Interested to know what’s next for the gaming industry? Join game executives to discuss emerging industry trends in October at the GamesBeat Summit Next. Learn more.
In one year, the number of companies working on Metaverse has grown from 200 in July 2022 to more than 500 today, according to a Metaverse report by market researcher New Zoo.
A year ago, many people would probably say they had never heard of the Metaverse. But with the explosion demanded for virtual life thanks to the pandemic, the metaverse quickly spread as a vision of life in an ongoing 3D spatial world all connected to an online universe.
Today, almost every major tech company, brand, influencer, and gaming company is involved in the metaverse, the universe of virtual worlds in which everyone is involved, just like novels like Snowfall and Loan player usa. This is the way to reach the younger generations of tomorrow. Last week, McKinsey said Metaverse has a market value of $ 5 trillion by 2030. And the Khronos Group announced a coalition of groups and companies to create standards for the Metaverse.
Roblox is one of the most popular games in the world and it has become a platform where players can create their own games and profit from them. Roblox and Epic’s Fortnite have additional features like virtual concerts, and influencers claim their rights.
The metaverse gave birth to virtual movies hosted by the most famous fashion and luxury brands. And the first comeback of blockchain games focused more on the economic aspect and lacked the “fun” element to support new players. But the hope is that these games will be stepping stones into the metaverse by bringing interoperability and true digital ownership.
Newzoo said digital in-store shopping sessions are likely to become more realistic and mainstream as XR and VR technologies evolve. Virtual land – which is actually a 3D advertising space – has taken non -fungible token (NFT) space by storm.
Mihai Vicol, Head of Metaverse at Newzoo, in an interview with GamesBeat said the hype has cooled in recent months due to the global macro downturn, but he said interest in Metaverse is growing as a natural heir to the Internet Web2.
Newzoo said the transition from Web2 to Web3 will decentralize the technology economy, changing the way brands interact with users and technology intermediaries. And it will definitely change the way consumers live, work and experience entertainment, according to Vicol.
He said the evolution of simulated 3D worlds presents a huge opportunity for brands, with a transition from scattered physical spaces to virtual worlds that offer brands at a time. to reach a condensed mass of users that is difficult to reach with other forms of advertising.
Big companies like Nike, Louis Vuitton, Balenciaga and Meta are recognizing innovation and implementing metaverse strategies.
As NFTs grow into a multi-billion dollar market by 2021, they are suffering a crash alongside the cryptocurrency market due to fears of a global economy. Coin values and public interest have declined in recent months, but Newzoo remains optimistic that the best projects will succeed. The report examines major trends in the metaverse and blockchain space.
The report says there is no one definition of the metaverse. Jonathan Lai of A16z describes the metaverse as continuous, sharing 3D virtual spaces in a virtual universe.
Tim Sweeney, CEO of Epic Games, calls it a real-time, 3D social media where people can and will share shared experiences as equal participants with an economic impact on society.
And Newzoo defines it as an interconnected and interoperable network in an ongoing virtual world inhabited by multiple players interacting with each other through 3D digital avatars, giving users a higher sense of humor. of immersion and presence.
Newzoo quoted investor Matthew Ball as highlighting aspects of the metaverse such as scaling, where the cap on virtual spaces goes from 100 people per area to potentially infinite. He said it has consistency, where it feels like a permanent place where you enjoy new experiences. It can be interoperable, have its own economy and allow users to express their own identity through spaces. It will combine digital and physical experiences and will be home to many different individuals, informal groups, organizations and commercial businesses.
Where is the blockchain going?
One of the key questions is whether blockchain technology is the stepping stone in the metaverse, enabling interoperability and ownership by authenticating the digital ledger in the blockchain. But is there another way? I asked Vicol why some hardcore gamers have resisted NFTs and if blockchain games are about to go mainstream?
“You’re talking about most native or hardcore Western gamers who don’t like blockchain games, and frankly, I can’t blame them,” Vicol said. “Just 15 months ago, blockchain games were virtually non-existent. Maybe we had some titles like CryptoKitties or Axie Infinity. But play-to-earn games didn’t exist.
Now we see the rise of Axie Infinity as well as the subsequent collapse of some of the games. The problem is because they are not played by the players. However, they are played by cryptocurrency fans who want to profit from the games.
“The problem is that these games aren’t sustainable. And if you ask those people who play games, almost everyone wants to enjoy the games,” he said. “And in a sustainable ecosystem, it’s not can be for 100% of the players to profit. There have to be a lot of players playing the game for fun, so they put in five bucks and at the end of the day they don’t expect to walk away with $ 10 or $ 50.
Vicol believes blockchain games will only grow if leading developers release high-end games that are fun to play. These games will have to find a new tool for NFTs if they are to be successful. Only then will the games appeal more to crypto investors and appeal to mainstream players. Other games like collectible card games like Gods Unchained may have found the right use for NFTs, Vicol said.
“There has to be a sustainable ecosystem, and in 90% of crypto games I think that’s not what happened,” Vicol said. “I think sustainable blockchain -based economies can be built in six months or maybe two years. But we haven’t.»
It is also unclear whether the metaverse also needs cryptocurrency to be successful. Gabby Dizon, CEO of Yield Guild Games, predicts we will have 10 million crypto wallets this year, but crypto is in a world of pain with Bitcoin falling below half its new value. of it. The number of crypto wallets will depend on recovery.
Vicol did not say when he expected blockchain games and the metaverse to hit the mainstream.
“The real question is whether people are really going to play these games,” he said. “It’s too early to tell. You can throw billions and billions into the industry, and you can get at least some decent games to be played by millions of players. But I think it’s too early to call him. I really don’t think the future of the metaverse should be tied to the success of blockchain games.
He added, “Now whether or not you need the blockchain to create an open metaverse is an ongoing question. There are people on both sides of the argument. But I think titles like Roblox or Fortnite appear to be not you need blockchain.
Vicol thinks shared patterns are needed for the metaverse to get the entire platform off the ground. He sees brands entering virtual real estate and virtual world apps like Decentraland and The Sandbox. These worlds don’t have many users, but they are also in the early stages of development.
Newzoo does not make its own predictions for revenue related to the Metaverse or its final value.
“I’m a little interested in all the big consulting firms that offer figures like $ 8 trillion (Citi) by 2030,” Vicol said. “I was a little confused. That’s why we don’t yet have any metaverse estimated revenue, but we do consider that estimates are feasible.
The creed of GamesBeat if covering the video game industry is “where excitement meets business”. What does this mean? We want to tell you how important the news is to you, not only as a decision maker at a game studio, but also as a fan of the game. Whether you’re reading our articles, listening to our podcasts, or watching our videos, GamesBeat can help you get to know and engage with the industry. Learn more about membership.