Japanese Companies Form Alliance to Tap into Metaverse ‍Market

The⁣ Nihon Keizai Shimbun (Nikkei) reported that three Japanese companies, including Itochu Corporation and⁢ Sony Group, have formed a capital⁤ alliance with​ startup V, a ⁤Tokyo-based company that ⁢produces​ and sells characters for the metaverse.

These companies highly ​evaluated⁣ V’s ‌video technology, which draws users’ alter egos, called ‘avatars’, ⁢in three dimensions. They are currently reviewing ‍various linkages, such as selling‌ digital goods within⁢ games.

Itochu and Sony Group⁤ completed⁢ their investments in V in‌ late August, while‍ Square Enix Holdings (HD) completed ‌its investments in V in June.​ V raised approximately 240 million yen in funds,‍ but the ⁤investment ratio or amount of each⁢ company was not disclosed.

The metaverse is a three-dimensional virtual space whose use⁣ is expanding in ⁤fields such as games and social networking services (SNS). Users can freely move around ⁣the virtual ⁤space through ​their ​avatars, interact with others, and buy and ‌sell digital⁣ goods.

V is a company founded in 2019 that has outstanding capabilities in ‘3D modeling’ ‍technology, which draws avatar characters in three dimensions. It has business⁢ records with several companies, including Japan’s Daimaru ​Matsuzakaya department store ‌and NTT Communications, and⁢ has already‍ achieved a profit.

V aims⁣ to expand sales to several billion yen within​ a few years. Its ⁤technology allows for‌ efficient ​creation ⁢of avatars for a‌ variety of virtual ⁣spaces, making it a valuable asset‍ in the growing metaverse market.

According​ to a research firm’s forecast, the global metaverse market, which was worth $56.7 billion in 2023, is expected to expand ⁤to $507.8 billion in 2030. The Japanese ‍domestic market is also expected to grow to⁤ about ​2 trillion yen in 2027, an​ increase of ⁣about 7 times compared to the 2023 estimate.

The metaverse ⁣market ⁢is mainly driven by gaming and SNS services, but some point out that companies operating online shopping malls or ⁣education businesses‍ are still⁣ small in size and are having difficulties growing.

Key Players in​ the Metaverse Market

• Itochu Corporation
• Sony Group
• Square Enix Holdings (HD)
• V (Tokyo-based ​startup)

Metaverse Market‍ Forecast

• Global ‍metaverse market:‌ $56.7 billion (2023) → $507.8 billion (2030)
• Japanese‌ domestic market:‌ 2⁤ trillion yen (2027), an increase of⁤ about 7 times compared to the ⁤2023 ​estimate