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.
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.
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