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Anshe to Price Hundreds of Products at 10L. How Much Will This Impact Our Economy?

Anshe Chungs latest announcement has many builders and designers in an uproar in second life. I tried to find the original announcment but they always lead to forums of people taking about it but not the actual post itself. I was told that it was removed because it caused such an uproar but was given the text in world, so I apologize if its missing any information. This is what I have seen...

In IMVU the average margin of content creators for items they sell is about 10-15 L$, while in Second Life content prices are still at almost the same levels as 3 years ago when the population was only a fraction of what it is now. We think this is one reason why IMVU is growing much faster than Second Life now. Therefore we decided to make Second Life more competitive and more accessible to players by providing high quality products at prices that allow Second Life to remain competitive in the long run. Our plan for the end of this year is to have between 50 and 100 internal designers and scripters working on 10 LINDENS, plus a network of local partners we are currently training here. We plan to create a full range catalog of decent SL content.
I think this is definitely good news for the content creator community of SL, much the same way ACS entering the IMVU content market helped the content creator community as a whole to grow their business. In IMVU, the increased internal competition and improved quality of the product catalog greatly accelerated growth of the platform and market as whole. Many content creators reacted by strengthening their brand's focus and focusing on more complex / high end products, actually increasing their sales in the long run. I hope we can recreate part of this success in Second Life in the coming months and all benefit from economic growth again, after the stagnation of the economy here in August.

Sellers Guild and many other groups and residents are not happy about this situation. They feel this will make it impossible for them to turn enough profit to stay in business. With so many designers in second life to compete with already, I can easily understand the upset. They feel she is destroying the community she serves. I personally have always been a fan of pricing my own products low, but I don't have the impact to destroy the market the way Anshe might be able to. I guess we will see how much power so holds over our product economy over the next few months.

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