Linden Lab has released the figures for the third-quarter performance of Second Life.

If you want the short version, it wasn't a growth quarter. Q3 2009 figures were not really very distinguishable from Q2 2009. There's actually nothing wrong with that. Growth plateaus are occasional and inevitable and generally represent a good opportunity for engineering and support to catch up a little with the service.

A couple days ago, we had a post detailing some speculation on what City of Heroes: Going Rogue meant for NCsoft West, City of Heroes, and the future of the entire branch of the company. Ryan James, director of corporate communications for NCsoft, took the time to issue a direct response to us regarding that post. We also got an opportunity to ask him a few questions regarding NCsoft's current and future direction, which helps provide some context and some behind-the-scenes information to offset the speculative nature of the aforementioned post.

The official response is as follows:

"We wanted to respond to your post from November 2 on City of Heroes and clarify a few points for you and your readers. In short, the piece offers a rather sensationalist view of NCsoft West and our success thus far.

We're very proud of what we've accomplished here in the West – we have several major MMO franchises, including City of Heroes, Lineage and Guild Wars. And our newest addition to the NCsoft portfolio, Aion, has just seen a very successful launch here in the West. As you point out, we have had to make some tough portfolio decisions, but this is very much par for the course for any major game publisher today. That being said, we remain extremely proud of the Paragon team's accomplishments with the City of Heroes franchise. City of Heroes is still the world's most popular super-powered hero MMO. Even with an increasingly crowded landscape, City of Heroes remains the gold standard for comic book-inspired MMOs – it has stood the test of time and we're excited to be bringing Going Rogue to players next year.

As you note, the author of Vicarious Existence is indeed 'alarmist' in his assessment of NCsoft West and our future. We couldn't agree more. On the contrary, we're optimistic about our future."

Following the statement, Mr. James took the opportunity to answer a few questions about the company's game portfolio and future plans. Take a look at the questions and responses after the break.

Linden Lab, the company behind the Second Life platform is launching the open beta of Project Nebraska today. Project Nebraska was the working title for what is now called Second Life Enterprise, a standalone Second Life solution for enterprise use.

This "Second Life in a box" solution, is actually in two boxes. It consists of a combined software and hardware bundle, including two 1RU rack-mount servers, prepackaged as an appliance and configured to provide virtual environment and voice services, ready to use with standard Second Life viewer software.

But that's not all.

At the six-year mark, City of Heroes is still moving forward, with City of Heroes: Going Rogue targeted for release in the second quarter of 2010. It's certainly not the oldest game to receive an expansion, but Vicarious Existence has an interesting point to be made: exactly how much is riding on the success of this expansion? In true heroic sense, it may well be the fate of NCsoft West and of NCsoft's entire western presence in the market.

It's no secret that NCsoft West has had a difficult time in the market, with the first rumbles having been made clear with the sad tale of Auto Assault. And it's hardly necessary to dredge up painful memories about the games that have also gone the way of the dodo. But as the post points out, there's not nearly as much revenue coming in from the western branch of the company as they'd like, even with the success Aion has been having in the marketplace. (If that sounds cynical or as if it's expecting too much money, Adam Martin has an excellent explanation of why NCsoft could and would be so draconic about profits.) To be fair, the post is a bit alarmist, but it does posit that there could be a great deal of trouble on the horizon for City of Heroes -- and perhaps the whole studio -- based on the performance of the expansion. And even if the idle speculation is wrong, it certainly does put you in the right mood for the expansion, doesn't it?

There are elements of games that are turn-offs for all of us. Some of us love PvP, for example, and a world with virtually none of it isn't very appealing. But sometimes we don't event start playing the game before our feelings about it go straight into the dumpster. It's hard to argue that Tabula Rasa's frequent shifts during development inspired players to expect any longevity out of it, and whether or not it's the case Warhammer Online's frequent server merges and population shuffling have given the impression of a game that's struggling a bit.

Sometimes you hear of a developer or project head assigned that makes you cringe, sometimes it's a choice of IP or business models, or sometimes it's just the number of issues you have patching the game to try out the free client. We ask you, readers, what makes you start losing faith before you've even loaded up a game for the first time? It might not be a dealbreaker, and you might even look back at it and laugh, but there are certain things that make you more nervous about committing to a game. What does it for you?

Opinions on PlayStation Home seem to differ -- it doesn't have the kind of flexibility and user created content that's made Second Life successful, but it does provide social spaces and content linked to the games and other media we enjoy. For others, like writers at our parent site Joystiq, it's a brave new virtual world where the fine art of Quincying can thrive.

Now that PlayStation Home has gained some traction with its install base and users are making microtransaction purchases, does Sony intend to develop the marketplace further? Not immediately, according to PlayStation Home's Pete Edwards. Edge Online quotes Edwards, speaking at the London Games Conference this week: "It's been a long road. We've proved there is a market out there and we've got a lot of people that spend a lot of time in [Home]. It's not a priority right now but there is a business model there."

[Via G4tv's The Feed]

Remember Kevin Alderman (known in Second Life as Stroker Serpentine), CEO of Eros LLC who is one of the plaintiffs who have filed a lawsuit against Linden Lab for negligence with respect to security and failing to act in accordance with their obligations under the DMCA? Well, it can't be a good week for either him or for the Lab.

