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“Our economy in Second Life has been growing this year,” he said. “In the last 12 months its been up 67 per cent, which is a heck of a lot more than the real-world economy.”

Second Life seems untouched by the economic meltdown that is plaguing the real world. In fact, Mr Kingdon sees the current turmoil as an opportunity for Second Life.

“If you look back at other economic downturns, there are certain things that people continue to do for entertainment. Often times it means staying at home and playing video games.

“Also, there are people making money in Second Life. This would be a great place for a side business, and it is for thousands and thousands of people already. It may be a magnet in times of difficulty for people who are trying to earn extra money.”

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Right now, Second life could be benefiting from the credit crunch, but its future seems unclear. The people who use the service regularly are fanatical, spending time and money with their avatars, but can Second Life really keep growing beyond the hard-core?

My Kingdon says his company is still looking for the “killer application” that will draw in the casual consumer. He suggests “it could be live music, learning a new language, visiting a virtual landmark. It could be connecting with friends to go out for a night of dancing.” But arguably, those things will always be available in a richer form in the real world. It is unclear what it is that will make Second Life truly vital to anyone not caught up in it already.

Mr Kingdo points to its uses in various other industries. The vast majorities of universities in the UK have a Second Life presence. Thanks to the new focus on cutting carbon emmissions, a few companies have started to use it as a meeting space that can cut costs and travel time. When it comes to its uses for the casual user though, Mr Kingdom suggests that time will tell.

“I think you’ll see a material difference in the user experience a year from now,” he said. “We have a mantra in the company which is 'make weekly progress'. So while we’re looking a year ahead, we’re also very focused on making weekly progress. Let’s chat in a year and see how much progress we’ve made.”

The management-speak response to the criticism suggests that he may be an old-fashioned business brain after all.

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