The metaverse is a concept that has been bandied about for years, but it has only really taken off in the past few years with the advent of virtual reality and augmented reality technology. The metaverse is a shared, virtual space where people can interact with each other and with digital objects and experiences.
Many businesses are now looking at the metaverse as a way to connect with their customers and create new experiences and opportunities. However, a new report from Gartner suggests that most metaverse business projects will be dead by 2025.
The report, which was released last week, says that only 10% of metaverse projects will be “commercially successful” by 2025. That means that 90% of projects will have either failed or will not have generated enough revenue to be considered successful.
So why is Gartner so pessimistic about the metaverse? And what does this mean for businesses that are already investing in the metaverse?
The metaverse is a B2B problem waiting for a solution, and it will fail sooner rather than later. The dilemma is how to enable Meta CEO Mark Zuckerberg to generate billions of dollars in income. If the people at Canalys are to be believed, Zuck’s vision of the internet, which we previously pointed out nobody actually wants, is already being buried.
At the company’s Channels Forum in Barcelona, Matthew Ball, chief analyst at Canalys, posed the question, “Is the metaverse the next digital frontier or an overhyped money pit?”
He made the point that the world is entering even more difficult economic circumstances, and some people are finding it difficult to manage their financial outlays. People are having a difficult time affording to invest in real estate, goods, and other NFTs because of the rising cost of living, Ball continued.
He acknowledged that adult entertainment may have a target audience and that gaming may become popular, but what about the business sector? Nope. He was very clear that he was not interested in pursuing either of those markets.
The metaverse is attracting a lot of attention from major tech firms. Microsoft, Meta, Google, Nvidia, Apple, Autodesk, and many others are investing significant funds into the platform. Consultants at McKinsey say that over $177 billion has been invested in the metaverse since 2021, and they believe the market could be worth up to $5 trillion by 2030. Even more bullish projections come from soothsayers at Citi, who believe the metaverse economy could be worth $8 trillion to $13 trillion by 2030. Clearly, there is a lot of potential for growth in the metaverse, and it is likely that we will see even more investment and development in the years to come.
In a recent report, Gartner predicted that by 2026, a quarter of the world’s population would spend at least one hour a day in the metaverse—a digital realm where people can work, shop, socialize, and learn. The report also stated that 30 percent of organizations would have products or services ready for the metaverse by that time.
“Enterprises will have the capacity to develop and enhance their business models in unprecedented ways by transitioning from a digital business to a metaverse business,” said Marty Resnick, research veep at the analyst.
However, he cautioned that “it is still too early to know which investments will be viable in the long term, but product managers should take”.
Mike Norris, the colorful CEO of Computacenter, one of Europe’s largest tech resellers, responded when asked about short-term expectations for the metaverse driving business sales, “I’m making money now, whether I make it in four, five, or six years will be interesting, but in the next few years I’ll make a fortune.”
Ball predicted that by 2025, the majority of business-related projects would be finished. Ball’s prediction is based on the fact that, over the past few years, there has been an increasing number of companies and organizations working on metaverse projects. He believes that these projects will reach a tipping point in 2025, after which the majority will be completed.
To wrap things up
The metaverse is a new digital frontier that is being created by a number of companies and organizations. It is a virtual world that is designed to be rich and immersive and to offer users a wide range of experiences.
However, there is a lot of debate about whether the metaverse is a good thing or not. Some people believe that it has the potential to be a great new way for people to interact and connect with each other. Others believe that it is nothing more than a bloated money hole that will only serve to line the pockets of a few already-rich companies.
What do you think? Is the metaverse a new digital frontier that we should all be excited about? Or is it a dangerous tool that will only serve to divide us further? Let us know in the comments!
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