Are Gaming Companies Ready for the Metaverse?

At a time when we are confronted with a perplexing concept called the metaverse and its associated technological developments, one actor continues to stand out: the gaming industry.

Since the beginning of metaverse discussions, game developers have been at the forefront, guiding the dialogue on topics ranging from virtual worlds to digital tokens.

Epic Games, the American video game and software developer behind the wildly popular battle royale game "Fortnite," recently announced it secured $2 billion in new funding from the Japanese tech giant Sony and the investment firm behind the Lego Group, KIRKBI, valuing its upcoming Metaverse endeavors at $31.5 billion.

Entertaining Games is one of many metaverse game development companies that have received substantial investments for metaverse projects.

Consequently, why is the gaming industry such a significant player in the metaverse?

The metaverse concept has always been associated with gaming. From the technologies that are paving the way for the metaverse to the various concepts associated with this alternate digital world, there are connections to the video game industry. Moreover, the world of science fiction, where the metaverse originated, has heavily influenced and been influenced by the world of video games.

Snow Crash, a cyberpunk novel published in 1992 and the source of the term "metaverse," describes a three-dimensional space where people can interact through digital representations of themselves known as "avatars."

Gaming and the metaverse go hand in hand

The gaming community is one of the most knowledgeable in the metaverse. Millions of regular players of the online, cross-platform, free-to-play battle royale game Fortnite, who are eager to attend in-world events and engage with brands in novel ways, can easily be seen as a "proto-metaverse."

LeBron James and Nike's Jordan brand have both released skins (in-game avatars and attire), and the short-lived streaming service Quibi aired its reboot of the well-known prank show Punk'd for players to watch in-game.

As a platform for online gaming and a tool for game creation, Roblox enables users to build their own virtual worlds and games within its larger metaverse. With the help of Roblox, companies like Nerf, Hot Wheels, and Sony Music are creating their own immersive worlds to engage with consumers.

Films are following suit; the musical In the Heights hosted a virtual block party in a Roblox world recreation of Washington Heights in New York City.

Gamers are happy to spend money on virtual goods like avatars, skins, and events. Roblox virtual currency purchases increased by 161% to $652.3 million in the second quarter of 2021. According to Doug Scott, chief managing director at gaming and esports company Subnation Media, "people are starting to develop a deeper connection with the digital world through things like cryptocurrencies, NFTs (non-fungible tokens), avatars and immersive gaming experiences."

"And as people develop their digital identities further, platforms like Roblox are giving the community a place to call home."

Big businesses are engaging

Many technology companies are pursuing specific initiatives and game development studios. Regardless of the game, the creators combine their own worlds with other virtual worlds through activities like the inclusion of movie and music heroes and offer very different content to the players.

Large game development companies also make significant investments in addition to this. The largest transaction in the history of the global gaming industry, for instance, was Microsoft's $69 billion purchase of Activision Blizzard, one of the top companies in the gaming sector.

As an alternative to all of these, there are blockchain-based gaming platforms like The Sandbox, Axie Infinity, and OVR.AI. These games also allow players to trade in a wholly virtual world and make real money while playing games with crypto infrastructure.

Metaverse is already familiar to game players

The idea of the metaverse is not new to the video game industry. According to the experts, the possibilities offered by Metaverse have previously been present in Second Life, Virtualika, Knight Online, Fortnite, Minecraft, and many other similar game universes.

The game world may end up being the most important component of this ecosystem if technology permits it in the long run and the fictional Metaverse world is approached. As a result, all new endeavors, video games, and virtual worlds can be a part of the Metaverse as a whole.

According to KPMG, the mobile VR game market is still expanding, especially with the advent of 5G. This market has a significant position and is growing with Metaverse technologies.

The support of Metaverse technologies is frequently cited by gaming companies like Epic Games. Huge software companies are making significant investments in VR and AR technologies, including Facebook.

Since the Metaverse's operation resembles the dynamics of video games, it is claimed that gamers are the first to become accustomed to the system. The Metaverse offers the most interactive, realistic experience for players despite its current limitations. By 2025, KPMG predicts that the market will have more than 250 million active users of VR and AR.

How The Metaverse Is Changing The Video Game Industry

The gaming industry is rushing headfirst into the Metaverse, which is erasing the distinction between the real world and virtual reality.

One of the major tech firms that understood the potential of the Metaverse is Microsoft. They paid a staggering $68.7 billion to acquire Activation Blizzard, one of the most well-known video game companies in the United States, in January 2022. When the agreement was finalized, Microsoft declared:

One of the biggest game development studios, Epic Games, has also jumped into the Metaverse race to take on Microsoft. They received a $2 billion investment to build a Metaverse specifically for kids from Sony and Lego.

And given how appealing Metaverse games already are and how their advancement will enable you to identify more strongly than ever before with a video game character, Metaverse gaming is predicted to gain popularity and fundamentally alter how we play and experience games.

Recap of Metaverse Gaming!

While some contend that the Metaverse is the way society will develop in the future, others assert that few people will find it enjoyable to wear VR headsets for extended periods of time. But everyone appears to agree that metaverse gaming will continue to exist.

Since so many video games already use VR technology, it seems like the majority of gaming companies are working on Metaverse games right now. As a result, in the years to come, a lot of new games will be released and more and more games will be adapted for the Metaverse.

Gaming in the Metaverse is appealing not only because of the captivating graphics and player interaction, but also because you can get paid a lot of money for something you made.

But only time will tell whether Metaverse gaming spreads widely or stays a niche practice.

How do you feel about the Metaverse? Are you anticipating playing Metaverse games? Tell us in the comments section below!

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Daniel Murphy