Metaverse revenue

The new age technology metaverse is going to bring revolution in the industry by attracting online game makers, social networks and other technology leaders to capture a slice of what we calculate to be a nearly $800 billion market opportunity. Metaverse is now front and center in every discussion - kind of similar to the excitement we saw around Cloud and IoT a few years back.

Metaverse is the convergence of the physical and digital realms in the next evolution of the internet and social networks using real-time 3D software. It presents an opportunity for leading online entertainment and social media companies to capitalize on new revenue streams.

Gaming hardware, including gaming PCs & peripherals and AR/VR hardware such as Facebook’s Oculus and Microsoft Hololens, accounts for the remainder of the primary market opportunity. HoloLens was the first head-mounted display running the Windows Mixed Reality platform under the Windows 10 computer operating system.

Online game makers including Roblox, Microsoft, Activision Blizzard, Electronic Arts, Take-Two, Tencent, NetEase and Nexon may boost engagement and sales by capitalizing on the growth of 3D virtual worlds. Games that successfully pivot towards virtual 3D worlds can capture a greater share of engagement and user growth, accelerating sales growth.

Secondly, Brands & retailers are looking for Metaverse to adapt to interact and connect with their consumers enabling shoppers to experience their brand in a virtual environment providing a memorable and an immersive experience is quickly becoming the next frontier in Retail.

Several brands are now using the virtual platforms to directly engage, influence and in many cases, disintermediating the retailers. Hence, retailers can no longer afford to be on the side-lines. It is interesting to see how this is now beginning to influence retailer’s corporate strategy & business models, thereby warranting a relook at their technology roadmaps.

Going forward, there is no doubt that Metaverse is here to stay. The Gen Z- the digital natives who are sidestepping the traditional retail formats are favouring the gaming, social & virtual platforms accelerating the move towards metaverse by fearlessly marching into this new world.

Dr. Deepak Kumar Sahu, President & CEO, VARINDIA