Back in October of 2021, Mark Zuckerberg instigated a rebranding endeavor for Facebook that culminated in the adoption of the new name “Meta.” This move was aimed at pursuing a blue ocean strategy, with the intention of capturing an uncharted “metaverse” market. Facebook was grappling with a decline in its stock value at the time, company image issues in the wake of the “Cambridge Analytica data scandal,” and was seeking to forge a different path ahead.
The current definition of the “metaverse” encompasses a host of technologies in virtual reality (VR) and augmented reality (AR) that strive to generate immersive, collective digital environments where users can engage with each other and digital material instantaneously.
VR, AR, MMO
Prior to Zuckerberg’s announcement, the metaverse concept existed for several decades and originated from the virtual reality and digital entertainment growth in the 1980s. Although some view the differentiation between virtual reality and the metaverse as merely a marketing strategy, others assert the metaverse’s superiority.
The metaverse is an all-encompassing digital universe that permits control and development, while virtual reality is usually considered more geared towards gaming and is restricted to a smaller user base. As a generative environment, Metaverse can be limitless, whereas VR environments are confined and pre-determined.
The metaverse could be considered a step-up from VR, as it draws from it, and incorporates concepts of augmented reality. In practice, the definitions of virtual reality seem to be more fluid, given the existence of virtual reality platforms/games within massively multiplayer online (MMO) games and similar contexts.
Technical shortcomings
Only in the imaginations of science fiction writers did we see the full potential of virtual reality expanded across the world. Neal Stephenson’s 1992 novel “Snow Crash” and Ernest Cline’s 2011 novel “Ready Player One” presented a vision of what could be possible in an interconnected world through works of fiction. However, the realization of this vision relied on the availability of functional hardware that could be connected to a large computer network.
Initially, Meta’s graphic design was unimpressive and reminiscent of an earlier era. The launch of Meta and Mark Zuckerberg’s blocky eyebrows and “1995 graphics” provided fodder for memes, with comparisons to Nintendo’s Mii avatars and Dire Straits’ “Money for Nothing” music video. The virtual world’s clunkiness deterred investors, but the limited hardware capabilities at the time made it challenging to produce more visually appealing graphics. The introduction of Qualcomm Snapdragon processors has brought significant improvements in visual quality. However, the imbalance between the movement of the environment and the stationary body can lead to VR motion sickness, which can make virtual environments nauseating to some.
Dream vs. reality
Although the technical difficulties have been addressed, creating a metaverse comes with considerable obstacles, which may account for its hefty cost. Mark Zuckerberg’s aim to have “about one billion people involved in commerce worth hundreds of dollars in the metaverse” by the end of the decade, has put the company under pressure to meet an overly ambitious goal within a limited timeframe.
In 2022, Meta’s “Reality Labs” division, responsible for metaverse initiatives, reported losses exceeding $13.7 billion. Furthermore, sales of VR headsets in the U.S. decreased by 2% from the previous year. In July 2022, Meta announced a $100 price increase for their Quest 2 VR headset, citing “inflationary pressures.” The Quest Pro VR headset, aimed at enterprise workplaces, debuted in October for $1,500.
American tech giants are not the only ones to incur loss from overeager investment in an unproven technology. The EU has experienced first-hand the challenges of the metaverse. The European Commission’s foreign aid department spent €387,000 on an online event in November 2022, aimed at generating interest in the EU among young people, only to have five attendees show up, as Politico reported.
The metaverse platform was created as part of the department’s Devex initiative, which aims to promote its Global Gateway program. The EU intends to invest an additional €300 billion by 2027 to establish this infrastructure in developing nations.
Scrapping projects
Between the staggering costs, lackluster public interest, an unprecedented global downturn in the tech industry, and alternative business ventures the tech industry is focusing on now (artificial intelligence in particular), it is hardly surprising that the metaverse concept has moved to the backburner.
In fact, there is currently a high number of job layoffs in the metaverse. Meta and Disney both announced workforce reductions in their respective metaverse projects in March 2023. Meta is cutting 10,000 jobs as part of its efforts to increase efficiency, while Disney has already cut its metaverse division.
Forging ahead
It could seem that the interest in metaverse has all but waned. And it may be that the concept will never take off like the early projections envisaged. Or maybe, like plenty of other tech solutions, it needs to pivot to find its true niche. Many Polish companies, large and small, seem to think there are business opportunities in the metaverse. And they are poised to find them.
PKO Bank Polski, the largest bank in the CEE region, has disclosed its plans to invest in the metaverse. Paweł Gruza, the vice president of the management board of PKO Bank Polski, intends to establish a virtual branch in the metaverse. “I would like PKO Bank Polski to be ready to make use of the opportunities related to it, and when the metaverse has matured, to set the rhythm in the technological development of the domestic banking sector and the Polish economy,” Gruza stated in an October 2022 press release.
Among the initial applications of the metaverse for PKO Bank Polski, will be the onboarding and training of new employees, as well as the development of new communication channels with clients. Additionally, there are plans to explore solutions linked to verifying clients’ identities in metaworlds, and to experiment with the prospect of offering banking products within this realm.
Interactive interior design
Immersion Real Estate, which is a component of Immersion Group and headquartered in Warsaw, combines technology with business by utilizing virtual reality to assist firms in envisioning architectural constructions. Immersion Group uses the “TrueScale” app for interior design and a virtual reality headset to present clients with a vision of their architectural builds before a single slab of concrete is poured.
They also work with partners like Merck, Google, Bayer and the United States Department of State to implement training applications that, according to their website, are “more engaging and geared toward interactivity, significantly increasing user productivity, while realistic visuals and animations make content more accessible.” It would seem that Immersion Group is ready for the metaverse having worked in VR since 2014, and having experience with Unity and Unreal engines to produce games.
The game is still on
Other Polish companies like 4Experience, The Knights of Unity, and Curious Element, all have experience in augmented or virtual reality, as well as the know-how to create what’s needed for an experience in the metaverse. While the metaverse is not a gaming platform per se, the expertise of Polish augmented and virtual reality programmers is such that they are prepared for the integration.
But will Polish people themselves be interested in the metaverse? In November 2022, a survey of approximately 1,200 individuals aged 18 and above was conducted to determine how they might utilize the metaverse. According to the survey results, about 75% of respondents expressed an interest in using the metaverse as an escape from reality, while two-thirds of participants wished to reconnect with distant loved ones or family members.
While the metaverse’s developers may perceive an opportunity for a blue ocean strategy to generate significant revenue, users may take it in yet a different direction. That is, if they are interested at all.
