Will Big Tech Divide the Metaverse?

Gary Ma
Exponential Era
Published in
4 min readJul 16, 2024

The metaverse industry has rapidly become one of the fastest-growing sectors, currently valued at $68 billion and projected to reach $2 to 3 trillion by 2032. This explosive growth has attracted significant investments from major companies like Meta, Microsoft, Google, and Sony. Let’s explore each of these key players, their current strategies, and what these moves mean for the future of the metaverse.

Source: Market.us

Meta, Microsoft, Google, And Sony

Meta’s current strategy focuses heavily on the metaverse through AI investments, as AI drives interactive NPCs, personalized user experiences, and dynamic content generation, exemplified in projects like Meta’s Horizon Worlds, where AI prompts create virtual environments. However, the broad focus of Meta, in which they had invested in gaming, VR and AR platforms before and are now heavily into AI, risks making Meta a “Jack of all trades, master of none.” In contrast, Microsoft’s approach with Microsoft Mesh maximizes existing products by integrating mixed reality into various sectors beyond gaming. Mesh emphasizes collaboration and productivity through immersive experiences, aiming to attract businesses and organizations to use the product.

Google’s strategy focuses on VR and AR technologies, which is highlighted by its partnership with Magic Leap. This collaboration aims to advance mixed reality experiences, leveraging Google’s expertise in search algorithms, cloud services, and mobile operating systems to create robust AR and VR solutions.

Lastly, Sony aims to penetrate the metaverse through mainly gaming, integrating blockchain and NFTs with initiatives like ‘Super-Fungible Tokens’ (SFTs). With advancements in VR hardware, Sony seeks to enhance gaming experiences and explore digital ownership via blockchain. However, their gaming-centric approach might limit their reach in other Metaverse developments.

Source: Mobupps

Fragmented Metaverse

What do these strategies mean for the Metaverse? The first concern is user privacy. While these strategies might seem harmless, they enable extensive data collection. Meta’s AI investments allow it to gather data on user interactions, preferences, and physiological responses in virtual environments, creating valuable information that can be leveraged in partnerships with other companies. Similarly, Microsoft collects data through Microsoft Teams and Azure, focusing on collaboration patterns in mixed reality via Microsoft Mesh. Google’s data collection focuses on AR and VR technologies through Magic Leap and ARCore, monitoring user interactions, and since Google has recently released Gemina, this also includes search queries in both Gemini and their search engine. Lastly, Sony collects data on gaming behaviour, virtual transactions, and digital asset ownership, using blockchain for transparency. These practices enhance user experiences and platform functionality, but they raise significant privacy, security, and regulatory concerns in the evolving metaverse.

It’s reasonable to expect the metaverse to be fragmented rather than unified under tech giants like Meta, Microsoft, Google, and Sony. Each company is pursuing distinct strategies, technologies, and platforms, leading to fragmentation. Despite some interoperability efforts, these companies will likely maintain proprietary ecosystems, resulting in competing standards and interoperability challenges for users and developers. This could create echo chambers, confining users within single platforms and limiting exposure to diverse perspectives and innovations. For example, Meta’s platform may focus on social interactions and AI-driven content, while Microsoft’s Mesh emphasizes enterprise collaboration. Google and Sony users might find themselves in immersive VR/AR or gaming-centric worlds without much crossover. This isolation can stifle innovation by reducing collaborative opportunities and cross-pollination of ideas across ecosystems.

These strategies mark a crucial juncture in digital interaction’s evolution as tech giants vie for dominance in the metaverse landscape. While Meta, Microsoft, Google, and Sony bring diverse strengths and visions to this emerging field, the path ahead remains uncertain. Are these efforts advancing towards a unified, immersive digital realm, or are they shaping isolated, self-serving ecosystems prioritising corporate agendas? As we navigate this complex future, balancing innovation with the risks posed by fragmented platforms and proprietary technologies is essential. Are these companies truly building a collaborative future, or are they competing for dominance in a digital frontier divided by their interests? Ultimately, the fate of the metaverse hinges on whether it evolves into an inclusive, interconnected space or remains fragmented by the ambitions of its most influential players.

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Gary Ma
Exponential Era

COO of @epikprime. Brands & Licensing 🦸‍♂️ || Gaming & NFTs 🎮 || Web3 & Metaverses 🌐 || Innovating with $EPIK