Second Life Creators Purchase Startups To Push Virtual Goods Online

Linden Labs, the company behind the virtual world Second Life, has acquired two start-up firms, namely “OnRez” and “XStreet SL”, for an undisclosed sum.

Incidentally the acquired companies have already been associated with the Linden Labs as the brokers of the virtual goods offered by Second Life.

The acquired companies will be merged into the “XStreet SL platform”, a form of Craigslist-eBay hybrid for the business of Second Life’s virtual products.

This newly acquired marketplace by the Linden Labs actually forms a part of its strategy to regain the mass attention by providing the residents and potential residents an opportunity to trade outside the environs of Second Life.

However, Linden Labs upheld the creation of new marketplace by saying, “Our goal is to make the Web marketplace a wonderful complement to in-world shopping and a great benefit for all residents”.

Meanwhile, in spite of the shaky economic times, the services from Second Life have performed really well, said Tom Hale, chief product officer of Linden Labs.

According to Mr. Hale, trades of the residents at the Second Life accounted for a massive $100.8million in the quarter that ended on December last year, showing rise from $65.4million of items traded in the same period a year before.

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Our Comments

Linden Labs, like too many startups, could well be feeling the pinch and it wouldn't be surprising that they have decided to invest, like many of their Asian counterparts (e.g. Cyworld), in virtual goods which will bring in a revenue stream without adding much to the cost of production.

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