Phillip Rosedale, CEO of Linden Lab, best known for Second Life, has stepped aside.
Rosedale said the company needs a CEO who has more expertise in operations and management.
But the founder made it clear he is not going anywhere, remaining on board to work on product development and strategy and taking on the role of board chairman.
"This is my life's work," said Rosedale. "I'm not going anywhere, and I'm still full-time on this, probably for the rest of my life."
The company's largest investor, Mitch Kapor, said Linden Labs is mulling the possibility of an IPO.
"We always knew this was a long-term project, operating on a different time frame from (other) venture-backed startups... it will make sense to go public but there's no rush to that," he said.