A New Report Reveals That Roblox’s Metaverse Is Overhyped

A new report warns brands about investing in sandbox game Roblox and other Metaverse companies, suggesting that the hype around the Metaverse concept may be over.

dubbed “Manifest Metaverse: A Realistic Look at the Next Digital FrontierThe report from measurement-driven research agency Essence suggests that, at 54.1 million daily active users for the first quarter of 2022, Roblox is small relative to companies like Twitter, which has 229 million daily active users, and Facebook, which has 1.93 billion.

It also indicates a GWI. report from 2021, a consumer insights reporting tool, to support the notion that there is some consumer confusion surrounding the idea of ​​the Metaverse. The report surveyed people in nine markets and found that only 33% understood the concept of the metaverse, 37% had heard of it but weren’t sure what it meant, and 30% had heard of it. had never heard.

Roblox users tend to be relatively young, the report continues, which states that more than half of its users are under the age of 13. However, that statistic may be out of date, e.g. Roblox reported in Q3 2021 That 50.4% of its daily active users were over the age of 13, and recent reports cite continued growth among older players.

Even if, only till November 2021 30% of Roblox players were at least 17 years old, supporting the implication that the platform’s user base is relatively young. However, it seems that this is changing. Roblox’s Q2 2022 earnings report states that Male and female 17-24 year olds The company’s fastest growing demographic.

Ultimately, the report argues that the metaverse is being built for “Gen Z, Generation Alpha, and whatever comes after.” But that’s not necessarily a bad thing, explains Saar.

“And just as Gen X didn’t stop playing video games when they grew up, these kids aren’t going to stop this behavior,” it says.

The report also addresses disagreements over whether Metaverse will embrace blockchain, cryptocurrency, and Web 3 technologies such as NFTs. It also notes security and moderation issues, which plague platforms such as Roblox and Facebook Horizons.

“Gaming platforms are already home to obscenity and harassment. Throw politics, dating, and poorly gated adult-only content into the mix and, it’s like the real world,” the report says.

Finally, the report looks at sustainability issues, noting that the underlying technologies supporting the metaverse contribute to higher greenhouse gas emissions. The metaverse also contributes to e-waste, which requires infrastructure such as servers and devices to function. As technology advances, people generally abandon their hardware to make room for new products.

Ultimately, the report argues that companies should exercise caution and consider experimenting with Metaverse activation if they have the budget, noting that it is better to experiment in the early stages than be left behind. However, this remains a complicated question for brands as the concept of the metaverse is still in its infancy, and the prospect of what is possible remains unclear.

Consumer enthusiasm for the Metaverse may also dwindle. Roblox’s Q2 2022 earnings report revealed that the company failed to meet booking expectations and saw an overall decline in user growth. because of Roblox shares fall 12% August 9, and it has continued to trend down to $46.10 USD per share, a far cry from the November high of $134.72.

Even though forecasts aren’t as optimistic as they were before, that hasn’t stopped brands like Gucci and Tommy Hilfiger from investing in the metaverse of Roblox. Trying to reach and engage with new audiences, these companies created their own Roblox worlds that include minigames and exclusive avatar gear that players can earn for completing specific objectives.

For more ways to earn free avatar gear, visit our Roblox promo codes list for August. For the music-oriented among us, you can also check out our list of Roblox music codes for August and learn how to redeem them. You want to show off your new outfit and play your latest tune, so visit our list of the best Roblox games in 2022 to read about our favorites.

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