What will the Metaverse be in five years?

PUBLISHED May 29, 2024, 3:08:32 AM        SHARE

img
imgStaff Writer

What will the Metaverse be in Five Years?

The metaverse is here to stay as the next iteration of the internet. While an older generation may not see why this is the next technology, a younger generation and their parents are seeing the transition. The younger generation is interacting and meeting online in the metaverse. This could be Roblox, Minecraft, or Fortnite. Their discussions are in the universe, and their money is used in the metaverse.

The next five years will see a consolidation of technologies and seamless integration of disparate but connected technologies in terms of advertising, augmented reality, and cryptocurrency.

Consolidation of Metaverses

There will only be a few winners in the metaverse. And in this technology iteration, it will be platforms that will win, not the devices. Windows won with the consolidated platform in the 1990’s. Apple won the 2000’s with the iPhone, centralizing access to the web via one mobile device.

The metaverse battle will again be won by platform, not by devices in this iteration. Roblox has already integrated multiple devices to work in their metaverse. This includes computers, mobile, and virtual reality devices. Back in 2022, Roblox realized that a user must have the same quality experience in their metaverse regardless of the device, and they put engineering effort into making the experience standardized across devices.

Metaverse’s like Minecraft and Fortnite have followed suit. You can have the same experience across multiple devices. In five years, there will only be a few winning platforms. Here are the stocks likely to win out:

  • Roblox - This metaverse platform went public in 2021 after being in operations for over a decade. Even through 2024, the company continues to grow their revenue and users at a consistent rate. Roblox has seamlessly added millions of children and young adults to their platform over the years, and all of these soon to be consumers are not as connected with traditional social media. Many don’t even have Twitter or Facebook.

  • Microsoft - Microsoft is a serious threat in the metaverse space. While Facebook was loud about their failed push into the metaverse, Microsoft has gone the quiet approach – they’ve been buying out metaverses. Minecraft, Activision-Blizzard, and the X-Box are all major players in the metaverse, with Blizzard’s “World of Warcraft” one of the original developers in the metaverse. There is serious consideration to be made that Microsoft may just buy Roblox. Just like their purchases of Github and Linkedin, Roblox has the growth prospects while still being small enough for Microsoft to buy. Roblox would fit perfectly into Microsoft’s portfolio and allow them to dominate the future of the metaverse.

  • Meta Platforms doesn’t look like it will be a major player in the metaverse. Honestly, content is king and Meta platforms isn’t delivering. While their devices may be making some headway in the market, the future of the metaverse is all about the platform not the devices.

Ad Revenue will be King

Roblox announced plans to create an ad platform in 2023. Currently, Roblox does not share their ad revenue numbers in their quarterly presentations, but the developer community has a full advertising platform to be used now.

Advertising will have an outsized effect on Roblox’s revenue, but more importantly, give its “experience” developers (3rd party developers who build in the metaverse, each metaverse is called an “experience”) a very important tool to expand their own revenue streams. With advertising, developers can focus on the experience and consumer activity instead of optimizing for just Robux spending. This freedom could seriously cause a renaissance of Roblox development on the platform.

Growth of Virtual Events

Virtual events exploded during Covid-19, but have languished in the last couple of years. The introduction of in-universe advertising will likely help virtual events explode again in 2025 and 2026. Virtual events had proven numbers. The number of users in each even reached the millions. This will show advertisers they have a captive audience, allowing them to advertise to these users knowing they are watching.

Mix this in with virtual showrooms and sponsored activities in universe and advertising opportunities are endless. Imagine a virtual concert taking place. With the new ad platform, you could see brands like Chipotle and Samsung will billboard ads around the arena. These could be videos or they could just be an image.

brands in the metaverse

Different brands in the metaverse

Imagine walking around the audience, and virtual vendors are using virtual t-shirt cannons to shoot in-game goods into the audience. These could be shirts and hats for their avatars. Virtual goods like these already can be found in high demand in Roblox and the Roblox market.

Virtual Markets over Virtual Land

Speaking of virtual markets, it’s looking more and more likely that virtual goods will be the definitive asset in the metaverse. Virtual land just doesn’t seem to be holding its value and its use case seems limited in an ever-expanding metaverse.
Virtual goods can be used forever by the user. Roblox virtual goods adopt to the players avatar size regardless if they are an angel avatar or an alligator avatar. Virtual goods are moving billboards for brands and can be limited in supply thanks to NFTs. So what will happen to virtual land? It will be replaced by immersive ads. These will meet the desired intent of virtual land. Advertisers will want to be in a simulation with highly captive audience like a virtual event.

The key reason immersive ads will overtake virtual real estate is that immersive ads are infinite and can be duplicated in multiple, high traffic, universes (a multiverse of ads). Virtual real estate is too static in a single universe.

Seamless NFT and Cryptocurrency Integration

NFTs were regarded as a fad and fallen in market capitalization since 2022.

But expect NFTs to pick up again in the coming years, but rebranded and reused in entirely different ways as they are now. Right now, NFTs are used to certify ownership of a unique real or virtual asset using the blockchain to secure the transaction of ownership.

Why is this all important? Because as metaverse’s consolidate to a few key platforms with billions of different simulations, users will want to use their virtual goods within different metaverses. NFTs allow users to use their virtual goods in multiple simulations and metaverses. These unique items, for example an avatar hat, could be used in Roblox, Fortnite, and Minecraft with the help of NFTs.
Advertisers who use virtual goods will want this ability for uniqueness, allowing their virtual brand goods to be collectibles for users to search for and allows these virtual goods to be seen in multiple metaverse platforms.

