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1/ REBALANCING PRICING MODELS One of the more significant issues facing the metaverse is the unrealistic return on investment (ROI) expectations that emerged during the hype phase. In the first five months of 2022 alone, more than US$120 billion was invested in metaverse technology and infrastructure. During this surge, renowned brands such as Gucci, Atari, Adidas, and even rapper Snoop Dogg seized the opportunity to buy real estate in the metaverse, enticed by the prospect of simultaneously engaging with millions of customers or fans. Early adopters and investors pumped massive amounts of money into metaverse projects, especially virtual land grabs, often with little justification for their sky-high valuations. However, pricing models must be based on real-world value and utility, not speculation. Rebalancing the industry is essential to reestablish trust, and foster a more sustainable and credible metaverse landscape.
Reality Check Analyzing what’s next for the metaverse b y S A N D R A H E L O U
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he whirlwind of excitement that initially surrounded the metaverse has given way to pragmatic concerns. Early iterations from metaverse frontrunners, hailed as the future of the 3D web, have fallen well short of expectations, offering little more than gamified virtual reality experiences with limited real world utility. Now that the hype bubble has burst, it’s time for a reality check. What is the current state of play for this emerging technology, and what does the future really hold? The road ahead may be challenging, but it remains promising. Here are six elements that we need to keep an eye on as we move into the future:
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2/ NEW BUSINESS MODELS THAT BETTER SUIT USERS AND CLIENTS Metaverse builders need to relook at their business models and prioritize understanding their clients and users. Long gone are the days where buying “scarce land” in the metaverse was a thing. Builders and founders need to understand that clients and brands are looking at rebalancing the over inflated pricing models that hit the market. There is a bigger focus on the prolonged vision and strategy rather than the hype train. 3/ PRIORITIZING USE CASES AND FUNCTIONALITIES Show me the strategy! As more brands enter the market across multiple industries and platforms, it’s becoming very clear who has a strategy for growth and who doesn’t. Attention must lie in building strategies for growth with use cases and functionalities rather than purely launching non-fungible tokens (NFTs) and