Big Tech Chases Metaverse as Next Bastion of Growth

Big Tech Chases Metaverse as Next Bastion of Growth

Metaverse Opportunities Abound

From Meta Platforms (FB) to Microsoft (MSFT), tech companies are gearing up to capitalize on the metaverse, a virtual reality world in which people can interact and spend money. The metaverse is so important to Meta’s future that the social media company recently changed its name from “Facebook” to reflect that.

While the metaverse is in its infancy and it could be years before it takes off, many tech companies, brands, and marketers see opportunities to create hardware, software, digital goods, and experiences which will exist in this virtual world. Likening it to the early 1990s when the internet was just taking off, proponents say the metaverse will change how we shop and interact digitally.

Up First: Build Out the Metaverse

It is hard to forecast what the metaverse market size will be given that it is in the very early stage of development. However, analysts point to the $80 billion per year spent on virtual goods in video games as an indication of the potential opportunities the metaverse will create.

At this point, most of the investments in the metaverse are going toward creating the infrastructure to support the virtual world, including both hardware and software. Meta’s Oculus unit is working on augmented reality devices for the metaverse while Snap (SNAP) already has AR glasses on the market. Nvidia (NVDA), a graphic chip maker, is launching software which it says creates and connects virtual worlds. The chip maker also rolled out software to make AI avatars.

💡 Recommended: How to Invest in the Metaverse: A Beginner’s Guide

Brands to Follow Meta to the Metaverse

Digital advertising is also expected to be a big money-maker in the metaverse. Brands that honed their digital advertising strategies on social media are expected to follow Meta to the metaverse. Some brands have already dabbled with digital advertising in virtual worlds, sponsoring concerts in Roblox (RBLX) or selling branded digital clothing and accessories.

The metaverse is still in its infancy and some are skeptical about its ability to take off. But there are a lot of heavy hitters behind it vowing to pour money and effort into seeing it grow. For now, the metaverse is all about the hardware and software necessary to make a connected virtual world a reality. If it takes off, technology companies and brands will have innumerable opportunities to find creative ways to connect with consumers through the metaverse.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT Meg Richardson Meg Richardson is a writer specializing in markets, technology, and personal finance. She loves breaking down seemingly complex ideas and making them readable and interesting for everyone. She holds an MFA in writing from Columbia University. When she is not writing about finance, she enjoys running in Central Park and drawing cartoons.

TLS 1.2 Encrypted
Equal Housing Lender