NEW YORK, Feb. 18, 2007

Living A Virtual Life On The Internet

Second Life Allows People To Spend Real Money On Virtual Things

  • Play CBS Video Video Living The 'Second' Life

    Second Life is an on-line virtual world that is more than a game, where people can live out many of their fantasies. David Pogue explores this new world of internet wish fulfillment mixed with money.

  • Video New Life In Cyberspace

    Tracy Smith visits a woman with multiple sclerosis and a group of disabled adults who have created new lives in the online virtual world called Second Life.

  • Second Life has its own economy with real currency. Photo

    Second Life has its own economy with real currency.  (Linden Research, Inc.)

  • Interactive Online Lingo

    Hey, 143, d00d! If you don't know what that means, then have a look at our little glossary.

(CBS)  On the Internet, there is a virtual world called Second Life. It's not a game: no one wins, loses or dies. It's not a show: nothing happens here unless you make it happen.

Second Life is all about wish fulfillment. You're represented by a computer-generated character. You can make it walk around. You can fly. You can exchange typed comments with other people's characters. You can make yourself young and beautiful. You can even make the sun set on command.

"I, as a kid, always wanted to kind of make the - the world's biggest Lego kit," Philip Rosedale, the CEO of Linden Lab, the company behind Second Life told Sunday Morning correspondent David Pogue. "It's driven by personal expression, creativity, ownership. It has commerce. If you want to make money, you can."

And that is what makes Second Life different from other Online 3D worlds. In this one, people spend real money for imaginary stuff.

"You see land for sale, virtual real estate," said Eric Rice is a Second Life fan who's part of this $220 million a-year economy. "You're renting space to be able to store your things. So that translates to a world where you can walk around and interact with people as real estate. And some people do extremely well with it."

Some people make a living in Second Life the old-fashioned way, by making stuff and then selling it. Rice has built entire building complexes like a music center. Online, he looks pretty close to how he looks in real life.

"There are very basic tools," he said. "I can make it big. I can make it small. Here, we can make a fake skyscraper."

In shopping districts, people sell everything from virtual clothes to better hairdos. People even pay for imaginary drinks so their imaginary characters can stand around looking chic in imaginary bars.

"You would do it because you believe so passionately in it as an experience from the real world that you cannot help but take it there," Rosedale said.

Reuben Steiger, a consultant to big-name companies like Toyota, Microsoft and Intel who want to be represented in Second Life, said that people who participate in it are showing not who they are, but who they would like to be.

"When Armani sells me a shirt, they're not selling me a piece of cloth. They're selling me the transformative capability of that product," he said. "Companies find it very interesting to see what their customers would like to be if they had the power to determine that."

Second Life has its own currency called Linden Dollars, which are currently trading at $270 per real dollar.

"Establishing some micro-transaction currency was really important because obviously there are a lot of things you might want to make and sell for a very small amount of money because there is no inherent costs associated with those things," Rosedale said.

Those micro-transactions can add up. Several Second Life entrepreneurs are clearing $200,000 a year. Of course, in any world where people have money to spend, there will also be a sexual element. Rice said Second Life is about 30 percent sex driven.

"And you know, in its early stages, everything kind of starts that way, I guess. I see more casinos than I do weird clubs," he said.

Nevertheless, a lot of Second Life is rated G. You can take a balloon ride. You can listen to a live concert through your computer speakers. You can join a Harvard Law school seminar with fellow students who are actually scattered all over the world. Still, Second Life isn't quite a paradise yet. It's experiencing growing pains in the form of software bugs and freezes and Rosedale acknowledges that there's a lot of work yet to be done.

"In just a few years, this is gonna look like walking into a movie screen," Rosedale said. "And that's just gonna be such an amazing thing."

© MMVII, CBS Interactive, Inc. All Rights Reserved.

Video and Galleries from Sunday Morning

Add a Comment See all 13 Comments
by olebd February 18, 2007 11:49 AM PST
This is odd. Wouldn't it be much better to get off your bum, get out and do some of these things for real?
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by olebd February 18, 2007 6:00 PM PST
I guess I could understand handicapped or shut ins getting into this but, more than likely, the majority will be serious gamers. I still can't see it taking the place of real interaction and experience.