During Linden Lab's Burning Life event in Second Life this year (a sort of living pop-art showcase and party that draws many spectators) persons only presently known to the server logs left a cache of copied content, including at least one of Alderman's latest products, and a whole swag of other content belonging to other designers – free for the taking.

It isn't really Burning Life's fault, but if you had to place the stuff somewhere where many people would take it, none-the-wiser that it was unlawful content, that would be the best place at this time of the year.

Yesterday, Linden Lab made an announcement regarding third-party (or after-market, if you prefer) viewers that has so far elicited a vociferous response from some of the more outspoken Second Life users, and those involved in after-market viewer-development. The announcement largely revolves around upcoming policies that have yet to be decided.

This is compounded partly by there being two announcements. One directly emailed out and one on the blog, both of which carry somewhat different information. The announcement is a lead-up to a series of "brown bag" sessions which are advertised to determine the details of the scheme.

Over the last few days, Linden Lab CEO Mark Kingdon, and Lab director of Marketing and Communications, Catherine Smith have been in Europe, where Kingdon is reportedly seeking office-space for Linden Lab in Amsterdam. The office is intended to start as a small marketing headquarters for Linden Lab.

At NIMK, Catherine Smith told De Hoeksteen Live! that Linden Lab was planning to launch the new office in January next year.

Linden Lab's marketing efforts for Second Life hitherto have largely focused on placement of speakers at conferences and events, and – prior to 2008 – on minor registration incentive programs. More recently, efforts have focused on the revamped Web-site and assorted press-materials and white-papers.

The Virtual Goods Summit has been an annual event since 2007, and features speakers from organizations all over the world, all focused on virtual goods, and virtual economies. This year's summit in San Francisco features quite a lineup, including the delicious Steve Meretzky, Turbine's accomplished Fernando Paiz, the engaging John Smedley of SOE, and plenty more.

Through the Virtual Goods Summit, developers and publishers share knowledge and get a deeper understanding of virtual goods and economies, how they function, their challenges and how to maximize the opportunities inherent in them. The Virtual Goods Summit runs on 30 October (with an optional half-day seminar on the 29th, covering the fundamentals and drivers of virtual economies, called Virtual Goods Summit University.

Want to get to the summit with a 15% discount on general admission? Register for the summit and use the code MASSIVELY at the checkout, and save! There's also discounted early-bird registration until 29 September.

Generally, operators of MMOGs and virtual environments don't show their numbers unless they feel they've got something to crow about, and Linden Lab's crowing today, releasing a selection of figures that give you an idea of the scale of Second Life.

Approximately 1,250 text-based messages are sent every second in Second Life. That's 108 million messages per day and more than 600 million words are typed on an average day. That's a whole of messages for any architecture, quite honestly.

Massively reported last week that MMO developer Turbine had filed a lawsuit against Atari over the publisher's handling of Dungeons and Dragons Online. Turbine alleges that Atari did not meet their contractual obligations, forcing the developer to also act as the title's publisher, and seeks $30 million in damages from Atari.

Atari, however, is not taking this lying down and claims the lawsuit is "frivolous." The publisher made a statement to Shacknews about their stance on the matter: "Last week, with no warning, Turbine filed what can only be viewed as a frivolous lawsuit against Atari. This action can ultimately do a great disservice to D&D fans and to the MMO community at large."

Second Life has a certain notoriety for the first six-to-ten hours of the user-experience being an uphill battle. We wonder, in fact, if virtual environments like Second Life can even make do with a conventional tutorial at all. In an MMOG, at least, all you have to do is teach the user how to play the game.

Second Life, on the other hand, is more like being dropped off in a remote, busy community. You're not trying to level up – there's no experience-points and no levels; no game-trappings at all. You're trying to meet compatible people, go shopping, explore, see the sights, make money, start up a business, find educational opportunities, or learn the language.

Trying to cram that into a tutorial is like trying to produce a short accessible tutorial for Osaka, or Budapest.

A number of massively multiplayer online game developers have touted the fact that their titles will be playable on both PC and Xbox 360 but, with rare exceptions, they've failed to deliver on MMOs for this console. But can the blame for this really be laid solely at the feet of the developers? That seems to be the typical reaction, as many of us get frustrated over these broken promises. However, looking at the various titles that were aiming for 360 and missed, perhaps we should look at what all of these stories have in common: Microsoft. (Lest the fires of console fanboy rage blaze out of control, we're not exactly inundated with PlayStation 3 MMOs either.)

Patrick Garratt from VG247 recently spoke with Jack Emmert from Cryptic Studios about this issue, and his perspective on playing ball with Microsoft to get Champions Online on the 360. Emmert stated that Champions Online for Xbox is almost ready to go, but lack of action on Microsoft's part is holding up the project.

The Second Life Avaline service beta has come to a close, and the product is now launching properly. Avaline allows callers on a land-line or mobile to call a logged-in user within Second Life.

Connecting to your user of choice is as straightforward as calling into a teleconferencing system. You call an access-number, and then tap in the code for the user you want to speak to. They're notified of the call, and shown the caller's number and then may accept and be placed in a voice session with the caller. If the called user is not online, the call goes to voice-mail (available as an additional service).