Analysts discover that Second Life is overhyped

Some might assume that the Second Life backlash is merely a natural part of the hype cycle, with disproportional skepticism as the natural stage before widespread, mainstream acceptance. But here at Valleywag, we're hoping that the growing doubts actually are the mainstream reaction. Those who look deeply into the virtual world and come away seeing that it's neither "the marketplace of the future" or the "new branding frontier" are, we believe, merely observant. Like, for example, the analysts at Yankee Group, who think there's more than a small problem with Second Life.
Second Life hit its saturation point in October 2006: Growth has slowed to a crawl and users are spending an average of 12 minutes per month in the virtual world. Meanwhile, the firm says that less awkward forms of social networking are seeing increases in both users and "engagement," noting that Facebook users spend an average of 186 minutes per month. Ouch. That's a poke that may have actually hurt. (Photo by Clay Junell)