Metaverse still has a long way to go, but it is clear that Zach Burke can’t wait.
After announcing the company name was changed to Meta, Facebook recently opened its VR world “Horizon Worlds” to North America. This is a very crucial step for Facebook to enter the Metaverse after it changed its name.
“Horizon” is essentially a preliminary VR social platform created by Meta, which allows people to create and interact in this Metaverse, and supports 20 people online at the same time. However, users need to use the Oculus Quest 2 helmet to create characters.
It is well known in the industry that Horizon Worlds released a beta version in September 2019. Thousands of test players have held comedy shows and other activities on the platform, but at that time many people complained that the effect was similar to “Minecraft”. A copy of such a sandbox game.
Now, Facebook is trying to develop it into a scalable multiplayer VR social platform-after users log in to their Facebook account, they enter Horizon Worlds to create a 3D virtual avatar, where users can build custom worlds and games.
In “Horizon”, you can see multiple entrances to other worlds, and there are also guides who introduce you to various gameplay and games in the virtual world, including various mini games such as airplane air combat and shooting.
Metaverse is a virtual space parallel to but independent of the real world. Compared with the current Internet, it has a stronger sense of immersion, interactivity and ultra-low latency. If such a vision is really to be realized, there is still a long way to go, but it is clear that Zach Burke can’t wait.
There is a view that Metaverse is the next-generation physical Internet. The physical Internet is relative to the current Internet. The current Internet is a flat Internet-a two-dimensional Internet constructed of graphics, text and video content.
The physical Internet, with the help of VR and AR technology, is a more immersive three-dimensional virtual experience. In this virtual world, you can do more imaginative things-party, work, study, entertainment, shopping , Creation, etc.
Judging from some comments on Reddit, the physical Internet built by Horizon Worlds is still relatively rough and unsatisfactory in terms of professionalism. However, in general, Meta shows people the embryonic form of Metaverse social networking and games. .
It is said that Meta introduced a US$10 million creator fund in October, hoping to encourage creators to create an immersive experience for the “Metaverse”.
Facebook’s investment and sense of urgency in Metaverse are no match for the current Silicon Valley giants.
Zuckerberg has great ambitions for the creation of Metaverse. He said, “We hope that within the next ten years, Metaverse will cover 1 billion people, carry hundreds of billions of dollars in digital business, and provide millions of creators and developers. Provide employment opportunities.”
Why is Meta the most determined to embrace the Metaverse?
The reason is that Facebook has always relied on advertising to make money, but now this road is getting harder and harder.
Meta’s financial report for the third quarter of this year shows that advertising business accounts for 97% of total revenue (total revenue is 29.01 billion U.S. dollars and advertising revenue is 28.28 billion U.S. dollars). It is reported that after Apple revised its privacy protection strategy, advertising technology company Lotame has estimated that Facebook may lose about 12% of its revenue in the third and fourth quarters of this year.
Some insiders further pointed out that if Apple’s privacy protection measures affect the Android camp, if a number of Android manufacturers adopt similar practices from Apple, it will undoubtedly cause a further blow to the advertising revenue of Facebook’s parent company Meta.
In other words, if there is no new growth path, Facebook is likely to face the crisis of stagnant or even declining advertising revenue growth in the future.
When an Internet giant relies too much on advertising revenue and is about to face a growth ceiling in its inherent traffic pool, it is often very positive to participate in the Metaverse, such as the domestic byte beating.
Similar to Facebook, Bytedance is also a content traffic giant that mainly relies on advertising revenue.
According to data disclosed by Bytedance CEO Liang Rubo in the middle of the year, the revenue of Bytedance in 2020 will reach 236.6 billion yuan. According to previous reports by Bloomberg, its advertising revenue accounted for 77%. But in 2021, Douyin’s growth has also begun to slow down.
According to the Securities Times, on November 18, ByteDance’s commercial products department held an all-staff meeting at which it was disclosed that its domestic advertising revenue had stopped growing in the past six months. This is the first time this has happened in ByteDance in 7 years.
A common feature of content or social giants such as Facebook and ByteDance is that they are huge in size, the traffic advantage of product matrix construction is obvious, user stickiness and activity are high, but they mainly rely on advertising revenue. For example, Meta’s Facebook, Instagram, and WhatsApp and other social applications all have high daily activity.
ByteDance’s traffic products include Toutiao, Douyin, Watermelon Video, Face Camera, and Undercarriage. The advantage is also traffic.
For such giants, in the past benefited from the Metcalfe effect formed by the snowball growth of C-end users, and this process was also accompanied by explosive growth in advertising revenue.
