The metaverse, a concept that refers to a shared and immersive virtual environment facilitated by the use of VR and augmented reality (AR) headsets, has emerged into one of the hottest trends in the corporate world, becoming something that startups and large corporations alike have begun to actively focus on.
In October 2021, Facebook announced its rebranding to Meta Platforms to reflect the company’s desire to create a virtual world filled with avatars. Meanwhile, Microsoft has opted to focus on business, in March announcing Mesh, a metaverse software feature it plans to integrate into its video conferencing app, Teams, later this year.
Worldwide, in Asia, big tech like Baidu, Tencent and Alibaba are also investing in different elements of this virtual future: Tencent, has invested in Roblox, a leading game company and metaverse developer; NetEase, an Internet technology company, supports the metaverse social network IMVU; and Baidu, a leading search engine provider, launched its metaverse last month, allowing users to interact and visit virtual locations through avatars.
The metaverse has also caught the eye of investors, who have poured more than US$10 billion into related startups in 2021, a significant jump from the US$5.9 billion companies in the sector raised in 2020. according to Crunchbase data Pin up.
Games and media companies take the lead
Although companies from all industries and sizes have joined the metaverse frenzy, gaming companies appear to be taking the lead, according to a new report from Goldman Sachs Research. said.
Often seen only through the prism of video games, companies such as Roblox and Epic Games have been pioneers in virtual experiences. These have capitalized on the pandemic-induced shift to digital channels to further blur the lines between the virtual and physical worlds.
Roblox, for example, has seen accelerated adoption among brands across all industries, including fashion and beauty, entertainment, sports, and retail, in an effort to connect with a broad user base, diverse and engaged through immersive experiences.
In May 2021, the gaming company partnered with Gucci to virtually recreate the Gucci Garden in Florence. Players were able to shed their avatars by transforming into mannequins, allowing visitors to try on different virtual Gucci items which they could then purchase.
Another example is Roblox’s partnership with Nike, which focused on building Nikeland, a virtual space that includes fields, arenas, and courts for gaming and product showrooms.
Virtual events and parties have also taken place on Roblox, allowing artists and labels such as Sony and Lil Nas X to connect with fans.
In addition to gaming platforms, communication apps and media platforms also seem to have a head start in the metaverse race, having capitalized on the wide adoption of their social media channels and the early investments in data center infrastructure as well as VR/AR technology.
Time spent by application and application category, Source: Goldman Sachs Global Investment Research, December 2021
In 2014, Meta Platforms acquired Oculus for US$2.4 billion in its first foray into VR products. Since then, other acquisitions have followed suit, including Downpour Interactive, Ready at Dawn, Sanzaru Games, Beat Games, BigBox VR, and more recently, In, the developer of Supernatural, a VR fitness app that can be used with Oculus Quest headsets, and ImagineOptix, specialist in optical technologies that can be used in VR/AR devices.
Meta Platforms plans to release a new VR headset called Project Cambria later this year. The device will be a premium product and will feature the latest cutting-edge technologies, including enhanced social presence, color passthrough and pancake optics, the firm noted in a blog post.
Additionally, Meta Platforms is working on its first full-fledged AR glasses, an initiative codenamed Project Nazare.
