A new report warns brands against investing in sandbox game Roblox and other metaverse companies, suggesting that the hype surrounding the metaverse concept may be overblown.
called ” Metaverse Manifest: A Realistic Look at the Next Digital Frontier“, the report from research-focused research agency Essence suggests that, with 54.1 million daily active users for the first quarter of 2022, Roblox remains a little small compared to companies like Twitter, which has 229 million daily active users, and Facebook, with 1.93 billion.
It also points to a GWI 2021 report, a consumer insights reporting tool, to support the idea that there is some consumer confusion around the idea of the metaverse. The report surveyed people in nine markets and found that only 33% of people understand the concept of the metaverse, 37% have heard of it but aren’t sure what it means, and 30% haven’t. hear about it.
Roblox users tend to be relatively young, the report continued, noting that more than half of its users are under the age of 13. However, this statistic may be outdated, as Roblox reported in Q3 2021 that 50.4% of its daily active users are over the age of 13, and Recent reports indicate continued growth of older players.
However, in November 2021, only 30% of Roblox players are at least 17 years old, supporting the implication that the platform’s user base is relatively young. However, that seems to be changing. Roblox’s Q2 2022 Earnings Report noted that men and women aged 17 to 24 is the fastest growing business demographic.
Finally, the report claims that Metaverse is “built for Gen Z, Gen Alpha, and everyone after.” But that’s not necessarily a bad thing, Essence points out.
“And just like Gen X didn’t stop playing video games when they grew up, these kids aren’t going to stop that behavior,” he said.
The report also addresses the misunderstanding of whether the metaverse will adopt web3 technologies such as blockchain, cryptocurrency, and NFTs. He also noted security and moderation issues, which plague platforms such as Roblox and Facebook Horizons.
“Gaming platforms are now home to vulgarity and harassment. Add politics, dating and poorly protected adult content to the mix and, well, it’s like the real world,” the report said.
Finally, the report examines sustainability issues, noting that the underlying technologies that support the metaverse contribute to high greenhouse gas emissions. The metaverse also contributes to e-waste, which requires infrastructure such as servers and devices to function. As technology advances, people often throw away their hardware to make way for new products.
Finally, the report argues that companies should err on the side of caution and consider experimenting with metaverse activations if they have the budget, as it is better to experiment in the early stages than to be left behind. However, this remains a complex question for brands because the concept of a metaverse is still in its infancy and the potential of what is possible remains unclear.
Consumer enthusiasm for Metaverse may also decline. Roblox’s Q2 2022 earnings report showed that the company fell short of expectations for bookings and saw a general decline in user growth. This causes the Roblox Stock Will Fall 12% August 9, and it continued its downward trend to US$46.10 per share, from November’s high of $134.72.
Even if the forecast isn’t as optimistic as it once was, that hasn’t stopped brands like Gucci and Tommy Hilfiger from investing in the Roblox metaverse. Looking to reach and engage with new audiences, these companies alike have created their own Roblox worlds that include mini-games and exclusive avatar gear that players can earn for completing certain purposes.
For more ways to get free avatar stuff, check out our list of Roblox Promo Codes for August. For the music lovers among us, you can also check out our list of Roblox Music Codes for August and find out how to redeem them. You’ll want to show off your new clothes and play your latest tunes, so visit our list of the best Roblox games of 2022 to learn more about our favorites.