The Metaverse is an exciting trend that could eventually become a mega trend. But is the idea also suitable as a business model?
On the one hand, there is the dream of a digital living space that could add a virtual continent to the colonized planet in its every corner. And here, too, residents want to exchange goods, virtual goods and services.
On the other hand, there are 8 billion people who may or may not migrate to the metaverse in the future. At least part of their waking hours.
More recently, the megahit Stray reminded us that a virtual world with a high degree of immersion is definitely in demand. One to zero for the metaverse.
But despite all the enthusiasm, it is never wrong to face the risks. From my perspective, the following three reasons suggest that the Metaverse business model may already be dead.
Even the best customers object to the Metaverse
A digital living space where you can trade goods, services, and even rare real estate. It definitely looks like Metaverse, but it’s basically old hat.
In the long-derided gaming industry, the virtual goods business has long been an integral part of sales. Mainly in Asia, but also increasingly in Western Europe and North America.
From video games with loot boxes to Metaverse with crypto assets, it doesn’t seem far. But the customers who are basically the best don’t seem at all enthusiastic.
This is what game publishers got last Ubisoft (NASDAQ:NFT) after seeking to introduce NFT microtransactions into a gaming universe. The wave of protests was surprisingly violent.
The platforms have already ruined the trust of the pioneer days
In the end, the customer is king. The metaverse cannot escape this logic either.
Especially since the reputation of the platformer has suffered a lot in recent years. In my opinion, the enthusiasm of the pioneer years has completely evaporated.
At the time, we said: Platforms democratize information. Today we say: Platforms manipulate their users with opaque algorithms.
I only come into contact with Big Tech products when I can’t avoid it. The distrust is too great. And right now, I don’t see how a metaverse created on a platformer’s desktop could bridge that gap.
And now the foundations are coming loose
Last but not least, given the current events, one can assume that Metavers is losing its foundations. Because the mixture of energy crisis and inflation is hardly the best fertilizer to conquer a digital world.
It may not affect the Silicon Valley billionaire. But if you have to choose between a full refrigerator and the Metaverse, you’ll probably focus on the former.
It’s quite possible that the Metaverse will ultimately be interpreted as a quirky idea of a world on the brink of a financial and tech bubble. In this case, the Metaverse business model is certainly dead before it can fully flourish.
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Stefan Naerger does not hold any of the shares mentioned. The Motley Fool does not own any of the stocks mentioned.