On Monday July 7th, Linden Lab CEO Ebbe Altberg and the Lab’s Director of Global Communications, Peter Gray, met with members of the education community to answer questions on the future of education in Second Life.
The meeting was organised by Lori Bell of the The San José State University School of Library and Information Science, moderated by Aldo Stern and recorded by Marie Vans.
The video is embedded below, and the transcript is time stamped against it for reference. When reading / listening, please remember:
- This is not a word-for-word transcript of the entire meeting. While all quotes given are as they are spoken in the recording and the audio files, to assist in readability and maintain the flow of conversation, not all asides, jokes, interruptions, etc., have been included in the text presented here
- If there are any sizeable gaps in comments from a speaker which resulted from asides, repetition, or where a speaker started to make a comment and then re-phrased what they were saying, etc, these are indicated by the use of “…”
- The transcript picks-up with the first question asked.
0:04:42 Aldo Stern (AS): Will the educational discount be stable over time, so that education organisations can take [it] into account for their budget cycles? So I think that reflects right off of the top one of the things that people will have a concern about.
0:05:00 Ebbe Altberg (EA). Yes. Well, it’s very unfortunate that back in the day … that the discount was taken away. I thought it was very fortunate that it was re-instituted before I showed-up here, and I can tell you we have absolutely no intent whatsoever to make the pricing worse for you guys. none whatsoever.
And over time, as some of you have heard about, we’re starting work on a next generation platform, I think that ultimately an extremely large and vibrant and successful virtual world, prices have to come down all the time.
Today, we’re constrained by a number of factors: technology, business models, what have you, and user experience, that sort-of limits the size of the market for a product like this. for example, if we were to cut prices in half, we would have to get at least twice the number of users – or more, actually – to end up with the same revenue. Right now, I’m not convinced we have a product that could attract two extra users at half the price.
But I’d be happy to lower prices to get more users and make it up in volume, once we know we have a product that can achieve that. I think it’ll be an interesting conversation at that time, especially with the educational sector. would an even lower price … let’s say we take the current discount that you have, which I think is about a hundred and fifty bucks for a region; if we cut that in half again and say it’s seventy-five bucks, would we have twice as many of you buying simulators? If that’s the case, then it might be worthwhile for us to do; but if it only increases by 5% the number, then it’s just hurting us and our ability to invest in the future.
But I feel very confident in stating that we’re not going to mess with the current pricing you have in a negative way for you.
0:07:55 AS: I think that’s very encouraging to us, and I wanted to ask if anybody had any further comment before the next question?
0:08:08 Comment: Well, it is encouraging to hear that; but I think there are a number of related issues that make the current platform problematical for educators, and a number of questions we’ve identified I think will get at that, if you want to move down the list.
0:08:26 Comment: I did want to say something about the pricing real quick. If you did lower the price for educators you might not see the number of buyers go up right away, because I’m not sure if you understand how the education funding cycle works, and probably everyone in the room here can explain that much better than I can. But that is the issue: getting into the funding cycle ahead of time to make sure that you have funds available for your projects. So if you implemented that today, cutting it in half again, you have to give the education community time to get that in their budget and make that happen.
0:09:27 EA: Absolutely, and there’s way to solve that. I could say, it’s a hundred and fifty bucks now and it’s 75 bucks starting next quarter, so you can put it in your plans. how much advanced notice do you need to be able to get it into your budget cycle?
0:09:48: About a year.
0:09:49 EA: My lord! (Chuckles).
0:09:53: And that’s why, when the funding was cut, it was so devastating, when the discount was cut, because no-one had enough notice to get their funding back up to what they needed, and so it was very frustrating for a lot of educational folks.
0:10:14 EA: I understand. I can’t even begin to understanding the reasoning behind why that whole thing happened. I’m just very glad it was reversed before I came here, otherwise I would have done that myself. So you can at least be confident that we’re not going to make that mistake again.
Continue reading “Education in SL: A Q&A session with Ebbe Altberg and Peter Gray”