Podcast Summary
Comparing the Metaverse to Existing Platforms: Roblox and Epic Games Ecosystem: Roblox and Epic Games' ecosystem offer immersive, cohesive virtual environments with vast user engagement, providing a glimpse into the potential of the metaverse
The metaverse, a concept that has gained significant attention recently, can be understood by comparing it to existing platforms and experiences, such as Minecraft, Ready Player One, Fortnite, and Facebook's Horizon. While none of these perfectly represent the metaverse, Roblox and the Epic Games ecosystem come closest. Roblox, a platform popular among children and young adults, boasts a massive user base, extensive engagement hours, and a cohesive virtual world with a single currency and identity system. Epic Games' ecosystem, which includes Fortnite and Fortnite Creative Mode, offers a consumer-facing side with Fortnite as a battle royale game and Fortnite Creative Mode as a platform for creating and modifying virtual worlds. With the addition of Unreal-based editing later this year, Fortnite Creative Mode is set to further transform the way users can author and modify virtual content. These platforms provide a glimpse into the potential of the metaverse, offering immersive, cohesive virtual environments with vast user engagement.
Epic Games' ecosystem as the closest template to the metaverse: Epic Games' wide deployment in various use cases and interoperability with different industries positions them as the leading contender for the future of the metaverse.
Epic Games' ecosystem, which includes their low or no code platform for children and the expertise of over a million developers, is well-positioned to become the closest template to the metaverse in the future due to its wide deployment in various use cases and interoperability with different industries. Facebook, or Meta Platforms Inc., is also making significant strides towards the metaverse with their acquisitions and investments, but their current efforts are relatively modest compared to Epic Games' full stack investments. The metaverse, defined as a collective virtual shared space, is a concept that various companies are investing in to create immersive and interactive experiences. While Meta Platforms' Horizon Worlds is an effort to build an integrated virtual world platform, Epic Games' ecosystem, with its interoperability and wide reach, holds more potential for the future of the metaverse.
The next era of computing and networking: The Metaverse: The metaverse, a live 3D version of the Internet, offers a more immersive experience, built on interoperability and a vast network. Gaming industry is leading the way with 3D engines like Unity and Unreal.
The metaverse, defined as a live 3D version of the Internet, represents the next era of computing and networking, building on the interoperability and vast network of the Internet while offering a more intuitive, immersive experience. This concept is starting to take shape in the gaming industry, as the constraints of processing power and broadband speeds that once defined earlier computing and networking eras are no longer limiting factors. The metaverse is expected to offer a more seamless and interconnected experience, with 3D engines like Unity and Unreal playing a central role in producing beautiful 3D outputs. As we move towards this new era, it's important to remember the lessons from the past, such as the importance of interoperability and the utility that comes from a vast, interconnected network.
Game engines' expansion beyond gaming: Game engines, born from gaming industry's focus on real-time rendering and GPU chips development, now expand into industries like automotive and construction, enabling simulations for vehicle navigation and building design, respectively. Gaming companies' expertise drives these advancements, and IP will play a crucial role in the metaverse.
The gaming industry's focus on real-time rendering and GPU chips development, driven by the large, fast-changing, and technologically intensive nature of consumer leisure, has led to significant advancements in game engines. These engines, now mature and sophisticated, have expanded their applicability beyond gaming into industries like automotive and construction, where they enable simulations for vehicle navigation and building design, respectively. The expertise in this area primarily comes from gaming companies, as they have been at the forefront of these technological advancements. Looking forward, the role of IP in the metaverse is crucial, as people are drawn to immersive environments filled with stories and characters they love. The recent Microsoft-Activision Blizzard acquisition underscores this, as game engines serve as the building blocks for the metaverse. As we continue to explore new forms of entertainment and technological waves, those with the most resonant IP will likely have an advantage. Disney, for instance, lacks a significant gaming presence, which may hinder their ability to fully capitalize on the metaverse. The realism achievable with advanced game engines like Unreal Engine 5 is a testament to their potential. While it may be hard to imagine further improvements, the constant advancements driven by Moore's law ensure that the possibilities are endless.
