Second Life Economy Stable in Q2 2010 in Featured News A group blog by Secondlife Posted September 16, 2010 What's a statistic: An empirical measurement, a report; an ‘expert’s’ interpretation of performance based on numbers (whether truly reported or not)? Economics has never been a science because the human values cannot be quantified. Hence, economists talk of ‘trends’ and ‘confidence’: in the final analysis, perception is more important than numbers and thus the reason accountants feel the need to ‘spin’: it's to make us feel better or sell us something. The reality is, what’s most important here is, how people feel: their individual visceral responses based on personal experience. However, here’s some numbers not reported in this column: A leading online shares monitoring and broker connection agency reports Linden Lab’s Venture-Backed Index Value in September as $248M down from $375M in March 2010. Yikes! Confidence, how’s that feeling? Steep falls followed the major ‘events’ in SL & LL: the demise of Kingdon, the introduction of Viewer 2.0 and the 30% staff cut. To follow is a quote from the sites published 55 page “Research Report” (a kind of guide for potential investors). It’s full of numbers and statistics, but how accurate is any of it? Who knows? “Growth in Active User Base Could be Slowing: While number of unique visitors to the site continues to grow, the rate has slowed over the last year. For instance, the company registered a y-o-y growth rate of 13% for this metric in Q1:10, well below the 26% for March 2009. We believe significant slowdown in the growth of active users could add downside to our valuation. Also Second Life has dropped from being ranked number one on Nielsen PC games ratings in March 2009 to number eight in May 2010. The average minutes per week spent on Second Life has decreased from 760 minutes in March 2009 to 258 minutes in May 2010, a drop of almost 66%” What I can say as a personal; categorical truth and testament to the report’s verity, is that I’m part of that 66%.