The gaming industry
The metaverse is not a fictional, sci-fi future anymore. Glimpses of it can be seen in online games like Fortnite, Minecraft and Roblox. Already prior to COVID-19, video games started to blur the lines between virtual and physical events & activities. Besides in-game events, such as the DJ Marshmello concert in Fortnite, the eSports industry saw professional eSports players partnering with celebrities on Twitch (e.g. Drake and Ninja playing Fortnite), and kids celebrated virtual birthday parties on Minecraft during lockdown. These in-game events and activities have led to a significant growth of the user base and increased levels of engagement, consumption, and ultimately monetization. These examples demonstrate the many use cases video game platforms can offer. At the same time, these events allowed contributors to directly connect with the next generation.
Next generation of users
As the metaverse develops, it will allow new ways to engage with consumers and transform areas like shopping. In a world of digitalization, virtual reality (VR) is getting increasingly important. Virtual reality is a computer-generated experience, changing everything into a three-dimensional, real-world scenery. Hardware devices such as headsets, glasses, gloves, and bodysuits make this VR experience possible and transformed the gaming and entertainment industries.
These hardware technologies can be used in instructive training such as pilots, soldiers in defence, field workers and many more. However, besides training purposes, the technology is also widely accepted across industries, fuelling the growth of the market. Nowadays, VR is being used to treat patients with mental health challenges or in the tourism industry taking potential customers on a virtual tour of their trip.
AR, VR, and the internet of things
Not only VR, also Augmented Reality (AR) offers interactive experiences. While VR completely blocks out the physical world, AR technologies keep you in the real world. However, AR can be understood as an enhanced version of the real word adding digital visual elements, sounds or other stimuli via technology.
Just like VR, AR technologies are widely used. Particularly, in beauty many brands are investing in this technology. But also many luxury brands offer virtual “try-before-buy” experiences. According to Boston Consulting Group, this new (augmented) reality, led by founders and millennials, is already changing the way beauty products are sold.
The digital transformation
Whether in VR, AR or simply on a screen, the metaverse creates an overlap in all aspects of our digital and physical lives. In order to unlock the full potential of the metaverse, 5G will play a crucial role as the metaverse requires a massive amount of computing power. Ultra-fast network speeds and low latency are needed to enable bandwidth-intensive applications and to handle thousands of simultaneous users in close proximity. According to VanEck, semiconductors will become the nervous system of this emerging virtual world. Semiconductors are at the heart of today’s tech revolution while only a small number of companies make them. According to Morningstar, benefits to chipmakers will be “uneven”. Since the metaverse requires real-time processing of an immense amount of data, it will require chips involved in to use advanced process nodes. Worldwide only very few companies produce these chips.
In such a cashless, virtual environment, cryptocurrencies and blockchain will also play a crucial role. The tech looks set to introduce a revolutionary virtual world built on the blockchain in which users can take ownership of virtual spaces to build, interact, trade, and do whatever else they please. VanEck stated that crypto assets will be the metaverse’s real estate and currency.
Privacy in a parallel digital universe
The emerge of the metaverse has been a cinematic experience to most of us, however, is also presents an opportunity to translate our working, travelling, shopping, socializing habits into the parallel digital universe. Privacy and other legal issues will be at the forefront of the metaverse as it develops further. We can expect that the same range of issues will apply to metaverse users such as anti-money laundering, sanctions, financial services regulation, intellectual property rights, etc..