Metaverse Should Echo Real-World, Say Magic Leap Execs: Insight

• Metaverse Success Hinges on Market Needs Alignment, Magic Leap Executives Suggest
• Shifting the Focus from Virtual to Physical
• Metaverse Investments Take a Hit, but Signs of Promise Remain
• Surviving the Hype Cycles

Metaverse Success Hinges on Market Needs Alignment, Magic Leap Executives Suggest

According to top level officials at Magic$1.08 -6.82% Leap, a well-funded mixed reality startup, the eventual launch and success of the metaverse will be contingent on its alignment with market demands. Magic Leap, which has raised a staggering $3.9 billion, recently garnered a $590 million investment from Saudi Arabia's Public Investment Fund.

Shifting the Focus from Virtual to Physical

Ross Rosenberg, CEO of Magic Leap, and Daniel Diez, its CTO, in a discussion with Venture Beat, voiced their belief that initial buzz surrounding the metaverse was too tightly concentrated on virtual realities separate from the real world. Diez emphasized to the publication, "The true capabilities of the metaverse will come to life when it's a fabric constructed of digital experiences ingrained or embedded into the physical world."

Rosenberg underscored this point, stating that customers are primarily looking to accomplish tangible tasks. The focus, he added, should not be about the metaverse, but about applying it to real-world tasks such as repair work, training, or design.

Metaverse Investments Take a Hit, but Signs of Promise Remain

In 2023, venture investments in the metaverse saw a significant drop, a trend reflective of the generally bleak year for VC investing. This slump in the category, eagerly awaiting an impetus like Apple Vision Pro, saw many metaverse platforms fighting for user attention.

Despite the struggles, signs of growth and promise persist in the industry. Metaverse tokens have seen a substantial increase, with the 45 largest tokens reaping the benefits of the commencement of the crypto bull market. However, the Metaverse Select Index (MTVS) took a hit, dipping 37.5% over the previous year.

Surviving the Hype Cycles

As Diez points out, hype cycles are a recurring and often detrimental factor in the industry. He highlights the importance of the periods between these cycles when individuals can focus and determine their next steps. Notably, Magic Leap has weathered many such cycles, even before the metaverse had associations with crypto.

The company now finds itself stepping into a metaverse market that, despite numerous challenges, appears to be as bullish as ever. Recent forecasts by IDC predict that global spending on AR/VR will skyrocket from $13.8 billion in 2022 to an estimated $50.9 billion by 2026.

Diez concludes, "If we do this right, the metaverse will not be about escapism into digital environments. Rather, it will facilitate a deeper immersion into the physical world, enabling us to perform tasks we were previously incapable of."

Edited by Jonathan Stoker