Meta Platforms
FB
recently began testing tools to sell digital assets and services in the virtual reality platform — Horizon world, an early iteration of the metaverse. This is a massive step for Mark Zuckerberg’s bold ambitions to create the metaverse, as it will allow the development of commercial activity in the alternate reality independent of the real world.
According to Reuters, the tools will be available initially to a handful of creators who are creating virtual classes, games and fashion accessories within the company’s own alternate reality platform accessible via VR headsets.
The tools, once available, will allow creators to sell their accessories or offer paid services in an alternate reality, thus creating a new income source. Meta is also trying out its “creator bonus” program for a small set of Horizon World users in the United States. Through this initiative, the company will pay participants each month for testing Meta’s new features in the metaverse.
Meta is planning to introduce virtual coins, tokens and lending services to its social media apps as the company is trying to diversify away from primarily relying on advertising revenues and developing the company primarily in the metaverse.
Meta’s primary income source is advertising revenues from its social media sites — Facebook and Instagram.
However, Meta’s ad-based business model is under persistent threat due to the ongoing Russia-Ukraine war and increasing scrutiny by governments worldwide. It is worth mentioning that government bodies globally have been thrusting legislations and ultimatums on the company to change its business policies.
In the year-to-date period, Meta, which currently has a Zacks Rank #4 (Sell), witnessed its shares slump 35.6% compared with the Zacks
Internet – Software
industry’s and the Zacks
Computer and Technology
sector’s decline of 32.4% and 15%, respectively.
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Other Major Players in the Metaverse
Meta is competing with other big tech giants and new virtual world players committed to building the metaverse where land, buildings, avatars and even names can be bought and sold as a non-fungible token or a blockchain-based virtual asset. The NFT market grew exponentially last year, fetching hundreds of thousands of dollars to NFT creators.
Microsoft
MSFT
is looking to explore the NFT space, which has been experiencing massive growth since the beginning of 2021.
Microsoft’s M12 venture fund recently invested in NFT startup Palm NFT Studio. The company has raised a total of $27 million that will be utilized to develop projects on the Palm Protocol, an energy-efficient Ethereum sidechain.
NVIDIA
‘s
NVDA
best-in-class graphics rending chips will undoubtedly be a core component of Meta’s Oculus visual functionality in the metaverse.
NVIDIA is gaining a decent market share among gaming service providers. Its strong line-up of advanced graphics cards has made it a favorite graphics card provider and is anticipated to help the company enter the metaverse’s gaming world.
Meta is facing stiff competition from social media peers.
Twitter
TWTR
over the metaverse. Twitter has launched a tool that allows users to showcase NFTs as their profile pictures. The new tool connects users’ Twitter accounts with their crypto wallets holding the NFTs.
Twitter is exploring the crypto universe and supporting NFT trading. Artists can use the platform to connect their crypto wallets and take payments directly through Twitter. They can take tips in cryptocurrencies like Bitcoin, Ethereum or through crypto wallet apps.
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