The Openmetaverse Alliance (OMA3) and Facebook’s bid to buy the metaverse are hot topics these days. We look at the Metaverse’s successes and its losses, as well as the Open Metaverse Alliance (OMA3) and Facebook’s bid to buy it. Ultimately, the Metaverse will fail to meet its lofty goals, but it will definitely happen. Buterin is pessimistic about the metaverse and its success.
While Meta has been bullish on the metaverse, it has been losing money since it started making it. Its Reality Labs division, which produces technology related to the metaverse, recently announced a second quarter loss of $2.8 billion. The company has lost $5.7 billion so far this year and nearly $10 billion in 2017. This quarter’s sales were $452 million, a reduction of nearly 35%. However, Zuckerberg remains unconcerned about the risks.
The company has lost over $18 billion since it bought Oculus in 2014 and released the first Oculus Rift in 2016. Its losses are likely to go much deeper, and the company is trying to revive the tech that makes virtual reality possible. In the meantime, losses may continue to grow in the future as the metaverse continues to become more expensive. For now, Meta is relying on the power of its advertising engine to pay for the cost of its plans for the metaverse.
Open Metaverse Alliance
The Open Metaverse Alliance for Web3 was recently launched by prominent blockchain companies and metaverse platforms. Its goal is to promote cooperation and facilitation among Web3 platforms. Members include Animoca Brands, Decentraland, Upland, and Space. The Open Metaverse Alliance aims to create a more open and inclusive metaverse. To that end, the Alliance is working on four key principles that will guide its work.
The Open Metaverse Alliance is structured as a consortium, or Decentralized Autonomous Organization. Membership includes many household names and companies developing blockchain-based games. The Alliance intends to make further announcements during the Global NFT Summit in London. While OMA3 is just getting started, it has already been joined by over 30 major corporations. While its initial goal is to foster coordination and cooperation among metaverse companies, it will soon be expanding its scope and collaborating with new members.
Facebook is trying to reinvent itself and is now calling itself Meta. The name change came after the company bought a VR headset maker called Oculus. Oculus is heavily focused on gaming. The company’s revenue has already dropped. This year’s second quarter lost more than $2 billion. And Facebook isn’t the only one who’s losing money on the metaverse.
The Open Metaverse Alliance (OMA) aims to create a decentralized, inclusive, and transparent metaverse. It is comprised of Meta, Decentraland, The Sandbox, and other technology companies. It also includes the Metaverse Standards Forum. Since Meta is a member of the MSF, it’s attempting to develop open standards for the metaverse.
Facebook’s bid for the metaverse
Facebook’s latest attempt to corner the metaverse will fail to reach the goals that it’s attempting to accomplish. While there is no definition for the metaverse, the concept is widely touted as the next big thing. Metaverse is the evolution of the internet, centered around immersive 3D worlds, online communities, virtual reality headsets, and augmented reality. This concept is so new, many people are still confused about what it actually is.
In order for Facebook to make money from the metaverse, it will need to acquire a critical mass of users. Approximately 12 to 15 million users will need to use the service to reap its benefits. But this milestone is likely to take at least three years to achieve. Meanwhile, the technology used to create the metaverse remains clunky and hinders widespread adoption. In addition, people may not want to spend a lot of time in the metaverse. While Facebook will have the financial resources to invest heavily in this venture, other companies may be able to impel users into this new environment, giving them a significant advantage over Facebook.