Facebook, like other app developers such as Epic Games and Roblox, see the 'metaverse' as a strategic lever that could bypass Apple Store fees and present an “existential threat.”
“Metaverse” may sound like some hackneyed term from a William Gibson novel, but Facebook Inc. Chief Executive Mark Zuckerberg sounded serious last week about its potential to transform the company he co-founded — and the internet itself.
Since “Snow Crash,” Neal Stephenson’s 1992 novel about a convergence of physical, augmented and virtual reality in a shared online space, the concept has picked up steam. Venture capitalist Matthew Ball further advanced the idea in an influential 2000 essay about the inevitability of intertwined physical and virtual worlds to form a fully fledged economy with unprecedented interoperability.
During Epic’s historic antitrust courtroom war with Apple earlier this year, Epic CEO Tim Sweeney invoked the “metaverse” and Stephenson’s novel. The metaverse is “a real-time, computer-powered 3-D entertainment and social medium in which real people would go into a 3-D simulation together and have experiences of all sorts,” he explained in testimony.
Newman posited that Facebook and Microsoft in particular have accumulated vast AR and VR assets to build virtual platforms with acquisitions of properties such as Oculus and AltspaceVR and developing mixed-reality smart glasses internally. Microsoft has also aggressively plunged into cloud gaming. So far, however, they have remained niche businesses despite billions of dollars in investments and plenty of buzz.
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