The metaverse ‘will likely infiltrate every sector in some way in the coming years,’ JPMorgan says.
The metaverse is expanding. And so is its value.
A study by legacy bank JPMorgan Chase (JPM) – Get JPMorgan Chase & Co. Report found that metaverse “will likely infiltrate every sector in some way in the coming years, with the market opportunity estimated at over $1 trillion in yearly revenues.”
‘Digital Worlds Seem Limitless’
“Whether it’s large tech players such as Microsoft (MSFT) – Get Microsoft Corporation Report planning to create realistic workspaces, or Ariana Grande holding a concert in Fortnite, the opportunities presented by interactive, digital worlds seem limitless,” the study said
JPMorgan took its own step into the metaverse on Wednesday when the financial services giant opened its Onxy lounge in Decentraland, a 3D virtual world browser-based platform.
The lounge is located in Metajuku, a virtual version of Tokyo’s Harajuku shopping district.
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“The success of building and scaling in the metaverse is dependent on having a robust and flexible financial ecosystem that will allow users to seamlessly connect between the physical and virtual worlds,” JPMorgan said. “Our approach to payments and financial infrastructure will allow that interoperability to grow.”
The study defines the metaverse as “a seamless convergence of our physical and digital lives, creating a unified, virtual community where we can work, play, relax, transact and socialize.”
“A key point is that there is no one virtual world but many worlds, which are taking shape to enable people to deepen and extend social interactions digitally,” the report said. “This is done by adding an immersive, three-dimensional layer to the web, creating more authentic and natural experiences.”
‘Connect Those Universes’
The report noted that heavyweight companies as Walmart (WMT) – Get Walmart Inc. Report, Gap (GPS) – Get Gap, Inc. Report and Nike (NKE) – Get NIKE, Inc. Class B Report are all entering the metaverse.
“Business leaders and boardrooms around the world are now asking themselves, ‘What is my metaverse strategy? What am I supposed to be doing in the metaverse? What is the metaverse anyway?'” the report said.
Meanwhile (DIS) – Get Walt Disney Company Report named veteran executive Mike White to lead the studio’s metaverse strategy.
Disney CEO Bob Chapek announced in an internal memo obtained by The Hollywood Reporter, saying “today, we have an opportunity to connect those universes and create an entirely new paradigm for how audiences experience and engage with our stories.”
White is charged with getting the studio deeper into the metaverse, which as it evolves is expected to leverage web 3.0 technology to support real-time 3-D rendered simulations of real life on a mass scale.
Chapek described the metaverse as a “perfect place to pursue our strategic pillars of storytelling excellence, innovation, and audience focus.”
Interest in the metaverse increased dramatically in October when Mark Zuckerberg changed the name of Facebook to Meta Platforms (FB) – Get Meta Platforms Inc. Class A Report.
This week the CEO and founder said he now wants Facebook employees to be called “Metamates”.
“Meta, Metamates, Me is about being good stewards of our company and mission,” Zuckerberg announced on Tuesday. “It’s about the sense of responsibility we have for our collective success and to each other as teammates. It’s about taking care of our company and each other.”
https://www.thestreet.com/investing/the-metaverse-is-a-1-trillion-annual-revenue-gold-mine
