Peter Lynch says: Don’t buy Metaverse concept stocks

Peter Lynch says: Don't buy Metaverse concept stocks

Metaverse is undoubtedly the most popular “new” concept in the game industry and investment circle in recent times. I saw this word in an industry media about the second half of last year, and I always felt familiar in a strange way. In addition to citing games like Undertale, at the time, they also liked to use House of Cards and Sophie’s World to make analogies to Metagame, or “meta-games”, indicating that it was a premium product not uncommon in the content field, and that there were meta-games and meta-novels in addition to meta-games… …

Perhaps because metagames and metafiction do not seem grand enough to stimulate people’s imagination and curiosity, these cutting-edge concepts, full of technology and mystery, did not make the slightest ripple five or six years ago. Now the Metaverse, the name of the metaverse, looks a lot grander, and I guess this concept can be so hot nowadays, and the word “universe” must have something to do with it. After all, in an infinite space like the universe, it makes sense to include everything.

An interesting fact is that the Metagame, Metafiction, and Metaverse are all terms that have existed in the English-speaking world for a long time, and have detailed entries on the wiki, with the main references spanning from the 1980s to the beginning of this century. For the definition of Metaverse, many articles in China sometimes directly take “Player One” and “Sword and Sworcery” as analogies, but more often than not they say that it is a very new and cutting-edge thing that does not have an accurate definition yet, and in a word, Metaverse represents the future and is so profound that it is difficult to explain.

But the Metaverse is clearly defined in the English wiki as follows.

“The Metaverse is a collective virtual shared space, created by the convergence of virtually enhanced physical reality The Metaverse is a collective virtual shared space, created by the convergence of virtually enhanced physical reality and physically persistent virtual space, including the sum of all virtual worlds, augmented reality, and the Internet. metaverse” is made up of the prefix “meta” (meaning beyond) and the stem “verse” (a backformation from “universe”); the term is typically used to describe the concept of a future iteration of the internet, made up of persistent, shared, 3D virtual spaces linked into a perceived virtual universe.”

Don’t be ashamed of yourself for not being able to read such a long paragraph in English, technological advances are for those of us who can’t read. Copy and paste it into WeChat, right-click on the translation, and you’ll immediately get a translation of the letter: “The Metaverse is a collective virtual shared space, made up of virtually augmented physical reality and physically persistent virtual space aggregated into the sum of all virtual worlds, augmented reality, and the Internet. The term “metaverse” consists of the prefix “meta” (meaning transcendent) and the stem “verse” (derived from “universe”). universe”); the term is often used to describe the concept of future iterations of the Internet, consisting of persistent, shared, 3D virtual spaces connected to a virtual universe.”

It is an abstract and ambitious concept with a very weak sense of boundaries and at the same time a lack of realistic foundation, with the typical characteristics of making people look and feel plausible. But in fact, for the deep Internet users in the 21st century, this concept is not too difficult to understand, roughly after the future development of technology to a certain extent, with the high-speed network that never drops, the boundary between online and offline will be blurred, almost all elements of life will be digitized in the virtual space. This imagination about the future, even if pushed forward 10 years, the mass base will not be bad, I believe that many people have long thought that the future in a few decades will be like this.

Back to the game itself, expanding the frontiers of the virtual world has always been an important development direction for games and one of the most vital; there is no doubt that the oasis in “Gamer One” (a subset of the Metaverse concept) will be the direction and future of the game, and there is a general consensus that the Metaverse is so broad in its definition that it encompasses everything everyone wants about the future of games and even digital entertainment. The definition of the Metaverse is so broad that it contains everything everyone wants about the future of games and even digital entertainment, but it doesn’t really offer anything new or give any realistic guidance, only a vision.

The Metaverse’s popularity comes with a strong sense of dissonance, after all, the more obscure the rhetoric wrapped around a hot concept, the more likely it is to create a sense of caution or even instinctive disgust. The legendary Peter Lynch has a rule of investment, one of which is “Never invest in any stock that you can’t describe the company’s business clearly with a crayon”. The human brain is not that smart and its ability to accept and understand new concepts is quite limited, and looking around, all successful companies and products for the consumer market have simple and clear business concepts and functions. The rhetoric of “creating a social meta-universe that heals lonely souls and enriches real life” when Soul went public in the U.S. is likely to be another powerful proof of the investment guru’s wise words.

However, from the marketing point of view, the Metaverse concept after the fire to rub the hot Soul is still considered smart, after all, nowadays the investment circle is also a key area of concern, more than one brokerage firm seriously do research, out of the research report are 70 pages PPT onwards, the content of the detailed degree undoubtedly reflects the capital of the Metaverse importance. But back to the game industry, but there may be a little embarrassment as well as a little despondency.