The Role of Gaming Engines Expanding Beyond Rendering: Gaming engines like Unreal Engine evolve to offer more services and functionalities, including deterministic physics, AI, memory management, and real-time translation, making it easier, cheaper, and faster for creators to build better experiences, but there are limits to the metaverse due to computational power and networking.
The evolution of gaming engines, like Unreal Engine, is not just about visual improvements but also about solving more complex problems behind the scenes. These engines are becoming more like software frameworks, offering additional services and functionalities beyond rendering and logic. As they move beyond leisure and into other industries, deterministic physics, AI, memory management, and real-time translation become increasingly important. The ultimate goal is to make it easier, cheaper, and faster for creators to build better experiences. However, there are natural limits to the metaverse, including computational power and networking. While we have made significant strides in technology, we still need fundamental advances to overcome these challenges. The metaverse may not replace experiences like hiking or attending a baseball game, but it could potentially draw time away from activities like watching TV.
Exploring the Future of Metaverse with More Immersive Sensory Experiences: The future of metaverse will offer more immersive sensory experiences beyond just visual 3D rendering, including audio, haptic touch, and even smell, to create a fully immersive experience that feels more like reality.
The future of metaverse time is likely to come from our free time, and it will involve more immersive sensory experiences beyond just visual 3D rendering. The average American spends about 5.5 hours per day on entertainment, much of which is currently consumed through video. As people age, they may spend even more time consuming media due to limited mobility or lack of alternatives. However, metaverse experiences offer the potential for more engaging and interactive sensory experiences, including audio, haptic touch, and even smell. These additional sensory inputs are important for immersion and usability, but also for accurately mapping our brain and allowing us to feel more in control of our virtual selves. Devices like electromyography and external tracking cameras are essential for bringing more detail and realism to these environments, and they will likely become more common as the technology advances. Ultimately, the goal is to create a fully immersive experience that feels more like reality than a mere simulation. This is why many early adopters, including the speaker, are excited about the potential of metaverse technologies like Oculus and the Ready Player One haptic suit. However, there are also challenges to overcome, such as the potential for headaches or motion sickness, that will need to be addressed as the technology continues to evolve.
VR's Challenges to Mainstream Adoption: Despite advancements, VR technology still lacks the necessary specifications for a comfortable, engaging metaverse experience due to issues like low refresh rates, resolution, and advanced graphics. However, progress is being made and future advancements in underlying technology could revolutionize the metaverse.
The current state of Virtual Reality (VR) technology, as represented by devices like the Oculus, has significant challenges to overcome for mainstream adoption. Neal Stephenson, a pioneer in the metaverse concept, has noted that technology is path-dependent, and alternatives like AR and keyboard navigation have proven successful for millions. Current VR devices lack the necessary specifications for a comfortable user experience, such as high refresh rates, high-resolution displays, and advanced graphics. These issues, along with other constraints like battery life and sensor count, make VR a far cry from the minimum requirements for a nausea-free and engaging metaverse experience. However, progress is being made, with improvements in resolution density and processing power. Exciting advancements in the underlying technology, like quantum computing and advanced materials, hold the potential to revolutionize the metaverse, even if they remain largely invisible to end-users.
The Debate Over Real-Time Rendering and Processing: Cloud vs. Client-Side: The future of real-time rendering and processing is a complex issue with no clear winner between cloud and client-side, with trade-offs and technical barriers complicating the decision.
The future of computing power and its delivery in the context of real-time rendering and processing is a complex issue with various perspectives. Some believe in a cloud-centric approach, consolidating and distributing computing power to industrial-grade equipment, while others advocate for client-side rendering, betting on Moore's Law and the continuous improvement of devices. Technical barriers, such as the inability to efficiently split GPU power or the challenges of improving network infrastructure, complicate the issue. Edge computing, while important for data custody and regulatory compliance, may not be the primary solution to real-time rendering and processing. Ultimately, the debate comes down to trade-offs, with no clear winner between edge, local devices, or the cloud. The hope lies in decentralized computing, where dormant computing resources could be harnessed and shared, potentially eliminating the need for extensive network infrastructure.
