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The metaverse: spinning closer to life and business

Combining VR, AR and the internet, the online and real worlds are colliding, so it’s time to get ready.

Gen Z and Alpha gamers (born from 1997 onward) are already living in two worlds, with one foot in the ‘metaverse’ and the other in real life. However, experts predict it won’t be long before everyone else follows.

The metaverse, according to TechTarget, is the “inevitable evolution of the internet”. The ultimate vision is a virtual, 3D world that we access via our smart devices, along with billions of other people, to interact, work, shop, learn and more. TechTarget writes that the metaverse will be a space “where humans experience life in ways they could not in the physical world.”

Much like when the internet started, it’s almost impossible to predict just how far the metaverse will go, and how much the metaverse and real life will blur. One thing that is certain is that with a tech giant like Meta (formerly Facebook) banking its future on the metaverse, it’s going to be hard to ignore.

Here are some insights into the evolution of the metaverse, how wealth, health, education, entertainment, and fashion are making the metaverse work, and the potential for businesses.

the history

The metaverse evolution

The term ‘metaverse’ first appeared in a 1992 sci-fi novel called Snow Crash by Neal Stevenson. It’s roots go back to the early gaming industry of the 1970s. Rapid improvements in simulation capabilities and 3D graphic technology followed.

As it stands today, the metaverse is not one thing. Instead, it connects digital experiences across 3D virtual reality (VR), 2D augmented reality (AR), and the internet. It can encompass video games, virtual workspaces, virtual social spaces and more, developed by different technology providers. Some of the most popular virtual reality games include Roblox, Fortnite, and Minecraft, which all let players socialise, compete, and build their own worlds. One day, however, all metaverse experiences could be integrated into ‘one metaverse’, with your digital ‘avatar’ moving freely between them.

For now, the metaverse is focusing on moving on from gaming to integrate with daily life. For example, Meta is determined to take socialising into the metaverse with Horizon Worlds. This is a 3D experience where people can create avatars, meet with others, play games, and attend events such as concerts. Microsoft is teaming up with Meta to bring work into the metaverse, enabling people to create their workplace avatar and collaborate with colleagues as if they’re together in person. Meanwhile, in fitness, Peloton is incorporating VR and AR into fitness equipment to help users feel like they’re in a real-life spin class with a live instructor – while being at home.

A day in the life of the metaverse

The metaverse isn’t just about deliberately ‘entering into’ a VR experience. Futurist Cathy Hackl explains it’s also about AR, which means overlaying digital experiences and information onto the real world in front of us. “Eventually, people will be able to enter the metaverse, completely virtually (i.e. with virtual reality) or interact with parts of it in their physical space with the help of augmented and mixed reality,” she says.

A great example of what this could look like is provided by Adobe MAX in this video. It depicts a day in the life of an augmented world, where you wake up, put on your AR glasses, and are greeted with a sign that says, ‘good morning’. A calendar update appears in front of you, which you accept by tapping the date ‘in the air’. As you cycle to the office, accident warnings appear in your vision, and you verbally agree to be shown an alternative route. As you pass by some great street art, you ask your AR to ‘show the bio’ of the artist. At the office, the name of your colleague helpfully pops up over his head. In your work meeting, you download images of the art you saw on your ride straight onto an augmented 3D architectural design you’re working on. At home, your AR detects you’ve gathered ingredients for lasagne – and asks if you want the oven on.

In practice

The metaverse in reality

Across the industries of wealth, health, education and entertainment, businesses are finding ways to embrace the metaverse. The metaverse holds great potential for building brand experiences for customers, and for making employees feel engaged. Here are some examples of how it’s being used.

Wealth

In wealth management, the metaverse can be used to create investment simulations for clients, or for training colleagues. At Fidelity Investments Inc., the company sent VR headsets to its staff, then replicated its usual in-person training program in VR. Staff created avatars then undertook team-building games and collaboration exercises together in the virtual space. Fidelity has also used VR to help train team members in how to work better with clients. For example, VR can simulate the team member visiting a customer’s home and having a conversation with them.

Health

In health, augmented reality is being used to enhance the experience of surgeons in the operating theatre. For example, Neurosurgeons from John Hopkins undertaking spinal surgeries wore an augmented reality headset that projects images of the patient’s CT scans in front of them. It’s “essentially giving the surgeons X-ray vision” and means that the surgeon doesn’t need to keep turning away from what they are doing to cross-check images.

