Metaverse – An Emerging Universe
Metaverse, a concept named by now “Meta” previously known as Facebook. The term metaverse refers to the concept of three-dimensional virtual spaces put together to form a universe in itself. It involves a combination of multiple platforms that allow users to socialize, game, meet and work in a three-dimensional space.
Metaverse, powered by Augmented Reality (AR) is gaining traction in various domains. The video gaming industry is said to be in its clooney years as it experiences major transformational shift due to the emergence of metaverse. Amid the rapid growth in the gaming industry post COVID-19 outbreak its basic drivers are still the fundamentals of the industry- faster processors, improving graphics and enhancement of overall gaming experience worldwide.
In addition, the advancement in global communication networks will accelerate the uptake of cloud-based games creating entirely new ways for users to interact and socialize while driving revenue for the gaming companies.
According to a survey by Amsterdam-based industry tracker Newzoo, the worldwide games market is projected to earn about $188 billion in sales in 2023, up 2.6 percent from this year.
The Metaverse Gaming Impact, Explained!
With the concept of a fictional universe becoming reality there is a significant upsurge with the number of early adopting gaming companies experimenting with a metaverse presence. For instance- the widely played Minecraft and Fortnite games, as well as the popular Roblox game platform, have incorporated many aspects of the metaverse, including virtual worlds where players meet to play games and use social features such as in-game chats.
As the gaming industry matures, the metaverse will continue to incorporate various technologies, such as VR, AR, and 3D functionality. Tim Stuart, CFO of Microsoft’s Xbox Unit stated, “Within the gaming space, competition for engagement makes our business grow. It creates innovation and new ideas. This market is growing because there are new entrants, there are new game players, and there is a flow of new content unlike anything we’ve seen in the past.”
It is observed that an estimated 2.9 billion people – more than one out of every three people on the planet played a video game in 2021, when global revenue for the industry exceeded $193 billion. In addition, from 2016 to 2021, gaming grew at a compound annual growth rate of 15.6%
With customer expectations rising dramatically, a key pillar of success for the gaming companies will be continuous innovation and product differentiation. While companies across every sector are still imagining business possibilities the metaverse offers, gaming executives already see growth potential and have a positive outlook for this industry in the near future. By 2025, the global gaming market is predicted to be worth $211 billion, with mobile gaming accounting for $116 billion of that.