It could be I'm getting too old for some of this new technology (sigh) :)
Reply to this comment
by intihelwa February 18, 2007 6:27 PM PST
I was astonished this am to see the "second life" segment since it sounded just like the Webkinz site which some of my grandchildren are involved. You buy a Webkinz stuffed animal with a secret code, you register it on the webkinz.com site and voila, your stuffed animal is now virtual. You earn money, you buy your room(s) you buy furniture, etc. My husband decided to be a virtual pet too since one of my grandsons is so attached to him and this way they can visit each others rooms, etc. Of course my husband had to pretend to be a child in the virtual world of Webkinz. The only problems are that some kids are spending too much time playing with their virtual pets and some
popular webkinz are being scooped up by E Bayers, etc. Last week the Love Puppy webkinz was "hot" on the E Bayers list and coming up to Easter it's Sherbet Rabbit.
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by intihelwa February 18, 2007 6:28 PM PST
I was astonished this am to see the "second life" segment since it sounded just like the Webkinz site which some of my grandchildren are involved. You buy a Webkinz stuffed animal with a secret code, you register it on the webkinz.com site and voila, your stuffed animal is now virtual. You earn money, you buy your room(s) you buy furniture, etc. My husband decided to be a virtual pet too since one of my grandsons is so attached to him and this way they can visit each others rooms, etc. Of course my husband had to pretend to be a child in the virtual world of Webkinz. The only problems are that some kids are spending too much time playing with their virtual pets and some
popular webkinz are being scooped up by E Bayers, etc. Last week the Love Puppy webkinz was "hot" on the E Bayers list and coming up to Easter it's Sherbet Rabbit.
Reply to this comment
by intihelwa February 18, 2007 6:29 PM PST
I was astonished this am to see the "second life" segment since it sounded just like the Webkinz site which some of my grandchildren are involved. You buy a Webkinz stuffed animal with a secret code, you register it on the webkinz.com site and voila, your stuffed animal is now virtual. You earn money, you buy your room(s) you buy furniture, etc. My husband decided to be a virtual pet too since one of my grandsons is so attached to him and this way they can visit each others rooms, etc. Of course my husband had to pretend to be a child in the virtual world of Webkinz. The only problems are that some kids are spending too much time playing with their virtual pets and some
popular webkinz are being scooped up by E Bayers, etc. Last week the Love Puppy webkinz was "hot" on the E Bayers list and coming up to Easter it's Sherbet Rabbit.
Reply to this comment
by imook February 19, 2007 4:07 AM PST
Yes, olede, it would be better to get off our bums and experience those things for real. However, mull this over for a minute. Where, in your real life can you talk to 10 different ppl, from 10 different walks of life, from 10 different countries all at the same time? The only place I have ever experienced that is in college. Over ten years ago.
I am not saying that 2nd Life and the like are to replace a REAL life, but enhance it. To me, during my down time, I'd much rather be in SL talking to ppl I may meet, than sitting in front of the TV, watching "American Idol".
Can you see what I'm saying?
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by of11of February 19, 2007 11:11 AM PST
yea ..for sure. exposure.. protocol..

..get with it
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by cylindrian February 20, 2007 10:02 AM PST

I am an independent musician that performs on a regular basis in Second Life (who's likeness and music appeared during this segment) and thoroughly enjoy the worldwide exposure to my music that it has generated. Being able to go on a virtual world tour from my home is incredible...not to mention convenient, less expensive, less wearing on my body from lifting sound equipment...and the virtual audience listens and interacts with the performer in ways not possible in real life venue performances...which is so cool!
Does anyone know of a way that I could receive a copy of this segment?
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by hugbee February 20, 2007 11:22 AM PST
For those that don't understand the allure of an on-line world let me try to explain. I have never played this game but I've played other MMOs, World of Warcraft, Starwars Galaxies and The Sims Online. MMOs offer a world that is more attractive and interesting than the mundane world. Players are able to interact with other people from all around the world who they would never able to talk to in real life. Players don't just type using a chat style interface they talk to each other using headsets and microphones. Its an evening of laughs, intrigue, fantasy stories and soap operas when our World of Warcraft guild gets together most evenings to defeat bosses (major monsters or villains) in an instance (dungeon). Its no wonder these games are so addictive. They provide action, adventure, entertainment, friendship and even love that would otherwise be unavailable to the player. All of it without risk. In the real world you can accomplish real goals but not without risk. MMO lovers who want to accomplish tangible quests may want to look into organizations like the church, military, Peace Corps, etc. I'm sure you can find an organization where you can use your powers for good ...or evil. You can write a dissertation on MMOs but the point I'd like to make here is that these types of games offer something the real world does not.
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by rf35 February 20, 2007 3:10 PM PST
I still just cannot see spending real money for a virtual hairdo.
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by of11of February 21, 2007 12:09 AM PST
i cut all my hair off... so now my hairstylist can't tell me how to wear my hair
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by of11of February 21, 2007 12:10 AM PST
i died.. so i went ahead and pressed, 're-start' ..
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by of11of February 21, 2007 12:11 AM PST
hiya grace!! ehhhheheh
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