Second Life scores $11 million in funding
Metaverse bloats wallet with investors' cash; funding to help push overseas marketing, hire new developers, possible graphical overhaul of virtual world.
Linden Lab, the publisher of the popular virtual world Second Life, announced Tuesday an $11 million round of funding led by Globespan Capital Partners.
The new funding, which comes on the heels of an $8 million round in October 2004, came from Globespan as well as Amazon.com founder Jeff Bezos, Lotus founder Mitch Kapor, the Omidyar Network, and Catamount Ventures.
Second Life is one of today's most talked-about virtual worlds, and currently has more than 165,000 users. It is an open-ended "metaverse" that allows anyone to join and participate for free and to create and own any kind of clothing, vehicles, buildings, or other objects at no cost. The company makes its money by charging players user fees for land they buy and build on.
For now, the company isn't profitable, and it's not clear when it will be, said Catherine Smith, Linden Lab's director of marketing. However, she told CNET News.com that Linden Lab plans to use its new funding for aggressive international expansion, as well as for hiring intended to boost its infrastructure.
And while Second Life is on many people's lips at any gathering of video game industry professionals, one thing is clear: It is not always an easy world for new users to get into, and its graphics are not up to the level of competitors like World of Warcraft and There.
Still, virtual world experts are high on Second Life and have mostly been willing to look past its shortcomings because of its members' interesting social behavior.
And, with its new funding, the company may now be able to address the look and feel of Second Life and quiet its critics in this area.
"My guess is they're looking to expand to the next level," said Ron Meiners, an expert in virtual worlds and online games. "They've done some very innovative development thus far, and this means they can both improve their infrastructure and prepare to scale to a higher level of membership."
Even though Second Life is now hovering around 165,000 users, it has been on a growth spurt. Still, its membership pales in comparison with games like Blizzard Entertainment's World of Warcraft, which has around 6 million users, each of whom pays $15 a month to play.
In any case, Smith said Linden Lab's goal is to grow from its current 70 employees to at least 100, and to produce new, German- and Japanese-language versions.
But to Meiners, the real importance of the new funding round is the ability it gives Linden Lab to make Second Life more accessible to more people.
"The complexity of the interface has been confusing for many people coming to Second Life," he said, "so this gives them a chance to consider redesigning for a much larger customer base."
Related Content
-
Viva Pinata: Trouble in Paradise Screens
8 new shots posted.
- May 13, 2008
Matches based on text similarity.
Hot Stories
Newsmakers
-
Q&A: Bizarre surveys Geometry Wars 2 aftermath
Stephen Cakebread and Craig Howard talk about pulling inspiration for the XBLA shooter from Spyro the Dragon and Brain Age, why they left out online play, and much more. Full Story
- Posted Aug 19, 2008 3:25 pm PT
- 30 Comments
-
Q&A: Epic's Capps raps about EA deal
Gears of War developer's president discusses partnering with Electronic Arts, dissects the publisher-developer relationship, and divulges the existence of another new IP. Full Story
- Posted Aug 15, 2008 4:11 pm PT
- 112 Comments
Featured Stories
-
GC 2008: PSP-3000, 160GB PS3, PS3 keypad unveiled
[UPDATE] Mic-enabled portable hitting Europe Oct. 15 via eight 199-euro bundles; new 449-euro consoles coming Oct. 31; PlayTV launches Sept. 19, LittleBigPlanet Oct. 19; bluetooth keypad also due out by November's end. Full Story
- Posted Aug 20, 2008 8:38 am PT
- 226 Comments
-
The Sims 3 moves in February 20
EA's surefire best-selling life simulator takes root on the PC next year; collector's edition detailed. Full Story
- Posted Aug 20, 2008 10:23 am PT
- 40 Comments
-
Banjo's Nuts bolt to stores Nov. 14
Budget $39.99 price point for Rare's latest confirmed; gamers who preorder will get early access to original Banjo-Kazooie on Xbox Live Arcade. Full Story
- Posted Aug 19, 2008 12:30 pm PT
- 178 Comments
-
NPD: NCAA Football sacks July
EA's collegiate pigskin sim scores top honors as 41 percent spike in total software sales push US industry to $1.2 billion in revenue for the month. Full Story
- Posted Aug 14, 2008 4:31 pm PT
- 47 Comments
Latest Entertainment Headlines
TV News
-
Smallville adds another baddie
Clark has a new villainous visitor next season; Charlotte Sullivan signs on to play the familiar DC Comics character.
Music News
-
Mick Jagger defies years as he hits pension age
Mick Jagger will be entitled to a basic state pension of just under $180 a week. But he will have to wait another five years for free roof insulation.
Related Game
Recent News
-
Joystiq's purported scan of Radio Shack flyer appears to prove Microsoft will literally cheapen its top console after Labor Day.
Site Blogs
-
GC 2008: Blizzard's 'Rings of Exposure'
I'll admit to a case of the nerves when taking my three Blizzard appointments yesterday here in Leipzig. I had a sneaking suspicion...
23 Comments