The game most closely associated with Metaverse today would be Roblox, followed closely by approximately Fortnite, both of which are quite successful and mature games that have been in operation for many years. The executives of both companies have all fallen back on UGC gameplay for their games’ connection to the Metaverse. That’s not surprising, after all, user creativity is the most vital element in games with open-world gameplay, and the key that can take a game from a single product to a long-lived platform. But back to that obscure concept of Metaverse itself, Roblox, which just went public this year as the first Metaverse stock, can hardly say that it is not trying to use this concept to attract more investors (machines) to itself in the capital market, especially those 8 Metaverse elements (identity, friends, immersion, low latency, diversity, anywhere, economic system, civilization), which are equally The Metaverse elements (identity, friends, immersion, low latency, diversity, anywhere, economic system, civilization) are equally broad and non-specific and exclusive, suitable for integration into all resources that can be used for their own purposes. On Epic’s side, the intention to use the concept to help finance itself and gain a favorable position in court is even more obvious.

If we look at the truly global game market created by FC in 1983, there was a significant improvement in 2D dot-matrix graphics capabilities in the early 1990s, the mid-1990s ushered in the era of 3D graphics enlightenment, and the early part of this century was the gradual completion of 3D graphics technology, with each generation bringing significant advances in experience and gameplay to the game. But since then, the technology has brought about an obvious diminishing marginal utility of the game experience, everything is becoming more “beautiful”, but the excitement we can get through the graphics experience is getting less and less.

In terms of game world gameplay construction, after the feasibility of “Shagi” was confirmed, both box games and open-world games are developing in their respective fields in a more extreme direction, and even after the UGC gameplay mode of sandbox games like “My World”, new things that can make the game industry excited can be described as rare. Excited, but the development course of the bumpy degree is also far more than expected ……

For the domestic game market, over the last 20 years, single-player games, end-game, page games, hand games alternately play the leading role in the game market and even the Internet industry windfall, high-speed development at the same time drive the industry pattern dramatic changes constantly, has always been the most lively, the most attention-grabbing industry. And every time the game platform changes, it also makes the old game burst out new vitality, from the keyboard and mouse to the cell phone screen can bring people a fresh feeling for years. However, after the domestic and foreign game markets have entered the maturity period, everything has calmed down, not only the domestic market pattern is solid and lacking of changes, but also the achievements in overseas markets are now no longer attracting attention; fewer and fewer games can really become market hotspots every year, and the learning and borrowing and reuse of the traditional market seems to have come to an end.

When the game from industry to product become calm, no more earth-shaking changes, no more exciting new things, this lonely feeling is really hard for people who are used to the turbulent environment, not to mention that KPI and OKR will not be allowed to adjust the indicators downward because of the changing environment. If there are no hot spots, there are bound to be people to create them. To use the current Internet black language, Metaverse is a particularly good grip to open up new tracks while also empowering the entire game industry.

You may not be able to find another word, its definition is in line with the hopes of the majority of users for the future, so it is difficult to question its correctness; the current level of technology is at least a few decades away from the realization of its vision, so you can easily rub various elements into the current so-called exploration stage; as for this is an old concept with at least 30 years of history, it does not hurt, after all, the masses of this word, both in China and abroad The awareness of the term is terribly low, both in China and abroad.

The Metaverse is undoubtedly a success, after all, we have seen some small game aggregators claiming to be the Metaverse and even getting huge funding in the past few months, with “Sakura Campus Simulator”, “My World”, “Mini World” and even QQ all being interpreted as the Metaverse. Everything is not the Metaverse.

The good thing is that Metaverse is just an empty concept after all, people may feel left out because they didn’t catch the hot spot and missed the capital opportunity, but the business that is already on the right track is unlikely to be carried away. After all, there is no successful game model that relies on complex concepts to gain the favor of players. No matter how to package the empty concept, a game without fun gameplay as the backbone will definitely not end well. Regardless of the outcome of Metaverse, for players, there will be no change, what should come will eventually come, and what should not come will eventually fade quickly.

As for the capital world’s pursuit, just turn on the show mode. The people closest to the money will never fail to understand that simple truth described by Peter Lynch. But as long as there are hotspots there must be opportunities to make money, as to who can make this money to hand, depending on the creation of each. In fact, the concept of Metaverse, the game industry is only a descendant, in the field of blockchain, many years ago there was a project named Metaverse, called Yuanjie in Chinese, the air coin issued named DNA, until the end of last year are still rubbing Defi (decentralized finance) hot hype coin price. Now the project has long been unmanaged and the price of DNA has fallen 99%, leaving only an official website still running with fake block data with no content.

Such is the lesson learned from the previous car.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/peter-lynch-says-dont-buy-metaverse-concept-stocks/
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