Last month, during a press conference, Facebook’s CEO, Mark Zuckerberg, drew attention to the Metaverse economy. He said, “I think of the Metaverse as the next generation of the internet. Instead of the internet being an external screen we look at on our mobile phones or computer screens, it will become a part of us, and we a part of it. The internet of the future is something we can be inside.” Zuckerberg describes this new environment—the Metaverse—as “an immersive virtual environment where you can actually be present with people in a digital environment and digital society. We can think of it as an embodied internet, where you are physically present instead of just looking at it as we do now.”
Taking this vision seriously, Facebook has recently rebranded itself as Meta, signaling a future beyond the current internet. Additionally, Microsoft has created a new division called the “Metaverse Project,” according to Microsoft’s CEO, Satya Nadella. Facebook also recently launched “Horizon Workrooms,” an early embodiment of the Metaverse, paving the way for the Avatar economy. In these new “Horizon Workrooms,” employees can enter a virtual office using a personalized avatar. In this virtual room, you can see your computer, your colleagues, interact, work, and exchange ideas just as if you were in a real workroom in the company building.
The essence of the Metaverse, which is the Avatar economy, can be understood through this concept. The term “avatar” refers to a graphic representation or image of a real person, often found in user profiles on online forums, instant messaging services, chat rooms, or social networks. These images represent the personality of the blogger or micro-blogger in a two-dimensional form, or they can be a three-dimensional figure that occupies a space in the virtual world, like in Second Life.
This symbol was first created by Chip Morningstar and Joseph Romero in 1985 when they designed the online multiplayer game Habitat.
The “Avatar economy” refers to the space of business created through virtual reality and augmented reality technologies, where products and goods are sold directly to digital identities—avatars—bypassing any supply chain management or logistics related to delivering physical products or goods to the consumer’s doorstep. Ryan Gill, co-founder and CEO of Crucible, states, “Brands are sold in virtual, social, or competitive environments such as gaming spaces or open worlds, where consumers present themselves as avatars.” Essentially, it is a reimagining, production, and transformation of the world of atoms into a world of bits and pixels.
The field of the Avatar economy for virtual goods is an emerging area and a new gateway for consumption. Since consumption is an “expression of individual identity” and a matter of ethical importance, the shift in the mindset of consumption is what drives brand companies to market their goods virtually.
Samantha G. Wolfe, an assistant professor at New York University, explains, “Generation Z—those born between 1995 and 2010—consider their digital avatars an extension of themselves.” She adds, “This generation loves individuality and challenges social structures, so it makes sense that as they spend more time in virtual worlds, they want to represent themselves uniquely.”
There has been a shift in the online gaming world, which will soon extend to social media spaces, turning them into virtual markets for products and goods. This shift is particularly evident after online games transformed from being games played with others to being with others in a game. Products with 3D/AR content have shown a 94% higher conversion rate than products without 3D/AR content. The movie “Free Guy” (2021) vividly portrays the shift towards the Avatar economy or Metaverse economy.
As we conclude, it’s important to note that there are things brand companies can do to prepare for entering the Metaverse and the Avatar economy. These include considering creating their own video game, which could lead to sales of virtual goods that eventually arrive at the consumer’s home in their physical form. Additionally, companies can partner with emerging game developers and create campaigns through their virtual platform that can yield results in the company’s digital currency.
There is more to discuss.
Author : Manahel Thabet
Published: November 05, 2021
Al Bayan Newspaper
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