It seems that traditional social networks may have passed their peak. Video game manufacturers are showing where the trend is heading. They are creating 3D worlds in which people not only play games, but also socialize. Microsoft has recognized the potential and made the biggest acquisition in the company's history. Mark Zuckerberg also wants billions of people to spend a lot of time in the Metaverse. One winner has already emerged in the battle between Big Tech: the software and hardware developers in the video game industry.
In January, the Microsoft CEO made it clear where he sees the future of the entertainment industry. He announced the purchase of video game manufacturer Activision Blizzard for $69 billion. But it's about much more than a declaration of war on Sony and dominance in the gaming industry. Microsoft wants to push open the door to its Metaverse version.
From solitary gaming to gigantic meeting place and playground
The acquisition of Microsoft is another turning point in the success story of the video game industry. It began in the 1990s, partially with PC and Nintendo games. As a rule, a younger man played alone in front of the screen. In the 2000s, the Xbox game console from Microsoft and the Sony PlayStation freed gaming from its niche existence. With the invention of the smartphone, gaming fever spread to the handy all-rounders in the 2010s. Today, 60 percent of adults in the U.S. prefer to play games on mobile. The popularity of the video game industry is also well illustrated by Activision Blizzard's sales figures. The game software maker generated $864 million in revenue in 2003. In 2020, the company reported just over $8 billion in revenue.
In the 2020s, we can look forward to more technical innovations. Thanks to sophisticated Virtual Reality devices, immersion in fantasy worlds feels even more natural. Final Fantasy producer Naoki Yoshida thinks highly of mobile gaming over the 5G network. He says it can offer the same gaming experience as the hyped-up consoles at home. All of this may set the hearts of die-hard gamers racing, you may now object. But it could have bigger implications. The gaming industry is a pioneer in bringing both needs, gaming and sharing, under one roof.
Social media, we have a problem
Social media in its current form is falling behind. Who wants to be bothered with ads on the Facebook or Instagram newsfeed when you can meet friends for a game and chat while you're at it? Plus, the two-dimensional newsfeed feels stale compared to the three-dimensional worlds of video games. Polarization is advancing on social media. Gaming strengthens the connection. It makes no difference to the brain whether you climb a 4,000-meter mountain together or successfully master a difficult mission in a video game. In both cases, it releases the trust-building hormone oxytocin.
Gaming has a huge fan base
Worldwide, nearly 400 million people play Activision Blizzard games every month. That's more active users than the social network Twitter can boast. Globally, the gaming community can also rival Meta, which combines Facebook, Instagram, and WhatsApp. 3.2 billion people use one of the services at least once a month. According to a survey by the research and consulting firm DFC Intelligence, the number of gamers is the same. Most of them live in Asian countries. Gaming has long since ceased to be a male domain: in 2020, women accounted for 41 percent of all gamers, and in Asia, the figure is as high as 45 percent, depending on the region.
Number of gamers in millions
The titans of social gaming platforms
Games like Fortnite, Roblox, and World of Warcraft are leading the way. Those immersed in the iconic role-playing game World of Warcraft are encouraged to make friends, start a chat and collaborate in guilds. Roblox is an online gaming platform where users can create their own computer games and play them with other people. Pop star Ariane Grande hosted a concert series in Fortnite. She performed in the form of a rendered 3D avatar and wowed a million viewers.
The above examples are not isolated phenomena that will soon disappear. They are part of a lasting trend: it's moving in the direction of playing and talking with friends and strangers in real time. People hang out in virtual spaces. Young adults meet on Discord, Twitch or Xbox Live, where they play and chat. For kids, age restrictions apply to a Facebook, Instagram, or TikTok account. Access to Roblox is open to all. Nearly 50 million people pass the time on Roblox every day, most of them young.
Facebook. Social media is dead. Long live Metaverse
Mark Zuckerberg hasn't missed the fact that two-dimensional social media feeds are reaching their limits. He has studied the gaming industry closely. This led him to announce that Facebook is now a Metaverse company, rather than a social media company.
The idea of the metaverse is that we are all in a digital universe, with numerous worlds that is so exciting, limitless, and experiential that we want to spend a lot of time in it. We go exploring as avatars—pick what they've always wanted to be—and use cryptocurrency to acquire virtual goods, status symbols and services.
Mark Zuckerberg would like to become the sole ruler of the Metaverse. It’s unclear whether his bet will work out. It looks more like we will explore worlds from different providers. Definitely, the expertise of game developers and device manufacturers will be in demand in these hyper realistic worlds.
Investors have exciting investment opportunities
"Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the evolution of metaverse platforms," Microsoft CEO Satya Nadella said when announcing the Activision deal. Sony has already responded to Microsoft's game changer by buying U.S. maker Bungie for $3.6 billion.
The gaming rocket has ignited the next stage. According to Bloomberg Intelligence, revenues generated by the metaverse for video game and device makers could rise from US$274.9 billion in 2020 to US$412.9 billion in 2024. volt by Vontobel investors have the opportunity to participate in this potential with the "Gaming & E-Sports" investment module.
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