Metaverse VR advancements: Living large in the Metaverse

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  Quantumrun Foresight
• May 27, 2024

Insight summary

Exploring the Metaverse reveals its vast potential and the hurdles, such as low device adoption and technical challenges that diminish user experience. As technology progresses and prices drop, consumer interest grows, leading to more investments in making the Metaverse more accessible and enjoyable. The evolving landscape of the Metaverse is shaping new opportunities for education, work, and social interactions, promising a future where digital and physical realities merge more seamlessly.

Metaverse VR advancements context

Despite the enthusiasm, the full potential of the Metaverse faces challenges, such as low consumer adoption of immersive devices and infrastructure hurdles that prevent a seamlessly immersive experience. According to McKinsey, events like Decentraland's Metaverse Fashion Week in 2022 have highlighted glitches and subpar graphics, underscoring the gap between expectation and reality for about one-third of users. However, history shows us that technologies with initial low penetration, such as virtual reality (VR), often follow an upward trajectory in adoption, mirroring the rapid embrace of smartphones, tablets, and social media.

Significant price reductions in VR headsets, from USD $500 in 2016 to USD $300 in 2021, along with the doubling of available games for devices like Oculus Quest 2, indicate a burgeoning consumer interest driving technological advancements and adoption. This increasing demand has sparked competition among tech giants, encouraging further investments in enhancing the Metaverse's accessibility and usability. For instance, Apple's acquisition of the VR company NextVR and the launch of the Vision Pro to much fanfare highlight the industry's commitment to overcoming current limitations. Moreover, the correlation between realistic experiences and user engagement underscores the importance of continuous improvement in creating immersive virtual environments.

As the Metaverse evolves, consumer expectations around data privacy and control are shaping the development of new solutions and devices, with 62 percent of consumers desiring complete control over their data (based on McKinsey figures), yet nearly half are willing to compromise for a personalized internet experience. Furthermore, the entrance of brands into the Metaverse, as indicated by positive consumer responses to virtual interactions with favorite brands, signifies a broadening of the Metaverse's commercial potential. 

Disruptive impact

Blending virtual and physical realities means enhanced educational and training opportunities, allowing for immersive learning experiences that mimic real-life situations with high fidelity. This trend can also revolutionize social interactions, enabling people to connect in rich, virtual spaces that transcend geographical boundaries, fostering a deeper sense of community and engagement. Additionally, the rise of virtual marketplaces within the Metaverse offers new avenues for personal expression and commerce, where users can buy, sell, and create digital assets and experiences.

Businesses may need to develop virtual spaces to showcase products, interact with customers, and provide services in more engaging and interactive ways than currently possible through traditional online platforms. The ability to host virtual events or create digital twins of physical stores or products offers companies innovative methods to reach and expand their customer base. Furthermore, as remote work continues to evolve, metaverse VR can enhance collaboration among teams, enabling more dynamic and interactive meetings and workspaces that mimic the benefits of physical presence and interaction.

Meanwhile, governments may need to adopt new policies, including frameworks to regulate digital ownership, privacy, and security within virtual spaces, ensuring that users' rights are protected while fostering innovation. International collaboration may become increasingly important as the Metaverse blurs the lines between physical jurisdictions, requiring agreements on standards and regulations that facilitate cross-border digital interactions. Additionally, governments can leverage metaverse VR for public services, such as virtual town halls, educational programs, and simulations for emergency preparedness, making these services more accessible to the public.

Implications of Metaverse VR advancements

Wider implications of Metaverse VR advancements may include: 

• Enhanced global workplace collaboration, reducing the need for physical relocation and promoting diverse workforce integration.
• A shift in educational paradigms towards immersive learning, enabling students to experience historical events or scientific phenomena firsthand.
• Increased demand for digital real estate within the Metaverse, leading to new investment opportunities and markets.
• The emergence of virtual tourism, offering accessible travel experiences and reducing carbon emissions associated with travel.
• Development of new job roles focused on creating, managing, and moderating virtual environments and experiences.
• Changes in consumer behavior towards preferring digital over physical goods, impacting traditional retail industries.
• Mental health challenges arising from blurred lines between virtual and physical realities, requiring new healthcare approaches.
• Environmental concerns related to the energy consumption of powering extensive virtual worlds, prompting advances in green technology.
• Increased political activism and organization within virtual spaces, offering new platforms for engagement but also raising regulation and control issues.

Questions to consider

• How could immersive virtual environments reshape the way you learn or acquire new skills?
• How might virtual marketplaces within the Metaverse change your shopping habits?