What happened to Second Life?

Second Life is an online multimedia platform where users can create a personalized avatar and interact with a virtual world.

The platform was created by Philip Rosedale, who in 1999 formed Linden Lab to create hardware that would enable people to become immersed in other worlds.

Over the subsequent years, Rosedale shifted his focus toward software, releasing the Linden World application where users could complete task-based games and “socialize” in a three-dimensional online environment.

In October 2002, Linden World was renamed Second Life, with some early creators spending as many as 60 hours per week on the platform.

The platform was initially popular, with over 2 million registered accounts by January 2007.

At its peak, tech companies such as IBM and Dell created virtual offices within the Second Life world, and bands played live gigs.

Second Life surpassed 36 million accounts by 2013, but the platform’s popularity vanished almost as quickly as it appeared.

Today, estimates suggest there are only around 900,000 active users.

Social networks

After the platform peaked around 2007, the emergence of social media networks like Facebook, Twitter, and YouTube caused a slow and steady decline in the number of Second Life users. 

Social media networks took many users away from Second Life primarily because they were the next big thing.

There was also another key difference.

Facebook, for example, did not require users to be on its network at the same time.

Indeed, as long as there were frequent posts and status updates, users remained engaged with the platform.

In Second Life, however, users needed to be online simultaneously to interact.

As a result, those online found that the platform’s special events and other aspects were poorly attended and utilized.

Moreover, it became difficult to convince users to stay in a virtual world when they could interact with friends in the real world online, particularly considering the issues mentioned in the following sections.

Usability issues

While Second Life was one of the first incarnations of the metaverse, it was, to some extent, ahead of its time.

The platform required a computer with a dedicated graphics card that most simply did not have to run properly.

This problem was exacerbated by a shift toward laptops with slower integrated graphics cards rendered Second Life slow or unresponsive.

Even those with access to more powerful computers found that the platform suffered from inadequate broadband speeds in most countries.

Learning curve and product confusion

Another factor affecting usability was the steep learning curve of Second Life and confusion as to whether it was a game, a social network, a virtual world, or all of the above.

The immense learning curve of Second Life was admitted by Rosedale in a 2016 interview with CNET:

Although Second Life is still challenging to get used to, about 10 percent of newly created residents are still logging [in] weekly, three months later.”

In essence, Second Life was hard to learn because individuals could not decide what to do or where to go with the world at their fingertips.

When they did decide on a course of action, it sometimes took hours to figure out how to complete simple actions like sitting down or initiating a conversation.

The usability issues and confusion over the product caused many to lose interest in the platform quickly.


Like many similar platforms that are loosely regulated, Second Life has attracted its fair share of controversies that have caused reputational harm.

The platform has hosted several virtual riots and Ponzi schemes based on the in-game currency. 

It has also been associated with increased cybersecurity risks around personal data and potential violations of anti-money laundering laws.

At one point, the FBI also visited the platform’s casinos as part of a crackdown on offshore gambling websites.

Key takeaways:

  • Second Life is an online multimedia platform where users can create a personalized avatar and interact with a virtual world. Second Life surpassed 36 million accounts by 2013, but the platform’s popularity vanished almost as quickly as it appeared.
  • Second Life suffered from the rise of social media networks in the late 2000s, which did not require users to be online simultaneously to interact. The game also experienced usability issues since it required a dedicated graphics card. Usability problems were also compounded by the product being poorly defined and requiring a steep learning curve that many were unwilling to commit to.
  • Second Life was also not immune to many controversies plaguing loosely regulated online platforms. These include actual or alleged money laundering, Ponzi schemes, illegal gambling, and cybersecurity risks.

Read More:

Other Failure Stories

What Happened to WeWork

WeWork is a commercial real estate company providing shared workspaces for tech start-ups and other enterprise services. It was founded by Adam Neumann and Miguel McKelvey in 2010. WeWork’s business model was built on complex arrangements between the company and its landlords. There were also several conflicts of interest between Neumann and WeWork, which provided the impetus for the failed IPO and significant devaluation that would follow.

What Happened to Netscape

Netscape – or Netscape Communications Corporation – was a computer services company best known for its web browser. The company was founded in 1994 by Marc Andreessen and James H. Clark as one of the internet’s first and most important start-ups. The Netscape Navigator web browser was released in 1995 and became the browser of choice for the users of the time. By November 1998, it had been acquired by AOL, which tried unsuccessfully to revive the popularity of the web browser. Ten years later, Netscape was shut down entirely.

What Happened to Musical.ly

Musically, or Musical.ly as it is officially known, was a Chinese social media platform headquartered in Shanghai. After passing 200 million users in May 2017, the platform was shut down by tech company ByteDance in November. After its acquisition, ByteDance suggested Musical.ly would continue to operate as a standalone platform. Company representatives noted that it would be able to leverage ByteDance’s AI technology and enormous reach in the Chinese market. Musically was ultimately absorbed into TikTok in June 2018, with the app no longer available in August of the same year. Existing users were offered technical support and several new features as a sweetener.

What Happened to Vine

Vine was an American video social networking platform with a focus on looping video clips of six seconds in length, founded by Dom Hofmann, Rus Yusupov, and Colin Kroll in 2012 to help people capture casual moments in their lives and share them with their friends. Vine went on to become a massively popular platform. Yet by 2016, Twitter discontinued the mobile app, allowing users to view or download content on the Vine website. It then announced a reconfigured app allowing creators to share content to a connected Twitter account only. This marked the end of Vine.

What Happened to CNN Plus

CNN Plus was a video streaming service and offshoot of CNN’s cable TV news network that was launched on March 29, 2022. The service was ultimately shut down just one month after it was launched. Trouble began for the platform when parent company WarnerMedia merged with Discovery. The latter was unimpressed with paltry viewer data and, with $55 billion in debt to clear, was not interested in funding CNN+ moving forward. Other contributing factors to CNN Plus’s demise include a lack of compelling content and streaming service market saturation.

What Happened to Clubhouse

Clubhouse is a social app that allows thousands of people to communicate with each other in audio chat rooms. At one point, the company was worth $4 billion and boasted users such as Mark Zuckerberg and Elon Musk. Clubhouse declined because it rode the wave of pandemic lockdowns and suffered when people resumed their normal routines. The decision to remove the invite-only feature also caused a rapid influx of new members and removed any exclusivity. Clubhouse management also failed to define a business model and was unaware of the components of a successful social media site.

What Happened to Facebook

Scroll to Top