investarry - Metaverse Gains Attention Amid Industry Doubts

Metaverse Gains Attention Amid Industry Doubts

29 February, 2024

Metaverse Gains Attention Amid Industry Doubts

South Korea's SK Telecom showcased an eye-catching air taxi mockup at the 2023 Mobile World Congress (MWC), the largest telecom industry trade show globally.

Tech companies and wireless carriers at the Barcelona expo highlighted advancements in connecting people and businesses online, focusing on virtual reality spaces known as the metaverse.

Visitor Mark Varahona, despite feeling woozy after trying the flight simulation, is still contemplating purchasing a virtual reality headset—the gateway to immersive digital worlds.

Are Plans for the Metaverse Losing Momentum?

Sales of virtual reality headsets in the U.S. fell by 2% by December 2022 compared to the previous year, according to NPD Research. Meanwhile, Reality Labs, the division behind Meta Quest headsets, reported an operating loss of €12.8 billion in 2022.

Meta had announced plans to hire 10,000 engineers in Europe to develop the metaverse. When asked for an update, the company stated, "Our expansion in Europe was always a long-term plan spanning several years. We remain committed to Europe."

"The metaverse hasn’t disappeared," said Ben Wood, principal analyst at CCS Insight. "However, there’s growing scepticism about its role, especially in the consumer space beyond obvious areas like gaming."

Understanding the Metaverse: Beyond AR and VR

Defining the metaverse remains a challenge, fueling skepticism about its purpose and scope. Unlike virtual reality (VR) or augmented reality (AR), the metaverse is a broader concept, explained Tuong Nguyen, a Gartner analyst specializing in emerging technologies.

“AR and VR are closely related to the metaverse, much like computers are related to the internet,” Nguyen said. “Think of the metaverse as the evolution of the internet, fundamentally transforming how we interact with the world.”

This raises a question: How should SK Telecom's flight simulator—a blend of immersive technology and futuristic design—be categorized within this evolving digital landscape?

5G Networks to Propel the Metaverse Forward

“Technically, it’s not the metaverse, but something similar,” said Ken Wohn, a company manager.

South Korea’s largest telecom provider partnered last year with California-based Joby Aviation to develop an electric air taxi service for the country. Wohn noted that, in the future, these air taxis could operate autonomously using high-speed 5G wireless connections.

In contrast, French telecom company Orange showcased a vivid metaverse experience. Visitors were transported to a futuristic, neon-lit world filled with lightning bolts, towering robots, and a falcon clutching a glowing green orb.

A dancing figure, animated by real-time motion capture from a live performer, added to the spectacle. While visually stunning, its practical use for consumers remained unclear.