Metaverse Competitive Landscape

Introduction

The Metaverse, as defined by Mark Zuckerberg, is

A virtual environment where you can be present with people in digital spaces. You can kind of think about this as an embodied internet that you’re inside of rather than just looking at.

There is no completely agreed upon definition but broadly speaking the Metaverse (also called Web3 or Web 3.0 by the crypto community) will be the next generation of the internet. It’s the answer to the question “What will the internet look like in 10 years?”

Another perspective on this is looking at the often referenced evolution of the internet:

  • Web 1.0 – The internet is “read only”; users are explicitly consumers of information.

  • Web 2.0 – Information now flows both ways as users can interact with websites. Information is still being consumed by users, but now information is also being collected by companies. This is the current state of the internet.

  • Web 3.0 – The future state of the internet that has yet to be determined. This stage will likely involve a transformative incorporation of immersive technologies (VR, AR, gaming), as well as blockchain technology (cryptocurrency, NFTs, digital assets). Certain communities believe that Web3 will incorporate blockchain tech that will enable a more distributed ownership of data and content.

Since Web3 will be an amalgamation of several technologies, it is impossible to guess exactly how this new generation of internet will emerge. It could just as easily emerge from a gaming platform as it could from a crypto community. In other words, Meta is not the only one who is positioned to create the first Metaverse.

Meta

While it has its fair share of competition, Meta seems well positioned to accomplish what Mark Zuckerberg has set out to do.

  • Meta is expected to invest 10 billions of dollars every year on Metaverse technology and has certainly taken the most aggressive stance than any other company for this development.

  • Facebook has billions of users worldwide who could eventually either be migrated to a Metaverse platform or will see Facebook slowly transform and expand into the Metaverse.

  • Meta owns the largest VR company – Oculus. And since it’s $2B purchase of the company, VR has continued to be one of Meta’s primary investments.

  • Meta has been investing in AI technology for a decade, having “designed and built the AI Research SuperCluster (RSC) — which we believe is among the fastest AI supercomputers running today and will be the fastest AI supercomputer in the world when it’s fully built out in mid-2022.”

    • This AI will be used to create more immersive interactions in VR like improved controls and more reactive/customized environments.

    • A universal challenge with the Metaverse is going to be the movement of digital assets from one virtual world to another. Meta is developing AI technology to create a “universal, instantaneous speech translator, capable of translating any language to any other language — including languages that are primarily spoken.” This translation technology could be used to enable cross-platform asset transfer.

Microsoft

While Meta does have a strong position with social media and virtual reality, Microsoft is attacking Meta on the following fronts:

  • Microsoft has been a dominant player in the space of video games for decades and currently own Xbox, Activision-Blizzard, Bethesda, and Minecraft.

  • Microsoft owns Teams, the business communication platform. This may sound trivial but it is a software that can be installed on any operating system and could be an entry point into many of the more advanced Metaverse opportunities (via virtual workspaces)

  • Microsoft has suite of products that allow companies to create “digital twins” (virtual representations of physical objects) that also integrates technologies like the Internet of Things.

  • Microsoft owns HoloLens, a head-mounted AR display that runs the Windows Mixed Reality platform.

Apple

Apple is attacking Meta on the following fronts:

  • Apple has made many investments, acquisitions, and product demonstrations over its lifetime on products related to VR and, more importantly, Augmented Reality (Apple seems to think the future will be closer to AR not VR).

  • Apple has an army of app developers that are willing to take advantage of Apple's AR technology as soon as they can

  • Apple receives 15 - 30% of all ad revenue that is generated from apps on the Appstore, meaning if Meta wants to allow Apple users to access the Metaverse via an application, they will have to forfeit a significant portion of revenues.

Crypto Community

It’s clear that the future of the internet will be heavily influenced by crypto, whether it be with digital assets or decentralized payments.

  • Meta attempted launched a digital currency called Diem (formerly called Libra) in an effort to create a new global payment system but was blocked by regulators and shut down. This is a display of the value that Zuckerberg and Meta see in cryptocurrency as it relates to the Metaverse.

  • There are countless projects backed by crypto communities that involve the transaction of digital assets with cryptocurrency, it is not difficult to see how Web3 could emerge from these technologies.

  • Blockchain-enabled projects like Odysee already exist which seem to be signifying a more distributed ownership of information and content on the internet.