While the galaxy of Meta is day by day escalating to new heights even though the fact remains unhidden that the Metaverse is yet to be built. Are we excited about such a concept of Meta, or why is it that within the initial stage of this universe, Meta has attracted loads of giant tech towards itself?
It is an interesting question, but besides, it is also interesting to know that Meta doesn’t mean positive growth for anybody, or just stepping into a Meta world doesn’t mean you are a jack of all trades. There is a risky phase, and all thanks to the recent news, which proved that Meta too could go into a big downfall.
Well, these points seem doubtful yet, but further in this blog, we will clear all your doubts about what is Metaverse and the present impact of the losses revolving under the cybernetic environment of Metaverse.
The buzzword Metaverse
Generally, a virtual world built of augmented reality, virtual reality, and blockchain technology is stated to form an atmosphere called Metaverse.
Although the concept of Meta was long told by the author Neal Stephenson in his sci-fi novel ‘Snow Crash’ written long ago in 1992, it brings forth the world which has no place for a dystopian surrounding.
Since then, we have heard about such a concept, but the actual framing of a 3D virtual scene is a recent success not only for the creators but for every business person who has aimed to advance their core value of the business.
We see Nike with digital RTFKT sneakers, Microsoft acquiring Activision Blizzard, or the most excellent of all, the big blue app – Facebook- changing itself into Meta.
All such transformations are remarkable because they not only gave the company a rise in their profit but also helped the customers to look at the digital side of these companies within the virtualization environment.
Concept of Metaverse and its impact
Simply stating, Metaverse is a virtual 3D world where you can do anything which was never possible to do in the real-life surrounding. Under such an environment, you got avatars which are the user’s similar-looking replicas playing the user’s part within that structure and utilizing various tools and tricks in building the worth of their life.
Not only have that, but a wide range of fields also stepped into the digital space of Metaverse so to get benefits which,
- Provide a space for market vendors
- Provide a space for education
- Provide a space for blockchain technology
- Provide an advanced social-media platform
Isn’t it an excellent concept? Yes, it is, but unless you got some preventive measures on the challenging portion of this virtual world.
The problem is that it is harming an individual’s physical and mental peace due to people’s addiction to this Meta world. It is giving a sake of escapism to many, and such a point is used in negative terms to deploy anyone’s reputation while damaging it.
At the same time, the main challenge in Metaverse is the data protection system.
Although these factors are finding capable solutions, we recently saw another problematic situation coming the way.
Why Meta shares are falling?
While Meta was undergoing a smooth transition within a profitable format, it went through turmoil. A significant collapse in its history ever, Facebook named Meta plunged into an enormous market loss recently looping off more than 215 billion of the company’s global value.
It is confirmed by Wall Street that the Facebook parent-company Meta was advancing in its progression of making a Meta Platform Inc. headed by Mark Zuckerberg.
But it fell into a severe quarterly drop of 25.6% because of the weak revenue response, where the company’s capital market got a strong hit of 200 billion. “Meta is sacrificing its core business model for its fascination with the metaverse,” said an analyst in the research firm GlobalData, Rachel Jones.
This plummet was the most significant drop in the stock market in the past 18 years because certain factors didn’t play well with the manufacturing of the Meta into an immersive iteration of the internet of metaverse like,
- The project of the metaverse is at the initial stage and the fact that it is eating more of the company’s value than generating profit. The AR, VR units, and reality labs housing the Oculus headset that was meant to help the anchor push in metaverse showed a profound revenue loss of $3.3 billion.
- The company has been experiencing ‘headwinds’ that are affecting the advertising budget to a great extent due to inflation and supply chain disruptions.
- There was a big hit in privacy measures from Apple, making it harder for the business to look for the effectiveness of ads on Facebook and Instagram. This has thwarted Facebook’s operating progression because, under the privacy measure, developers were required to request permission in gathering data and tracking them through their apps and websites. But due to the change, users’ info is used in digital advertising operations, thus affecting privacy concerns.
- The number of active users has declined to 1.929 billion defining a massive loss. At the same time, the users are spending a reasonable extent of time watching Reels which yields lower revenue.
On the whole, the challenges of antitrust module and misinformation, slight changes of Apple, increase of rival competitors like Microsoft, Google bought video-gaming company Activision blizzard to pump-up their position in metaverse has bought this deal of deterioration in the company like never before.
Besides, Facebook CEO Mark Zuckerberg states, “If last year was about putting a stake in the ground for where we’re heading, this year is going to be about executing,”