The business landscape of the metaverse in 2022 hasn't been favorable. Meta's Reality Labs division faced a substantial loss of $13.72 billion. In the first quarter of 2023, an additional $3.99 billion loss compounded their struggles, raising concerns about potential layoffs. Horizon Worlds, Meta’s virtual domain, is grappling to sustain its activity and functionality, despite crafting a few entertaining parodies.
However, Meta isn't the lone player in the metaverse. Due to a misjudgment of the metaverse concept, many businesses are apprehensive about venturing into this virtual, interoperable space, experiencing a profound negative impact.
Amidst this turbulence, the British company Improbable, established eleven years ago, has upheld its position within the gaming industry. CEO Herman Narula stated that the company decided to reorganize, shifting its entire capital into a single arena. The objective was to transition from game creation to delivering experiences akin to games within the metaverse.
Improbable proudly announced a significant reduction in losses, dropping from $159 million in 2021 to $23 million in 2022. The company's revenue surged to $95 million, a direct result of their strategic pivot into the metaverse. In April 2022, buoyed by $150 million in new funding, the corporation introduced MSquared, a network of interconnected metaverses, supported by 16z and Softbank Vision Fund 2, with an additional $100 million contribution from blockchain corporation Elrond.
The strategy was clear: offer brands and businesses the ability to carve out their metaverse presence and events through technology compatible with blockchains and Web3 programs. Improbable boasts an array of notable clients, including soccer teams and crypto projects like Yuga Labs, the creators of the Bored Ape Yacht Club, actively participating in the metaverse called Otherside.
In the pipeline, Improbable has two exciting virtual events. The first is a Major League Baseball game watch party, and the second is a metaverse gathering for soccer enthusiasts. Narula acknowledged the metaverse's challenges but expressed a proactive approach to addressing them.
He emphasized the need for crypto projects to align with the metaverse, especially those lacking the substantial funding enjoyed by projects like Yuga. He stressed that NFT projects should embrace continuous community engagement, echoing the success demonstrated by ventures like Yuga through capital acquisition from venture capitalists and NFT sales.
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