What Happened to the Metaverse?

Appleverse v. Meta [Altucher Confidential] April 13, 2023 [WEBSITE]( | [UNSUBSCRIBE]( 6.5% of the planet is on the metaverse and it’s still pretty boring. Will Apple change that? [Hero_Image] What Happened to the Metaverse? By Chris Campbell Oil Surge Predicted... Are You Prepared? JPMorgan commodities analyst Natasha Kaneva agrees with me – she predicts the U.S. retail price has the potential to surge to a $6.20/gallon national average. If gas hits $6 per gallon, there are a lot of U.S. households who will struggle to afford the gas they need to commute to their jobs. It’s coming… And we’re just days away.. [I just revealed my #1 way to profit from oil in 2023.]( And after the recent OPEC cut announcement – there is no time to waste. [Click here to get all the details and watch my urgent video now.]( [Chris Campbell] CHRIS CAMPBELL Dear Reader, To understand Jeff Bezos’ fascination with space, you have to go back to the 1960s, when he was a kid watching the Apollo Moon landings. To understand Mark Zuckerberg's obsession with the metaverse, you only need to go back about a decade, when a small start-up called Oculus Rift caught the billionaire's eye at a trade show. It was their flagship product -- VR headsets -- that raised Zuck’s eyebrows. In 2013, you’ll recall, Facebook decided to throw down a cool $2 billion for Oculus, which was double what they paid for Instagram just two years prior. And, in recent years, Zuckerberg has become increasingly vocal about his metaversal ambitions, seeing it as the next significant computing platform that will enable new forms of communication, collaboration, and experiences in a shared digital space. He even rebranded the company to reflect that belief -- Meta. It's a risky move… especially now, since the same question is on everyone’s mind: What Happened to the Metaverse? To be sure, there’s plenty to be said about Meta outside of the Metaverse. It’s one of the biggest and most widely followed companies in the world. Since November 1, it’s up 105%, nearing its 52 week high. And yet, it reported a $4.2 billion restructuring charge. Annual costs are up 22% to $26 billion. It fired 30% of staff. And it authorized a $40 billion stock buyback. There’s also plenty to say about the metaverse, too. Two short years ago, people were shelling out the equivalent of a small town’s GDP to become the virtual next-door neighbor of Snoop Dogg. Today, those people sit on their virtual lawn and wait for the rush that never manifested. What now? Is the metaverse really dead? Not exactly. It’s just fragmented. According to a report by Metaversed, metaverse platforms grew by 15 million users in the first quarter of 2023, to a whopping 520 million monthly active users. BUT… This number comes from 100+ platforms scattered around the world. So about 6.5% of the planet is on a metaverse in some capacity, and… It’s still pretty boring. However, some might say there’s a glimmer of hope. Enter Apple. Today, our colleague, Ari Goldschmidt, joins us to drop some knowledge on Apple's latest VR move… And how it could reignite the metaverse. Read on. Urgent Notice From Paradigm CIO Zach Scheidt! [Click here for more...]( Hi, Zach Scheidt here… I’m the Chief Income Officer at Paradigm Press. With inflation raging (and showing no signs of coming to an end any time soon), almost everyone in America is feeling the pain in a big way. Which is why, several months ago, I set out on a big mission… my goal was to create a [complete, step-by-step plan to surviving and beating inflation]( one that anyone could take advantage of. Today, after hundreds of hours of research, I’m revealing all of my findings. [Simply click here now to see how to survive America’s deadly inflation crisis](. Apple’s Powerful Marketing Psychology Could Ignite the Metaverse Ari Goldschmidt Back in the mid-1970s, when Apple first got started, the personal computer market was virtually non-existent. The original devices created by Apple were expensive kits for hobbyists to assemble their own computers for experimentation. In the days before the world wide web, there wasn’t a whole lot these computers could do. Gradually, as more software was developed, it became more useful to businesses that were willing to pay high prices for anything that would improve efficiency. Although consumer and education markets for the PC existed, they were much smaller than they are today. It wasn’t until the 1990s when computers became more affordable that consumers started to buy PCs for home use. With the development of the internet, PCs went from a “nice to have” toy to a “must have” tool for every home on earth. In 2023, it seems that we are seeing a similar trend play out in the market for ‘mixed reality.’ Mixed reality, also called Extended Reality (XR) is a term that is used to refer to both Virtual Reality (VR) and Augmented Reality (AR). In short, VR consists of applications that are fully immersive, while AR refers to applications that overlay digital elements on top of the real world. Snapchat/Instagram and Apple’s Memoji filters are three of the most common forms of AR. In the early 2010s, the first modern xR products began to come to market as expensive toys for hobbyists. Over time, an abundance of software has come to market for use on these devices. Despite this, they have mostly remained toys for hobbyists. While the experience is undoubtedly fun and different, xR has yet to experience its breakthrough moment of becoming a ‘must-have’ tool. So tech giants are taking a different approach. The Shift to Business If you’ve followed the xR market over the past ten years, you’ve probably noticed the shift. Over the past 5 years, big tech companies have gradually shifted their messaging about xR to focus on business needs. Sure, there still is a focus on consumer applications of xR. But the greater emphasis has been placed on businesses. Take Facebook for example. Among the big tech companies, Facebook has been the most visible in the virtual reality space. In 2014, Facebook acquired VR headset maker Oculus for over $2bn. The product seemed like a side-project for the company until 2021 when the company announced it would be changing its name to Meta to represent its commitment to virtual reality and the metaverse. However, in its shift to Meta, Facebook was sure to emphasize the business applications of the metaverse. The rebranding was announced with a new emphasis on how business meetings would be conducted in the metaverse. The campaign was an attempt to convince businesses that xR was a ‘must have’ tool for