Education

From classroom learning to advanced accreditations, education is also plunging into the metaverse. Harvard reports that the metaverse could virtually transport students to experience what they are learning about. Big Think reports, “We could transport students through time and space so they can stroll the busy streets of ancient Rome or help build the Great Wall of China.”

Entertainment

Bands have been working with VR platforms to stream their performances to VR headsets, giving users at home a sense that they are really amongst the crowd. Views from backstage, or even a perspective of being on stage with the band can be created. Imagine Dragons, The Chainsmokers and Royal Blood are just some of the big names getting involved. In other takes on the experience, singers are appearing as avatars in fully digital worlds, such as when Ariana Grande teamed up with Fortnite.

Fashion

Big, luxury brands are now launching new fashion collections in the metaverse. For example, Epic Games collaborated with Balenciaga to showcase its clothes on avatars in the Fortnite game. Meanwhile, fellow luxury brand Gucci teamed up with online game portal Sandbox to create the Gucci Vault, an immersive luxury shopping experience.

Business’s get ready

As everyone moves into the metaverse, the possibilities for business are endless. It can be a chance to enhance products and services, and to connect with employees in new and engaging ways. For customers, the metaverse presents an opportunity to deliver a unique and immersive brand experience.

The challenge in the short term is that there may be some limitations on getting involved. For example, the metaverse works best on 5G internet, and the cost to obtain the necessary wearable devices such as VR goggles or AR glasses is significant. Access to people with the skills to create compelling VR and AR experiences can be competitive.

However, while the metaverse may seem like the world of big brands now, technology always becomes more accessible as it scales, so opportunities for businesses of all sizes to get involved may come faster than expected. While it’s still early days, now is the time to question, what role might your business play in the metaverse in the future?

understanding

Metaverse buzzwords

As will be evident, the metaverse comes with its own suite of terminology. Here are some of the key terms to know.

Virtual Reality

VR requires a specially designed headset, hand-held devices and software. Using these, people leave the ‘real world’ and explore virtual 3D, computer-generated worlds. Head and hand movements send messages to the software to control the individual’s experience.

Augmented reality

AR is where the digital world starts to infiltrate the real world, possibly through wearable digital glasses. Through the glasses, users see real-time information ‘pop up’ around them. Gartner writes this could be “in the form of text, graphics, audio and other virtual enhancements integrated with real-world objects.” AR can also be overlaid onto the real world via smartphone cameras, evidenced when the Pokémon Go game hit the mainstream in 2016. As seen in the Adobe MAX video mentioned above, AR could provide information about calendar events, the weather, directions, public art, and more.

Avatar

In the gaming world and metaverse, an avatar is an icon or figure representing a particular person. In some games, people can choose their avatar’s looks and buy them goods to wear and use.

Non-fungible tokens (NFTs)

NFTs are tokens that represent the ownership of a real object in the virtual world, for example a piece of art or a music catalogue, or even an online object such as a video clip, computer graphic, or avatar. They are often bought and sold with cryptocurrencies and are run on blockchain technology.

the stats

The metaverse in numbers

American children between 9-12 use VR game Roblox, along with half of 10-year-olds in Britain (The Economist).

Metaverse gamers, the largest group of users of the top 3 games (Minecraft, Fortnite, and Roblox) are under the age of 20, and 59% are male. (New Zoo)

Is spent on virtual goods (twice what is spent on streaming music). (EY)

Of consumers active in the metaverse have made a purchase during the experience (McKinsey)

Was invested in metaverse technology and infrastructure in the first 5 months of 2022. (McKinsey)

Most forecasts predict the value of the metaverse will be between USD $6-13 trillion by the end of the decade

Of people will spend an hour per day in the metaverse by 2026 for work, shopping, education, entertainment, and social. What’s more, 30% of organisations in the world will have products and services ready for metaverse. (Gartner)

There are 7 big companies investing in the metaverse when observing their stocks. These include Alphabet (GOOG), Meta (FB), Nvidia (NVDA), Roblox (RBLX), Snap (SNAP), Microsoft (MSFT), and Adobe Systems (ADBE) (Yahoo!finance)

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