CEO Mark Zuckerberg is not known for his charisma or sense of humor. But he has earned a reputation as a relentless tactician with the experience of making big bets long before others see the opportunity.
Therefore, when Zuckerberg says that Facebook (ticker: FB) is essentially losing its roots in social networks, investors should pay attention. Last month, during a conversation about Facebook’s profits, Zuckerberg said that the future of Facebook is in the metaverse. Do not laugh. Like it or not, the meta universe is here and you can even be in it.
For Zuckerberg and other enthusiasts, the metauniverse is the next big field of computing and the next vision of the Internet. The buzzword refers to a virtual environment in which users can interact with each other and their world, allowing people to play games, work, communicate, or consume content, to name a few potential applications. It’s like being online, not just connecting to it.
Even accelerators recognize that the metauniverse is at an early stage. Venture investor Matthew Ball has mastered the concept and come up with several key attributes that include continuous and real work that spans the digital and physical worlds and includes a functioning economy.
Ball is already making big bets on the metaverse. He recently helped launch it
Roundhill Ball Metaverse
exchange-traded fund (META), the leading holdings of which include
(700. Hong Kong),
Zuckerberg himself has made big bets on the metaverse, since the company acquired in 2014 the manufacturer of virtual reality headsets Oculus Rift for $ 2 billion.
He is no longer alone in his interests. According to Sentieo, mentions of the metaverse in profit reports and other corporate documents have increased fivefold this year compared to 2020. Roblox, a recently public video game company, mentioned the term 15 times in its IPO bid.
Speaking of earnings earlier this year, Microsoft CEO Satya Nadella spoke about the great opportunities for bringing the virtual and physical worlds closer together. He said
(INTC) and the U.S. military were among its customers who “go beyond space and solve complex problems using mixed reality.”
Not everyone is fascinated by the excitement about the metaverse. Strauss Zelnik, CEO Grand Theft Auto publisher
Take-Two interactive software
(TTWO) says that the company’s games have long allowed people to inhabit the characters, express themselves and have fun. “Whether these worlds will become places where you buy real estate or do business is still unknown,” he said, noting that the term metaworld “means different things to different people.”
Whatever the metaworld, Big Tech is already positioning itself to participate. Here’s how companies are formed:
(GOOGL) is probably in the best position to win in the metaworld. The company has the world’s most popular operating system for Android smartphones, important for future hardware. Its self-proclaimed role of organizing world information – so far mainly through search – is important for the next iteration of the Internet. It also has a number of companies that connect people to the Internet, from the recently acquired Fitbit to the Nest smart home device. Its promising stakes, including the Waymo drone and healthcare efforts, bring the software company closer to the physical world.
(AMZN) Echo equipment and Alexa virtual assistant have become popular in homes across the United States. Hardware, but especially a virtual assistant, can also play an important role in helping people navigate the metaverse. Amazon Web Services, an extremely lucrative cloud computing company, is likely to play a big role in providing an experience in the metaverse, just as it does today with the Internet and other parts of the Internet.
(AAPL) has not addressed the metaworld directly in its corporate calls and earnings events, but CEO Tim Cook has been fascinated by augmented reality – a likely component of the metaworld – since 2016. its competitive advantage in the meta universe as well – as long as you’re ready to stay in the Apple universe.
Facebook may have rekindled interest in the metaverse, but the company actually has more ground for compensation than its competitors. Its dominant networks rely on other operating systems – a vulnerability that became apparent during the recent fight against privacy with Apple. The company’s best asset in the metaverse is its Reality Labs business, which incorporates its efforts into virtual and augmented reality. Its Quest virtual reality headsets are gaining momentum, and the company has promised to release smart glasses soon. Facebook certainly has the resources to catch up. According to Evercore analyst Mark Mahani, this year the company will spend about $ 5 billion on research and development of the metaverse.
Microsoft, more than any other company, already lives in the metaverse. As Nadella’s latest comments show, the company gives current customers the benefits of mixed reality. The company also has gaming games that could be a key factor in the future meta universe. He owns an Xbox and Minecraft, a virtual world loved by gamers. His slogan? “Your world to create.”
Write Max A. Cherney at email@example.com