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| How Facebook plans to profit by building metaverses |
Tech companies, especially Facebook, are increasingly promoting the term Metaverse, a classic sci-fi term for a virtual world where one can live, work, and play, bringing you computer glasses to a place where everything is possible is the digital world.
Mark Zuckerberg, the head of Facebook, appears to be the most optimistic about the concept.
It is not yet clear how tech companies will benefit from the Metaverse approach. But Zuckerberg spent a lot of time discussing the Metaverse, the cost of starting the business, and how you would like to use it.
In Zuckerberg's speech, he mentioned the term 20th Dimensions Festival and mentioned the ad 28 times, which is Facebook's primary business with more than $28 billion in revenue for the quarter.
Facebook sells items
Zuckerberg said Facebook's goal is to sell its glasses as cheaply as possible and focus on making money through commerce and advertising within the Metaverse.
"Our business model will not be primarily to sell highly profitable equipment or anything like that, because our job is to serve as many people as possible," he added. Therefore, we want to make everything we do as accessible as possible. It's about making it accessible to as many people as possible and thus doubling the size of the digital economy.
Facebook operates the Oculus VR division, and current Oculus VR glasses have relatively limited functionality.
But the company hopes to improve the technology so that the glasses look more like prescription glasses than a helmet. According to Zuckerberg, Metaverse will only work if the device can give users a real sense of the digital world.
Focus on selling virtual goods
Zuckerberg said metaverse advertising is an important part of Facebook's metaverse monetization strategy. But he seems more optimistic about trade in the digital world.
Many people think of some video games today as Minecraft, Roblox, and Fortnite versions of the meta-universe.
These free games make money by selling virtual items to players. Zuckerberg suggested that Facebook copied this strategy to make money in the Metaverse and make a certain percentage of each trade.
“I think digital products can be huge when people express themselves through avatars, digital clothing, digital products and apps, and digital products and apps that they carry with them,” he said.
"A lot of the Metaverse experience revolves around the ability to switch between experiences," he added. Therefore, owning your digital goods and moving them from one place to another is a huge investment for people.
Billions of dollars are spent on the Metaverse every year
The company did not provide any specific numbers. But he did not deny analysts' estimates that he could spend about $5 billion annually to develop Metaverse.
It may take several years for Zuckerberg's plan to be implemented. You have to keep in mind that we still have a few years or more to achieve the Yuan Festival. But tech companies love futuristic concepts such as artificial intelligence that is not yet fully developed.