investarry - What Is the Metaverse, Exactly?

What Is the Metaverse, Exactly?

18 March, 2024

What Is the Metaverse, Exactly?

It’s been a year and a half since Facebook announced its rebranding to Meta and its shift towards focusing on the “metaverse.” Since then, the term itself has become almost meaningless. Meta is developing a VR social platform, Roblox is enabling user-generated video games, and some companies are offering little more than fragmented game worlds with NFTs attached.

Supporters, from niche startups to tech giants, argue that this lack of clarity is due to the fact that the metaverse is still under construction and too new to define. For example, while the internet existed in the 1970s, no one could have predicted what it would ultimately become.

The Hype and Ambiguity of the Metaverse

While big tech money has increasingly flowed into generative AI, much of the marketing hype (and investment) has been funneled into selling the concept of “the metaverse.” Facebook, in particular, finds itself in a vulnerable position after Apple's decision to limit ad tracking impacted its revenue.

It’s hard to separate Facebook’s vision of a future where everyone has a digital wardrobe from its clear desire to profit from selling virtual clothes. However, Facebook isn’t the only company set to gain financially from the metaverse hype. So, with that in mind…
Seriously, What Does "Metaverse" Mean?

The term “metaverse” is vague; replacing it with “cyberspace” often doesn’t change the meaning. It doesn’t refer to a specific technology but rather a broad, speculative shift in how we interact with tech.

Defining the Metaverse: A Blend of Virtual and Augmented Realities

Broadly speaking, when companies refer to "the metaverse," they are often talking about technologies like virtual reality, which involves persistent virtual worlds that continue to exist even when you're not playing, and augmented reality, which blends digital and physical elements.

However, the term doesn't necessarily require these spaces to be accessed exclusively through VR or AR. Virtual worlds—such as parts of Fortnite, which can be accessed via PCs, game consoles, and even phones—have started calling themselves "the metaverse."