Metaverse may become an 8 trillion U.S. dollar market, these companies have the most opportunity

The game industry will become a new outlet for Yuanyu’s investment?

Metaverse may become an 8 trillion U.S. dollar market, these companies have the most opportunity

News on November 18th, this Wednesday, according to Forbes, the Wall Street major Morgan Stanley predicted in a report released to investors last Thursday that by 2024, the market size of Meta Universe will reach 8 trillion U.S. dollars, and May become the next generation of social media, streaming media and gaming platforms. 

Brian Nowak, a stock analyst in charge of the Internet industry at Morgan Stanley, said in the report that Meta Universe is currently mainly conceptual, but its ideas are unlimited. Different types of virtual worlds will have the potential to completely change the way people interact. 

Although Meta is in a leading position in this field , several companies including Microsoft and Disney have also begun to invest in Metaverse. He also said that more and more companies are investing in Metaverse, and Metaverse is already pushing the stock price of Roblox and other game stocks. 

On October 28, Facebook changed its name to Meta. When the company’s CEO Mark Zuckerberg announced the name change, he said: “We believe that Metaverse will become the successor of the mobile Internet.” After that, people’s concept of the virtual world came into being. Has a great interest. In the meta-universe, people can access the virtual world through a headset or smart phone, and work, play, and socialize there. 

Metaverse may become an 8 trillion U.S. dollar market, these companies have the most opportunity

▲Disney’s meta-universe concept map (picture source is Twitter)

Morgan Stanley also stated that the meta-universe concept will likely replace the current Internet, which means a huge new opportunity for investors. 

01. The preferred stock of Meta Universe is Meta

Nowak said that, like the current digital platform , he expects that the initial role of Metaverse will be to become an advertising platform and an e-commerce platform that promotes offline product consumption. 

Morgan Stanley’s report recommends several stocks that can benefit from the meta-universe concept, as well as stocks that focus on AR, such as Google’s parent company Alphabet and social media platform Snap. 

The stocks that are expected to benefit from the field of Metaverse are firstly Meta, which has strong cash flow, and secondly, its core business growth is durable, and it can continue to invest in the construction of Metaverse. At present, Meta has invested in the construction of Metaverse. Billions of dollars. 

Metaverse may become an 8 trillion U.S. dollar market, these companies have the most opportunity

▲Zuckerberg’s meta-universe world conception

In addition, Morgan Stanley also recommended the game company Roblox, which has a powerful commercialization algorithm that can use its 47 million daily active users and a “powerful” monetization algorithm to obtain Metaverse advertising and e-commerce opportunities. 

And Unity Software, the engine company that powers video games and other programs, which may help create content for the meta-universe. 

02. The game market is growing fast, with obvious social attributes

For many years, games have been a key area of ​​the entertainment industry. During the COVID-19 pandemic, the growth of the game market has accelerated. According to data from Morgan Stanley Research, the number of game participants in the United States in 2020 was 50 million, a year-on-year increase of 31%, while the number of users in the previous two years only increased by 7%. 

Nowak said: “As the COVID-19 pandemic eases and people spend less time in virtual reality, it is expected that the gaming industry will experience a certain degree of regression, but many long-term trends may remain the same.” 

For investors, the following three key trends require attention: First time on the amount spent on games and game players are increasing; and second, the player can with the players from around the world together to play, gaming, sharing, Create a global consumer market; third, the popularity of micro-transactions and other forms of paid games provide investors with more ways to benefit from them. 

Game enthusiasts often have anti-social stereotypes, but games have increasingly become a way to establish and maintain social relationships. 

The latest findings from AlphaWise, Morgan Stanley’s survey and data division, found that games are popular across all age groups and demographics. In fact, since the outbreak of the new crown epidemic, half of all U.S. residents surveyed have participated in some form of video games, whether on PCs, game consoles or mobile devices. 

Metaverse may become an 8 trillion U.S. dollar market, these companies have the most opportunity

▲Meta universe game AXIE

The line between entertainment and social interaction is blurring. Although the main motivation of most gamers is entertainment, nearly one-third of the gamers surveyed also said that they view gaming as a form of social connection. 

The social aspect of the game is especially important for young players. More than a quarter of respondents under the age of 35 said that games provide a better way to socialize than social media itself. 

“These trends indicate that social media and games are converging, which may help accelerate the increasing popularity of platforms that use AR and VR devices to provide mature digital environments,” Nowak said. 

03. Paid games drive long-term growth

The social features of games provide an important source of income: microtransactions or paid games. 

Just as people buy clothes, cars, and jewelry to show their status in the real world, game players can buy clothes and accessories in the game to express their personality and establish connections with other people in the virtual world. 

In mobile games, you can pay for energy items, new lives, or subscription-free features in the game. For console games, game players can buy weapons to improve the gaming experience, you can also buy refined beauty of the car to show off to other players. This approach is brought to the extreme in the meta-universe game, where users can invest in real estate in the digital world. 

Paid in-game purchases promote user engagement and help drive long-term revenue growth. 

New game consoles launched on the market now have a new processor architecture, higher visual resolution and faster storage, and allow game studios to re-release gameplay with AR technology, which also provides development breakthroughs for game manufacturers Opportunities for new sex games. 

In fact, many popular mobile games are now mobile versions of console games. Therefore, game manufacturers can also redesign console games for mobile devices. 

The marketing of these consoles and their accompanying new and old games may continue to drive user purchases in the next few years. 

04. Conclusion: Games or Chengyuan Universe investment new outlet

“Of course, no industry is immune to risks, especially those industries that have benefited a lot from the home environment brought about by the new crown epidemic. But considering the growing social nature of games, plus video game publishers gaining from increased participation We believe that the industry has significant room for improvement based on its forward development.” Nowak said. 

Morgan Stanley’s report shows that the gaming sector will be the next outlet for Meta Universe investment, and its development potential is huge. Since the impact of the new crown, the game industry has been in a stage of rapid growth. As the epidemic eases, the growth rate has rebounded slightly, but its long-term development trend remains unchanged. With the blessing of Metaverse, VR and AR technologies have empowered game products and enhanced user immersion. , Improve the profitability of the game industry. 

Source: Forbes, Morgan Stanley’s official website

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