Opinion / What Facebook and Microsoft’s big moves tell us about the metaverse: VR and NFTs continue to rise, and the US$68.7 billion purchase of Call of Duty’s company Activision Blizzard is ‘nuclear’
- Headset makers Oculus were bought by the then-Facebook in 2014, and their latest Quest unit is a hit with more than just gamers – now Apple is said to want to play
- Users can outfit their avatars with a Louis Vuitton bag, Dior trainers or a Canada Goose parka – but will fashion maisons make their brand stories count?
This article is part of STYLE’s Inside Luxury column
No topic has both intrigued and scared the luxury industry recently as much as the metaverse. In the last two weeks alone, I had at least 20 independent discussions with different luxury brands either on how they should react to the emergence of the metaverse, or what implications it could have on strategy and leadership.
While many luxury brands are strategising, tech platform companies are already making moves that will significantly impact the future. Facebook recently renamed itself Meta Platforms, a clear signal from the world’s largest social media company that the metaverse is the next iteration of the internet and is to be taken seriously.
Facebook was an early mover in the field with the acquisition of Oculus VR in 2014. At that time, virtual reality (VR) seemed to be little more than a more immersive way to enjoy computer games. From there though it soon became critical for certain advanced engineering and simulation tasks, from designing new cars to training pilots. But until recently, success with the average consumer was limited.
The latest generation of Oculus, the Quest, has already changed that. At affordable price points, not needing a computer to operate it and with its own app store, the Quest has been a hit with customers. Apps spanning everything from games to meditation, from project management software to virtual meetings, are propelling the technology into the mainstream. Apple is rumoured to be about to jump into the market, and that will, undoubtedly, open VR to the masses. That will change everything.
This explains Microsoft’s audacious US$68.7 billion move to acquire Activision Blizzard, the game company responsible for blockbusters like Call of Duty. The move can be best described as the nuclear option. The unprecedented size of the acquisition – Microsoft’s biggest ever – catapults the company into position as a leader in gaming, and even more, as a leader in the metaverse.