employees. Unfortunately for Meta, businesses (and employees) were not convinced that having an avatar represent them in meetings is a must-have feature. Despite the poor reception, Meta released a Pro version of its Quest device in October of last year. The Shift to AR Meta isn’t alone in its focus on business. Rather than focusing on the consumer market, Microsoft began promoting its Hololens product to businesses in 2016. And, rather than focusing on virtual reality as Meta did initially, Microsoft chose to focus on Augmented Reality. AR represents an enticing market for Apple, Facebook, Microsoft and Google. Among other things, tech companies see AR as the natural evolution of the smartphone and envision a world where rather than being glued to screens, screens are glued to faces. The use cases for business are also much clearer. For example, AR is especially good for situations where you need to look at a screen, your hands are busy, and can’t take your eye off something. Performing surgery, fixing machinery, or engaging in combat are just some of the tasks that would benefit from AR the most. In these unique scenarios, users might be willing to overlook the fact that AR headsets are still too dorky and cumbersome to wear in public. After years of watching consumer adoption of xR limp along, tech companies are hoping that businesses will see the value. Which may explain what Apple is about to do next… Apple’s Grand Reveal After countless misfires, it seems that the age of Virtual Reality may finally be upon us. This June, the iPhone producer is expected to finally take the lid off of its long-rumored mixed reality product. The announcement is set to ignite further enthusiasm for mixed reality. However, in recent years, the marketing of mixed reality tools has shifted away from consumer applications and toward the professional market. Like Facebook and Microsoft, Apple appears to be betting on the future of mixed reality for business. The device will be able to seamlessly shift from AR to VR with the push of a button. According to reports, the forthcoming Apple device will be called ‘Reality Pro’ and is expected to cost around $3,000. Like other very high-end Apple devices (like the company’s Mac Pro and Pro Display), the device is designed to meet the needs of professionals (i.e. designers, architects, 3d graphics developers, etc.). This puts Apple’s offering in direct competition with Microsoft HoloLens 2 product that retails for $3,500-5,000. But Apple’s decision to target the professional market first is not just the result of lessons learned over years of observing other tech companies… Apple’s Dilemma More than just about any other company, Apple has a lot to lose from releasing a bad product. The company has earned a reputation over the years for developing cutting-edge products that are both thoughtfully designed and easy to use. A product misfire could potentially tarnish that stellar reputation. On the other hand, Apple can’t afford to sit around for much longer. AR devices could one day become replacements for the smartphone sales that Apple depends on. However, the company has sat on the sidelines for years, giving a small - but growing - advantage to competitors like Facebook. Apple also has its reputation to consider. Today’s AR technology is still too unrefined to live up to Apple’s reputation for product elegance. Although electronics miniaturization is making considerable progress, it still has not reached the point where AR glasses are nearly as lightweight or sleek as traditional glasses. Even with Apple’s massive research budget and seeming ability to develop magical technologies, the Reality Pro will have compromises, including a rumored wired battery pack that can be worn on the waist. This makes selling an AR headset a difficult proposition for Apple, which typically only releases fully-polished consumer-friendly products. Rather than continue to wait on the sidelines or release a device that is rough around the edges, Apple could rely on marketing savvy to generate demand for its next-generation AR products. How Apple Might Win The Metaverse At this point, Apple has such a strong brand with a loyal following that they could sell rocks for hundreds of dollars each. There are many customers out there that will buy every Apple device, regardless of price and whether they need it. This is a great thing for the metaverse at large. As I already mentioned, xR products have so far been “nice to have” gadgets. Apple’s product will be a “must have” product just by virtue of the logo. By marketing the product ‘for professionals’ Apple may also be able to get customers to overlook some of the product's flaws. This marketing tactic is basically a way for Apple to tell consumers that if they don’t like the company’s xR device, it's not Apple’s fault… unlike Airpods or iPads or iPhones, Reality Pro isn’t meant for everyone. There’s also the element of price. By releasing a product at a price that’s out of reach of most consumers, Apple is subtly priming the pump of future demand. Like luxury handbags, the exclusivity of the product could become a selling point. All of these elements give Apple some time to refine its second-generation xR technology for the mass market. In a single stroke of marketing genius, Apple will be able to kill multiple birds with one stone and justify product limitations as intentionally designed features. For the metaverse, Apple’s entry into the market can’t come soon enough. The Apple name alone could be enough to finally make the metaverse take off. Investors and entrepreneurs in the XR space stand to make a fortune in the process. We’re continuing to monitor the space and will provide updates as we discover lucrative investment opportunities. Best, Ari Goldschmidt --------------------------------------------------------------- Crypto Legend Reveals: “The Next Bitcoin” He called Bitcoin at $61. Now he says this next crypto will be even bigger. In fact, he’s targeting 25X gains over the next year alone. [>>Click here now for the details]( [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 808 Saint Paul Street, Baltimore MD 21202. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. To end your Altucher Confidential e-mail subscription and associated external offers sent from Altucher Confidential, feel free to [click here.]( Please note: the mailbox associated with this email address is not monitored, so do not reply to this message. We welcome comments or suggestions at feedback@altucherconfidential.com. 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