Metaverse Market Sees Significant Growth with​ New Capital Alliance

The Nihon Keizai Shimbun (Nikkei) reported on the 4th that three prominent‌ companies, including Itochu Corporation and Sony Group, have formed a capital alliance with⁣ startup V (Tokyo/Shinagawa), a ‌leading producer and seller ‍of 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 the game.

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.

Understanding the Metaverse

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’s 3D Modeling Technology

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.

Efficient Avatar Creation

Roblox, a popular gaming platform among young‍ people, Zepet, a type of SNS, and VR Chat all utilize virtual space, but the avatar⁢ creation process is different. V’s technology allows for efficient creation of avatars ​for a ⁣variety of virtual spaces.

Metaverse Market Growth

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.

Industry Insights

According to industry insiders, the metaverse⁢ market is mainly driven by ​gaming and SNS services.⁤ However, some point out​ that companies⁢ operating online shopping malls or education businesses are still small in size and are having difficulties growing.