The Promise of the Metaverse: Forging Ahead or Falling Behind?

In recent years, especially after Covid, the term "metaverse" has been on everyone's lips. It's the buzzword that has caught the interest of techies, entrepreneurs, and consumers as well. But what exactly is the metaverse, and why has it not yet become mainstream for companies? In this article, we will find answers to these questions and explore the future prospects of the metaverse.

What is the Metaverse?

Is it a virtual world with unlimited possibilities where one can escape from reality? OR

Is it just a new kind of video game?

OR

Even worse, is it just our average Zoom call with an avatar for every participant?

Well, the metaverse, in its simplest form, is a collective virtual world that exists parallel to our physical world. It's a virtual world where people can interact, create, explore, and conduct business in a variety of immersive and interactive environments. In simple words, it is a virtual world where people can hang out, play games, work, shop, and even create things. It's like the internet, but in 3D, where you use VR headsets to explore this virtual world and to do stuff that you love.

Reasons for Metaverse not taking up with companies

While the metaverse is interesting to discuss, but still not as interesting to invest money in due to the following reasons:

?1.?????? Cost: the technology required to access and operate within the metaverse can be expensive. Creating and maintaining a virtual presence, including VR headsets and immersive software, may require significant investments, and making such investments without clarity on the returns is not something companies would like to explore given the increasingly volatile global business environment.

?2.?????? Privacy & Security: Issues related to privacy and security pose a significant hurdle. With data breaches and privacy concerns becoming more prevalent, businesses must navigate a complex regulatory landscape.

?3.?????? The AI Hype: This is the most important one. With AI leading the bandwagon in the list of most trending topics, ‘metaverse’ has taken a backstage for now. Moreover, the benefits of AI adoption are much clearer and financially make sense to companies, compared to the benefits of creating or participating in a ‘metaverse’.

?4.?????? Learning Curve: Adopting new technologies, platforms, and ways of engagement can be challenging, and businesses prefer to wait for clearer pathways and best practices to emerge.

?5.?????? Customer Readiness: Customers are yet to fully accept the ‘metaverse’ and haven’t yet started using such services in huge numbers. Understanding the readiness and preferences of customers is essential for companies before diving into the metaverse.

?6.?????? Hardware: The limited use of VR headsets by customers is seen as a major hurdle to companies entering into the ‘metaverse’. Since the metaverse relies on VR headsets, a limited user base with access to these VR devices means that there is a smaller potential audience for companies to engage with in the metaverse, thus making it less appealing.

?7.?????? Interconnectivity: The interconnectivity between different metaverses is presently not available as the raw computing power needed to implement this is super expensive. In addition to that, the technical complexity, user security, managing a positive user experience, and finally managing cross-metaverse payments & and transactions are again expensive. Thus, it doesn’t make sense to invest in interconnectivity between metaverses unless we have a large user base already using the metaverse, which we do not have at present.?

“I don’t see someone strapping a frigging screen to their face all day and not wanting to ever leave.” - Elon Musk, Tesla

Are companies investing in the Metaverse or Staying Away?

Some forward-thinking companies have already started exploring the metaverse. Tech giants like Meta (formerly Facebook), Google, and Microsoft are actively investing in metaverse-related projects. These companies see the metaverse as the next frontier for connecting people and creating new digital experiences.

On the other hand, many other businesses remain cautious. Traditional industries, such as finance and healthcare, are proceeding with caution due to regulatory complexities and privacy concerns. The Banking and finance sector especially, being a highly regulated sector, has always looked for proven spaces to enter and has traditionally been a late adopter of the latest technologies. This sector always has preferred to jump on the bandwagon when all others have jumped in and when there is enough proof of returns and proof of security infrastructure in place.

Who can be the potential Early Adopters?

The industries that can be early adopters of the Metaverse include:

1.?????? Tourism: The metaverse offers a unique opportunity for the tourism industry to provide virtual travel experiences. Virtual tours, immersive simulations of destinations, and interactive travel planning can engage potential travelers, especially GenZ, and give them a taste of what to expect.

2.?????? Real Estate: In the metaverse, real estate companies can showcase properties in 3D, allowing potential buyers or renters to explore and interact with virtual representations of homes or commercial spaces without the need to actually visit these places.

3.?????? Entertainment and Media: Virtual concerts, art galleries, and immersive storytelling experiences are just a few examples. Entertainment and media companies understand that metaverse environments can provide a new channel for content distribution and audience engagement.

4.?????? Sports: Sports organizations have explored the metaverse for various purposes. From virtual arenas and stadiums for esports to fan engagement in virtual environments, the metaverse opens up exciting opportunities to connect with fans and create immersive sports experiences.

5.?????? Education: The metaverse can revolutionize education by offering immersive, interactive learning experiences. Virtual classrooms, interactive simulations, and collaborative study spaces allow educators to engage students in novel and exciting ways. It's especially useful for distance learning and lifelong education.

6.?????? Gaming: Gaming companies are embracing the metaverse by creating immersive virtual worlds, fostering user-generated content, and exploring non-fungible tokens (NFTs). Companies like Epic Games, Roblox Corporation, and Unity Technologies are actively investing in metaverse development. These companies are expanding beyond traditional gaming, allowing users to socialize, trade digital assets, and participate in virtual economies.

7.?????? E-Commerce: Imagine a world where consumers can shop in a virtual mall, interact with products in 3D, and engage with friends while making purchase decisions. This opens up new dimensions for marketing and sales.

8.?????? Training: Metaverse can be especially used for hands-on training, such as flight simulations for pilots or medical/surgical procedures for healthcare professionals. Trainees can practice and refine their skills in a safe, controlled virtual space. Also, one can design realistic role-playing scenarios for professions such as sales & and customer service where trainees can interact with AI-driven virtual characters to develop their communication and problem-solving skills. Last but not least, participants from different locations/countries can come together in a shared virtual space for collaborative group training sessions, workshops, and team-building exercises.

9.?????? Elderly Care and Commerce: India's elderly population is predicted to double to 20.8% by 2050. To help this segment of the population, related businesses can create virtual storefronts in the metaverse to enable virtual medical consultations, enabling elderly individuals to access healthcare services from the comfort of their homes. In addition to this, the elderly can also make use of the metaverse to interact with their banks, interact with e-commerce sites for placing orders, and much more.

??“The metaverse is here, and it’s not only transforming how we see the world but how we participate in it – from the factory floor to the meeting room.” - Satya Nadella, Microsoft

The journey ahead!

There are creators of metaverse, and then there are participants.

·?????? Metaverse creators are the architects, builders, and innovators responsible for crafting the virtual world

· Participants are the users who enter, engage, and experience the metaverse, often for entertainment, social, or practical purposes.

While tech giants like Meta (formerly Facebook), Google, and Microsoft are acting as creators (along with many other small tech players), the non-technology brands belonging to industries like sports, education, and entertainment, want to monetize the audience present on metaverse, by being participants and using the real estate present in the metaverse.

With the pool of audience limited at present, it is a chicken-and-egg situation for metaverse creators, because participants (brands) are waiting for consumers to embrace the metaverse, while creators (tech giants) are looking to get more participants to enter the metaverse so that the participants can be used as a bait to lure the consumers.

In conclusion, while the metaverse adoption may experience fluctuations and uncertainties at present, it is still an exciting and evolving digital landscape that offers countless opportunities for businesses. While it may not be the right fit for all industries and companies, those who carefully navigate the challenges and align with customer preferences can thrive in this new digital frontier. By investing in technology, prioritizing privacy, and delivering authentic experiences, brands can make their mark in the metaverse and stay ahead of the curve in the digital age.