The Metaverse, which gained substantial attention following Facebook’s rebranding to Meta, has become a key component in the investment strategies of many companies adapting to the new world.
Parcl, a blockchain-based platform specializing in digital real estate and parcel sales, has analyzed and reported on the companies investing heavily in this arena.
Their latest blog post, crafted by Conor Pritchard, the company’s content marketing manager with expertise in Web3, NFTs, and cryptocurrencies since 2017, highlights the significance of the Metaverse in our lives and details the investments made by major corporations in this field.
Well-known companies, from Google to Meta and numerous other tech giants, are deploying rapid and ambitious investment strategies in the Metaverse. However, there’s a common belief that the Metaverse is still not completely understood, and these investments might not yield significant results in the next 5-10 years.
Conor Pritchard of Parcl also delved into the reasons behind the involvement of 10 major companies in the Metaverse, their objectives, and the outcomes they have achieved to date. In his writings, Pritchard provides insights into the Metaverse investments of these 10 companies.
1.META
Meta, formerly known as Facebook, remains optimistic about the future of the Metaverse. The company had previously embarked on a significant initiative, hiring 10,000 people to develop its own virtual reality space, backed by an initial investment of $50 million. Meta anticipates that it might take approximately 15 years for this venture to fully mature and yield results.
In addition to this, Meta has invested $10 billion in virtual reality (VR) glasses technology and is now planning to expand further into augmented reality (AR) technology. The acquisition of Oculus marked a significant step towards achieving their Metaverse ambitions.
The company’s venture into the Metaverse is not merely a strategy to divert attention from various scandals associated with Facebook. However, how Meta plans to navigate competition in this rapidly evolving space remains an open question.
As of the first quarter of 2022, it was reported that Meta’s Metaverse division had incurred a loss of $3 billion.
2.GOOGLE
In 2014, Google was a forerunner in wearable AR technology with its Google Glass, but at the time, the world did not receive it well, and the investment did not yield the expected returns. Now, there’s speculation that they might be considering a revival of this technology.
Back then, “Google Glass” raised many concerns, particularly due to its video recording capabilities, which posed significant security and privacy issues. Under the leadership of CEO Sundar Pichai, there has been discussion about how to integrate current services into the Metaverse, such as mapping Metaverse environments and transitioning YouTube into virtual realities.
Furthermore, Google has made a substantial investment of $39.5 million in a fund that directly invests in Metaverse projects.
Whether 2022 will see the resurgence of Google Glass remains to be seen. However, any potential reintroduction would require addressing some critical issues, especially concerning privacy.
3.MICROSOFT
Microsoft, known for its long-standing commitment to technology, is among the companies whose investments in the Metaverse are highly anticipated.
Recently, the tech giant acquired Activision Blizzard, marking a significant step into the “play-to-earn” domain and thereby integrating into the Metaverse ecosystem.
Additionally, Microsoft is developing “Holoportation technology,” which offers interactive experiences within mixed reality applications. This innovative technology allows individuals to enter the Metaverse not through a created avatar but as their actual selves. Essentially, it enables users to be teleported into the Metaverse in a photorealistic representation of themselves.
4.NVIDIA
NVIDIA, renowned as a global leader in GPU development, produces technology for a wide array of applications including laptops, game consoles, PCs, and cryptocurrency mining devices.
Anticipating the impending surge in the Metaverse, NVIDIA is positioning itself to be at the forefront of this burgeoning field. As the demand for more advanced GPUs escalates, driven by the need for more sophisticated equipment, technology, and innovations, NVIDIA aims to be a key player.
Currently, NVIDIA is developing the Omniverse tool, a 3D simulation and design platform that assists developers in building their own applications. Additionally, the company is focused on creating applications that enable people to craft their own realistic avatars for use in the Metaverse.
5.UNITY SOFTWARE
Unity Software appears poised to establish itself as a leading entity in the Metaverse, potentially capitalizing significantly on this emerging domain.
Unity’s technology currently powers 71% of the world’s top 1,000 mobile games and half of all games on PC and console platforms. An estimated 5 billion devices focused on gaming are equipped with Unity-created software, underscoring the company’s extensive reach and impact in the gaming industry.
Unity’s strategic advantage lies not in creating its own Metaverse space, but in facilitating interoperability among these vast arrays of devices, applications, and games.
Moreover, Unity Software has made a notable acquisition of Weta Digital, a visual effects company, for $1.6 billion. This acquisition is set to bolster Unity’s development of its own real-time 3D technology, which is expected to play a significant role in numerous Metaverse applications, especially those aiming to bring realistic experiences to the virtual universe.
6.ROBLOX
Roblox has successfully established its own version of the Metaverse, boasting a user base of 10 million on its platform. For Roblox, the concept of the Metaverse transcends the typical associations with blockchain, virtual, or augmented reality.
Instead, they view it as a space of endless possibilities, a realm where users have the freedom to create anything they can imagine. Imagine a seamless world where you can engage in a poker game with avatar friends in one room, while hosting a DJ performance in another.
For those seeking such an experiential and creative space, Roblox already embodies this vision. The platform has cultivated a vast community of creators, enabling them to socialize and participate in various activities within their own created worlds, around the clock.
7.TINDER
Tinder, a popular app in the dating scene, is now venturing into the Metaverse. Shar Dubey, CEO of Tinder’s parent company Match Group, described this new foray in a letter to shareholders. Dubey envisions the Metaverse as an interface that transcends traditional swiping, offering a more interactive way for people to connect.
The company is also introducing its own digital currency, named Tinder Coins, currently undergoing trials in select European markets. These coins will allow users to enhance their profiles with additional features, such as account verification and adding videos. More importantly, Tinder Coins will also facilitate the purchase and trade of virtual products within the ecosystem.
Tinder is experimenting with a novel concept in several university campuses in South Korea, where users can interact in a space called Singletown. Here, individuals can meet and engage through avatars, utilizing real-time voice communication. This approach allows users to experience virtual meetings in settings like bars or parks before meeting in person.
8.SHOPIFY
Shopify has recently introduced a new AR/3D shopping feature, enabling business owners to create augmented reality and 3D versions of their products. To facilitate this, the company has formed a partnership with Poplar Studio, a UK-based AR platform. This feature is now available to Shopify’s customers at a monthly rate of $49.
Additionally, Shopify has launched a beta version of its own NFT marketplace. This platform allows any registered member to buy and sell NFTs. According to certain leaked documents, Meta is reportedly planning to develop a similar platform.
9.EPIC GAMES
On April 13, 2021, Epic Games announced the successful completion of a $1 billion investment round, aimed at funding their ventures in the Metaverse.
Tim Sweeney, the founder and CEO of the company, expressed gratitude towards both new and existing investors for backing Epic’s vision for the Metaverse. He stated, “Their investments will expedite the development of social experiences in games like Fortnite, Rocket League, and Fall Guys. This funding will also significantly support game developers and creators through Unreal Engine, Epic Online Services, and the Epic Games Store.”
10.NIKE
Nike has embarked on its Metaverse journey by acquiring RTFKT, a sneaker design company founded in 2020. RTFKT primarily focused on creating virtual sneakers, presenting an opportune moment for Nike to make its entry into the Metaverse.
Additionally, Nike has established a virtual store named Nikeland within the Roblox Metaverse. This digital venue has attracted around 7 million visitors from 200 countries. In Nikeland, virtual sneakers branded under Nike are being sold, some fetching prices upwards of $100,000. It’s likely that Nike will soon expand its virtual offerings to include apparel as well.
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