While making a play in Second Life doesn't require the use of physical resources, the medium has its limitations: It feels more like a mashup between a puppet show and a radio play than real, fleshy theater. The virtual actors are blocky and clumsy, capable of only a few distinct actions or facial expressions. They don't interact; they just occupy space next to each other (when one character tries to lounge in another's lap, their pixels just intermingle as though they were ghosts). And the actors are phoning it in, literally—from Minnesota, Tennessee, Washington, and as far away as Australia.
There's much more: I discuss the possibilities for mind-blowing Second Life theater, and the reality of what it is right now. Pop on over and give it a read, please.