The Metaverse Vision and Problem
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The Need To Redefine The Metaverse: It is Not The Next Evolution of The Internet
The metaverse concept has failed to captivate the interest of the world as the next evolution of the Internet. We should then go back to the drawing board to give more thought into how we define the metaverse concept. Perhaps only then can we identify some real entrepreneurial opportunities within this space.
Just because I am a crypto enthusiast, I would like to use the cryptocurrency market as a reference. Brian Kelly, the author of ‘The Bitcoin Big Bang – How Alternative Currencies Are About To Change the world’ said in his book that in business school, the first thing a young capitalist is taught is that there are three ways to gain market share: (1) make a superior product, (2) sell an existing product for cheaper, or (3) do both.
The VR Metaverse VS Web 2.0
Let’s put this “superiority” and “cheaper” test to the VR metaverse. Can it stack up against Web 2.0 with all its social media consumption and e-commerce trading?
Let’s say we want more Internet users to regard VR metaverse as more superior than social media. This would require the metaverse to generate higher quality contents than what we find on social media and e-commerce platforms. Higher quality contents could mean anything that is entertaining, education or informational. This feat will prove to be a massive challenge since we already mentioned that 3D graphics is more difficult to create.
If we desire for VR metaverse to scale-up, it must also provide avenues where users can generate income. One other reason why Web 2.0 is attractive is because there are various platforms that enable users to earn money. (E.g. ads monetization, online selling, product sponsorship, freelancing, etc.)
In terms of cheaper, VR metaverse is definitely cannot be regarded as a free product as potential users will need to purchase a VR device. This perception of ‘extra cost’ would not apply to users who already own a VR headset though. Nonetheless, the metaverse must offer compelling reasons to attract VR users to access the metaverse apart from VR gaming.
As you can in the chart below, VR gaming has been steadily gaining traction and this trend indicates that VR metaverse does holds great potential.
The Metaverse Should Enhance User Experience (UX)
Great Content and Positive User Experience Are Key Drivers To Attract People Into The VR Metaverse.
Therefore, the metaverse should enhance the user experience (UX) of using Web 2.0. It should not seek to replace Web 2.0 or draw users away from Web 2.0.
Here in actually lies an opportunity to expand the metaverse as the decentralized Web 3.0 have yet to truly capture the interest of general Internet users. In my opinion, it is easier to get started in metaverse via a VR headset than learning how to use some of the Web 3.0 tools.
We can also learn from other 3D innovations that had come and gone in recent years. For example, watching 3D movies in a big theatre managed to form a niche market in the entertainment industry over the years.
A side note though, 3D technology somehow finds it difficult to transition well into the home environment as we have seen with 3D TV and 3D gaming. Nonetheless, the fact that 3D TV was once a sellable product prove that consumers are interested in immersive 3D contents.
Conclusion
While the metaverse faces significant challenges from different perspectives, its potential remains vast. Entrepreneurs should not ignore this domain just because things seem to be on the quiet side lately.
There is always a possibility that sudden technological innovations can dramatically change market trends. For example, the term AI suddenly became a hot buzzword when ChatGPT was released to the public. But artificial intelligence is actually not a new technology. AI has been subtlety integrated into e-commerce and social media algorithms for years.
But the fact remains that the sudden surge of interest around AI only came after ChatGPT. Likewise, someone may very well suddenly introduce an amazing metaverse project or product that will accelerate the industry. Therefore, if you look at the metaverse with a positive outlook, it is certainly not dying. On the contrary, it is just in a state of incubation, waiting for the right moment for a market boost.
In the business world, many experts still believe in the ‘first mover advantage’, so you can be quite sure that there are investors who have already put a stake in the metaverse and are experimenting with its potentials so they can quickly launch their products at the opportune time.
Given that the metaverse could rise from the ashes at any time, are you ready then to take your entrepreneurial journey into the metaverse? From here, you might be interested to continue reading my article about metaverse business opportunities.
