The future of the gaming industry will be shaped by a range of disruptive themes, with metaverse being one of the themes that will have a significant impact on gaming companies. A detailed analysis of the theme, insights into the leading companies, and their thematic and valuation scorecards are included in GlobalData’s thematic research report,Gaming Market Analysis by Region, Platform (Smartphone, Console, PC, Tablet, Handheld Controllers, Head-mounted Displays), Gamer Type and Segment Forecast, 2022-2030. Buy the report here.
The metaverse is a virtual world where users share experiences and interact in real-time within simulated scenarios. It is still largely conceptual but could transform how people work, shop, communicate, and consume content. The metaverse brings together a range of next-generation technologies from cloud computing to artificial intelligence (AI), blockchain, cryptocurrencies, cybersecurity, the internet of things (IoT), virtual reality (VR), augmented reality (AR), digital twins, and adtech.
The metaverse will make digital media experiences more immersive, inclusive, and accessible than today. But it will raise social concerns ranging from data privacy to other forms of online harm.
However, not all companies are equal when it comes to their capabilities and investments in the key themes that matter most to their industry. Understanding how companies are positioned and ranked in the most important themes can be a key leading indicator of their future earnings potential and relative competitive position.
According to GlobalData’s thematic research report, Metaverse, leading adopters include: Epic Games, Meta, Microsoft, NVIDIA, ROBLOX and Tencent.
Insights from top ranked companies
Tencent is well-positioned to benefit from the metaverse, thanks to its stronghold in the gaming, social media, and music, film, and TV sectors. In addition to its ecosystem, Tencent holds stakes in metaverse pioneers like Epic Games and ROBLOX.
In February 2022, it launched Super QQ Show, integrated with its QQ messaging platform, offering a 3D interactive space to users for playing games, watching movies, and socialising. Reportedly, in March 2022, it filed for virtual concert patents with the Chinese National Intellectual Property Administration, suggesting its ambitions to lead the charge in China’s metaverse race. In the same month, it invested in Immutable, an Australian start-up focused on blockchain gaming and NFTs. Immutable will allow Tencent to expand into the blockchain and cryptocurrencies outside China, where blockchain initiatives are heavily regulated and cryptocurrencies are banned. In China, it operates a service called Huanhe (launched in August 2021), which sells NFTs in local currency. Therefore, Tencent is likely to adopt two metaverse strategies, one specific to China and the other focused on overseas markets.
Epic Games, which is 40% owned by Tencent, is a strong advocate of the metaverse and a pioneer of this theme. It has organised virtual music concerts and movie showings within Fortnite, helping bring the metaverse to public attention. The events exhibited economic prospects for brands and highlighted consumer interest in immersive experiences.
Fortnite’s transition from a game to a metaverse is attributable to the Unreal Engine. The 3D engine, which is the foundation of Fortnite, demonstrates Epic’s capabilities in computer graphics, AR, and VR. Epic has acquired Twinmotion (for its visualisation tool), Cubic Motion (computer vision), Hyprsense (facial animation), and SuperAwesome (children-focused platform) to bolster the Unreal Engine.
In April 2022, Epic partnered with Lego to create a metaverse for children, announcing it would be kept separate from Fortnite, which caters to older users. In the same month, it raised $2bn in funding from Sony and The Lego Group’s owner KIRKBI to develop its metaverse. Epic will benefit from Sony’s content (i.e., games and movies) and global user base, while Lego will help it contest ROBLOX’s core users (i.e., children). In May 2022, Epic partnered with WPP to train advertising specialists on creating custom brand experiences in Fortnite and using Unreal Engine for developing metaverse content.
ROBLOX is a key player in the metaverse theme with over 54 million average daily active users, predominantly children below the age of 13. The platform saw massive growth in users during the pandemic and has rapidly become an advertising ground for brands. It has attracted prominent names from sectors like apparel (e.g., Nike), manufacturing (e.g., Hyundai Motors), and music (e.g., Spotify), who are taking positions in the metaverse to attract next-generation consumers. Growing brand involvement will expand ROBLOX‘s user base from children to adults, delivering further growth as the metaverse evolves. The company also hosts virtual events involving celebrities to attract users of all ages to the platform.
ROBLOX’s success is attributable to the ROBLOX engine that offers tools for creators to develop experiences on the platform. While ROBLOX expands its developer community and builds experiences, the engine will make it a prime M&A target in the future.
To further understand the key themes and technologies disrupting the technology industry, access GlobalData’s latest thematic research report on Metaverse.
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GlobalData, the leading provider of industry intelligence, provided the underlying data, research, and analysis used to produce this article.
GlobalData’s Thematic Scorecard ranks companies within a sector based on their overall leadership in the 10 themes that matter most to their industry, generating a leading indicator of their future earnings and relative position within key strategic areas.
