1. Entry into the Metaverse:
• Big tech companies are entering the metaverse by expanding on core products and business units rather than building entirely new ones.
• Qualcomm is developing chips for AR/VR hardware developers.
• Meta is using social media platforms for AR advertising.
• Microsoft is stockpiling gaming content for exclusive release on its Xbox console.
2. Key Focus Areas:
• Gaming: A major focus as big tech players aim to attract consumers to their metaverse platforms. Meta and Microsoft are heavily investing in gaming content and acquisitions.
• AR/VR Hardware: Meta is partnering with chipmakers and acquiring companies to develop its AR/VR hardware.
• Advertising: Meta is integrating AR advertising with its social media platforms and partnering with startups to enhance AR experiences.
Meta’s Metaverse Strategy
1. Gaming:
• Meta has acquired multiple gaming startups to build out its metaverse content.
• Notable acquisitions include Beat Games, BigBox VR, and Ready At Dawn.
2. Advertising:
• Meta is attracting brands to its platforms by partnering with AR advertising startups and building customizable immersive experiences.
• Partnerships with companies like Perfect Corp. and CGTrader for AR beauty try-ons and 3D content.
3. Hardware:
• Meta is partnering with companies like Qualcomm and AMD to develop AR/VR hardware.
• Challenges with internal chip development have led Meta to seek external partners and acquisitions.
Qualcomm’s Metaverse Strategy
1. AR/VR Chips:
• Qualcomm aims to be the go-to chip provider for AR/VR devices, winning 90% of chipset designs for XR devices.
• Key partnerships include collaborations with Meta, ByteDance, and HTC Vive.
2. XR Development Platforms:
• Qualcomm is building an XR developer platform through acquisitions like Blippar, echo3D, and Wikitude.
• The Snapdragon Spaces platform focuses on creating AR tools and features from acquired technologies.
3. 5G Infrastructure:
• Qualcomm is developing 5G solutions to support the metaverse, emphasizing low latency for seamless XR experiences.
• Acquisitions like Cellwize and partnerships with T-Mobile and Microsoft enhance Qualcomm’s 5G capabilities.
Microsoft’s Metaverse Strategy
1. Gaming:
• Microsoft is aggressively acquiring gaming studios, with notable acquisitions including Activision Blizzard and Zenimax Media.
• These acquisitions fuel Microsoft’s internal gaming studio and exclusive content for Xbox platforms.
2. Gaming Infrastructure:
• Investments in game developer platforms and content moderation tools, such as PlayFab and Two Hat.
• Building a suite of internal game development tools, including Azure Cloud for server hosting and Visual Studios.
3. Digital Twins:
• Microsoft is investing in digital twin technology for various industries, partnering with startups and corporates for simulation solutions.
• Strategic partnerships with companies like Cosmo Tech and Bentley Systems for infrastructure and sustainability modeling.
Market Drivers for Big Tech in the Metaverse
1. Explosion in Global Gamers:
• The growing number of gamers presents a massive opportunity for big tech to develop new games and in-game revenue streams.
2. Next Generation of Internet Devices:
• Big tech companies are investing heavily in AR/VR devices, anticipating a transition similar to the shift from desktop to mobile internet.
3. Internet’s Growing Role in Daily Life:
• The increasing time spent online drives demand for more natural and immersive virtual experiences, making the metaverse a valuable opportunity.