Metaverse Wars

In 2023, the term metaverse — a combination of “meta” and “universe” — had become a catch-all for a diverse set of expectations about online virtual worlds and the future of the internet. To some, the metaverse conjured images of a massive participatory videogame inspired by science fiction. To others, the metaverse meant the evolution of the internet into something more three-dimensional and social. In October 2021, Facebook CEO Mark Zuckerberg announced that his strategy would be “metaverse-first,” leading him to change Facebook’s name to Meta. However, executives at other companies like Epic Games, Microsoft, Nvidia, Electronic Arts, and Apple had different views of if, when, and how the metaverse would take shape. Amid the hype and uncertainty, executives and entrepreneurs had to grapple with critical questions as they strove to form their own vision and strategy for the metaverse. First, was the metaverse going to emerge in the next few years or much further down the road, if at all? Second, what would be the important use cases? Some expected gaming to emerge first, while others expected enterprises would drive adoption. Third, and perhaps most critically, would the metaverse be an open and interoperable virtual world, like the internet itself? Or would the development of the metaverse play out like the more recent models of app stores and social networks, born on the internet but maintained as distinct walled gardens? Answers to these questions would shape billions of dollars of investment, profits, and losses.