Linden Labs Second Life: Understanding the Business Model and Sources of Commercial and Social Success or Decline of Second Life

The online virtual world, Second Life, has been described by its developers, Linden Lab, as a ‘free’ online Virtual reality application with which residents (users) can imagine and create their respective virtual worlds. The degree of ‘freedom’ of use of Second Life by residents as described by the developers comes into question as it would rather imply that it is a charity-based online application; therefore, creating a lacuna as to how its existence is being sustained. This paper discusses the business model of Second Life as it affects its potential sources of commercial and social success and decline, and we have skewed our discourse more to the potential sources of decline than that of success, with some solutions offered along the lines.