In October 2021, Facebook announced that it would change its corporate name to Meta. This signified the company’s pivot towards building the “metaverse” – an immersive virtual world where people can interact, work, play games, and more. The metaverse has the potential to reshape how we use technology and connect with others online. However, many questions remain about what exactly Meta (formerly Facebook) plans to build and how it will monetize the metaverse. In this article, we’ll explore what Meta’s vision for the metaverse entails and what they may do to turn this vision into reality.
What is the Metaverse?
The “metaverse” refers to a persistent, interconnected 3D virtual world where people can interact through digital avatars. It incorporates multiple elements:
- Immersive virtual reality and augmented reality
- Ability for users to create customizable avatars and digital goods
- A virtual economy with blockchain-enabled digital assets and currencies
- Variety of virtual experiences like games, events, shopping, and more
The key aim of the metaverse is to create a digital world that feels as real and vibrant as the physical world. This requires advanced technologies like VR/AR, AI, graphics processing, cloud computing, and blockchain.
| Technology | Role in the Metaverse |
|---|---|
| Virtual reality (VR) | Provides an immersive experience using headsets that simulate 3D environments |
| Augmented reality (AR) | Overlays digital elements onto the real world through smartphone cameras and lenses |
| Artificial intelligence (AI) | Powers intelligent avatars, realistic environments, and personalized experiences |
| Graphics processing | Enables detailed 3D environments and lifelike avatars with features like skin, hair, and clothing physics |
| Cloud computing | Provides the infrastructure to connect users across the metaverse and support complex simulations |
| Blockchain | Allows users to truly own digital assets and securely transact in the metaverse economy |
The key promise of the metaverse is that it will feel much more tangible, immersive, and real compared to our current 2D internet. This could enable richer social connections, new ways to collaborate for work, and extremely realistic virtual worlds to explore for entertainment.
Meta’s Vision for the Metaverse
Mark Zuckerberg has stated that Meta’s goal is to kickstart the metaverse and help bring it to life. Some key elements he foresees:
- Social connection – The metaverse may feel more like face-to-face interaction, restoring some nuance currently missing from text- and image-based social apps. Virtual reality could enable more lifelike avatars, gestures, and eye contact.
- Entertainment – Immersive movies, games, and concerts could let people participate in entertainment more actively rather than just being viewers. For example, people could join a virtual concert stage rather than just watching.
- Fitness and health – VR and AR could facilitate new forms of exercise like boxing games that feel real. Health apps may also tap into biometric data more seamlessly in the metaverse.
- Work – Remote work could be revitalized by spaces like virtual offices and conference rooms that foster collaboration and engagement.
- Shopping – Trying on digital clothing or shopping in virtual stores could become more natural and hands-on.
- Travel – Virtual reality may open new possibilities for tourism by letting people experience destinations and attractions remotely.
Zuckerberg believes the next 5-10 years will be crucial for developing metaverse technologies like VR/AR headsets and wearables before they reach mass market ubiquity.
Horizon Worlds
One of Meta’s first steps towards the metaverse is a social VR platform called Horizon Worlds. Users can create avatars and interact with others in a range of virtual environments. It’s currently available for Meta’s Quest VR headsets.
Horizon Worlds aims to be an early prototype highlighting Meta’s vision of social connection in the metaverse. Over time, Meta plans to build out more immersive graphics, world-building tools, and other features as the technology advances.
Monetization and Revenue Sources
For Meta, pursuing the metaverse aligns with their long-term strategy to go beyond 2D feeds and be the next computing platform after mobile devices. But how will they monetize it exactly? Some potential revenue sources include:
Digital Ads
Just as ads on Facebook and Instagram target users based on their interests and demographics, ads in the metaverse could be highly personalized and contextual. For example, when users are exploring a virtual mall, relevant brands and products could purchase ads in that environment.
Virtual Goods and Services
Users may pay for digital assets like clothing, accessories, and items that customize their avatar or personal virtual space. Special capabilities like private spaces or VIP access to events could be another monetization vector.
Creator Economy
Meta could take a cut of transactions when creators sell virtual goods and experiences to users. A robust creator economy will be critical for keeping metaverse content fresh and engaging.
Enterprise Services
As virtual offices and workspaces become more common, Meta could offer premium tools and services for companies to collaborate in the metaverse. Paid business solutions tailored to remote work and design/engineering roles could be very valuable.
Hardware Sales
Meta’s Quest VR headsets and Ray-Ban Stories smart glasses represent entry points into the metaverse. As the hardware expands in capability and popularity, it will provide another revenue stream.
Platform Fees
If Meta establishes a dominant metaverse platform, it may be able to impose fees on developer and creator transactions similar to app stores. However, decentralization advocates will favor open metaverse protocols with minimal platform fees.
Challenges and Criticisms
While Meta’s pivot towards the metaverse has intriguing potential, it also faces some challenges and criticisms:
Unproven Technology
The core technologies behind the metaverse like VR and AR still have technical and cost limitations preventing mass adoption. For example, improving graphics, display resolution, and battery life on VR headsets will be key.
Privacy Concerns
How will data be collected and handled in the metaverse? Meta already faces scrutiny over user data practices. Managing privacy in an immersive virtual world will be even more complex.
Toxic Behavior
Meta has struggled with dangerous misinformation and toxic discourse on its current platforms. Moderating bad behavior in expansive 3D environments and preventing harassment will be an uphill battle.
Lack of Interoperability
A fragmented metaverse with walled gardens benefits Meta but goes against open web principles. People want flexibility to use their avatar and digital goods across different virtual worlds.
Competition
Other tech giants like Microsoft, Apple, and Google have major metaverse ambitions as well. A few smaller startups are also building out the concept. Meta will have to contend with rivals to avoid getting left behind.
The Road Ahead
Meta clearly has a bold vision for leading the next computing revolution around the metaverse. If they succeed, they could transform entertainment, social media, remote work, e-commerce and more for billions of people.
However, Meta will need to take a thoughtful approach that puts people first and proactively addresses pitfalls around data, behavior, and competition. The road to fully realizing their futuristic metaverse vision will be filled with extensive research and development, viral hits and flops, and external factors beyond their control.
It remains to be seen if the metaverse will truly evolve from niche concept to mainstream staple in the decades ahead. But Meta has the resources and motivation to drive progress and potentially cement their status as architects of the next virtual frontier. Balancing their ambitions with ethical, legal, and technical realities will determine if Mark Zuckerberg’s grand vision pays off or not.
Conclusion
The metaverse represents the next frontier of social connection and immersive experiences online. As a pioneer in social media, Meta is eager to be a leader in shaping this future. Their investments in VR, AR, and virtual communities lay the groundwork to build their own metaverse ecosystem.
Key revenue opportunities include advertising, virtual goods and services, hardware sales, and enterprise solutions tailored to the metaverse. To achieve mainstream adoption, Meta will need to overcome challenges around evolving VR/AR technology, privacy concerns, toxic content, and competing visions from other tech companies.
If Meta can usher the metaverse into the mainstream in a responsible way, they have potential to reach billions of users and once again transform communication and community. But building a thriving metaverse that delivers on its ideals is still years if not decades away. Meta’s ability to balance innovation with ethics will determine if the virtual worlds they shape are open and empowering or closed and exploitative.