Advertisement
Tencent, NetEase stand out in the global race to the metaverse as large users and early bets on games bode well, Credit Suisse says
- China’s two largest game companies, Tencent and NetEase, will stand out in the global metaverse race, says Credit Suisse
- As the web transforms into an immersive, three dimensional world, internet platforms could also profit from virtual events, marketing campaigns
Reading Time:2 minutes
Why you can trust SCMP
2
Tencent Holdings and NetEase will stand out in the race to the metaverse, as their large population of users and early investments in related infrastructure bode well for new businesses stemming from the web’s transformation into an immersive, three-dimensional online world, Credit Suisse said.
Advertisement
China’s top internet and games publishers are among a list of 35 global stock picks identified in the Metaverse: a guide to the next gen internet report released this week by Credit Suisse. A relatively new frontier for the web, the metaverse ecosystem is made up of five components including infrastructure, hardware, content, platform, and payment mechanism, it said.
While Chinese tech companies are still catching up on metaverse compared to their US counterparts, Tencent and NetEase have already made some headways in hosting virtual events and activities.
Advertisement
These avatar-based concerts and conferences, hosted on virtual events platforms such as NetEase’s Yaotai, even presented the Hong Kong stock exchange listing ceremony of its own music streaming unit NetEase Cloud Village last November. Tencent Music hosted its own music festival “Tmeland” where participants, all represented by avatars, interacted with each other.
“The metaverse is currently still at a very nascent stage in China given tight regulations on cryptocurrency exchanges,” Credit Suisse analysts including Kenneth Fong and Ivy Ji wrote in the report.
Advertisement