The Metaverse, a relatively new concept and a term used to describe a shared, immersive digital ecosystem supported by the use of VR and augmented reality (AR) technologies, has quickly become one of the fastest-growing trends in the digital economy. It’s notably a nascent industry that has become a key focus area for startups and even large firms.
In October of last year, Facebook revealed that it was rebranding its business to be called Meta Platforms in order to reflect the firm’s move towards creating an avatar-themed digital world.
Microsoft has also decided to increasingly focus on enterprises, confirming in March Mesh, which has been described as a Metaverse software feature that the company intends to add to its video-conferencing software, Teams, at some point this year.
Meanwhile, in Asia, tech giants Alibaba, Baidu, and Tencent (among many others) are also making strategic investments into a virtual or all-digital future.
Tencent has reportedly invested in Roblox, a gaming company and Metaverse developer. Tencent has also invested in NetEase, an Internet tech company and is supporting Metaverse social network IMVU. And Baidu, a search engine provider, has introduced its own Metaverse as well, enabling users to interact and go to virtual locations via engaging avatars.
It’s worth noting that the Metaverse has also grabbed the attention of prominent investors who have contributed over $10 billion into various startups (as of last year). As first reported by Fintech News, this represents a major increase from around $5.9 billion that firms in this industry acquired back in 2020. This, according to data shared by Crunchbase.
While firms from almost every industry have now decided to join the Metaverse movement, gaming companies seem to leading the way, according to an update from giant Wall Street investment bank Goldman Sachs.
Quite often viewed mainly via the lens of video games, firms like Epic Games and Roblox are considered pioneers or first-movers into the digital experiences sector. These startups have taken advantage of the ongoing move into virtual channels, a trend accelerated by the COVID-19 outbreak (which has helped with bringing together both the physical and virtual worlds).
Roblox has been focused on accelerating the adoption among major brands across entertainment, fashion and beauty, sports and retail, in order to link up with a diverse and active client base via all-digital experiences.
In May of last year, the gaming firm partnered with Gucci in order to re-imagine and reproduce the Gucci Garden in Florence (in a virtual setting). Players can actually shed their avatars and transform into mannequins, enabling visitors to check out various Gucci virtual items which they are able to buy.
Roblox has also been working with Nike as the companies are creating Nikeland, an all-digital space that features arenas, fields, and even courts for game play as well as product showrooms.
Virtual events and parties are also being held on Roblox, enabling creative artists and labels like Sony and Lil Nas X to interact with their fans in a completely new way.
Communication applications and media outlets also seem to be getting serious about the Metaverse, They’ve added various themes to their social media channels, and made key investments into improved datacenters and even VR/AR tech.
Notably, Meta Platforms had acquired Oculus back in for $2.4 billion as its entry into VR products. Since that time, other key acquisitions have been made. They reportedly include Downpour Interactive, Ready at Dawn, Sanzaru Games, Beat Games, among others.
Meta Platforms is now getting ready to launch a VR headset, referred to as Project Cambria. The device will be a high-end product and will feature the latest technologies, while offering an improved social presence, color Passthrough and pancake optics.
Meta Platforms is also working on its AR glasses, a project that is referred to as Project Nazare.