Second Life has pretty much vanished from the radar (I follow a few groups and a couple of lists just to keep in touch) but Linden Labs is not disappearing quietly. It has scored a success with a product called Blocksworld that resembles Minecraft and is playable on the iPad. It's a bit of a marketing switch for LL, shifting from selling 'islands; to colleges and companies to iPad apps to consumers, but in my view, the consumer play has always been the more stable long-term business model.
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