discover a universe brimming with people and possibilities.
Create and customize your own digital 3D persona, also known as your avatar. Be a fashion diva, a business-savvy entrepreneur, or a robot or all three. Changing identities is quick and easy, so if you tire of your avatars outfit or body, shop for a new one in Second Life or from your web browser. Then switch it in seconds.
Every minute, Residents assemble buildings, design new fashion lines and launch clubs and businesses. There’s always more to see and do.
However, as much as I like it, it does cause something of a niggle; the video supposedly takes one through engaging in Second Life in “five easy steps”. However, actually joining SL by creating an account is completely missed. Instead, the video gives the visual impression that all someone has to do is download the viewer and start from there (i.e. any sign-up process is inclusive to the viewer, when in fact it is a separate step), the second step being to “login to Second Life”.
A personal niggle for me in the “Welcome to Second Life” video, which is otherwise pretty good overall, is it does gloss over the need to have an SL account before a new user downloads the viewer and attempts to log-in.
This may sound nit-picky, given it is a promotional, rather than instructional, video. While I don’t expect a promo video to get bogged-down in all the steps required to sign-up, at the same time I can’t help but feel that failing to even point to the Join Now options on the web page could result in people following the steps as outlined by the video only to find themselves facing the viewer log-in screen and screaming a frustrated, “HOW?!”
Beyond this, however, the video is again slick, well-edited and does show off SL’s better features – and it is certainly good to see attention drawn to the likes of the Destination Guide to help people with their engagement in the platform, and to aspects of help and support, as well as to the broader community as represented through the website and forums.
Having said that, both videos do offer a bright, positive look at SL, with Create in Second Life really carrying the banner very well.