Meta Forges Ahead With Metaverse

Meta, formerly Facebook, is a multinational technology conglomerate and proud owner of platforms Facebook, Instagram, and WhatsApp, among many other products and services. A new mission has inspired the company: the metaverse. To make the vision a reality, Meta must make key business decisions, leverage consumer & tech trends, and avoid inefficient silos by aligning its departments. Is this project a chase for a shiny object or can Meta execute, perhaps match, the fortunes of its current platforms?

“Metaverse isn't a thing a company builds. It's the next chapter of the internet overall."—Mark Zuckerberg

Read on to find out more about Meta’s vision, Meta’s core business goals for developing the metaverse, current company limitations, and what Meta’s success would take.

Meta’s Vision

Meta is seriously committed to building the metaverse—so much so the company was quick to change its name.

What is the Metaverse? A Business Ecosystem

The metaverse is a futuristic concept of a platform that could reshape everyday life. Find out about its impact on commerce and its practicality.

Disha BhowmickDisha Bhowmick

The proposed platform promises a fascinating entry into a world where people can be more present—with friends, colleagues, and all who roam the immersive space. It promises an opportunity for individuals to emerge in self-representation through avatars, perhaps through digital clothing or other gadgets. And, any digital wearables would be the products of creative entrepreneurs and graphic designers. Yes, the metaverse could unlock business opportunities.

While social media platforms help promote existing businesses, the metaverse can create an ecosystem of business within itself. The rush of new commerce can be explained by the colorful era of Web 3.0: the next age of the internet filled with trends like digital products, NFTs, ownership, and self-expression.

Meta’s Objectives

Meta is on a trek to deliver a final metaverse product. It’s an ambitious journey, and reaching this imaginative milestone requires crossing a few checkpoints: obtaining the futuristic platform's hardware, software, and social elements. The hardware includes equipment needed to enter such a world and devices consumers purchase. The software relies on skillful Meta engineers developing easy user interfaces and endless applications, games, or features the metaverse will incorporate. The social factor is perhaps the most important piece to the metaverse, since it involves users connecting with one another on a more intimate level, establishing a deep sense of presence, and honoring individuality. Below are a few next steps that are crucial to Meta’s journey.

Mergers and Acquisitions

A large component of Meta’s success relies on its ability to seek out the best VR-related software and hardware companies—then buy them. Meta can leverage its power for future mergers and acquisitions purchases, and target companies that dominate in fields relevant to the metaverse.

For instance, in the hardware space, Meta acquired OculusVR (a popular VR headset line) and ImagineOptix (a company that makes liquid crystal lenses for VR and drastically improves vision sharpness.) One writer mentions how Meta's moves concern competitors who may no longer have access to critical VR headset components. In the software space, Meta acquired Within and its popular VR application, Supernatural: an immersive fitness platform that transports players to visually stunning locations as they workout or meditate. These barely scratch Meta’s list of M&As, and it will continue to expand as more companies seamlessly integrate with Meta to build the metaverse.

View this post on Instagram

A post shared by Supernatural (@getsupernatural)

VR Headset Engineering

Meta must heavily invest in R&D; the company’s engineering department must continue improving headset performance and lowering prices to improve scalability. Though VR devices won’t see mass adoption soon, headset sales have seen success.

“The company’s consumer V.R. headset, the Quest 2, is the most popular V.R. headset on the market with more than 15 million sold, according to outside estimates. Its Oculus V.R. app — which has since been rebranded Meta Quest — has been installed over 21 million times on iOS and Android devices” (nytimes.com).

Even Meta’s employees use Meta Quest headsets to participate in innovative meetings through Meta Horizon Workrooms; consider features like “presentation rooms that automatically expand as more people join the meeting” and whiteboards with “3D sketching, real-time rendering and object manipulation.” As the company makes strides in VR headset improvements, Meta’s next objective should be to improve affordability for everyone over time. Now that Meta’s own employees are on board and frequently test headsets for enterprise use, Meta should fine-tune and consider scaling its equipment to employees in companies everywhere.

