Big Tech race is on to define and dominate the metaverse’s projected $800 billion market
By ALEX CONNOCK
Big numbers coming. Microsoft’s US$75 billion acquisition of Activision Blizzard has landed – true to Call of Duty vernacular – “like a bomb” on the $200 billion revenue video games industry.
It heavily arms the Xbox giant for its vision of the metaverse, in which gaming is the marketing adrenaline of this much-touted online future that is to be experienced immersively through virtual reality (VR) headsets or augmented reality (AR) glasses. The stock market knocked $10 billion off Playstation maker Sony’s valuation on the news.
The metaverse was also a big noise at the Consumer Electronics Show in Las Vegas earlier this month, branded “tech’s hottest trend” by Variety magazine. Product launches included Samsung’s new VR world My House, offering virtual home makeovers; and US beauty tech group Perfect Corp’s AR-driven virtual beauty makeover range, which lets people experiment with cosmetics and accessories using AR.
Certainly the metaverse has been fast-moving, even since (in October 2021) Facebook renamed itself Meta – a bold step when VR only brings in about 3% of the company’s current revenue. But Bloomberg is predicting that the overall metaverse will be generating revenues of $800 billion as soon as 2024 (compared to $500 billion in 2020), so the prize is huge.
About half of that 2024 projection is expected from video games, while a substantial remainder is from live entertainment – and major artists like Ariana Grande and Marshmello have already been holding concerts in the virtual world.
Yet besides niche attractions for early adopters, what about the rest of us? Will we sign up for virtual interaction en masse when the technology is ready in a few years time? Meta’s Mark Zuckerberg thinks that the metaverse will allow people “to feel present – like we’re right there … no matter how far apart we actually are.”
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