Metaverse: the world’s newest digital world created to change our visual experience through the use of augmented reality. In its report last week, JPMorgan said that the China metaverse technology had been predicted to have profound implications on many countries. This technology, if well applied, will massively change (not only) gaming but e-Commerce and advertising. If these new feet are finally achieved, it will provide an improved digital experience across different online business models.
It also can champion improved user participation in the metaverse space and increase the Average Revenue Per User (ARPU). In the JPMorgan report, the metaverse business has what it takes to triple the Chinese online gaming industry from $44 billion to $131 billion. In one of their statements, “metaverse could digitalize everything in the long term.” The bank also estimated that China could make an average of $4 trillion Total Addressable Market (TAM) from the metaverse. They went further to explain how this money can be made. They can learn to earn this money by “converting offline consumption across physical goods and services.”
Metaverse Economic Gains to China
In one of his articles, Daniel Chen, a tech analyst, stated that the digital tech industry “help internet companies tap into business services and potentially double the internet time spent.” Chen and his team had previously estimated $27 billion in Total Addressable Market (TAM) in China’s metaverse business and software services. This was against the $4T TAM assessment by JPMorgan. The bank also believes that the introduction of metaverse technology will impact the entire business, tech, telecom, and media space. The outcome will be massive.
Companies like Bilibili, Sea, Tencent, NetEase, Krafton and Bandai Namco are some of the major Chinese-based online and entertainment companies that will benefit from these advancements. There are more though, but those are the top runners judging from their stock market performance. This development is already reflected in their operations; you can see through these successes, even without looking closely.
Some Known Challenges Surrounding the Metaverse
Even with the many good metaverse news making rounds, few challenges have been noted in the Chinese metaverse space. Some of them include regulatory risks, which have recently been circulating in the metaverse technology space. Another is the affordability of the metaverse VR, and lastly, technology readiness, as in how many Chinese prospective consumers are knowledgeable about the metaverse technology.
Also, the non-availability of an Augmented Reality (AR), AI technology, and the network environment sum up some of the challenges reported to be China’s current challenges while working towards establishing a metaverse-friendly environment. Another report stated that the major players in the Chinese metaverse space are undertaking massive awareness campaigns. Even as most popular Chinese companies like NVIDIA are working towards developing a metaverse-integrated gaming platform strong enough to dominate the gaming industry, others are preparing the ground for the emergence and total domination of the metaverse world. This change will come sinner enough, but the process will always remain a work-in-progress.