Metaverse could drive up profits — but most businesses may not be ready to invest yet
Business profits have a great potential to increase in the metaverse, but there is no proven success for companies to generate great money into it now, this is a survey shown by KPMG.
“For [tech, media, and telecom] companies, this poses the classic investment dilemma: where and how much to invest, to avoid being blindsided by a metaverse pioneer, but also to help minimize the chance of plowing funds into projects that become redundant,” Said Mark Gibson.
The metaverse is a digital world where people live, work, and play. It is a place where people interact with each other in the form of virtual reality platforms.
A survey conducted by KPMG revealed that 60% of executives in the technology, media, and telecommunications industry (TMT) believe that the metaverse has the potential to increase revenue, lower operating expenses, and improve customer satisfaction. They think this will happen as more transactions move from physical to virtual spaces and as customers engage in more interactive experiences.
But there was an acknowledgment that despite the full-blown potential of the metaverse, further refinement and development is required.
“The majority of TMT executives taking part in our survey feel that the metaverse is several years from becoming a thriving commercial ecosystem,” this was discussed in a report.
70% of global companies are investing less than 5% of their technology budgets in 2023 into the development of the metaverse, which indicates that they are not prioritizing the development of this technology. Additionally, 27% of companies surveyed have not allocated any funds to the metaverse, indicating a lack of interest or belief in the potential of this emerging technology.
The report considered responses from 767 tech, media, and telecom executives at companies earning revenue of more than $250 million.
The firms were spread across a wide region of 13 countries and 5 continents.
Many in the tech, media, and telecom industries want evidence of greater metaverse usage before making the investment.
After the survey, 40% of people who gave the survey showed that there is no good use to show proper return on investment for the metaverse.
There was a survey conducted by the TMT executives who remained skeptical about the viability of the metaverse.
With 27% stating that it is “an unattainable pipe dream” 20% described it as “a fad that will never live up to its hype”
Almost nearly 50% said that their company is either “watching and waiting” or analyzing long term long-term business value before making any big investment.
Despite billions of dollars in investment from companies such as Meta and Disney, the metaverse has yet to see solid success.
Meta’s metaverse unit posted an operating loss of $13.72 billion in 2022, while Disney reportedly cut its metaverse division as part of recent layoffs.
KPMG’s survey found that many companies are underprepared for the metaverse, citing a lack of technology, high development costs, and a dearth of appropriate employee skills as the biggest barriers to investing in and embracing the metaverse.
However, there is potential for a high ROI on outcomes such as higher employee retention.
- Published By Team Nation Press News