The metaverse seems to be the only topic of conversation for business leaders and investors. Toby Bordelon and Jason Hall of Fool.com discuss this and other topics with Fool.com Canada senior analyst Jim Gillies in this episode of Backstage Pass from January 10.
I’m Toby Bordelon. Jim and I are on the same page here. Overrated in the current state of the market? Yes, I believe that to be true. It’s a great concept. I genuinely believe that. The metaverse, virtual reality, and related technologies intrigue me greatly. It was exaggerated.
Will this Virtual-first world Live up to the Hype?
It’s definitely overhyped, in my opinion. The reactions of the average person I spoke to were more restrained than those of those in the tech or investment industries, to put it mildly. The average person on the street, going about their daily routine as if nothing is going to happen to them.
Just as Jim says, I believe the hype to be the most important factor here, and I believe the ramp-up period is frequently much longer than anticipated. We’ve already seen this with self-driving vehicles.
Autonomous vehicles would be on the road by now if we had the technology available a decade ago. No, there isn’t.
- Not going to happen either in our lifetime, says Jim Gillies.
- Toby Bordelon: You’ve got a good point.
- Gillies: That’s right. That’s what I said.
Yes, Toby Bordelon says it’s true. That’s all right. However, there’s a strong case to be made for your position. It’s going to take time to understand the metaverse, too. Consider a few of the drawbacks to this. The equipment, I believe, is a contributing factor in the lack of widespread adoption.
A software problem exists; AI and an algorithm must be developed before any of this can take place. It was predicted that this would take some time. Because of the high cost of the hardware, this is a problem. It’s true that VR and augmented reality headsets already exist, but they’re prohibitively expensive. They’re cumbersome and limited in scope.
Overrated in the current state of the market?
If you own one, it’s most likely for gaming purposes only, or you’re a scientist conducting research into this topic. To illustrate my point, let’s take a look at Disney as an example of an organisation.
When we applied for a patent two weeks ago, we wanted to be able to use cameras and projectors to create augmented reality in their theme parks without the need for any sort of device or headset.
Take a breather here. Visitors to theme parks are already prepared to do things like strap themselves in, put restraints on, wear 3D glasses or a headset in order to enjoy the attractions.
I think Disney’s statement that the way they want to bring AR to their theme parks is to create a system where you don’t have to do this is an indication of what they believe the adoption rate will be if you have to use these cumbersome devices.
Perhaps for this reason it’s still some time off. I don’t believe that people will ever wear headsets and goggles, even while sitting at their desks at work, because they simply don’t want to. You’ll need this technology to begin immersive work, and we’re still a long way away from having it. This will take some time.
Jason Hall Disney, a place where people go to suspend disbelief, is saying, “Guys, you really shouldn’t suspend disbelief on this being the next big thing.” I love that because the irony there is just so rich. The idea of that is wonderful to me.
This is what I’ll say about consumer expectations: they may be out of this world, but I believe the industrial and design aspects of a product are underappreciated. That, I believe, is where the greatest benefit will be realised the quickest.
That isn’t getting the attention it deserves because everyone is focused on Meta, Microsoft, and other companies like that. Because there is a clear use case, I believe that companies like Unity and other software companies will be able to monetize it quickly. You can see the application in the design of a skyscraper, a car, or a movie set in 3D modelling.