This month, Tom Simpson, AdColony’s Senior Vice President of the APAC region, was invited back to the studio of Channel News Asia’s CNA938 Money Mind to share his thoughts about how gaming is shaping the Metaverse.
While definitions of the Metaverse vary, the term is typically used to describe a virtual online space characterized by interactivity and interconnectivity. Diving deeper into this thesis, Tom outlined how gaming experiences are transcending sitting down with a controller to form a more evolved and immersive 3D experience. This is creating ‘Phygital Experiences’ delivered via our phones – a Physical + 3D co-existing world that is in layers of augmented reality across the physical world around us. A simple example is how users are transitioning from just a flat profile picture and instead, embracing 3D Avatars that reflect their personalities.
Tom continued that he believes that gaming and the Metaverse will enhance the human experience, rather than hampering it, and we will no longer be limited to just a scrolling wall of 2 dimensional photo or video posts. Instead, the Metaverse will allow users to explore new behaviors like shopping, watching movies, dancing, and partying together using avatars. A recent example of this is the Rift Tour concert where Ariana Grande performed inside the popular multiplayer, online game, Fortnite. Millions of players were able to jump through unique environments featuring Fortnite motifs, magical environments, and attend a one-of-a-kind performance from Ariana Grande.
With the rise of the Gaming Metaverse, we see another trend emerging: the Play Economy, where new economic models such as play-to-earn are exploding in popularity. For instance, Axie Infinity, a game where you can earn either by winning battles, going on quests, or breeding new Axies within the virtual world, generated $485 million in revenue since July 2021. The game allows players to convert their in-game currency, called smooth love potion, into real cash.
On top of this, the Play Economy will continue to see the emergence of NFTs: unique virtual products that brands release for their followers to collect. This could be virtual skins, game elements, fashion accessories etc., and it will be powered by a decentralized Web 3 model and blockchain. Brands like Burberry and Vogue are already leading this evolution. Digital items will continue to become a huge part of the Metaverse economy, and businesses who don’t embrace this will be losing out.
As we move towards the Metaverse, we will also see traditional Web 2.0 technologies like Google and Facebook phasing out and their advertising strategies being remodelled around the Play Economy and the Metaverse!
Check out Tom’s full interview for more insights:
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