VR Software Development

The first metaverse platform pushed out by Meta was Horizon Worlds. Greater sentiment revealed that Horizon Worlds has simple visuals—so simple, it’s awkward. Next objective: Meta must promptly advance platform aesthetics through continuous software development, especially if they want to truly captivate users with a realistic, almost-like-they’re-there feeling. The same goes for updating avatar visuals, which Meta is constantly revising: “they announced undated avatar updates including better graphics, expression tracking and eventually…legs, albeit in a demo which had to fake the technology because legs aren’t ready yet. Memes abounded” (forbes.com).

A related article is Meta’s augmented and mixed reality development; check this page for more info.

Consumer Awareness and Advertisement

Users give life to the metaverse. To ensure a steady stream of sign-ups, Meta must vividly advertise the concept of the metaverse. Current efforts include episodes on Meta’s “Are We There Yet?” series and frequent sneak peeks of metaverse features posted on Instagram. This type of content sets Meta on the right track for inspiring consumer trends, engaging platform use, and driving the digital economy—a significant aspect of the metaverse.

Meta’s Concerns

There’s a lot to perfect when it comes to creating the metaverse. The project calls for the involvement of multiple departments and business operations. Is Meta spreading itself too thin? Or, are lackluster visuals and unimpressive progress simply from too much gray area associated with the metaverse? Below are Meta’s key concerns that may impede company growth and metaverse progress.

Business Strategy Gray Area

Internally, employees bring attention to the lack of clarity with Meta’s strategy; they complain about “frequent strategy shifts that seem tied to Mr. Zuckerberg’s whims rather than a cohesive plan” (nytimes.com). Meta has multiple pinpoints of focus, from enhancing VR headset performance to maintaining Facebook, Instagram, and WhatsApp. That said, it's crucial to strike a balance and deliberate on strategy. Employees also report struggling to see the vision. Zuckerberg may keep a sure-fire concept of the metaverse in mind, but software developers scramble to see the picture and create satisfactory programs.

“Some workers now jokingly refer to key metaverse projects as M.M.H., an acronym for ‘make Mark happy’” (nytimes.com).

Early Stages of R&D

Platform development is still early and Meta’s progress is slow. Right now, the most important thing is funding the project. Mark Zuckerberg mentioned plans to invest heavily in his company’s metaverse ambitions, but that means losing significant amounts of money on the project in the next three to five years (bloomberg.com).

Visuals are also undeveloped—and legless—because Meta’s VR headsets don’t have the capacity for more visually stunning pictures. One post puts it best: “lighting, textures, transparency, and many of the effects that make things look good in modern games, at the resolution and framerate required for smooth VR, can’t currently be done on a $400 headset… ‘in layman’s terms, you can’t wear a PS5 on your face.’” Upon revamping the application, Horizon Worlds aims to address the aforementioned issues.

View this post on Instagram

A post shared by Mark Zuckerberg (@zuck)

Slow VR Adoption

Switching popular social media platforms from PCs and desktops to mobile phones was a smooth process. What about switching its platform to VR? For the metaverse, consumers would have to shift to VR headsets—something not yet feasible on a large level because (1) the technology is not popular like other home devices or gaming equipment and (2) VR equipment is highly expensive. Plus, “many of Meta's products for an ‘embodied internet,’ where users would be immersed in a virtual world, are not likely to be viable for 10 to 15 years” as stated on Yahoo Finance.

Tech adoption is slow, but so is concept adoption. Metaverse skeptics veer on the side of caution because metaverse trends may see a delayed rise. That also means Meta and its platform will see delayed growth.

“The main problem with Horizon Worlds is that right now it’s a place for a niche of a niche.”—Forbes

Competitive Rivalry

Direct competitors of Meta include Microsoft, Google, and Apple. Talk about tough competition. Though Microsoft is committed to building the industrial metaverse, it’s left on the side burner; AI and other priorities have sparked Microsoft’s interest. Google and Apple have been making quiet ruffles in the metaverse industry; while Google has been heavily investing in AR technologies, Apple has plans to launch its own AR/VR headsets.

