In this article, we will be taking a look at the 12 Biggest Metaverse Companies in the World. To skip our detailed analysis, you can go directly to see 5 Biggest Metaverse Companies in the World.
If you have been in the internet in the past year, and of course you have been since you’re reading this article, you will have heard of the metaverse. Considered to be “the next big thing by many”, one of the biggest companies in the world at the time, and perhaps the most influential social media company in the world, Facebook rebranded itself to Meta Platforms, Inc. (NASDAQ:META) as the company announced it would focus on developing the metaverse, something which has piqued the interest of many other companies. However, Meta Platforms, Inc. (META) has seen its stock tank since.
So, what exactly is the metaverse? The answer to that question is not straightforward. After all, if someone asked you to define the internet in its infancy or the airline industry after the Wright Brothers operated the first airplane, you would never imagine it to be where it is now. The truth is, the metaverse itself is a vague term as many companies claim that it is too early to define because the metaverse is in the process of being built and what it will ultimately turn out to be cannot be accurately estimated right now.
Photo by mahdis mousavi on Unsplash
There is a lot of hype surrounding the metaverse, mainly because of the marketing surrounding this new “universe”, where it seems that the current definition of the metaverse is basically using new technology to change how we interact with the internet. A large part of this is developing virtual worlds, which makes use of virtual reality and the next big thing in technology, augmented reality. However, it is not necessary to have this gear to access such virtual worlds, which can be done through gaming consoles, PCs and even mobile phones. According to Tech Target, the metaverse ” will be a persistent, immersive shared digital environment where people can interact with each other and transact with businesses. It will blend the physical and virtual worlds, allowing people to engage in an online 3D space, or the spatial web, almost as if their experience were real life.”
Of course, it’s not just Meta Platforms, Inc. (NASDAQ:META) which is working on the metaverse. Many other companies have jumped on the bandwagon and see a treasure trove of opportunities. We will discuss the impact of these companies on the metaverse. Right now, many companies are envisioning a part of the metaverse being the ability to create digital goods as well as the opportunity to trade them. This will be similar to NFTs, which haven’t really taken off so far but with technology improving, maybe this will work out well. Many also claim that inter-platform compatibility will be utilized with products from one platform being used in other platforms, but the technology to enable that does not yet exist.
Cryptocurrency is also expected to be a major part of the metaverse, with many transactions expected to take place using cryptocurrency. However, it will be interesting to see how this is navigated after the massive shocks that the cryptocurrency has experienced in 2021, with its star currency in Bitcoin dropping by nearly 80% after massive drops and scandals rocked the community in just the past year. There are many other challenges facing the 12 biggest metaverse companies in the world as well, including limited participation driven by a form of sickness experienced by users in immersive experiences and expensive equipment required to properly enjoy virtual worlds and experience them the way they were meant to be experienced. But perhaps the biggest challenge is convincing potential users that this is the way to go. A poll conducted in early 2022 by Axios and Momentive found that most people were ambivalent about the potential of the metaverse, with many not even aware of the concept. Also, more respondents were “scared” rather than excited about the new technology.
In addition, there are some issues regarding governance and regulation of the metaverse, with potential for bullying and harassment quite high, as is true for most new technologies. Harassment seems to be increasing on social media and the internet in general, and in the metaverse, which will be more immersive and likely more anonymous, such concerns will only be heightened. According to the Federal Trade Commission, there is sexual and violently explicit material in virtual worlds which can be accessed by minors, which raised the potential of grooming and online abuse of minors as well. There are privacy concerns as well, especially due to Meta Platforms Inc. already having many privacy failures in the past. Data collection is a significant part of the operations of social media companies and there is a level of uncertainty on how data will be collected in the metaverse, while user’s data rights and ownerships are uncertain as well.
While it’s too early to wonder what exactly the impact will be on society and culture due to the metaverse, the first question to consider is whether it will even be influential enough to have a major impact. Already, there are discussions on the metaverse failing, with Meta Platform’s stock value plummeting since its rebranding and in November, its CEO Mark Zuckerberg announcing layoffs of over 11,000 people. Many people consider that the glimpses offered to the public so far of the metaverse are off-putting, especially to the gaming audience. It has also failed to sell to people the idea of the metaverse so far, with ambiguity and uncertainty surrounding the entire project, which is why it is unlikely that the metaverse will be an immediate success, and might need some rebranding.
However, despite the aforementioned challenges, there are many major companies in the metaverse industry which believe in its potential. We also recently published an article that features the best metaverse stocks to buy according to hedge funds. So, without further ado, let’s take a look at the biggest companies in an industry which could be the next big thing or the biggest flop in a while, starting with number 12:
12. Decentraland
Decentraland is a 3D virtual platform where plots of land can be bought as NFTs. Major companies including Samsung and PwC have appeared in Decentraland, while others have bought properties in the platform. Sotheby’s held its first metaverse auction in Decentraland as well.
11. Epic Games
Epic Games is known to most gamers in the world thanks to its famous game titles such as the Infinity Blade series, Gears of War and F0rtnite. It has also developed Unreal Engine which is a game engine. Epic Games committed over $1 billion in 2021 to cement the company’s commitment to the metaverse and has received investment from other major companies to continue supporting its foray into the metaverse.
10. Animoca Brands
The Hong Kong game software company purchased a majority stake in Pixelynx, which is a music metaverse platform.
9. Roblox Corporation (NYSE:RBLX)
Roblox Corporation (NYSE:RBLX) is a video game producer which has used the term “metaverse” significantly in its marketing. Among the most successful metaverse companies in the world, Roblox Corporation (NYSE:RBLX) has 47 million daily users globally and 9.5 million developers who create games and worlds in the metaverse for users to fully immerse themselves in.
8. Adidas
A German sports apparel company does not seem to have much in common with the metaverse, but here we are. The biggest sports manufacturer in Europe and the second-largest in the world, Adidas has produced virtual gear and claims that it is the “first-ever collection of digital apparel from the three stripes, designed for new realities. This digital gear can be used in the metaverse.
7. Unity Software Inc. (NYSE:U)
Unity Software Inc. (NYSE:U) is a videogame software development company, which is why it is no surprise that it is one of the 12 biggest metaverse companies in the world. Unity Software Inc. (NYSE:U) offers monthly sessions which allow you to engage with experts from the company to build and develop skills that are required to succeed in the metaverse.
6. Binance
The largest cryptocurrency exchange in the world, it makes sense that Binance would throw its hat in the metaverse, which could signal a high potential upside for the company, if the metaverse justifies the fervor surrounding it. According to Binance, NFTs are the gateway to the metaverse, and such NFTs are available for purchase on Binance.
Click to continue reading and see the 5 Biggest Metaverse Companies in the World.
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Disclosure: None. 12 Biggest Metaverse Companies in the World is originally published at Insider Monkey.
