Metaverse Digest: The latest global, enterprise and industrial developments

As is usual in our roundup of all things metaverse, we are seeing elements of robust industrial applications, enterprise systems integrator plays and retail consumer moves — all in what might be considered pure software applications. At the same time, industry giants Apple Inc. and Meta Platforms Inc. are competing to capture market share and mindshare in the mixed reality headset hardware space, now joined again by Alphabet Inc.'s Google with Magic Leap. It is a potentially confusing mix that we aim to help navigate and explain.

The adage "everything old is new again" applies to many emerging technology trends. Some may consider the metaverse recent, or a flash in the pan, but its concepts are long-standing and ever-evolving, and represent changes in how we interact with one another, applications and data. Reboots that use newer technology suited to contemporary trends are often unmindful of the technology's history and the lessons learned. Rebuilding an older experience can also bring new life to a classic — the groundbreaking 1993 CD-ROM game The 7th Guest got a makeover in 2023 as a re-shot, volumetric video-powered virtual experience. Many similar examples are not purely metaverse but start to form a wider picture of the desire for richer interactive environments.

Context

We are seeing some previously tried things now making a comeback. Qatar Airways' 3D website harks back to early VRML days on the web but injects a bit more chatbot technology. Walmart Inc.'s shopping experience recalls those early 3D web store attempts, but injects it with modern social media to draw in a generation that has grown up on those platforms.

The BBC has hosted a live avatar-based gig, cloud-streamed and easy to access on a smartphone, yet it had done this before in 2006 with Second Life. Although Google sunsetted its Enterprise Google Glass headset, it now partners with Magic Leap to use the headsets and software from that company for augmented reality (AR) content delivery. Microsoft Corp. dropped its mixed reality toolkit and shuttered AltspaceVR, but has partnered with Meta and is delivering Mesh applications and a new volumetric API.

S&P metaverse revenue forecast

In a recently published report, S&P Global Inc. forecast that worldwide metaverse revenue is set to grow at a 25.5% compound annual rate, from $17.5 billion in 2023 to $54.5 billion in 2028. This is divided across enterprise and industrial sectors, alongside gaming and consumer. Metaverse hubs are becoming a significant part of the consumer and gaming space.

Lufthansa looks to Meta Quest 3 VR

Meta announced an update to its Quest 2 and 3 virtual reality headsets to enable a travel mode so the devices operate correctly when used in places such as an aircraft. VR devices respond to head and body movements but are generally used in a static environment, hence they can pick up false movements when used in a vehicle in motion.

With the announcement of this upgrade, Lufthansa AG has partnered with Meta to start providing mixed-reality content to business-class passengers. MSM.digital will build and manage the system working with the two companies. Passengers will be able to experience a large screen to watch movies, and there are plans for active meditation applications and virtual sightseeing to preview destinations. There will also be spatial videos and 360-degree (360) video content from prominent travel bloggers and reports.

Qatar Airways launches QVerse

The airline's initial virtual experience is a single-user website providing 360-degree images of the premium check-in area at Hama International Airport, as well as an exploration of the airplane cabin interiors in each class. Using Epic Game's Unreal Engine and Metahuman tools, Qatar Airways created a virtual flight attendant called Sama, which is a chatbot for this web experience.

Walmart launches Realm

We previously described Walmart's use of Roblox for multiuser metaverse-style experiences. The company also launched a web-based experience called Walmart Realm, a single-user immersive shopping experience with the addition of social media influencers and varied ways of presenting content and products. Areas of the site provide 360 views of virtual or real locations.

Videos of fashion influencers sit alongside product images. Quick and simple games along the lines of gem-matching or "flappy bird" are interspersed with beauty and fashion products. Some of the games offer entry into a cash sweepstakes. Occasional Walmart logos, Sparks, appear in various places that, when clicked, are added to a treasure hunt loyalty card, which unlocks rewards when completed. Avatar versions of the personalities appear to provide another overlay to the experience. Adding items to the shopping basket will eventually lead to the regular Walmart site for checkout.

Telefónica SA celebrates its centenary with Roblox

As part of a marketing campaign in Brazil, Germany, the UK and Spain, Telefónica Town has been built in Roblox. This was created with business partner Playoffnations. It features several zones, a central island, and villages aligned with and named for its products and services for cloud, internet of things, cyber and Wi-Fi. Nonplayer characters work with players in a series of game elements and experiences. One is described as solving a global challenge to repair damage caused to the city by a virus.

Glue acquired by Hyperspace

In our previous digest, we reported that Glue, an avatar-based enterprise virtual world platform, had gone bankrupt and shut down. It has now been purchased by Hyperspace, run by virtual world and metaverse veteran Danny Stefanic, for an undisclosed sum. This adds to the Hyperspace portfolio of enterprise solutions in virtual collaboration and immersive experiences, such as MootUp, LearnBrite and UniversalAvatars.

Microsoft announces volumetric API with Meta

At its recent Build event, alongside the many AI announcements and copilot PCs, Microsoft announced a new volumetric API for Windows applications running on Meta Quest mixed reality headsets to deliver immersive VR and AR content into that ecosystem. This is a continuation of a partnership that has seen Xbox cloud streaming of games and Teams Avatar-based 3D environments with Mesh on the devices, along with the 365 suite of office applications such as Word.

Minecraft turns 15

Minecraft, the block-based, multifaceted virtual-world gaming platform, just turned 15 years old. It was purchased by Microsoft in 2014 for $2.5 billion when it had already shifted 50 million copies. The platform has remained a leading avatar-based virtual world experience and a brand franchise going from strength to strength, including a recent announcement from Netflix of an animated TV series — a separate development from the WB live-action movie in the works.

Wales creates a spatial experience

In the UK, Wales has created a promotional multiuser virtual world experience using the Spatial platform to encourage historical and cultural appreciation of the country and attract visitors. It also features Welsh signage and information alongside English, greeting new arrivals with "croeso," the Welsh word for welcome. Visitors can build an itinerary for a physical visit based on what they see and do online. Various rooms and structures link to existing websites and information, while a series of collectible Welsh dragon tokens is part of a treasure hunt.

BBC Radio 1 tries a live virtual gig

BBC Radio 1 asked listeners to dive into a virtual world gig for a three-song set by Sam Tompkins that was simulcast on the radio and streamed on YouTube, with a Discord channel to discuss the event. Described as Radio 1's Portal, the environment was cloud-streamed and avatar-based, meaning any phone or browser could access with no install. Viewers were assigned an avatar name rather than needing to register and could pick from a selection of suitably dressed avatars. Tompkins appeared on stage as a live video-based avatar, effectively "green-screened" into the virtual world. Avatars were able to move and emote with various dance moves.

This was described as an initial experiment, although more gigs are likely. The system used a series of the same room and feed of the singer (known as sharding), with groups of avatar users sharing the experience together. Back in 2006, Radio 1 built a Big Weekend event site in Second Life, where users' avatars could come together en masse and enjoy video streams of the live bands.

Google, Magic Leap partner on mixed reality

In a post-Google I/O announcement, the company indicated it was partnering with Magic Leap, combining the mixed reality hardware from Magic Leap with content and services from Google. This joins the competition of Apple's Vision Pro and spatial computing ecosystem and the Microsoft/Meta partnership.

Listen to the future of the metaverse

Season 2, episode 13 of S&P Global Market Intelligence's podcast "MediaTalk" provides a 15-minute wrap-up of who is investing in the metaverse and why, and delves into the industrial metaverse, not just the consumer plays. It is available on all major podcasting services.

^{This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.
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