Another worthy rival is VRChat: “despite having less than 1% of Meta’s funding, VRChat has much cleaner movements, graphics and fluidity among its avatars, and is working on improving finger tracking to benefit the sign language community who play their game… VRChat garners over 2 million active players each month, but Meta’s flagship project Horizon Worlds struggles to get 200,000 users per month, and that number is dropping as Meta reported a 33% decrease in player counts over [2022]” (saratogafalcon.org).

What Would Meta’s Success Take?

Does Meta have what it takes to deliver on its powerful vision and be the first to finish in the metaverse race? How will the company structure its revenue model and inspire consumer trends? Answers include securing investments, strategizing, navigating big data, and solidifying their advertising-based revenue model for the metaverse.

Heavy Investments

Meta’s capital expenditure on the metaverse project was $32 billion in 2022 and has since increased. Mark Zuckerberg mentioned that the company will be at an overall loss due to its early stages of rapid investments, so it’s essential for the company to secure additional funding. Luckily, Meta’s revenue stream from existing platforms won’t stop anytime soon, and “the company is betting on revenue growth from an investment in its Reels short-form video services” (bloomberg.com). Until Meta is on the upside, its heavy investments will be hurting profitability and breaking the hearts of investors.

Rival-Defeating Strategy

Meta incorporates a mix of (1) horizontal and (2) vertical integration; (1) the company is expanding its reach across different industries and markets through partnerships while also (2) controlling their entire value chain by developing VR technologies and platforms that will make up the metaverse. It’s too early to tell if Meta will ultimately beat fellow firms. However, Meta can capitalize on its unique advantages: social media expertise, AI, established metaverse infrastructure, top-tier data analysis, and existing community. Meta’s strategy should support its goals of doing it all—hardware, software, and social.

Navigating Big Data

At the end of the day, a platform like the metaverse can't replace face-to-face communication; it’s a long way to go before virtual figures, perhaps holograms of people, outdo direct interactions. Whether it's for securing business deals or building personal relationships, understanding body language and facial signs is key to understanding people. Yet, the technology may make it easier to read people once it reaches peak potential. Consider the unsettling thought of a zoom-in feature that exposes every microexpression.

“Behaviors like heart rate or pupil dilation that are involuntary, that you may not be conscious of, and that may be quite revealing about your emotions… you can even imagine someone being outed as a result of eye tracking” (washingtonpost.com).

Meta’s success relies on its ability to address and navigate ethical and regulatory issues associated with this type of big data that may leave users feeling vulnerable.

Advertising-Based Revenue Model

Meta’s golden path to profit is lead by consumer spending on digital products; the metaverse can generate revenue by providing a medium for creators and businesses to sell virtual products and services. Perhaps Meta will charge fees based on platform service or product commission. Or, similar to its existing platforms, Meta may derive income from advertisements—those more immersive and impactful on VR. Regardless, imposing fees may counter the idea of honoring the independence of creators and contractors who voluntarily stake their own products and services on the platform.

Web3’s Sharing Economy

Web3 could be the sharing economy’s cherry on top by streamlining the technology the sharing economy currently operates on.

Disha BhowmickDisha Bhowmick

Conclusion

Meta is an avid pursuer of the vision of the metaverse. As the company gradually transitions aspects of its workforce to VR, Meta’s departments have all hands on deck as it develops the platform's overarching software and hardware.

However, Meta’s journey is not all rainbows and butterflies; it could be, if the platform could display those realistic, stunning visuals. Users mentioned that the Horizon Worlds launch was unimpressive. And, skeptics hesitate with buzzwords like the metaverse because results haven’t yet lived up to the hype.

Meta must master web3 trends and how businesses will play a role on the platform. They must master their own game and finalize the company’s strategy. Buying out the competition—every VR-related company—only goes so far; it gives Meta the upper hand with resources but not the skill to seamlessly integrate everything into a cohesive, fully-functioning metaverse platform.

Companies continue to identify business opportunities in the all-inclusive metaverse. There’s a long way to go, but Meta is a formidable presence in the tech industry. If any tech giant were to achieve the vision, why not Meta?