Malinson Bloobury wrote:
Linden Labs is suffering an erosion caused by a number of factors including rising operating costs and decline of high end spenders. Moreover, they are forced to find safe haven alternatives to raising the costs of their regions which would assuredly bring about a rapid downfall in favor of promising competitors.
The region discount offered a short term boost in revenue sales but I doubt that this this was the intended purpose. In my estimates, many of the sales of the discount offer are to those who could not have otherwise afforded. If you can’t save it you can’t keep it.
It is my belief that there will be a dramatic increase of incredible land sale deals, lands offered at or even well below cost. This will create a vacuum in an already flat real-estate market, resulting in stagnation of sales, even on lands offered below cost.
Within three months of this discount I believe two-thirds of all the regions sold in the discount will be abandoned, many of which would have unsuspecting tenants. By that time many of the already struggling real-estate business would be facing a prolonged trail of stagnation and decline of sales which, if not prepared, would result in complete loss…
Within a year of this discount, Linden Labs will probably see its worse decline in regions in its history, but they already know that for by that time they should have a much greater incline of premium membership accounts. It would be of those who got shafted by the unstable market, seeking mainland living as a safe haven for troubling times.
With the added income of membership dues, they will be able to weather the decline in private islands, thus relieving them of the massive operating costs they were facing. I believe that this is the first stage of a restructuring that will make them more resilient in the long run..
Well, three months has passed. Almost 500 sims were bought in this deal. However, this deal blind-sided the larger land barons who lost big and cancelled sims right, left and center for a period, as well as medium sized estate sim owners. The estate sim grid is now about 800 sims fewer than it was just before the deal. I guess this deal backfired on the Lab a bit. The decline seems to be continuing on.