Interoperability in the Metaverse: Making Digital Objects and Experiences Transferable and Enduring: Interoperability is crucial for a thriving metaverse economy by enabling seamless communication and work between different systems, applications, and environments. Progress towards interoperability is essential to unlock the full potential of the metaverse.
Interoperability is a crucial concept in the metaverse and the next era of computing. It refers to the ability of different systems, applications, or environments to communicate and work together seamlessly. Interoperability is essential for content creation, user rights, and competition in the digital world. It's what makes the modern world possible, from common standards like TCP/IP, SMTP, and file formats, to the World Wide Web itself. However, interoperability is lacking in the virtual world, where different platforms and applications cannot understand or communicate with each other effectively. This hinders the practical applicability and utility of everything in the metaverse. While there are no central for-profit bodies managing these standards, expanding the network effects of everything we do online by making digital objects and experiences more transferable and enduring is vital for building a thriving economy. It's important to remember that we won't have perfect interoperability, but making progress towards it will be key to unlocking the full potential of the metaverse.
Interoperability between virtual worlds and games: Focus on managing avatar data, payments, communications, and history for seamless transition between virtual worlds, and consider Ethereum for payment rails in the metaverse.
Achieving interoperability between different virtual worlds and games, like Fortnite and Roblox, is a complex challenge due to fundamental differences in their engines, coordinate systems, file formats, and aesthetics. The focus should be on managing continuity of data for avatars, entitlements, payments, communications, and history rather than moving specific objects between them. The emergence of interoperability standards will likely follow a network effect, with incentives for companies to adopt a collective utility, as demonstrated by the recent establishment of the Metaverse Standards Forum. Payments and identity are crucial aspects of commerce and value in the metaverse, with Ethereum as a potential payment rail due to its fast transaction speed. Building the necessary infrastructure for payments as a core primitive in the metaverse is essential for its growth and success.
Payment infrastructure in the metaverse: Major tech companies are competing to establish the primary payment gateway in the metaverse, with Apple's restrictive practices and Facebook's investment in its own metaverse shaping the outcome.
The efficiency and accessibility of payment rails are crucial for the success of any economy, including the metaverse. The metaverse, which is forecasted to be worth trillions of dollars by various sources in the next decade, requires a primary payment gateway. Major tech companies are vying for this role, aiming to take a fee on all economic activity in the virtual world. Apple, for instance, has been criticized for its restrictive practices, including its 30% take rate and gatekeeping of certain APIs and programs. These issues can hinder the development of the metaverse and the implementation of technologies like non-fungible tokens (NFTs). Facebook, which has experienced the challenges of building a digital business on someone else's platform, is investing heavily in its own metaverse to avoid these issues. Ultimately, the payment infrastructure of the metaverse and the economy it supports is still being shaped by the tech companies and regulators, and the outcome remains uncertain.
A new era of virtual experiences: The metaverse is a unique digital space offering immersive experiences for both consumers and industries, driven by generational shifts and practical applications.
The metaverse is not a replacement for the Internet or our current devices, but rather a quasi-successor with unique capabilities and applications. Its growth is driven by both generational shifts and increasing industrial uses. The demand for immersive virtual experiences is increasing among younger generations, as seen with the rise of platforms like Roblox. Additionally, there are already industrial applications of the metaverse, such as real-time persistent virtual simulations in cities and airports. The metaverse is not just for consumer leisure, but also for industrial and practical uses. The infrastructure for delivering the metaverse to billions of people is being developed, but it's important to remember that it won't replace everything we do online today. Instead, it will offer new possibilities and experiences.
Exploring the potential of the metaverse for various aspects of life: The metaverse offers immersive experiences through 3D simulation and graphics-based computing, driving new opportunities for business and entertainment, and potentially transforming education, healthcare, and more.
The metaverse represents a new frontier for various aspects of our lives, from education and healthcare to business and entertainment. It offers the potential for better, faster, and more immersive experiences. The utility of 3D simulation and graphics-based computing are key drivers of this evolution. The metaverse also presents opportunities for new types of businesses, especially in the realm of consumer leisure. It's important to recognize that this shift towards virtual worlds doesn't require a belief in the gamification of existence, but rather an acceptance of the potential benefits of these technologies. The metaverse could become a more active and participatory medium compared to passive forms of entertainment like television. This shift could lead to a more marketplace-driven society, where kids' creativity and entrepreneurship are monetized in virtual environments. The potential impact of the metaverse is vast, and it's worth considering how it might change the way we learn, work, and play.
