Second Life has in many ways been way ahead of the pack. Their free to play model was controversial when launched but has proven to be the right model and now many MMO’s follow this model. Second Life introduced user generated content to 3D worlds and whereas some of that content has definitely been controversial, Second Life trailblazed as a platform of creativity.

In terms of empowering content creators, Second Life has once again trailblazed, by allowing content creators a means to make real money from their creations, Second Life tapped into a massively underestimated market. Second Life has therefore been quite ground breaking in terms of bringing together these concepts, but now others are starting to take note, they are starting to see the potential and they are hoping to get their share of the pie. The people who make content creation tools are also seeing the massive opportunity that is knocking louder and louder, they are making their products more accessible by offering different payment options and making their tools free or cheaper.

The likes of EverQuest Next Landmark are already attracting attention and will allow content creators to build and have the opportunity to make real money from their creations. Others will be watching with interest to see how this pans out. There is without doubt fear about user generated content but the window of opportunity is wide open.

Then there are the tools, yesterday the Unreal Engine 4 was launched with a very affordable licensing model for pretty much anybody. The full engine and source is $19.95 a month and then 5% of any game sales, in games sales and advertising. The previous Unreal Engine was not an option for indie developers, in an article on Gamautra they quote Epic’s Tim Sweeney as saying:

it’s typically cost millions of dollars… negotiating has involved teams of lawyers, looking at the shape of the industry now we realize it’s an outdated model, looking at the possibilities for the engine, we started out from scratch. We came up with an entirely new business model for the Unreal Engine which we are announcing today. Now, absolutely anybody can gain access to Unreal Engine 4 by subscribing to the engine for 19 dollars a month — and you get access to everything” .

Now it dangles there as an affordable option and it’s not just game developers being wooed, they are also chasing content creators:

To help you get started, we’re shipping lots of ready-made content, samples, and game templates. You’ll find it in the Marketplace in the Unreal Editor. Right now, it simply hosts free stuff from Epic, but its resemblance to the App Store is no coincidence: It will grow into a complete ecosystem for sharing community-created content, paid and free, and open for everyone’s participation!

These platforms, games, development engines etc. are stepping on Second Life’s toes and more of them will be stepping on their toes, will Second Life prosper?

In the short term the answer is most definitely yes, because Second Life is where it’s at in these areas. Second Life has got the people, Second Life has the content creators, Second Life has the functioning economy and Second Life is the ultimate sandbox, you’re not tied to quests and goals, you can make your own.

Longer term, Second Life may need to paddle faster to keep itself ahead of the game. Second Life isn’t getting any younger, there have been missed opportunities for Second Life to really kick on, such as shelving the C# scripting project. Second Life accepting more standard scripting languages would have been a real boost.

The tier pricing model will eventually bite Second Life very hard in the long term. Linden Lab absolutely have to grasp the tier issue for the longevity of the platform. They need to make a bold move, as Epic have with the Unreal Engine and bring the Second Life pricing model up to date.

However Second Life remains in a very strong position, that is something Linden Lab should value and realise, whereas others are coming, Second Life is already there and that is a very strong advantage.

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