Key points:
- Meta Platforms announces testing of virtual tools for the sale of digital assets and experiences
- The news is one of the first updates into the company's metaverse endeavour
- The virtual play has the potential to revamp a struggling revenue model
From social media titan to Metaverse pioneer; the transition made by Meta Platforms (NASDAQ: FB) was surprising, but highlighted the powerful belief in the next evolution of digital communication. Albeit, we hadn’t seen much from the re-imagined company since the name change, yet it seems like the company is starting to make some headway into its new vision. Meta Platforms announced last night that the company has started to test tools for selling digital assets and experiences; all to take place within its very own virtual reality platform – Horizon Worlds – the very backbone of the company's metaverse vision.
Meta will be initially testing the tools via a handpicked set of users, creating virtual classes, games and fashion accessories within the company’s immersive platform. Users will then be able to sell their custom creations, including specialized digital spaces for users to live out the ‘metaverse reality’. In order to scale the platform effectively, the company are also testing a creator bonus by which creators will work on a retainer for the platform, consistently creating virtual worlds in order to reach the immersive, expansive vision of the metaverse; as summarised by CEO Mark Zuckerberg:
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“We want there to just be tons of awesome worlds, and in order for that to happen there needs to be a lot of creators who can support themselves and make this their job”
The virtual play comes at a crossroads for the company. Following a recent earnings report, FB stock fell the most in one-day throughout stock market history. The sell-off was a panic reaction to dwindling user growth and questionable revenue speculation. The metaverse bid, including a complete structural makeover, has the potential to open up long-term monetization opportunities at a time when the company is losing precious advertising revenue.
Whether the NFT market will prove to be nothing more than a bubble is still up for debate, but Meta Platforms is investing heavily in the concept. What could do great things for company growth could arguably sway in the opposite direction if trends lag behind Meta’s bold vision for the future of social interaction.