Exploring the Metaverse: A New Era of Engagement: The metaverse, a virtual shared space, offers immersive experiences but brings challenges like data security, platform regulation, and potential negative impacts on mental health, especially for young people. We must learn from past eras and work together to address these issues as we shape the future of this technology.
The metaverse, a collective virtual shared space, represents a significant expansion of engagement beyond traditional forms of media like television. This engagement can take various forms, from fully immersive experiences where users control their characters, to passive participation in simulations or watching others play. However, as we've seen with the mobile, cloud, and social era, the metaverse also brings new challenges, such as data security, platform regulation, and potential negative impacts on mental health, especially for young people. As we move into this new era, it's crucial to build on the lessons we've learned from the past 15 years and work together to address these challenges. The metaverse, like any technology, has the potential to be used for good or bad, and it's up to us to shape its future.
Corporate Fortunes in the Metaverse Era: Stay adaptable in the metaverse era to thrive, as giants may die, companies may languish or survive, and new players emerge. Keep an open mind and adapt to the changing landscape.
As we move into the metaverse era, we can expect disruption and the emergence of new players in various industries. Companies that fail to adapt may die or languish, while those that adapt and grow will thrive. The digital economy's extraordinary growth will create opportunities for both displaced companies and new entrants. The five archetypes of corporate fortunes include giants that die, companies that languish but survive, companies that grow because of the digital economy, companies that are displaced but grow, and new companies that emerge. We're still in the thesis-driven stage, and the best practices don't yet exist. It's essential to keep an open mind and be willing to adapt to the changing landscape. For example, Steve Ballmer, former Microsoft CEO, laughed off the iPhone in 2007, but he also acknowledged that it could do well. The key is to have a solid strategy, but be open to new ideas and trends.
Microsoft's failure to adapt to mobile era vs Facebook's success in shifting strategies: Companies must pivot quickly to market shifts to succeed in the metaverse era. Microsoft's focus on business-led, high-priced, OS-licensing strategy failed in mobile market, while Facebook's shift to native apps doubled user engagement and led to acquisitions of successful competitors.
Companies' success in the metaverse era depends on their ability to pivot quickly and accurately in response to market shifts. Microsoft's failure to adapt to the mobile era by focusing on a business-led, keyboard-centric, high-priced, OS-licensing strategy led to their displacement in the mobile phone market. In contrast, Facebook's rapid shift from HTML 5 to native apps allowed them to double user engagement and ultimately acquire successful competitors like WhatsApp and Instagram. Today, Microsoft and Facebook are making different bets on AR, with Microsoft focusing on enterprise and Facebook on consumers, highlighting the importance of understanding and catering to different audiences and price points. A fascinating example of the metaverse in action is Epic's Matrix Awakens demo, which showcases a procedurally generated city that is entirely legible to software, allowing for real-time modifications and customizations. This demonstrates the potential of the metaverse to create complex, dynamic environments that can be easily adapted to meet the needs of users and industries.
Real-time simulation revolutionizes industries: Real-time simulation technology enhances decision-making and optimization in various industries, from airport management to city planning and building design.
Advanced simulation technology, such as real-time simulation, is revolutionizing various industries by enabling better decision-making and optimization. This technology is no longer limited to gaming or entertainment but is being applied to fields like airport management, city planning, and building design. For instance, airports can use real-time simulation to make live decisions based on potential risks and commercial opportunities. Similarly, city planners can use this technology to understand the impact of design changes on traffic flow, building height, and even temperature in parks. NVIDIA's new headquarters was designed using real-time simulation, allowing for a more environmentally friendly and enjoyable building. This technology also enables us to explore different scenarios and make informed decisions that lead to better investments. The metaverse, as discussed in Matt's essays, is an exciting trend that continues to evolve, offering endless possibilities for real-time simulation and decision-making in our world.