But with the end of the demographic dividend period, advertising revenue growth space has also shrunk, accompanied by strong growth anxiety. According to Novig’s Law: After a company’s market share exceeds 50%, it can no longer double its market share.
One way to break this Novig’s law is to copy another self in a brand new growth market, to migrate existing stock users to a brand new platform, and form a new round of exponential growth.
In the past, Tencent went from QQ to WeChat, and Bytedance went from Toutiao to Douyin. In fact, they copied themselves in this way to complete a new round of growth and transformation-from QQ to WeChat, complete the transformation from PC social to mobile social, Today’s Toutiao to Douyin , Complete the transformation from graphic to video.
They are all in the face of the trend, realized the upgrade and transformation of new platform-level products, realized the migration of a large number of users, and contributed to their second growth curve.
This is essentially copying one’s own genes and recreating a new platform, migrating users to the past, thereby creating a new round of traffic agglomeration effect and driving a new round of growth in advertising, games and e-commerce.
Under the existing logic of mobile Internet growth, it is difficult for Tencent to offer another WeChat, ByteDance is also unable to create another Douyin, and it is also difficult for Meta to create another Facebook. They all need to find a new trend outlet with a higher dimension.
From the current point of view, in the three-dimensional virtual space of the Metaverse, they have the hope of copying a new self and completing the upgrade and transformation of the platform.
In the past, in the mobile advertising market, Facebook has been competing with Google for advertising. Later, Tik Tok quickly became popular around the world. Although they have different product forms, they are all in the same pot-the digital advertising market. Rivalry competitors.
As the growth of the global Internet slows, there are more and more competitors on the digital advertising plate, especially the rise of Tik Tok is a great threat to Facebook.
Therefore, among the five Silicon Valley giants, Microsoft, Amazon, Apple, Google, and Facebook, Facebook is the most urgent and the most pressure to find new sources of profit.
After all, Apple’s software and hardware integration revenue plate is very stable, and the iPhone has no rivals in the smartphone market for the time being, so Apple is not in a hurry.
In addition to the main business of Microsoft Amazon, the cloud business has formed their new growth curve. Needless to say, Amazon AWS has always been the leader of the cloud service market, and the development of Microsoft cloud services has grown very fast. From the perspective of market share, Microsoft cloud services have developed to keep pace with Amazon Cloud.
In 2021, Microsoft’s profit margin has reached its highest level in 20 years. Among them, high-profit server products and cloud services (including Azure) have the fastest growth. Therefore, Amazon and Microsoft are not in a hurry.
Google has a stable plate of Android mobile advertising at any rate, and its cloud services are also growing rapidly, providing it with new growth drivers. Therefore, Google is not in a hurry.
However, Facebook alone, which is highly dependent on digital advertising plates, is facing an unoptimistic situation. It does not have the second largest source of growth revenue to drive growth. Once advertising revenue declines, the subsequent decline in stock prices may be followed by a lack of other Faceboo, the source of revenue, is more anxious to need a new story that represents the future.
“Metaverse” is to recreate a virtual world with a high sense of immersion, experience, and interaction on the current Internet. The modes and portals closest to this virtual world are social and VR. Therefore, the Oculus helmet is the basic hardware threshold for people’s experience in the Metaverse application released by Facebook today.
Judging from ByteDance’s large-scale acquisition of Pico, the domestic VR manufacturer with the largest shipments, ByteDance is more anxious and more concerned than Tencent in embracing the Metaverse.
The reason is that, relatively speaking, Tencent’s revenue is more stable and more diversified. The advertising business is not Tencent’s main business. Tencent’s revenue includes advertising, games, investment, cloud services, and many other sectors. Tencent is not in a hurry. Layout VR hardware business.
Therefore, both Facebook and ByteDance’s strategies are actually looking for new profitable outlets, and both want to build the VR business into a Metaverse experience portal, form a new round of traffic growth effect, and create an ecosystem of software and hardware integration.
Can Facebook complete Google’s uncompeted business?
To some extent, using VR to create a virtual reality ecosystem is the unfinished business of Google Daydream.
As early as 2016, Google launched Daydream, a VR platform, and provided a reference design for VR headsets and controllers. It hopes to form a giant through the linkage of smartphones, VR headsets, and apps with VR functions. The VR ecosystem has attracted billions of Android mobile phone users and a large number of APP developers to this new platform.
In fact, what Google imagined back then was actually the Metaverse ecology with VR as its core hardware portal.
Google’s past “daydreaming” style of play still wanted to take the original Android path-to rebuild a VR version of the Android platform, that is, Google wants to build the underlying basic platform by itself, collect rent on the ground, and use mobile phone manufacturers and other partners to provide the platform. Ecological contribution.
