New companies from different sectors have been testing the metaverse waters of late. The multi-billion dollar industry has grown and evolved significantly since its inception. However, skepticism is still prevalent.
Speaking at the Wall Street Journal Tech Live conference, Microsoft Xbox Chief Phil Spencer contended that the metaverse is a “poorly” built video game.
Spencer opined that he did not see hardware products and virtual-reality experiences as the primary areas of opportunity for virtual worlds. On the contrary, two-dimensional experiences—such as the way people currently play games on screens—will lead to the growth of the metaverse, per the Xbox executive.
Further elaborating on his Metaverse stance, he said,
“For me, building a metaverse that looks like a meeting room, I find that’s not where I want to spend most of my time. I want something that’s engaging. I think [virtual engagement] will end up looking more like videogames than some of the models that I see from the metaverse today.”
Top companies betting on the metaverse are in dire straits currently. As reported earlier today, Meta’s revenue dropped by almost half from a year earlier to $285 million. Its loss widened to $3.67 billion from $2.63 billion in the same quarter last year. Nevertheless, the company expected things to turn around in the long run.
Similarly, Spencer added that we’re still in the early days and the space “will evolve” going forward.
The executive also went on to talk about how Microsoft wanted to expand its mobile game and streaming options. Alongside, it also sees flagship hardware products like its Xbox consoles as critical to its goals.
Metaverse’s growth forecast
Per Fortune Insights, the global metaverse market size was valued at $63.83 billion in 2021. The market is, however, expected to grow from $100.27 billion in 2022 to $1,527.55 billion by 2029, at a CAGR of 47.6%. Chalking out the impact of the pandemic, the report revealed,
“The global COVID-19 pandemic has been unprecedented and staggering, with metaverse experience higher-than-anticipated demand across all regions compared to pre-pandemic levels.”