Metaverse = profits, but firms not ready for deep dive

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Metaproof is a media company that covers the business of the metaverse. We keep you informed how the metaverse and web3 are changing YOUR industry.

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1/ Metaverse could drive up profits — but most businesses may not be ready to invest yet

It looks like the metaverse maintains a great potential to drive up business profits - yet the lack of proven success bars companies from pouring big money into it these days, as a new KPMG survey shows.

A few findings to highlight:

• 60% of tech, media, and telecom executives think the metaverse can drive revenue and profits and lower operating expenses, as transactions move from physical to virtual.

• TMT execs surveyed believe the metaverse can improve customer satisfaction through interactive experiences.

• Yet a similar portion of respondents says despite the metaverse’s rich potential, it still needs to be further refined and developed, thinking it’s still “several years from becoming a thriving commercial ecosystem.”

• They want proof: 40% think there’s a lack of successful use cases to show an ROI.

Tech and entertainment behemoths from Meta to Disney have invested billions into the metaverse, but have appeared to delay their ambitions in the space to prioritize AI efforts on the back of ChatGPT’s current success.

2/ Apple’s headset will land at a shaky time for the metaverse

The rumor mill is swirling with anticipation as Apple gears up to unveil its long-awaited AR/VR headset at its upcoming WWDC developer conference this June. It's been 7 years since the tech giant released its iconic first-generation AirPods, and fans are anticipating the new release.

The VR/AR market, however, appears to be treading risky waters lately. Many industry leaders like Microsoft and Disney have had to put their metaverse initiatives on brakes.

So, while the Reality Pro or Reality One (as Bloomberg’s Mark Gurman predicts it may be called) is set to be a game-changer, it's going to take some serious innovation - and attention - to ensure its success.

Experts say, time and again, that a fully realized metaverse is still a decade away. As for Apple, it might be asking a bit too much to single-handedly create an entire metaverse with just one headset launch.

3/ ChatGPT sparks investment frenzy and soul searching in China’s artificial intelligence drive

As early as 2018 (as a result of President Xi Jinping conducting a special study session with the Politburo), China had declared AI to be strategically important. Yet ChatGPT’s rise seems to cast doubts on Chinese tech supremacy: Why didn’t the AI revolution that ChatGPT ushered in didn’t happen in the country?

Experts cite a censored internet, compounded by the lack of access to advanced chips, as a likely hindrance to China’s ambitions to create a real ChatGPT counterpart.

Amid the technological gaps, though, Chinese firms remain undeterred in touting their own ChatGPT-like ambitions in the country where the chatbot is not officially available given the government’s approach to uncensored content.

March 2023 saw internet search giant Baidu launching Ernie Bot, becoming the first major Chinese tech company to launch its own GPT-like solution.

4/ Over 7,000 players successfully converged in Yuga Labs’ Otherside metaverse ‘Second Trip’

Yuga Labs offers its community with a glimpse of its Otherwise metaverse slated for launch later in 2023, with more than 7,200 players joining the 90-minute sci-fi and NFT-fueled adventure. Here’s what went down at the closed event:

• Holders of the Otherdeed NFTs, a collection linked to land in their metaverse world, were invited to join the experience with a plus one.

• The experience was designed to transport players into a sci-fi fantasy world offering elements of popular MMORPG and NFT culture.

• Attendees scored an Obelisk digital collectible to remember the journey.

This Yuga Labs event might just be a masterclass in fine tuning the metaverse gaming experience, creating more intimate community building.

As Chief Gaming Officer Spencer Tucker says: "We want to allow people to stop and smell the roses sometimes while still having really cool experiences that they can dive into."

