Metaverse market opportunity A greater and greater portion of our attention is going towards digital activities, especially for younger generations. Today, 1/3rd of our lives ( 8 hours/day) is already spent watching TV, playing games, or on social media.
As we spend more of our time in these digital world experiences. So we also spend more of our money within these digital realms. To build our social status within these online communities.
Our social lives and gaming are converging and creating a large, fast-growing virtual goods consumer economy. Estimate that revenue from virtual gaming worlds could grow from ~$180 billion in 2020 to ~$400 billion in 2025.
The continued shift of game developer monetization is a key dynamic within this growth trend. Players are increasingly moving away from paying to play premium games towards free games. Which developers monetize by selling players in-game items to enhance gameplay or social status within these virtual worlds.
This shift is accelerating further with the transition from Web 2.0 closed corporate metaverses to Web 3.0 open crypto metaverse networks.
• Web 2.0 Closed Corporate Metaverse: centrally owned and controlled by big tech, or; • Web 3.0 Open
More Metaverse Market Opportunity
Crypto Metaverse: democratically owned and controlled by global users.
Many gamers today spend their money and hours of their time building digital wealth within Web 2.0 closed corporate metaverse worlds. However, The problem is most game developers don’t let players monetize their investment and efforts.
Developers prohibit players from trading items with other players. To keep These worlds closed so players cannot transfer their in-game wealth to the real economy.
Web 3.0 open crypto metaverse networks solve this problem. By eliminating the capital controls imposed on these virtual worlds by Web 2.0 platforms.
This new paradigm allows users to own their digital assets as Non-Fungible Tokens (NFTs), trade them with others in the game. So carry them to other digital experiences, creating an entirely new free-market internet-native economy. That can be monetized in the physical world.
This evolution of the “creator economy” expressing as “Play to Earn”.
In the metaverse, users dictate these types of seamless, real-world adjacent interactions across digital communities.
Conversely, the closed nature of Web 2.0 corporate Metaverse platforms. That may put users at a disadvantage compared to Web 3.0 open crypto Metaverse networks.
Established Web 2.0 corporations will need to disrupt their business models by opening up their ecosystems and removing their competitive moats. So, We don’t yet know the path Facebook will take with its Metaverse ambitions.
Because they—like other Web 2.0 companies. That will need to make this challenging shift in the face of pressure to meet quarterly results for shareholders.
Gaming is just one of the most immediately addressable segments. Where value is already starting to naturally shift to Web 3.0, but the Metaverse opportunity extends far beyond gaming.
Finally, estimate that The Metaverse will be a trillion-dollar revenue opportunity. Including advertising, social commerce, digital events, hardware, and developer or creator monetization.