Linden Lab® bought the two virtual marketplaces Xstreet SL (formerly SLExchange) and OnRez (formerly SLBoutique) for Second Life ® products. Why, why, why? By his own admission, to make the customer’s shopping easier – which is difficult to understand because there were never problems with that.
Xstreet SL remains after taking over more or less unchanged, OnRez will be closed in the near future – from two into one. Obviously, it’s all about Linden Lab, as much control over the business, which has established itself in and around Second Life around to have under control – earn money as possible everywhere.
In the official press release of 01/22/09 the acquisition sounds like this:
Linden Lab buys marketplaces for virtual goods for the integration of online shopping in Second Life
Strategic acquisitions of OnRez and Xstreet SL designed to promote e-commerce integration of the virtual world
Linden Lab ®, developer of the 3D virtual world Second Life ®, has set another milestone in the expansion of its Second Life platform and Xstreet SL acquired two Web-based marketplaces for virtual goods and OnRez. These acquisitions are consistent continuation of a number of different strategic initiatives in recent years. These include enhancements to the experience for new users, which will enable Linden Lab to reach a wider, global audience for Second Life this year. Linden Lab will consolidate the two marketplaces on the Xstreet SL platform, providing customers and dealers thus online shopping world. This makes it easier for the residents of Second Life easier to buy virtual goods and offers retailers more sales channels for their products.
The global market for virtual goods is estimated to be about 1.5 billion US dollars per year * and Second Life plays an important role in this market. Last year, the residents of Second Life over 360 million dollars spent on virtual goods and services. The purchase of virtual goods has become one of the most popular pastimes in Second Life. The acquisition of these e-commerce sites will contribute to the ongoing growth of the economy in Second Life: For buyers and sellers, it is more convenient to handle virtual shops online.
Similar to e-commerce sites for real goods such as Amazon and eBay Xstreet SL provides an online catalog, virtual goods and services over the residents of Second Life, buy and sell. Complement Just like E-commerce Websites shopping in real life, Xstreet SL increased the shopping experience for Second Life residents in-world – in addition to visits of 3D stores and shopping centers where they virtual services and goods by their creators can buy in Second Life. Linden Lab will integrate the Xstreet SL marketplace in Second Life and make it so that consumers easier to find virtual goods on the web. The improvements of the e-commerce experience will also cause that residents use this online goods purchased or acquired in-world. Dealers can get their shops in Second Life easier to market and provide additional opportunities to sell over 680,000 listed in Second Life goods such as clothing, movements, vehicles, buildings and furniture.
“Linden Lab is expanding its influence in the virtual world industry through four major initiatives – the localization of Second Life in key global markets, the simplification of the ‘first experience’ for a broader customer base, expanding the platform for companies and building our marketplace for virtual goods, “says Mark Kingdon, CEO of Linden Lab. “The creators of content and the dealers are the pillars of the strong Second Life economy. Through this e-commerce purchases, we are now able to offer content providers and merchants substantially better terms while at the same time enriching the Second Life experience of all our residents. ”
“The vibrant economy in Second Life helps to make such a compelling experience for its residents the platform,” said Jay Geeseman, founder of Xstreet SL. “Just as e-commerce shopping experience for real goods improved, so this is also true for virtual goods. With the ever closer integration of the Xstreet SL marketplace in Second Life residents will be able to find products easier and more convenient shopping. At the same time obtain additional dealer channels to sell their products. ”
First Xstreet SL will continue to exist with only a few changes as before. OnRez remains for a few weeks in the current active form, to give customers and merchants an opportunity to migrate their accounts and product listings on Xstreet SL. For more information about the change and the future development plans of Xstreet SL can be found in our FAQ’s: http://xstreet.secondlife.com
For more information on the strategic initiatives of Linden Lab and these acquisitions can be found at on the official Second Life blog: blog.secondlife.com