At that time, Google recruited mobile phone manufacturers such as Xiaomi, HTC, and Huawei to cooperate with this plan to provide hardware and performance support for Google’s “daydream”, and let developers and entrepreneurs be responsible for the content link. Google also restructured from the bottom. YouTube, the production of VR video; in addition, Google Street View, Play Store and Google Photos are the first to launch VR version of the application.
Who knows that although many mobile phone manufacturers responded verbally to daydreams, they were not actively embracing them in action, and Google lacked technology and application levels at the VR hardware level, and lacked control and technological leadership.
On the technical level, Facebook’s Oculus far surpasses Google. At the application level, the number of Google’s Daydream platform applications is also unable to compete with Oculus, and mobile phone manufacturers lack enthusiasm, and Google’s “daydream” has finally become a daydream.
From the current Facebook Metaverse test, the essence of Facebook’s Metaverse is based on VR experience, and the content is still social and games as the core gameplay scenes. Its core also tends to create a VR ecosystem that integrates software and hardware.
However, it has learned from the failure of Google’s daydream, and it no longer relies on partners such as mobile phone manufacturers to do hardware, but instead controls the hardware link by itself. It does both hardware and platform frameworks, and software is integrated with software and hardware. Way.
In general, with the help of the grand conceptual packaging of Metaverse and the company’s name change, Zach Burke’s marketing campaign was actually very successful. First of all, the company’s name change to Metaverse occupied the commanding heights of the brand, and Facebook is also expected to take advantage of Metaverse’s social networking. The game scene drives the shipment of VR products.
For Facebook, Metaverse can be described as a grand blueprint for diversified growth.
First of all, with the help of the hardware portal of VR and new content gameplay, if a certain number of users in the Facebook social system can be driven to migrate to this new platform, replacing the flat mobile social experience with a higher-dimensional VR social experience, it will be beneficial to advertisers. It has a huge attraction and is expected to open up new advertising revenue increment space.
Secondly, the hardware business will achieve substantial growth. After Facebook opened its test, some netizens pointedly pointed out: “Without Quest 2, wouldn’t it be impossible to experience anything?” Behind this is Facebook’s hardware growth strategy-using the Metaverse social game scene to drive VR product shipments.
Once again, to pave the way for e-commerce business, Facebook can’t wait to sell goods in Metaverse. According to media sources, internal documents indicate that Meta plans to “direct more products” through its many apps starting next year, and prioritize investment in “on-site commerce and shopping”. In the future, the Meta ecosystem will be combined with Oculus. The new VR device, sword refers to the social e-commerce ecosystem of Metaverse.
Therefore, if Metaverse can help Facebook complete the goal of user migration, their advertising revenue volume will far exceed the current volume, and their revenue will also break the limitations of the single advertising model, from e-commerce to VR platform, forming a diversification Pattern of revenue sources.
In this way, it is a bit similar to Apple in mode-becoming a VR social ecological giant with integrated software and hardware.
It’s just that the most difficult thing to achieve this grand blueprint is not technology. After all, technical problems in AR, VR, 5G, cloud computing, IoT, blockchain, and artificial intelligence will be resolved sooner or later, and how to create a benign governance ecosystem With operating rules, persuading users at all levels of the B-end and C-end to join, this is the most difficult.
After all, from the perspective of the entire conception system of the Metaverse, the economic and regulatory elements it introduces are much more complicated than those of the mobile Internet, including the introduction of virtual currency, the establishment of an economic system, and the labor and regulatory system that supports the Metaverse. How to establish one Sets of effective governance policies and so on.
The lesson of the failure of Google’s daydream actually shows that the difficulty of a giant to build a VR ecological platform and build the first entrance to the Metaverse is no less difficult than that of a mobile phone operating system in the mobile Internet era.
You want to be a virtualized platform. In addition to a large number of underlying technology layouts, its premise is to require a large number of content creators, developers, consumers, various types of B-side companies, sellers, intermediaries, etc. to join. This Is the hardest. In the end, it came back to the old problem-it is not difficult to make a Metaverse product or platform, but ecology.
However, relatively speaking, Facebook’s VR products, the number of applications, and the completeness of the underlying framework of the platform surpass that of Google’s Daydream. Facebook’s odds of winning are greater than Google’s, but from the industry response, user expectations and its future from Horizon Worlds Looking at the evolutionary path of Facebook, Facebook is still a long way from success.
Can Facebook complete Google’s unfinished business? It may take time to give an answer.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/why-is-meta-more-anxious-about-embracing-the-metaverse/ Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.