Final Takeaways

The metaverse will iterate in the next five years to improve concepts built earlier in the decade. NFTs will transform and take a bigger role in virtual goods, while the blossoming advertising in the metaverse will explode, transforming how metaverses and metaverse developers will make money.

As the metaverse evolves, metaverse platforms will start to consolidate. The key will be metaverse platforms, not metaverse devices, as users can access the metaverse from multiple devices.

As an investor, you can take advantage of the metaverse megatrend by investing in

Read More

How the Metaverse Makes Money

Metaverse Investment Analysis

MSFT, Buy

Microsoft Corpor...
Return: -4.05%

MSFT, Buy

Return: -4.05%


Sound investments
don't happen alone

Find your crew, build teams, compete in VS MODE, and identify investment trends in our evergrowing investment ecosystem. You aren't on an island anymore, and our community is here to help you make informed decisions in a complex world.

More Reads
Virtual Events in the Metaverse
Image

People are more than ever going to live events, but virtual events are seeing an uptick in 2024. With new ad revenue streams in works, virtual events could see a new resurgence.

Metaverse ETFs
Image

While the Metaverse megatrend is looking promising in 2024, the collapse in metaverse investments prices in 2021 and 2022 caused at least three metaverse themed ETFs to liquidate.

Microsoft and the Growth Explosion
Image

Microsoft is an amazing stock for new investors to try. The company has evolved, acquired, and developed a multifaceted set of businesses that are fundamentally driving growth. But for new investors, the barrier to entry is mindset.

AGCO Group - The Pure-Play Farming Stock May be too Hot!
Image

The stock’s intrinsic value clearly shows the cyclicality of the farming industry, independent of AGCO’s own analysis. Agco’s analysis also takes into account the farming industry cyclicality.

Littelfuse - Undervalued Opportunity to Hold for Years
Image

Littelfuse (LFUS) is a component manufacturer currently near a $6 Billion market capitalization. This makes it a small-cap stock, with the potential for further growth in its market segments or to be bought out by a competitor.

Dover Corporation - Great Dividend Stock but Possibly Overpriced
Image

Dover Corporation is a strong investment candidate thanks to its consistent dividend growth, its robust financial performance, and strong capital implementation plan. This stock fits into a strong dividend portfolio well that plans on holding onto stocks for multiple years.

Is BorgWarner a Buy?
Image

BorgWarner fell below $30 today, making it an interesting buy opportunity. The reasons are quite straightforward. The company’s book value per share is $25.36 a share. This means that as long as money continues to be made, BorgWarner becomes undervalued if it nears its book value per share.

Union Pacific is Going Nowhere
Image

Union Pacific is not a buy to start off 2024. Union Pacific is a fine business. There are issues but nothing that is significant enough to believe the company’s intrinsic value will shrink in the next decade.

Dividend Stock Watch List: Lanny’s February 2024 Edition
Image

Dividend investing happens, whether the stock market is up or down, whether the fed raises interest rates or lowers. Inflation or deflation. Banks are failing or being bailed out. Recession, no recession. It’s all about buying dividend income producing stocks – the best source of passive income source on your journey to financial freedom!

January 2024 Stock Considerations
Image

With a new trading year already in full swing it is time, once again, to highlight some of my potential stock purchases for the month.

5 Reasons Not to Use ChatGPT for Financial Advice
Image

It’s truly amazing how far AI has come in such a short period. Not only can it answer most questions, but it can also generate online posts, research papers, and even poetry. However, it still has its limitations.

The Zen Ten - My Top Picks for 2024
Image

I've managed to beat the market by an average of 3.7% per year over the past 10 years. Since I began using this list with clients in 2000, I’ve beaten the market by an average of 9.1% per year.

5 Key Benefits of Long Term Investing in Dividend Stocks
Image

Overall, long-term dividend investing in individual dividend stocks can be a reliable and potentially lucrative way to build wealth and generate passive income over the long term

You Can Be an Excellent DIY Investor
Image

First, save money to invest. That is: don’t spend everything that you make. Next, invest consistently in a reasonable way. That’s it! That’s all it takes to be an excellent DIY investor!

IBM Dividend Safety Analysis
Image

International Business Machines (IBM) is a stock investors love to hate. But after years of underperformance, the share price has recovered to levels last seen in early 2017.

Thermo Fisher Scientific Consistently Creates Shareholder Value
Image

Thermo Fisher’s share price can be volatile. Just before Christmas 2021, for example, TMO’s share traded above $660. At the beginning of March 2022, however, the share price had plummeted to ~$530.

Western Alliance Bank: A Golden Opportunity if we can just Stay Calm
Image

As Western Alliance has dropped from the headlines, the company’s stock has begun to rebound. The stock received a bump after each earnings announcement by reporting the “business as usual”. As we will see, if Western Alliance can continue business as usual, the bank may be a fantastic investment opportunity.

Is Southern Company a Buy?
Image

Southern Company’s price target is neutral at $70. Expect the utility’s price volatility to peak at plus or minus 20% from this price target but not improving too far past this price point for the next few years.

Is Atkore Inc (ATKR) a Buy?
Image

Atkore is an intriguing stock to analyze. It is well liked by institutional investors and value investors due to its high return on equity and consistent earnings growth.

Is American Electric Power (AEP) a Buy?
Image

AEP is overvalued when above $98 and undervalued at $79. At its current price of around $74, the company is likely to be undervalued with an estimated two-year return of 21%.

Resources for Publishers
Resources for New Investors
Boosted with BossCoin
Financial Literacy Leaders
user_profile
Wise Intelligent
user_profile
Tom Hamilton
user_profile
Mark Robertson
user_profile
Kevin Matthews II
user_profile
Akeiva Ellis
user_profile
Brendan Dale
user_profile
Kenneth Chavis IV
user_profile
Sharita Humphrey