The metaverse may be in its infancy, but major players are already placing big bets. In October 2021, Meta revealed a $10 billion investment in its virtual reality lab segments.^[1]“Facebook Is Spending at Least $10 Billion This Year on Its Metaverse Division,” The Verge, October 25, 2021, … Continue reading In January 2022, Microsoft announced its acquisition of Activision Blizzard, a major video game publisher, for a little less than $70 billion.^[2]“Microsoft to Buy Activision in $68.7 Billion All-Cash Deal,” CNBC, January 18, 2022, https://www.cnbc.com/2022/01/18/microsoft-to-buy-activision.html. And as of October 2022, the online gaming platform and gaming creation system Roblox has raised close to $900 million in funding.^[3]“Roblox,” Crunchbase website, accessed October 2022, https://www.crunchbase.com/organization/roblox/company_financials

These and other “constructor” companies are vying to shape the architecture of the nascent metaverse industry by creating the conditions that will favor their success. What’s more, they are defining the sources of value for metaverses and what the balance of power among the different players might be. They will also shape how traditional companies looking to provide content or experiences through metaverses and capture value will benefit.

The stakes are high for traditional companies—their leaders can’t wait on the sidelines. To make the right investment decisions, they’ll need to understand the multiple visions being constructed. For each, they’ll need to track the momentum building and consider how it aligns strategically with their company. With this information, they’ll be able to choose where and how to engage.