🏃‍♂️ Quick Hits

🎮 Gaming

• In a new policy shift, no more ads for under age 13 on Roblox. (Link)

• Web3 gaming could ultimately connect web2 and web3: Mo Shaikh, Aptos Labs CEO. (Link)

• Meta snags game dev platform Crayta and sets it loose on Facebook Gaming's cloud streaming. (Link)

• Lego seeks to immerse consumers into the Lego universe both in stores and digitally. (Link)

• Thanks to blockchain, developers can now deliver what gamers want: ownership, speed, data, simplicity, and concessions. (Link)

• What’s the metaverse got in store for poker & casino? (Link)

🕶 Fashion

• MFW 2023 was a lavish affair – and also a tech trainwreck. (Link)

• Karlie Kloss's Fashion Klossette on Roblox attracts 7M visits in its first week. (Link)

• Prada, YSL, Gucci, Louis Vuitton, Burberry, Dolce & Gabbana, and Balmain have all hopped on the metaverse wagon. (Link)

• Web3 collabs like Gucci & Yuga's multi-year deal and Diem's AI social search engine for women celebrate divine femininity. (Link)

• "Most fashionistas are amazed by how the metaverse is integrating with fashion and knowing the intricacies of the technology certainly helps build trust and excitement for the user." - Daria Shapovalova, Founder of DressX. (Link)

• AI-driven designs have got Bonsai Apparel making a splash in fashion. (Link)

🏀 Sports

• AI model analyzes 2015/2016 NBA data, providing coaches with insights into player strengths and weaknesses. (Link)

• Sports in the metaverse: what’s next?(Link)

• A roundup of the top 10 sports metaverse builders today. (Link)

• Could Lancia's recent coupe tease signify the return of the Stratos? (Link)

• A peek into digitized jerseys for this French football club. (Link)

🎥 Media & Entertainment

• Harry Potter x Balenciaga: AI-generated entertainment future? (Link)

• Twitter’s removal of legacy blue checks a “wake-up call” to dangers of centralized social media. (Link)

• Ex-employees accuse Hilton-backed metaverse firm Everyrealm CEO Janine Yorio of creating a hostile, toxic workplace. (Link)

• How companies can save big bucks with VR metaverse platforms. (Link)

• Meebits' digital realm jumps into social media as Yuga Labs' voxel community hits Instagram, racking up 500+ followers from the get go. (Link)

• Are avatars necessary for the open metaverse? (Link)

🖼 Art

• Doodles 2 presents the Genesis Box, the ultimate package featuring two pieces of digital apparel and beta access to their next platform. (Link)

• Baz Luhrmann and Bombay Sapphire mount what could be the world’s largest mass participation AI art event.(Link)

• Is investing in metaverse art the new black? (Link)

• Gallery that dropped Beeple's 1st NFT partners with LiveArt Marketplace for all future artist drops. (Link)

• Wrigley is leaping into web3 with NFTs and its “Juicyverse” featuring art, apparel, and food NFTs. (Link)

• 3D scanning studio, VR stations, and more: An ambitious project opens metaverse’s doors in the heart of Dubai. (Link)

🤖 AI

• Microsoft unveils five AI-powered Bing prompts to boost digital marketing and SEO. (Link)

• AI and medicine could be "the most attractive new investment opportunity." (Link)

• AI-equipped road safety van nabs 239 people for phone use and seatbelt violations. (Link)

• Remote Australia’s bid for hands-on medicine via AI? (Link)

• Generative AI faces tensions in use, rights, and royalties. (Link)

• TW: Could this AI chatbot have induced suicide? (Link)

💸 Funding & Partnerships

• Daniel Alegre, a gaming industry veteran who worked at Google for 16 years and most recently as COO at Blizzard Activision, has been named CEO of Yuga Labs. (Link)

• SG payment provider Alchemy Pay receives $10M investment from DWF Labs and sits at a $400M valuation to push its South Korea expansion. (Link)

• Huobi Global partners with blockchain-powered Gala Games for further web3 initiatives. (Link)

• VTF targets RM16M in revenue and 10,000 subscriptions on its metaverse platform in 2023 on the back of strong Asian demand. (Link)

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All content on this newsletter is for informational purposes only and does not aim to serve as or replace expert investment advice.

📈 If you are a startup building in the metaverse / web3 ecosystem and are raising capital, please reach out to Sfermion. Sfermion is an investment firm focused on accelerating the emergence of the metaverse 📈

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